PURE Bioscience Reports Fiscal 2023 Second Quarter And Six-Month Financial Results

PURE Bioscience, Inc. (OTCQB: PURE), creator of the patented non-toxic silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal second quarter and six-month period ended January 31, 2023.

Q2: Summary of Results of Operations

  • Net product sales were $396,000 and $415,000 for the fiscal second quarter ended January 31, 2023 and 2022, respectively. The decrease of $19,000 was attributable to decreased sales across our distribution network.
  • Net loss for the fiscal second quarter ended January 31, 2023 was $1,060,000, compared to $702,000 for the fiscal second quarter ended January 31, 2022.
  • Net loss, excluding share-based compensation, for the fiscal second quarter ended January 31, 2023 was $933,000, compared to $522,000 for the fiscal second quarter ended January 31, 2022.
  • Net loss per share was ($0.01) for the fiscal second quarters ended January 31, 2023 and 2022, respectively.

Six Months: Summary of Results of Operations

  • Net product sales were $863,000 and $912,000 for the six months ended January 31, 2023 and 2022, respectively. The decrease of $49,000 was attributable to decreased sales across our transportation and distribution network.
  • Net loss for the six months ended January 31, 2023 was $2,053,000, compared to $1,498,000 for the six months ended January 31, 2022.
  • Net loss, excluding share-based compensation, for the six months ended January 31, 2023 was $1,842,000, compared to $1,128,000 for the six months ended January 31, 2022.
  • Net loss per share was ($0.02) for the six months ended January 31, 2023 and 2022, respectively.

Business Update

New Chief Executive Officer and President

On March 15, 2023 (the “Effective Date”), Tom Y. Lee, the President, Chief Executive Officer and member of the Board of Directors (the “Board”) of Pure Bioscience, Inc. (the “Company”), resigned as the Company’s President and Chief Executive Officer, effective as of the Effective Date. Mr. Lee will continue to serve as a member of the Board.

Additionally, the Board appointed Robert Bartlett, a member of the Board, as the Company’s President and Chief Executive Officer, effective as of the Effective Date.

Mr. Lee said, “I’m happy to announce the appointment of Robert F. Bartlett as Chief Executive Officer of PURE Bioscience. Robert is a proven leader with decades of experience in both large and small corporations. Robert has the skill set required to help the company increase revenue in new and existing market segments. With Robert on board, Tom Myers will transition from the Chief Operating Officer role to Executive Vice President of Technology and Development. This will give Mr. Myers the ability to focus on technical sales, business relationships, and research and development.”

Mr. Bartlett, said, “PURE’s sales over the last year have shown that our sales approach delivered lackluster results. My immediate focus will be to enhance our current customer base along with redirecting our sales efforts into new and existing channels that are showing growth. It’s my belief that we must have the right people in place to manage and grow our sales. Focus and accountability will be paramount as the company builds a new sales strategy.”

About PURE Bioscience, Inc.

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 is headquartered in Rancho Cucamonga, California (San Bernardino metropolitan area). Additional information on PURE is available at www.purebio.com.

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; economic and other disruptions resulting from COVID-19; 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 Hard Surface into customer orders and customers continuing to place product orders as expected and to expand their use of the Company’s products; the Company’s ability to maintain relationships with its partners and other counterparties; the Company’s ability to generate sufficient revenues and reduce its operating expenses in order to reach profitability; the Company’s ability to raise the funding required to support its continued operations and the implementation of its business plan; the ability of the Company to develop effective new products and receive required regulatory approvals for such products, including the required data and regulatory approvals required to use its SDC-based technology as a direct food contact processing aid in raw meat processing and to expand its use in OLR poultry processing; competitive factors, including customer acceptance of the Company’s SDC-based products that are typically more expensive than existing treatment chemicals; dependence upon third-party vendors, including to manufacture its products; and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission (the SEC), including its Form 10-K for the fiscal year ended July 31, 2022, Form 10-Q for the fiscal first quarter ended October 31, 2022, and Form 10-Q for the fiscal second quarter ended January 31, 2023. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

PURE Bioscience, Inc.

Condensed Consolidated Balance Sheets

 

 

January 31, 2023

July 31, 2022

 

(Unaudited)

Assets

 

 

Current assets

 

 

Cash and cash equivalents

$

1,485,000

 

$

3,391,000

 

Accounts receivable

 

156,000

 

 

201,000

 

Inventories, net

 

200,000

 

 

179,000

 

Restricted cash

 

75,000

 

 

75,000

 

Prepaid expenses

 

24,000

 

 

18,000

 

Total current assets

 

1,940,000

 

 

3,864,000

 

Property, plant and equipment, net

 

590,000

 

 

620,000

 

Total assets

$

2,530,000

 

$

4,484,000

 

Liabilities and stockholders’ equity

 

 

Current liabilities

 

 

Accounts payable

$

347,000

 

$

488,000

 

Accrued liabilities

 

116,000

 

 

87,000

 

Total current liabilities

 

463,000

 

 

575,000

 

Commitments and contingencies

 

 

Stockholders’ equity

 

 

Preferred stock, $0.01 par value: 5,000,000 shares authorized, no shares issued and outstanding

 

 

 

 

Common stock, $0.01 par value: 150,000,000 shares authorized, 111,356,473 shares issued and outstanding at January 31, 2023 and at July 31, 2022

 

1,114,000

 

 

1,114,000

 

Additional paid-in capital

 

132,290,000

 

 

132,079,000

 

Accumulated deficit

 

(131,337,000

)

 

(129,284,000

)

Total stockholders’ equity

 

2,067,000

 

 

3,909,000

 

Total liabilities and stockholders’ equity

$

2,530,000

 

$

4,484,000

 

 

PURE Bioscience, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

Six Months Ended

January 31,

Three Months Ended

January 31,

 

 

2023

2022

2023

2022

Net product sales

$

863,000

 

$

912,000

 

$

396,000

 

$

415,000

 

Royalty revenue

 

5,000

 

 

5,000

 

 

1,000

 

 

1,000

 

Total revenue

 

868,000

 

 

917,000

 

 

397,000

 

 

416,000

 

Cost of goods sold

 

414,000

 

 

354,000

 

 

200,000

 

 

182,000

 

Gross profit

 

454,000

 

 

563,000

 

 

197,000

 

 

234,000

 

Operating costs and expenses

 

 

 

 

Selling, general and administrative

 

2,345,000

 

 

2,150,000

 

 

1,180,000

 

 

1,093,000

 

Research and development

 

153,000

 

 

148,000

 

 

75,000

 

 

81,000

 

Total operating costs and expenses

 

2,498,000

 

 

2,298,000

 

 

1,255,000

 

 

1,174,000

 

Loss from operations

 

(2,044,000

)

 

(1,735,000

)

 

(1,058,000

)

 

(940,000

)

Other income (expense)

 

 

 

 

Gain on extinguishment of indebtedness, net

 

 

 

239,000

 

 

 

 

239,000

 

Other income (expense), net

 

(5,000

)

 

 

 

 

 

 

Interest expense, net

 

(4,000

)

 

(2,000

)

 

(2,000

)

 

(1,000

)

Total other income (expense)

 

(9,000

)

 

237,000

 

 

(2,000

)

 

238,000

 

Net loss

$

(2,053,000

)

$

(1,498,000

)

$

(1,060,000

)

$

(702,000

)

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

 

111,356,473

 

 

87,652,761

 

 

111,356,473

 

 

87,873,141

 

 

PURE Bioscience, Inc.

Condensed Consolidated Statement of Stockholders’ Equity

(Unaudited)

 

 

Six Months Ended January 31, 2023

Six Months Ended January 31, 2022

 

Common Stock

Additional

Paid-In

Accumulated

 

Total

Stockholders’

Common Stock

Additional

Paid-In

Accumulated

Total

Stockholders’

 

Shares

 

Amount

 

Capital

Deficit

 

Equity

 

Shares

 

Amount

 

Capital

 

Deficit

 

Equity

 

Balances at beginning of period

111,356,473

$

1,114,000

$

132,079,000

$

(129,284,000

)

$

3,909,000

 

87,223,141

$

873,000

$

128,253,000

 

$

(125,793,000

)

$

3,333,000

 

Share-based compensation expense - stock options

 

 

169,000

 

 

 

169,000

 

 

 

328,000

 

 

 

 

328,000

 

Share-based compensation expense - restricted stock units

 

 

42,000

 

 

 

42,000

 

 

 

42,000

 

 

 

 

42,000

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock for vested restricted stock units

 

 

 

 

 

 

 

650,000

 

6,000

 

(6,000

)

 

 

 

 

Net loss

 

 

 

(2,053,000

)

 

(2,053,000

)

 

 

 

 

(1,498,000

)

 

(1,498,000

)

 

 

 

 

 

 

 

 

 

 

 

Balances at end of period (Unaudited)

111,356,473

$

1,114,000

$

132,290,000

$

(131,337,000

)

$

2,067,000

 

87,873,141

$

879,000

$

128,617,000

 

$

(127,291,000

)

$

2,205,000

 

 

Three Months Ended January 31, 2023

Three Months Ended January 31, 2022

 

 

Common Stock

Additional

Paid-In

Accumulated

Total

Stockholders’

Common Stock

Additional

Paid-In

 

Accumulated

Total

Stockholders’

 

 

Shares

Amount

Capital

Deficit

Equity

Shares

Amount

Capital

Deficit

Equity

 

Balances at beginning of period (Unaudited)

111,356,473

$

1,114,000

$

132,163,000

$

(130,277,000

)

$

3,000,000

 

87,873,141

$

879,000

$

128,437,000

$

(126,589,000

)

$

2,727,000

 

Share-based compensation expense - stock options

 

 

106,000

 

 

 

106,000

 

 

 

159,000

 

 

 

159,000

 

Share-based compensation expense - restricted stock units

 

 

21,000

 

 

 

21,000

 

 

 

21,000

 

 

 

21,000

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

(1,060,000

)

 

(1,060,000

)

 

 

 

(702,000

)

 

(702,000

)

 

 

 

 

 

 

 

 

 

 

 

Balances at end of period (Unaudited)

111,356,473

$

1,114,000

$

132,290,000

$

(131,337,000

)

$

2,067,000

 

87,873,141

$

879,000

$

128,617,000

$

(127,291,000

)

$

2,205,000

 

 

PURE Bioscience, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

Six Months Ended

January 31,

 

 

2023

2022

Operating activities

 

 

Net loss

$

(2,053,000

)

$

(1,498,000

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

Share-based compensation

 

211,000

 

 

370,000

 

Depreciation and amortization

 

67,000

 

 

110,000

 

Gain on extinguishment of indebtedness

 

 

 

(239,000

)

Changes in operating assets and liabilities:

 

 

Accounts receivable

 

45,000

 

 

162,000

 

Inventories

 

(21,000

)

 

33,000

 

Prepaid expenses

 

(6,000

)

 

3,000

 

Accounts payable and accrued liabilities

 

(112,000

)

 

(147,000

)

Net cash used in operating activities

 

(1,869,000

)

 

(1,206,000

)

Investing activities

 

 

Purchases of property, plant and equipment

 

(37,000

)

 

(53,000

)

Net cash used in investing activities

 

(37,000

)

 

(53,000

)

Net decrease in cash, cash equivalents, and restricted cash

 

(1,906,000

)

 

(1,259,000

)

Cash, cash equivalents, and restricted cash at beginning of period

 

3,466,000

 

 

2,465,000

 

Cash, cash equivalents, and restricted cash at end of period

$

1,560,000

 

$

1,206,000

 

 

 

 

Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets

 

 

Cash and cash equivalents

$

1,485,000

 

$

1,131,000

 

Restricted cash

$

75,000

 

$

75,000

 

Total cash, cash equivalents and restricted cash

$

1,560,000

 

$

1,206,000

 

 

 

 

Supplemental disclosure of cash flow information

 

 

Cash paid for taxes

$

5,000

 

 

 

 

Contacts

Mark Elliott, VP Finance

PURE Bioscience, Inc.

Phone: 619-596-8600 ext.: 116

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.