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 2023 Second Quarter And Six-Month Financial Results By: PURE Bioscience, Inc. via Business Wire March 17, 2023 at 16:05 PM EDT 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 — View source version on businesswire.com: https://www.businesswire.com/news/home/20230317005083/en/Contacts Mark Elliott, VP Finance PURE Bioscience, Inc. 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PURE Bioscience Reports Fiscal 2023 Second Quarter And Six-Month Financial Results By: PURE Bioscience, Inc. via Business Wire March 17, 2023 at 16:05 PM EDT 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 — View source version on businesswire.com: https://www.businesswire.com/news/home/20230317005083/en/Contacts Mark Elliott, VP Finance PURE Bioscience, Inc. Phone: 619-596-8600 ext.: 116
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 — View source version on businesswire.com: https://www.businesswire.com/news/home/20230317005083/en/