PURE Bioscience Reports Fiscal Second Quarter 2024 Financial Results
Update on Business and PURE’s SDC-Based Antimicrobial Food Safety Solutions
Summary of Results – Fiscal Second Quarter Operations
-
Net product sales were
$325,000 and$396,000 for the fiscal second quarter endedJanuary 31, 2024 and 2023, respectively. The decrease of$71,000 was attributable to decreased sales across our end user network. -
Net loss for the fiscal second quarter ended
January 31, 2024 was$1,002,000 , compared to$1,060,000 for the fiscal second quarter endedJanuary 31, 2023 . -
Net loss, excluding share-based compensation, for the fiscal second quarter ended
January 31, 2024 was$938,000 , compared to$993,000 for the fiscal second quarter endedJanuary 31, 2023 . -
Net loss per share was (
$0.01 ) for the fiscal second quarters endedJanuary 31, 2024 and 2023, respectively.
Six Months: Summary of Results of Operations
-
Net product sales were
$1,043,000 and$863,000 for the six months endedJanuary 31, 2024 and 2023, respectively. The increase of$180,000 was attributable to increased sales across our end user and distribution network. -
Net loss for the six months ended
January 31, 2024 was$1,737,000 , compared to$2,053,000 for the six months endedJanuary 31, 2023 . -
Net loss, excluding share-based compensation, for the six months ended
January 31, 2024 was$1,593,000 , compared to$1,842,000 for the six months endedJanuary 31, 2023 . -
Net loss per share was (
$0.02 ) for the six months endedJanuary 31, 2024 and 2023, respectively.
Business Update
We are excited to announce that we are beginning to make headway into new food segments as we work on expanding our footprint in the food industry.
-
Brand Advertising and Marketing.
Having a social media presence has been a focus of the newly-formed marketing committee at PURE. Our recently updated website is a helpful sales tool for lead generation, as well as a central location for customer support and questions. PURE will continue to evolve its brand as we work with a new branding firm to guide us in clearly communicating to the public that PURE’s team and chemistry are trustworthy, offering premium products that represent a complete game changer in the world of food safety and sanitization. Our targeted end user is committed to protecting their customers, employees, the environment, as well as their own brand name.
-
Trade Shows . Attending and supporting customer events and trade shows has been and will continue to be a significant part of our growth initiatives. This has proven to be an effective approach to meeting new customers and continue networking and educating the industry on our unique SDC solutions. At the end of FYQ2, PURE attended the global International Production & Processing Expo (IPPE) show for the first time. Our team was able to better understand current industry trends and solutions, as well as network and meet with key customers. In addition, the team was able to facilitate strategic meetings with key industry leaders fromNorth America and across the globe. PURE is again registered to exhibit at theInternational Association for Food Protection (IAFP) annual meeting inLong Beach, California (July 14-17, 2024 ). The IAFP annual meeting is attended by more than 3,500 of the top industry, academic and governmental food safety professionals. -
Distributor Focus and Support.
Our business strategy will be shifting focus from a direct sales model to a distributor model. This model provides a much needed expansion of coverage in all regions of
the United States . With local boots on the ground, our distributors allow PURE to expand our footprint into new market segments and customer bases as we are integrated into our distribution partners’ chemical portfolios and solution offerings. Due to the unique nature of our SDC molecule and ongoing advancement in application technologies, our distributors will be able to present their customers innovative solutions previously unavailable to them. This transition facilitates:- Broader coverage of service personnel and more regular on-site visits to customers;
- Strengthening and growing partnerships with current distributors;
- Bringing on new key distributors;
- Leveraging the PURE team to provide enhanced support from remote to on-site visits;
- Better market penetration of our brand and product awareness;
- Acceleration of our sales model; and
-
Expedited access to new market segments.
- Continued Innovation. The development of new solutions through application equipment is a large part of our current R&D efforts. New business sectors, including the dairy industry and the animal health market, have shown promising interest as we begin to explore the use of our SDC technology. Incorporating technology into our equipment solutions is another avenue through which we are enhancing our ability to support our customers’ greatest needs in food safety.
About
PURE is focused on developing and commercializing our proprietary antimicrobial products primarily in the food safety arena. We provide solutions to combat the health and environmental challenges of pathogen and hygienic control. Our technology platform is based on patented, stabilized ionic silver, and our initial products contain silver dihydrogen citrate, better known as SDC. This is a broad-spectrum, non-toxic antimicrobial agent, and formulates well with other compounds. As a platform technology, SDC is distinguished from existing products in the marketplace because of its superior efficacy, reduced toxicity and mitigation of bacterial resistance. PURE’s mailing address of
Forward-looking Statements:
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Statements in this press release, including quotes from management, concerning the Company’s expectations, plans, business outlook, future performance, future potential revenues, expected results of the Company’s marketing efforts, the execution of contracts under negotiation and any other statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are “forward-looking statements.” Forward-looking statements inherently involve risks and uncertainties that could cause our actual results to differ materially from any forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company’s failure to implement or otherwise achieve the benefits of its proposed business initiatives and plans; acceptance of the Company’s current and future products and services in the marketplace, including the Company’s ability to convert successful evaluations and tests for PURE Control and PURE
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
|
|
|
|
|
|
|
||
|
|
(Unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
557,000 |
|
|
$ |
1,095,000 |
|
Accounts receivable |
|
|
171,000 |
|
|
|
285,000 |
|
Inventories, net |
|
|
74,000 |
|
|
|
88,000 |
|
Restricted cash |
|
|
75,000 |
|
|
|
75,000 |
|
Prepaid expenses |
|
|
62,000 |
|
|
|
61,000 |
|
Total current assets |
|
|
939,000 |
|
|
|
1,604,000 |
|
Property, plant and equipment, net |
|
|
147,000 |
|
|
|
221,000 |
|
Total assets |
|
$ |
1,086,000 |
|
|
$ |
1,825,000 |
|
Liabilities and stockholders’ equity (deficiency) |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
409,000 |
|
|
$ |
422,000 |
|
Accrued liabilities |
|
|
136,000 |
|
|
|
110,000 |
|
Total current liabilities |
|
|
545,000 |
|
|
|
532,000 |
|
Long-term liabilities |
|
|
|
|
|
|
|
|
Note payable to related parties |
|
|
1,862,000 |
|
|
|
1,021,000 |
|
Total long-term liabilities |
|
|
1,862,000 |
|
|
|
1,021,000 |
|
Total liabilities |
|
|
2,407,000 |
|
|
|
1,553,000 |
|
Commitments and contingencies |
|
|
- |
|
|
|
- |
|
Stockholders’ equity (deficiency) |
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
1,119,000 |
|
|
|
1,119,000 |
|
Additional paid-in capital |
|
|
132,542,000 |
|
|
|
132,398,000 |
|
Accumulated deficit |
|
|
(134,982,000 |
) |
|
|
(133,245,000 |
) |
Total stockholders’ equity (deficiency) |
|
|
(1,321,000 |
) |
|
|
272,000 |
|
Total liabilities and stockholders’ equity (deficiency) |
|
$ |
1,086,000 |
|
|
$ |
1,825,000 |
|
|
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
Six Months Ended |
|
|
Three months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net product sales |
|
$ |
1,043,000 |
|
|
$ |
863,000 |
|
|
$ |
325,000 |
|
|
$ |
396,000 |
|
Royalty revenue |
|
|
5,000 |
|
|
|
5,000 |
|
|
|
1,000 |
|
|
|
1,000 |
|
Total revenue |
|
|
1,048,000 |
|
|
|
868,000 |
|
|
|
326,000 |
|
|
|
397,000 |
|
Cost of goods sold |
|
|
429,000 |
|
|
|
414,000 |
|
|
|
149,000 |
|
|
|
200,000 |
|
Gross profit |
|
|
619,000 |
|
|
|
454,000 |
|
|
|
177,000 |
|
|
|
197,000 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
2,138,000 |
|
|
|
2,345,000 |
|
|
|
1,065,000 |
|
|
|
1,180,000 |
|
Research and development |
|
|
156,000 |
|
|
|
153,000 |
|
|
|
76,000 |
|
|
|
75,000 |
|
Total operating costs and expenses |
|
|
2,294,000 |
|
|
|
2,498,000 |
|
|
|
1,141,000 |
|
|
|
1,255,000 |
|
Loss from operations |
|
|
(1,675,000 |
) |
|
|
(2,044,000 |
) |
|
|
(964,000 |
) |
|
|
(1,058,000 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
— |
|
|
|
(5,000 |
) |
|
|
— |
|
|
|
— |
|
Interest expense, net |
|
|
(62,000 |
) |
|
|
(4,000 |
) |
|
|
(38,000 |
) |
|
|
(2,000 |
) |
Total other income (expense) |
|
|
(62,000 |
) |
|
|
(9,000 |
) |
|
|
(38,000 |
) |
|
|
(2,000 |
) |
Net loss |
|
$ |
(1,737,000 |
) |
|
$ |
(2,053,000 |
) |
|
$ |
(1,002,000 |
) |
|
$ |
(1,060,000 |
) |
Basic and diluted net loss per share |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
Shares used in computing basic and diluted net loss per share |
|
|
111,856,473 |
|
|
|
111,356,473 |
|
|
|
111,856,473 |
|
|
|
111,356,473 |
|
|
||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statement of Stockholders’ Equity (Deficiency) |
||||||||||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
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|
Six Months Ended |
|
|
Six Months Ended |
|
||||||||||||||||||||||||||||||||||
|
|
Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
|
Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
||||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balances at beginning of period |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,398,000 |
|
|
$ |
(133,245,000 |
) |
|
$ |
272,000 |
|
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,079,000 |
|
|
$ |
(129,284,000 |
) |
|
$ |
3,909,000 |
|
Share-based compensation expense - stock options |
|
|
— |
|
|
|
— |
|
|
|
144,000 |
|
|
|
— |
|
|
|
144,000 |
|
|
|
— |
|
|
|
— |
|
|
|
169,000 |
|
|
|
— |
|
|
|
169,000 |
|
Share-based compensation expense - restricted stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
42,000 |
|
|
|
— |
|
|
|
42,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,737,000 |
) |
|
|
(1,737,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,053,000 |
) |
|
|
(2,053,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at end of period (Unaudited) |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,542,000 |
|
|
$ |
(134,982,000 |
) |
|
$ |
(1,321,000 |
) |
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,290,000 |
|
|
$ |
(131,337,000 |
) |
|
$ |
2,067,000 |
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
||||||||||||||||||||||||||||||||||
|
|
Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
|
Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
||||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balances at beginning of period (Unaudited) |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,478,000 |
|
|
$ |
(133,980,000 |
) |
|
$ |
(383,000 |
) |
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,163,000 |
|
|
$ |
(130,277,000 |
) |
|
$ |
3,000,000 |
|
Balance |
111,856,473 |
$ |
1,119,000 |
$ |
132,478,000 |
$ |
(133,980,000 |
) |
$ |
(383,000 |
) |
111,356,473 |
$ |
1,114,000 |
$ |
132,163,000 |
$ |
(130,277,000 |
) |
$ |
3,000,000 |
|||||||||||||||||||
Share-based compensation expense - stock options |
|
|
— |
|
|
|
— |
|
|
|
64,000 |
|
|
|
— |
|
|
|
64,000 |
|
|
|
— |
|
|
|
— |
|
|
|
106,000 |
|
|
|
— |
|
|
|
106,000 |
|
Share-based compensation expense - restricted stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21,000 |
|
|
|
— |
|
|
|
21,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,002,000 |
) |
|
|
(1,002,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,060,000 |
) |
|
|
(1,060,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at end of period (Unaudited) |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,542,000 |
|
|
$ |
(134,982,000 |
) |
|
$ |
(1,321,000 |
) |
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,290,000 |
|
|
$ |
(131,337,000 |
) |
|
$ |
2,067,000 |
|
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(Unaudited) |
||||||||
|
|
2024 |
|
|
2023 |
|
||
|
|
Six Months Ended |
|
|||||
|
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,737,000 |
) |
|
$ |
(2,053,000 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
144,000 |
|
|
|
211,000 |
|
Depreciation and amortization |
|
|
74,000 |
|
|
|
67,000 |
|
Gain on extinguishment of indebtedness |
|
|
— |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
114,000 |
|
|
|
45,000 |
|
Inventories |
|
|
14,000 |
|
|
|
(21,000 |
) |
Prepaid expenses |
|
|
(1,000 |
) |
|
|
(6,000 |
) |
Interest on note payable |
|
|
56,000 |
|
|
|
— |
|
Accounts payable and accrued liabilities |
|
|
13,000 |
|
|
|
(112,000 |
) |
Net cash used in operating activities |
|
|
(1,323,000 |
) |
|
|
(1,869,000 |
) |
Investing activities |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
— |
|
|
|
(37,000 |
) |
Net cash used in investing activities |
|
|
— |
|
|
|
(37,000 |
) |
Financing activities |
|
|
|
|
|
|
|
|
Net proceeds from note payable to related parties |
|
|
785,000 |
|
|
|
— |
|
Net cash provided by financing activities |
|
|
785,000 |
|
|
|
— |
|
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(538,000 |
) |
|
|
(1,906,000 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
1,170,000 |
|
|
|
3,466,000 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
632,000 |
|
|
$ |
1,560,000 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
557,000 |
|
|
$ |
1,485,000 |
|
Restricted cash |
|
$ |
75,000 |
|
|
$ |
75,000 |
|
Total cash, cash equivalents and restricted cash |
|
$ |
632,000 |
|
|
$ |
1,560,000 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information |
|
|
|
|
|
|
|
|
Cash paid for taxes |
|
$ |
— |
|
|
|
5,000 |
|
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