SAN DIEGO--(BUSINESS WIRE)--
Update on PURE’s SDC-Based Antimicrobial Food Safety Solutions Outlook
PURE Bioscience, Inc. (OTCQB: PURE), creator of the patented non-toxic silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal year ended July 31, 2018.
Summary of Results – Year End Operations
Update – Fiscal Q4 to Present
Hank R. Lambert, CEO, said “We are pleased to have closed the fiscal fourth quarter with strong momentum – and quarterly food safety revenues putting us on a $2 million annualized run rate. We are also very encouraged that fiscal Q1 is off to a strong start. Our quarterly core food safety revenue growth has grown to triple digits, which reflects our strategic focus and the game changing nature of our SDC-based solutions.â€
Lambert continued, “We are seeing expanding use by Taylor Farms of PURE Control (our direct food contact antimicrobial solution), accelerating progress in gaining adoption of our truck sanitizing solution among food transport companies, and accelerating expansion of PURE Hard Surface use in processing plants and restaurant chains.
“We have squarely addressed expenses and taken a series of meaningful steps to significantly reduce our overhead. This combination of revenue momentum and expense control lead me to reaffirm my expectation that, based upon our projections of customer adoption and rollout, we can achieve a cash flow breakeven annual revenue run rate of approximately $6 million by the end of calendar Q1 2019,†concluded Lambert.
2018 Fiscal Year-End Financial Results Conference Call
The Participant Dial-In Number for the conference call is 1-631-891-4304. Participants should dial in to the call at least five minutes before 1:30pm PDT (4:30pm ET) on Thursday, October 25, 2018. The call can also be accessed “live†online at http://public.viavid.com/index.php?id=131359.
A replay of the recorded call will be available for 90 days on the Company’s website (http://www.purebio.com/investors/events-presentations/). You can also listen to a replay of the call by dialing 1-844-512-2921 (international participants dial 1-412-317-6671) starting October 25, 2018, at 7:30pm ET through November 1, 2018 at 11:59 pm ET. Please use PIN Number 10005505.
About PURE Bioscience, Inc.
PURE Bioscience, Inc. is focused on developing and commercializing our proprietary antimicrobial products primarily in the food safety arena -- providing solutions to 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, or SDC. SDC is a broad-spectrum, non-toxic antimicrobial agent, which offers 24-hour residual protection 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 it mitigates bacterial resistance. PURE is headquartered in El Cajon, California (San Diego 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 concerning the company’s expectations, plans, business outlook or future performance, 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 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 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, 2018 and Form 10-Q for the third fiscal quarter ended April 30, 2018. 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. Consolidated Balance Sheets |
||||||||
| July 31, 2018 | July 31, 2017 | |||||||
|
Assets |
||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 851,000 | $ | 1,640,000 | ||||
| Accounts receivable | 275,000 | 297,000 | ||||||
| Inventories, net | 197,000 | 273,000 | ||||||
| Restricted cash | 75,000 | 75,000 | ||||||
| Prepaid expenses | 58,000 | 174,000 | ||||||
| Total current assets | 1,456,000 | 2,459,000 | ||||||
| Property, plant and equipment, net | 461,000 | 548,000 | ||||||
| Patents, net | 658,000 | 822,000 | ||||||
| Total assets | $ | 2,575,000 | $ | 3,829,000 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 608,000 | $ | 426,000 | ||||
| Promissory note payable | 503,000 | — | ||||||
| Accrued liabilities | 170,000 | 249,000 | ||||||
| Derivative liabilities | — | 1,853,000 | ||||||
| Total current liabilities | 1,281,000 | 2,528,000 | ||||||
| Deferred rent | 13,000 | 11,000 | ||||||
| Total liabilities | 1,294,000 | 2,539,000 | ||||||
| Commitments and contingencies (See Note 4) | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock, $0.01 par value: 5,000,000 shares authorized, no shares issued and outstanding | — | — | ||||||
| Common stock, $0.01 par value: 100,000,000 shares authorized, 68,248,158 shares issued and outstanding at July 31, 2018, and 63,093,153 shares issued and outstanding at July 31, 2017 | 683,000 | 631,000 | ||||||
| Additional paid-in capital | 117,522,000 | 110,141,000 | ||||||
| Accumulated deficit | (116,924,000 | ) | (109,482,000 | ) | ||||
| Total stockholders’ equity | 1,281,000 | 1,290,000 | ||||||
| Total liabilities and stockholders’ equity | $ | 2,575,000 | $ | 3,829,000 | ||||
|
PURE Bioscience, Inc. Consolidated Statements of Operations |
||||||||
| Year ended | ||||||||
| July 31, | ||||||||
| 2018 | 2017 | |||||||
| Net product sales | $ | 1,774,000 | $ | 1,831,000 | ||||
| Operating costs and expenses | ||||||||
| Cost of goods sold | 763,000 | 760,000 | ||||||
| Selling, general and administrative | 5,235,000 | 5,230,000 | ||||||
| Research and development | 459,000 | 779,000 | ||||||
| Share-based compensation | 2,359,000 | 1,070,000 | ||||||
| Total operating costs and expenses | 8,816,000 | 7,839,000 | ||||||
| Loss from operations | (7,042,000 | ) | (6,008,000 | ) | ||||
| Other income (expense) | ||||||||
| Inducement to exercise warrants | (876,000 | ) | — | |||||
| Change in derivative liabilities | 459,000 | (277,000 | ) | |||||
| Interest expense, net | (8,000 | ) | (5,000 | ) | ||||
| Other income, net | 25,000 | 27,000 | ||||||
| Total other expense | (400,000 | ) | (255,000 | ) | ||||
| Net loss | $ | (7,442,000 | ) | $ | (6,263,000 | ) | ||
| Basic and diluted net loss per share | $ | (0.11 | ) | $ | (0.10 | ) | ||
| Shares used in computing basic and diluted net loss per share | 67,279,124 | 63,492,406 | ||||||
|
PURE Bioscience, Inc. Consolidated Statements of Stockholders’ Equity |
||||||||||||||||||||
| Common Stock |
Additional |
Accumulated | Total Stockholders’ |
|||||||||||||||||
| Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
| Balance July 31, 2016 | 64,823,917 | $ | 649,000 | $ | 107,593,000 | $ | (103,219,000 | ) | $ | 5,023,000 | ||||||||||
| Issuance of common stock in private placements, net | 1,572,941 | 16,000 | 1,033,000 | — | 1,049,000 | |||||||||||||||
| Share-based compensation expense - stock options | — | — | 968,000 | — | 968,000 | |||||||||||||||
| Share-based compensation expense - restricted stock units | — | — | 102,000 | — | 102,000 | |||||||||||||||
| Warrant liability removed due to warrant exercise | — | — | 226,000 | — | 226,000 | |||||||||||||||
| Issuance of common stock upon vesting of restricted stock units | 150,000 | 1,000 | (1,000 | ) | — | — | ||||||||||||||
| Issuance of common stock upon exercise of warrants | 346,295 | 3,000 | 182,000 | — | 185,000 | |||||||||||||||
| Restricted stock unit cancellation | (3,800,000 | ) | (38,000 | ) | 38,000 | — | — | |||||||||||||
| Net loss | — | — | — | (6,263,000 | ) | (6,263,000 | ) | |||||||||||||
| Balance July 31, 2017 | 63,093,153 | $ | 631,000 | $ | 110,141,000 | $ | (109,482,000 | ) | $ | 1,290,000 | ||||||||||
| Share-based compensation expense - stock options | — | — | 1,525,000 | — | 1,525,000 | |||||||||||||||
| Share-based compensation expense - restricted stock units | — | — | 834,000 | — | 834,000 | |||||||||||||||
| Warrant liability removed due to warrant exercise | — | — | 1,394,000 | — | 1,394,000 | |||||||||||||||
| Issuance of common stock upon exercise of warrants | 4,914,505 | 49,000 | 2,583,000 | — | 2,632,000 | |||||||||||||||
| Stock issued for services | 240,500 | 3,000 | 169,000 | 172,000 | ||||||||||||||||
| Inducement to exercise warrants | — | — | 876,000 | — | 876,000 | |||||||||||||||
| Net loss | — | — | — | (7,442,000 | ) | (7,442,000 | ) | |||||||||||||
| Balance July 31, 2018 | 68,248,158 | $ | 683,000 | $ | 117,522,000 | $ | (116,924,000 | ) | $ | 1,281,000 | ||||||||||
|
PURE Bioscience, Inc. |