Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries PURE Bioscience Reports Fiscal 2022 Financial Results By: PURE Bioscience, Inc. via Business Wire October 28, 2022 at 16:05 PM EDT Update on Business and PURE’s SDC-Based Antimicrobial Food Safety Solutions PURE Bioscience, Inc. (OTCQB: PURE) (“PURE,” the “Company” or “we”), creator of the patented non-toxic silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal year ended July 31, 2022. Summary of Results – Year-End Operations Net product sales were $1,813,000 and $3,698,000 for the fiscal years ended July 31, 2022 and 2021, respectively. The decrease of $1,885,000 was attributable to decreased sales across our distribution and end-user network servicing the food processing, transportation, and janitorial industries. In addition, during the fiscal year ended July 31, 2022, we recognized $40,000 in royalties, compared to $229,000 in royalties for the fiscal year ended July 31, 2021. Net loss for the fiscal year ended July 31, 2022 was ($3.5 million), compared to ($2.3 million) for the fiscal year ended July 31, 2021. Net loss, excluding share-based compensation, for the fiscal year ended July 31, 2022 was ($2.9 million), compared to ($1.3 million) for the fiscal year ended July 31, 2021. Net loss per share was ($0.04) for the fiscal year ended July 31, 2022, compared to ($0.03) per share for the fiscal year ended July 31, 2021. Net cash used in operations for the fiscal year ended July 31, 2022 was ($2.5 million), compared to ($1.2 million) for the fiscal year ended July 31, 2021. Business Update John Kasperski, Vice President of Sales, immediately began building a seasoned sales team after joining PURE to execute PURE’s sales plan. PURE’s sales team is now made up of three street sales executives, a Midwest regional manager, and two assistant vice presidents of corporate accounts. Additionally, as part of the sales plan, a premier Customer Resource Management (CRM) software license was purchased and implemented to allow the daily tracking of sales activity and related transactions. Under John’s direction, PURE has implemented a two-team sales approach to support our existing food safety clients and our new street sales team assigned to janitorial and sanitation accounts. Both teams have sales quotas and are expected to develop new business. Our street sales team has a combined total of over 25 years of experience in selling cleaners, sanitizers, and disinfectants. Their focus will be on food preparation, food service, long-term care facilities, schools, and day care centers. Having previously relied on distributors to make breakthroughs in these segments, PURE is seizing an opportunity to secure more of the janitorial and sanitation market share with its own in-house sales team. Dr. Zhinong Yan, Executive Vice President of Science and Business Development, has been active in supporting PURE’s corporate account efforts with his contacts in the industry. He also led the Company’s efforts at the Food Science Association, one of the leading groups of the International Association of Food Protection. Additionally, Dr. Yan is slated to chair two sessions at the 2023 China International Food Safety and Quality Conference. Tom Y. Lee, Chief Executive Officer, said, “The hiring of a technical sales team with proven experience has been accomplished in the Midwest region of the country. We will continue to expand regionally, as we expect increased revenue to emerge over the next two quarters as we ramp up sales efforts in food service, education, and long-term care segments. In addition, I’m pleased with the number of quality new distributors and end users that have committed to our unique SDC solution during the recent fiscal year,” concluded Lee. 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. 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. Consolidated Balance Sheets July 31, 2022 July 31, 2021 Assets Current assets Cash and cash equivalents $ 3,391,000 $ 2,390,000 Accounts receivable 201,000 368,000 Inventories, net 179,000 332,000 Restricted cash 75,000 75,000 Prepaid expenses 18,000 32,000 Total current assets 3,864,000 3,197,000 Property, plant and equipment, net 620,000 740,000 Patents, net — 366,000 Total assets $ 4,484,000 $ 4,303,000 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 488,000 $ 593,000 Accrued liabilities 87,000 138,000 Loan payable — 239,000 Total current liabilities 575,000 970,000 Total liabilities 575,000 970,000 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 July 31, 2022, and 87,223,141 shares issued and outstanding at July 31, 2021 1,114,000 873,000 Additional paid-in capital 132,079,000 128,253,000 Accumulated deficit (129,284,000 ) (125,793,000 ) Total stockholders’ equity 3,909,000 3,333,000 PURE Bioscience, Inc. Consolidated Statements of Operations Year ended July 31, 2022 2021 Net product sales $ 1,813,000 $ 3,698,000 Royalty revenue 40,000 229,000 Total revenue 1,853,000 3,927,000 Cost of goods sold 853,000 1,852,000 Gross Profit 1,000,000 2,075,000 Operating costs and expenses Selling, general and administrative 4,106,000 4,047,000 Research and development 319,000 339,000 Impairment of intangibles 299,000 — Total operating costs and expenses 4,724,000 4,386,000 Loss from operations (3,724,000 ) (2,311,000 ) Other income (expense) Interest expense, net (6,000 ) (4,000 ) Other income (expense), net — (4,000 ) Gain on extinguishment of indebtedness, net 239,000 — Total other income (expense) 233,000 (8,000 ) Net loss $ (3,491,000 ) $ (2,319,000 ) Basic and diluted net loss per share $ (0.04 ) $ (0.03 ) Shares used in computing basic and diluted net loss per share 88,835,424 87,174,312 PURE Bioscience, Inc. Consolidated Statements of Stockholders’ Equity Common Stock Additional Paid-In Accumulated Total Stockholders’ Shares Amount Capital Deficit Equity Balance July 31, 2020 87,072,951 $ 871,000 $ 127,414,000 $ (123,474,000 ) $ 4,811,000 Share-based compensation expense - stock options — — 758,000 — 758,000 Share-based compensation expense - restricted stock units — — 83,000 — 83,000 Issuance of common stock upon the exercise of stock options 150,190 2,000 (2,000 ) — — Net loss — — — (2,319,000 ) (2,319,000 ) Balance July 31, 2021 87,223,141 873,000 128,253,000 (125,793,000 ) 3,333,000 Issuance of common stock in private placements to related parties, net 23,333,332 233,000 3,267,000 — 3,500,000 Share-based compensation expense - stock options — — 465,000 — 465,000 Share-based compensation expense - restricted stock units — — 102,000 — 102,000 Issuance of common stock for vested restricted stock units 800,000 8,000 (8,000 ) — — Net loss — — — (3,491,000 ) (3,491,000 ) Balance July 31, 2022 111,356,473 $ 1,114,000 $ 132,079,000 $ (129,284,000 ) $ 3,909,000 PURE Bioscience, Inc. Consolidated Statements of Cash Flows Year Ended July 31, 2022 2021 Operating activities Net loss $ (3,491,000 ) $ (2,319,000 ) Adjustments to reconcile loss to net cash used in operating activities: Share-based compensation 567,000 841,000 Fixed assets write-off 55,000 — Depreciation and amortization 213,000 172,000 Reserve for inventory obsolescence 75,000 150,000 Impairment of intangibles 299,000 — Gain on extinguishment of indebtedness (239,000 ) — Changes in operating assets and liabilities: Accounts receivable 167,000 721,000 Inventories 78,000 65,000 Prepaid expenses 14,000 (16,000 ) Accounts payable and accrued liabilities (156,000 ) (781,000 ) Net cash used in operating activities (2,418,000 ) (1,167,000 ) Investing activities Purchases of property, plant and equipment (81,000 ) (521,000 ) Net cash used in investing activities (81,000 ) (521,000 ) Financing activities Net proceeds from the sale of common stock 3,500,000 — Net proceeds from paycheck protection program loan — 239,000 Net cash provided by financing activities 3,500,000 239,000 Net increase (decrease) in cash, cash equivalents, and restricted cash 1,001,000 (1,449,000 ) Cash, cash equivalents, and restricted cash at beginning of year 2,465,000 3,914,000 Cash, cash equivalents, and restricted cash at end of year $ 3,466,000 $ 2,465,000 Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets Cash and cash equivalents $ 3,391,000 $ 2,390,000 Restricted cash 75,000 75,000 Total cash, cash equivalents and restricted cash $ 3,466,000 $ 2,465,000 Supplemental disclosure of cash flow information Cash paid for taxes $ 2,000 $ 4,000 View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005149/en/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.
PURE Bioscience Reports Fiscal 2022 Financial Results By: PURE Bioscience, Inc. via Business Wire October 28, 2022 at 16:05 PM EDT Update on Business and PURE’s SDC-Based Antimicrobial Food Safety Solutions PURE Bioscience, Inc. (OTCQB: PURE) (“PURE,” the “Company” or “we”), creator of the patented non-toxic silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal year ended July 31, 2022. Summary of Results – Year-End Operations Net product sales were $1,813,000 and $3,698,000 for the fiscal years ended July 31, 2022 and 2021, respectively. The decrease of $1,885,000 was attributable to decreased sales across our distribution and end-user network servicing the food processing, transportation, and janitorial industries. In addition, during the fiscal year ended July 31, 2022, we recognized $40,000 in royalties, compared to $229,000 in royalties for the fiscal year ended July 31, 2021. Net loss for the fiscal year ended July 31, 2022 was ($3.5 million), compared to ($2.3 million) for the fiscal year ended July 31, 2021. Net loss, excluding share-based compensation, for the fiscal year ended July 31, 2022 was ($2.9 million), compared to ($1.3 million) for the fiscal year ended July 31, 2021. Net loss per share was ($0.04) for the fiscal year ended July 31, 2022, compared to ($0.03) per share for the fiscal year ended July 31, 2021. Net cash used in operations for the fiscal year ended July 31, 2022 was ($2.5 million), compared to ($1.2 million) for the fiscal year ended July 31, 2021. Business Update John Kasperski, Vice President of Sales, immediately began building a seasoned sales team after joining PURE to execute PURE’s sales plan. PURE’s sales team is now made up of three street sales executives, a Midwest regional manager, and two assistant vice presidents of corporate accounts. Additionally, as part of the sales plan, a premier Customer Resource Management (CRM) software license was purchased and implemented to allow the daily tracking of sales activity and related transactions. Under John’s direction, PURE has implemented a two-team sales approach to support our existing food safety clients and our new street sales team assigned to janitorial and sanitation accounts. Both teams have sales quotas and are expected to develop new business. Our street sales team has a combined total of over 25 years of experience in selling cleaners, sanitizers, and disinfectants. Their focus will be on food preparation, food service, long-term care facilities, schools, and day care centers. Having previously relied on distributors to make breakthroughs in these segments, PURE is seizing an opportunity to secure more of the janitorial and sanitation market share with its own in-house sales team. Dr. Zhinong Yan, Executive Vice President of Science and Business Development, has been active in supporting PURE’s corporate account efforts with his contacts in the industry. He also led the Company’s efforts at the Food Science Association, one of the leading groups of the International Association of Food Protection. Additionally, Dr. Yan is slated to chair two sessions at the 2023 China International Food Safety and Quality Conference. Tom Y. Lee, Chief Executive Officer, said, “The hiring of a technical sales team with proven experience has been accomplished in the Midwest region of the country. We will continue to expand regionally, as we expect increased revenue to emerge over the next two quarters as we ramp up sales efforts in food service, education, and long-term care segments. In addition, I’m pleased with the number of quality new distributors and end users that have committed to our unique SDC solution during the recent fiscal year,” concluded Lee. 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. 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. Consolidated Balance Sheets July 31, 2022 July 31, 2021 Assets Current assets Cash and cash equivalents $ 3,391,000 $ 2,390,000 Accounts receivable 201,000 368,000 Inventories, net 179,000 332,000 Restricted cash 75,000 75,000 Prepaid expenses 18,000 32,000 Total current assets 3,864,000 3,197,000 Property, plant and equipment, net 620,000 740,000 Patents, net — 366,000 Total assets $ 4,484,000 $ 4,303,000 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 488,000 $ 593,000 Accrued liabilities 87,000 138,000 Loan payable — 239,000 Total current liabilities 575,000 970,000 Total liabilities 575,000 970,000 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 July 31, 2022, and 87,223,141 shares issued and outstanding at July 31, 2021 1,114,000 873,000 Additional paid-in capital 132,079,000 128,253,000 Accumulated deficit (129,284,000 ) (125,793,000 ) Total stockholders’ equity 3,909,000 3,333,000 PURE Bioscience, Inc. Consolidated Statements of Operations Year ended July 31, 2022 2021 Net product sales $ 1,813,000 $ 3,698,000 Royalty revenue 40,000 229,000 Total revenue 1,853,000 3,927,000 Cost of goods sold 853,000 1,852,000 Gross Profit 1,000,000 2,075,000 Operating costs and expenses Selling, general and administrative 4,106,000 4,047,000 Research and development 319,000 339,000 Impairment of intangibles 299,000 — Total operating costs and expenses 4,724,000 4,386,000 Loss from operations (3,724,000 ) (2,311,000 ) Other income (expense) Interest expense, net (6,000 ) (4,000 ) Other income (expense), net — (4,000 ) Gain on extinguishment of indebtedness, net 239,000 — Total other income (expense) 233,000 (8,000 ) Net loss $ (3,491,000 ) $ (2,319,000 ) Basic and diluted net loss per share $ (0.04 ) $ (0.03 ) Shares used in computing basic and diluted net loss per share 88,835,424 87,174,312 PURE Bioscience, Inc. Consolidated Statements of Stockholders’ Equity Common Stock Additional Paid-In Accumulated Total Stockholders’ Shares Amount Capital Deficit Equity Balance July 31, 2020 87,072,951 $ 871,000 $ 127,414,000 $ (123,474,000 ) $ 4,811,000 Share-based compensation expense - stock options — — 758,000 — 758,000 Share-based compensation expense - restricted stock units — — 83,000 — 83,000 Issuance of common stock upon the exercise of stock options 150,190 2,000 (2,000 ) — — Net loss — — — (2,319,000 ) (2,319,000 ) Balance July 31, 2021 87,223,141 873,000 128,253,000 (125,793,000 ) 3,333,000 Issuance of common stock in private placements to related parties, net 23,333,332 233,000 3,267,000 — 3,500,000 Share-based compensation expense - stock options — — 465,000 — 465,000 Share-based compensation expense - restricted stock units — — 102,000 — 102,000 Issuance of common stock for vested restricted stock units 800,000 8,000 (8,000 ) — — Net loss — — — (3,491,000 ) (3,491,000 ) Balance July 31, 2022 111,356,473 $ 1,114,000 $ 132,079,000 $ (129,284,000 ) $ 3,909,000 PURE Bioscience, Inc. Consolidated Statements of Cash Flows Year Ended July 31, 2022 2021 Operating activities Net loss $ (3,491,000 ) $ (2,319,000 ) Adjustments to reconcile loss to net cash used in operating activities: Share-based compensation 567,000 841,000 Fixed assets write-off 55,000 — Depreciation and amortization 213,000 172,000 Reserve for inventory obsolescence 75,000 150,000 Impairment of intangibles 299,000 — Gain on extinguishment of indebtedness (239,000 ) — Changes in operating assets and liabilities: Accounts receivable 167,000 721,000 Inventories 78,000 65,000 Prepaid expenses 14,000 (16,000 ) Accounts payable and accrued liabilities (156,000 ) (781,000 ) Net cash used in operating activities (2,418,000 ) (1,167,000 ) Investing activities Purchases of property, plant and equipment (81,000 ) (521,000 ) Net cash used in investing activities (81,000 ) (521,000 ) Financing activities Net proceeds from the sale of common stock 3,500,000 — Net proceeds from paycheck protection program loan — 239,000 Net cash provided by financing activities 3,500,000 239,000 Net increase (decrease) in cash, cash equivalents, and restricted cash 1,001,000 (1,449,000 ) Cash, cash equivalents, and restricted cash at beginning of year 2,465,000 3,914,000 Cash, cash equivalents, and restricted cash at end of year $ 3,466,000 $ 2,465,000 Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets Cash and cash equivalents $ 3,391,000 $ 2,390,000 Restricted cash 75,000 75,000 Total cash, cash equivalents and restricted cash $ 3,466,000 $ 2,465,000 Supplemental disclosure of cash flow information Cash paid for taxes $ 2,000 $ 4,000 View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005149/en/Contacts Mark Elliott, VP Finance PURE Bioscience, Inc. Phone: 619-596-8600 ext.: 116
PURE Bioscience, Inc. (OTCQB: PURE) (“PURE,” the “Company” or “we”), creator of the patented non-toxic silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal year ended July 31, 2022. Summary of Results – Year-End Operations Net product sales were $1,813,000 and $3,698,000 for the fiscal years ended July 31, 2022 and 2021, respectively. The decrease of $1,885,000 was attributable to decreased sales across our distribution and end-user network servicing the food processing, transportation, and janitorial industries. In addition, during the fiscal year ended July 31, 2022, we recognized $40,000 in royalties, compared to $229,000 in royalties for the fiscal year ended July 31, 2021. Net loss for the fiscal year ended July 31, 2022 was ($3.5 million), compared to ($2.3 million) for the fiscal year ended July 31, 2021. Net loss, excluding share-based compensation, for the fiscal year ended July 31, 2022 was ($2.9 million), compared to ($1.3 million) for the fiscal year ended July 31, 2021. Net loss per share was ($0.04) for the fiscal year ended July 31, 2022, compared to ($0.03) per share for the fiscal year ended July 31, 2021. Net cash used in operations for the fiscal year ended July 31, 2022 was ($2.5 million), compared to ($1.2 million) for the fiscal year ended July 31, 2021. Business Update John Kasperski, Vice President of Sales, immediately began building a seasoned sales team after joining PURE to execute PURE’s sales plan. PURE’s sales team is now made up of three street sales executives, a Midwest regional manager, and two assistant vice presidents of corporate accounts. Additionally, as part of the sales plan, a premier Customer Resource Management (CRM) software license was purchased and implemented to allow the daily tracking of sales activity and related transactions. Under John’s direction, PURE has implemented a two-team sales approach to support our existing food safety clients and our new street sales team assigned to janitorial and sanitation accounts. Both teams have sales quotas and are expected to develop new business. Our street sales team has a combined total of over 25 years of experience in selling cleaners, sanitizers, and disinfectants. Their focus will be on food preparation, food service, long-term care facilities, schools, and day care centers. Having previously relied on distributors to make breakthroughs in these segments, PURE is seizing an opportunity to secure more of the janitorial and sanitation market share with its own in-house sales team. Dr. Zhinong Yan, Executive Vice President of Science and Business Development, has been active in supporting PURE’s corporate account efforts with his contacts in the industry. He also led the Company’s efforts at the Food Science Association, one of the leading groups of the International Association of Food Protection. Additionally, Dr. Yan is slated to chair two sessions at the 2023 China International Food Safety and Quality Conference. Tom Y. Lee, Chief Executive Officer, said, “The hiring of a technical sales team with proven experience has been accomplished in the Midwest region of the country. We will continue to expand regionally, as we expect increased revenue to emerge over the next two quarters as we ramp up sales efforts in food service, education, and long-term care segments. In addition, I’m pleased with the number of quality new distributors and end users that have committed to our unique SDC solution during the recent fiscal year,” concluded Lee. 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. 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. Consolidated Balance Sheets July 31, 2022 July 31, 2021 Assets Current assets Cash and cash equivalents $ 3,391,000 $ 2,390,000 Accounts receivable 201,000 368,000 Inventories, net 179,000 332,000 Restricted cash 75,000 75,000 Prepaid expenses 18,000 32,000 Total current assets 3,864,000 3,197,000 Property, plant and equipment, net 620,000 740,000 Patents, net — 366,000 Total assets $ 4,484,000 $ 4,303,000 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 488,000 $ 593,000 Accrued liabilities 87,000 138,000 Loan payable — 239,000 Total current liabilities 575,000 970,000 Total liabilities 575,000 970,000 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 July 31, 2022, and 87,223,141 shares issued and outstanding at July 31, 2021 1,114,000 873,000 Additional paid-in capital 132,079,000 128,253,000 Accumulated deficit (129,284,000 ) (125,793,000 ) Total stockholders’ equity 3,909,000 3,333,000 PURE Bioscience, Inc. Consolidated Statements of Operations Year ended July 31, 2022 2021 Net product sales $ 1,813,000 $ 3,698,000 Royalty revenue 40,000 229,000 Total revenue 1,853,000 3,927,000 Cost of goods sold 853,000 1,852,000 Gross Profit 1,000,000 2,075,000 Operating costs and expenses Selling, general and administrative 4,106,000 4,047,000 Research and development 319,000 339,000 Impairment of intangibles 299,000 — Total operating costs and expenses 4,724,000 4,386,000 Loss from operations (3,724,000 ) (2,311,000 ) Other income (expense) Interest expense, net (6,000 ) (4,000 ) Other income (expense), net — (4,000 ) Gain on extinguishment of indebtedness, net 239,000 — Total other income (expense) 233,000 (8,000 ) Net loss $ (3,491,000 ) $ (2,319,000 ) Basic and diluted net loss per share $ (0.04 ) $ (0.03 ) Shares used in computing basic and diluted net loss per share 88,835,424 87,174,312 PURE Bioscience, Inc. Consolidated Statements of Stockholders’ Equity Common Stock Additional Paid-In Accumulated Total Stockholders’ Shares Amount Capital Deficit Equity Balance July 31, 2020 87,072,951 $ 871,000 $ 127,414,000 $ (123,474,000 ) $ 4,811,000 Share-based compensation expense - stock options — — 758,000 — 758,000 Share-based compensation expense - restricted stock units — — 83,000 — 83,000 Issuance of common stock upon the exercise of stock options 150,190 2,000 (2,000 ) — — Net loss — — — (2,319,000 ) (2,319,000 ) Balance July 31, 2021 87,223,141 873,000 128,253,000 (125,793,000 ) 3,333,000 Issuance of common stock in private placements to related parties, net 23,333,332 233,000 3,267,000 — 3,500,000 Share-based compensation expense - stock options — — 465,000 — 465,000 Share-based compensation expense - restricted stock units — — 102,000 — 102,000 Issuance of common stock for vested restricted stock units 800,000 8,000 (8,000 ) — — Net loss — — — (3,491,000 ) (3,491,000 ) Balance July 31, 2022 111,356,473 $ 1,114,000 $ 132,079,000 $ (129,284,000 ) $ 3,909,000 PURE Bioscience, Inc. Consolidated Statements of Cash Flows Year Ended July 31, 2022 2021 Operating activities Net loss $ (3,491,000 ) $ (2,319,000 ) Adjustments to reconcile loss to net cash used in operating activities: Share-based compensation 567,000 841,000 Fixed assets write-off 55,000 — Depreciation and amortization 213,000 172,000 Reserve for inventory obsolescence 75,000 150,000 Impairment of intangibles 299,000 — Gain on extinguishment of indebtedness (239,000 ) — Changes in operating assets and liabilities: Accounts receivable 167,000 721,000 Inventories 78,000 65,000 Prepaid expenses 14,000 (16,000 ) Accounts payable and accrued liabilities (156,000 ) (781,000 ) Net cash used in operating activities (2,418,000 ) (1,167,000 ) Investing activities Purchases of property, plant and equipment (81,000 ) (521,000 ) Net cash used in investing activities (81,000 ) (521,000 ) Financing activities Net proceeds from the sale of common stock 3,500,000 — Net proceeds from paycheck protection program loan — 239,000 Net cash provided by financing activities 3,500,000 239,000 Net increase (decrease) in cash, cash equivalents, and restricted cash 1,001,000 (1,449,000 ) Cash, cash equivalents, and restricted cash at beginning of year 2,465,000 3,914,000 Cash, cash equivalents, and restricted cash at end of year $ 3,466,000 $ 2,465,000 Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets Cash and cash equivalents $ 3,391,000 $ 2,390,000 Restricted cash 75,000 75,000 Total cash, cash equivalents and restricted cash $ 3,466,000 $ 2,465,000 Supplemental disclosure of cash flow information Cash paid for taxes $ 2,000 $ 4,000 View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005149/en/