PURE Bioscience Reports Fiscal Third Quarter 2024 Financial Results
Update on Business and PURE’s SDC-Based Antimicrobial Food Safety Solutions
Summary of Results – Fiscal Third Quarter Operations
-
Net product sales were
$440,000 and$406,000 for the fiscal third quarter endedApril 30, 2024 and 2023, respectively. The increase of$34,000 was attributable to increased sales across our end-user network. -
Net loss for the fiscal third quarter ended
April 30, 2024 , was$857,000 , compared to$876,000 for the fiscal third quarter endedApril 30, 2023 . -
Net loss, excluding share-based compensation, for the fiscal third quarter ended
April 30, 2024 , was$825,000 , compared to$832,000 for the fiscal third quarter endedApril 30, 2023 . -
Net loss per share was (
$0.01 ) for the fiscal third quarters endedApril 30, 2024 and 2023, respectively.
Nine Months: Summary of Results of Operations
-
Net product sales were
$1,483,000 and$1,269,000 for the nine months endedApril 30, 2024 and 2023, respectively. The increase of$214,000 was attributable to increased sales across our end-user and distribution network. -
Net loss for the nine months ended
April 30, 2024 , was$2,594,000 , compared to$2,929,000 for the nine months endedApril 30, 2023 . -
Net loss, excluding share-based compensation, for the nine months ended
April 30, 2024 , was$2,418,000 , compared to$2,654,000 for the nine months endedApril 30, 2023 . -
Net loss per share was (
$0.03 ) for the nine months endedApril 30, 2024 and 2023, respectively.
Business Update
We believe the foundation for a sustainable and profitable organization is underway. Significant focus and resources have been built around our shift in business strategy from a direct sales model to a distributor model.
- Brand Advertising and Marketing. Further development of our social media presence has been a continued area of focus, and it is not going unnoticed. In the past 90 days, our platform engagement has increased by 167%, and our followers are up by nearly 70%. This significant increase in exposure to PURE’s product line and innovative solutions has led to new leads and opened the door to discussions with industry experts and potential new distribution partners. PURE’s brand is evolving as we continue working with our branding firm to guide us in clearly communicating to the public that PURE’s team is trustworthy, our premium solutions are truly innovative, and that SDC technology is a complete game changer across multiple industries. Our growing customer base is comprised of companies that value the health and safety of their customers and employees, as well as the commitment to protecting their brand and the environment.
-
Trade Shows . The PURE team continues to exhibit, attend, and support customer and industry events and trade shows as part of our continued growth initiatives. This involvement continues to be an effective approach to meeting new customers and continuing networking and educating the industry on our unique SDC solutions. In the past quarter, our team has attended or presented at multiple customer and local events, along with the Cheese Expo – a global technology event for the dairy industry, as well as the Penn State Dairy Expo. These shows and events not only help us bring a spotlight to PURE’s product line but also allow for strategic meetings with key stakeholders throughout the industry. 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 distributor program led by
Tyler Mattson , Vice President of Key Accounts and Technology, is gaining attention and interest. We believe this program will help support our necessary growth once fully rolled out, and will also provide the needed resources and expertise as we expand our business offerings and solutions. Tyler and his team are proactively working with potential distributors on our new training and education program.
-
Continued Innovation.
Our R&D efforts led by
Tom Myers , Executive Vice President of Technology and Development, continue to address unmet needs using SDC across multiple industries such as the dairy and animal health industry. We believe these initiatives driven by the need for cost savings, ever-increasing food safety standards, and new cleaning and sanitizing methods to meet corporate environmental sustainability goals will give a unique advantage to our distribution partners and the end user.
About
PURE focuses on developing and commercializing our proprietary antimicrobial products primarily in food safety. We provide solutions to combat the health and environmental challenges of pathogens 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 is
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 |
||||||||
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(Unaudited) |
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||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
442,000 |
|
|
$ |
1,095,000 |
|
Accounts receivable |
|
|
234,000 |
|
|
|
285,000 |
|
Inventories, net |
|
|
74,000 |
|
|
|
88,000 |
|
Restricted cash |
|
|
75,000 |
|
|
|
75,000 |
|
Prepaid expenses |
|
|
44,000 |
|
|
|
61,000 |
|
Total current assets |
|
|
869,000 |
|
|
|
1,604,000 |
|
Property, plant and equipment, net |
|
|
51,000 |
|
|
|
221,000 |
|
Total assets |
|
$ |
920,000 |
|
|
$ |
1,825,000 |
|
Liabilities and stockholders’ equity (deficiency) |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
506,000 |
|
|
$ |
422,000 |
|
Accrued liabilities |
|
|
160,000 |
|
|
|
110,000 |
|
Total current liabilities |
|
|
666,000 |
|
|
|
532,000 |
|
Long-term liabilities |
|
|
|
|
|
|
|
|
Note payable to related parties |
|
|
2,400,000 |
|
|
|
1,021,000 |
|
Total long-term liabilities |
|
|
2,400,000 |
|
|
|
1,021,000 |
|
Total liabilities |
|
|
3,066,000 |
|
|
|
1,553,000 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity (deficiency) |
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
1,119,000 |
|
|
|
1,119,000 |
|
Additional paid-in capital |
|
|
132,574,000 |
|
|
|
132,398,000 |
|
Accumulated deficit |
|
|
(135,839,000 |
) |
|
|
(133,245,000 |
) |
Total stockholders’ equity (deficiency) |
|
|
(2,146,000 |
) |
|
|
272,000 |
|
Total liabilities and stockholders’ equity (deficiency) |
|
$ |
920,000 |
|
|
$ |
1,825,000 |
|
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
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Nine Months Ended |
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Three months Ended |
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||||||||||
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|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net product sales |
|
$ |
1,483,000 |
|
|
$ |
1,269,000 |
|
|
$ |
440,000 |
|
|
$ |
406,000 |
|
Royalty revenue |
|
|
6,000 |
|
|
|
6,000 |
|
|
|
1,000 |
|
|
|
1,000 |
|
Total revenue |
|
|
1,489,000 |
|
|
|
1,275,000 |
|
|
|
441,000 |
|
|
|
407,000 |
|
Cost of goods sold |
|
|
612,000 |
|
|
|
625,000 |
|
|
|
183,000 |
|
|
|
211,000 |
|
Gross profit |
|
|
877,000 |
|
|
|
650,000 |
|
|
|
258,000 |
|
|
|
196,000 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
3,136,000 |
|
|
|
3,342,000 |
|
|
|
998,000 |
|
|
|
997,000 |
|
Research and development |
|
|
233,000 |
|
|
|
227,000 |
|
|
|
77,000 |
|
|
|
74,000 |
|
Total operating costs and expenses |
|
|
3,369,000 |
|
|
|
3,569,000 |
|
|
|
1,075,000 |
|
|
|
1,071,000 |
|
Loss from operations |
|
|
(2,492,000 |
) |
|
|
(2,919,000 |
) |
|
|
(817,000 |
) |
|
|
(875,000 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
1,000 |
|
|
|
(4,000 |
) |
|
|
1,000 |
|
|
|
1,000 |
|
Interest expense, net |
|
|
(103,000 |
) |
|
|
(6,000 |
) |
|
|
(41,000 |
) |
|
|
(2,000 |
) |
Total other income (expense) |
|
|
(102,000 |
) |
|
|
(10,000 |
) |
|
|
(40,000 |
) |
|
|
(1,000 |
) |
Net loss |
|
$ |
(2,594,000 |
) |
|
$ |
(2,929,000 |
) |
|
$ |
(857,000 |
) |
|
$ |
(876,000 |
) |
Basic and diluted net loss per share |
|
$ |
(0.03 |
) |
|
$ |
(0.03 |
) |
|
$ |
(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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Nine Months Ended |
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|
Nine Months Ended |
|
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Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
|
Common Stock |
|
|
Additional
|
|
|
Accumulated |
|
|
Total
|
|
||||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Equity |
|
||||||||||
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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 |
|
|
— |
|
|
|
— |
|
|
|
176,000 |
|
|
|
— |
|
|
|
176,000 |
|
|
|
— |
|
|
|
— |
|
|
|
213,000 |
|
|
|
— |
|
|
|
213,000 |
|
Share-based compensation expense - restricted stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
62,000 |
|
|
|
— |
|
|
|
62,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,594,000 |
) |
|
|
(2,594,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,929,000 |
) |
|
|
(2,929,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at end of period (Unaudited) |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,574,000 |
|
|
$ |
(135,839,000 |
) |
|
$ |
(2,146,000 |
) |
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,354,000 |
|
|
$ |
(132,213,000 |
) |
|
$ |
1,255,000 |
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
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 |
|
|
$ |
132,542,000 |
|
|
$ |
(134,982,000 |
) |
|
$ |
(1,321,000 |
) |
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,290,000 |
|
|
$ |
(131,337,000 |
) |
|
$ |
2,067,000 |
|
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense - stock options |
|
|
— |
|
|
|
— |
|
|
|
32,000 |
|
|
|
— |
|
|
|
32,000 |
|
|
|
— |
|
|
|
— |
|
|
|
44,000 |
|
|
|
— |
|
|
|
44,000 |
|
Share-based compensation expense - restricted stock units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,000 |
|
|
|
— |
|
|
|
20,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(857,000 |
) |
|
|
(857,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(876,000 |
) |
|
|
(876,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at end of period (Unaudited) |
|
|
111,856,473 |
|
|
$ |
1,119,000 |
|
|
$ |
132,574,000 |
|
|
$ |
(135,839,000 |
) |
|
$ |
(2,146,000 |
) |
|
|
111,356,473 |
|
|
$ |
1,114,000 |
|
|
$ |
132,354,000 |
|
|
$ |
(132,213,000 |
) |
|
$ |
1,255,000 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Nine Months Ended |
|
|||||
|
|
|
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,594,000 |
) |
|
$ |
(2,929,000 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
176,000 |
|
|
|
275,000 |
|
Depreciation and amortization |
|
|
110,000 |
|
|
|
102,000 |
|
Impairment of computer software |
|
|
60,000 |
|
|
|
— |
|
Reserve for inventory obsolescence |
|
|
— |
|
|
|
40,000 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
51,000 |
|
|
|
13,000 |
|
Inventories |
|
|
14,000 |
|
|
|
(10,000 |
) |
Prepaid expenses |
|
|
17,000 |
|
|
|
(19,000 |
) |
Interest on note payable |
|
|
94,000 |
|
|
|
— |
|
Accounts payable and accrued liabilities |
|
|
134,000 |
|
|
|
(6,000 |
) |
Net cash used in operating activities |
|
|
(1,938,000 |
) |
|
|
(2,534,000 |
) |
Investing activities |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
— |
|
|
|
(76,000 |
) |
Net cash used in investing activities |
|
|
— |
|
|
|
(76,000 |
) |
Financing activities |
|
|
|
|
|
|
|
|
Net proceeds from note payable to related parties |
|
|
1,285,000 |
|
|
|
— |
|
Net cash provided by financing activities |
|
|
1,285,000 |
|
|
|
— |
|
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(653,000 |
) |
|
|
(2,610,000 |
) |
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 |
|
$ |
517,000 |
|
|
$ |
856,000 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
442,000 |
|
|
$ |
781,000 |
|
Restricted cash |
|
$ |
75,000 |
|
|
$ |
75,000 |
|
Total cash, cash equivalents and restricted cash |
|
$ |
517,000 |
|
|
$ |
856,000 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information |
|
|
|
|
|
|
|
|
Cash paid for taxes |
|
$ |
— |
|
|
|
5,000 |
|
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