SAN DIEGO--(BUSINESS WIRE)--
Update on SDC-Based Antimicrobial Food Safety Solutions
PURE Bioscience, Inc. (OTCQB: PURE), creator of the patented non-toxic silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal third quarter and nine-month period ended April 30, 2019.
Q3: Summary of Results of Operations
Nine Months: Summary of Results of Operations
Hank R. Lambert, CEO, said, “FQ3 results were negatively impacted by customer implementation delays. I’m pleased to note that the beginning of FQ4 is off to a strong start. We look forward to expanding use of PURE Control® (our direct food contact antimicrobial solution) by the leading produce processor – and accelerating progress in adoption of our truck sanitizing solution among two of the top five food transport companies.
“We are making meaningful inroads on our mission to protect people and protect company brands by providing superior, leading edge food safety solutions to prevent foodborne illness,†concluded Lambert.
2019 Fiscal Third Quarter 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 June 13, 2019. The call can also be accessed “live†online at http://public.viavid.com/index.php?id=134416.
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 June 13, 2019, at 7:30pm ET through June 20, 2019 at 11:59 pm ET. Please use PIN Number 10006753.
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 second fiscal quarter ended January 31, 2019. 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.
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PURE Bioscience, Inc. Condensed Consolidated Balance Sheets |
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| April 30, 2019 | July 31, 2018 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 340,000 | $ | 851,000 | ||||
| Accounts receivable | 134,000 | 275,000 | ||||||
| Inventories, net | 195,000 | 197,000 | ||||||
| Restricted cash | 75,000 | 75,000 | ||||||
| Prepaid expenses | 28,000 | 58,000 | ||||||
| Total current assets | 772,000 | 1,456,000 | ||||||
| Property, plant and equipment, net | 388,000 | 461,000 | ||||||
| Patents, net | 550,000 | 658,000 | ||||||
| Total assets | $ | 1,710,000 | $ | 2,575,000 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 386,000 | $ | 608,000 | ||||
| Accrued liabilities | 137,000 | 170,000 | ||||||
| Promissory note payable | — | 503,000 | ||||||
| Total current liabilities | 523,000 | 1,281,000 | ||||||
| Deferred rent | 7,000 | 13,000 | ||||||
| Total liabilities | 530,000 | 1,294,000 | ||||||
| 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: 100,000,000 shares authorized, 74,113,371 shares issued and outstanding at April 30, 2019, and 68,248,158 shares issued and outstanding at July 31, 2018 | 741,000 | 683,000 | ||||||
| Additional paid-in capital | 123,098,000 | 117,522,000 | ||||||
| Accumulated deficit | (122,659,000 | ) | (116,924,000 | ) | ||||
| Total stockholders’ equity | 1,180,000 | 1,281,000 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,710,000 | $ | 2,575,000 | ||||
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PURE Bioscience, Inc. Condensed Consolidated Statements of Operations (Unaudited) |
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| Nine Months Ended | Three Months Ended | |||||||||||||||
| April 30, | April 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net product sales | $ | 1,296,000 | $ | 1,265,000 | $ | 312,000 | $ | 390,000 | ||||||||
| Operating costs and expenses | ||||||||||||||||
| Cost of goods sold | 480,000 | 473,000 | 117,000 | 166,000 | ||||||||||||
| Selling, general and administrative | 2,997,000 | 4,102,000 | 886,000 | 1,239,000 | ||||||||||||
| Research and development | 249,000 | 381,000 | 85,000 | 117,000 | ||||||||||||
| Share-based compensation | 2,337,000 | 1,975,000 | 136,000 | 579,000 | ||||||||||||
| Total operating costs and expenses | 6,063,000 | 6,931,000 | 1,224,000 | 2,101,000 | ||||||||||||
| Loss from operations | (4,767,000 | ) | (5,666,000 | ) | (912,000 | ) | (1,711,000 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Inducement to exercise warrants | (960,000 | ) | (876,000 | ) | (960,000 | ) | — | |||||||||
| Change in derivative liabilities | — | 459,000 | — | — | ||||||||||||
| Interest expense, net | (5,000 | ) | (3,000 | ) | (1,000 | ) | (1,000 | ) | ||||||||
| Other income (expense), net | (3,000 | ) | 28,000 | — | 20,000 | |||||||||||
| Total other income (expense) | (968,000 | ) | (392,000 | ) | (961,000 | ) | 19,000 | |||||||||
| Net loss | $ | (5,735,000 | ) | $ | (6,058,000 | ) | $ | (1,873,000 | ) | $ | (1,692,000 | ) | ||||
| Basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.09 | ) | $ | (0.03 | ) | $ | (0.02 | ) | ||||
| Shares used in computing basic and diluted net loss per share | 72,058,840 | 66,996,085 | 73,601,012 | 68,057,658 | ||||||||||||
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PURE Bioscience, Inc. Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) |
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| Nine Months Ended April 30, 2019 | Nine Months Ended April 30, 2018 | |||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-In |
Accumulated | Total Stockholders’ |
Common Stock |
Additional |
Accumulated |
Total |
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| Shares | Amount | Capital | Deficit | Equity | Shares | Amount | Capital | Deficit | Equity | |||||||||||||||||||||||||||||||
| Balances at beginning of period | 68,248,158 | $ | 683,000 | $ | 117,522,000 | $ | (116,924,000 | ) | $ | 1,281,000 | 63,093,153 | $ | 631,000 | $ | 110,141,000 | $ | (109,482,000 | ) | $ | 1,290,000 | ||||||||||||||||||||
| Issuance of common stock in private placements, net | 3,333,964 | 33,000 | 1,464,000 | — | 1,497,000 | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Share-based compensation expense - stock options | — | — | 1,330,000 | — | 1,330,000 | — | — | 1,280,000 | — | 1,280,000 | ||||||||||||||||||||||||||||||
| Share-based compensation expense - restricted stock units | — | — | 1,007,000 | — | 1,007,000 | — | — | 696,000 | — | 696,000 | ||||||||||||||||||||||||||||||
| Stock issued for services | — | — | — | — | — | 50,000 | 1,000 | 50,000 | — | 51,000 | ||||||||||||||||||||||||||||||
| Warrant liability removed due to warrant exercise and cancellation | — | — | — | — | — | — | — | 1,394,000 | — | 1,394,000 | ||||||||||||||||||||||||||||||
| Issuance of common stock for vested restricted stock units | 131,250 | 1,000 | (1,000 | ) | — | — | 18,750 | — | — | — | — | |||||||||||||||||||||||||||||
| Issuance of common stock upon the exercise of warrants | 2,399,999 | 24,000 | 816,000 | — | 840,000 | 4,914,505 | 49,000 | 2,584,000 | — | 2,633,000 | ||||||||||||||||||||||||||||||
| Warrant inducement | 960,000 | — | 960,000 | — | — | 876,000 | — | 876,000 | ||||||||||||||||||||||||||||||||
| Net loss | — | — | — | (5,735,000 | ) | (5,735,000 | ) | — | — | — | (6,058,000 | ) | (6,058,000 | ) | ||||||||||||||||||||||||||
| Balances at end of period (Unaudited) | 74,113,371 | $ | 741,000 | $ | 123,098,000 | $ | (122,659,000 | ) | $ | 1,180,000 | 68,076,408 | $ | 681,000 | $ | 117,021,000 | $ | (115,540,000 | ) | $ | 2,162,000 | ||||||||||||||||||||
| Three Months Ended April 30, 2019 | Three Months Ended April 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-In |
Accumulated | Total Stockholders’ |
Common Stock |
Additional |
Accumulated |
Total |
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| Shares | Amount | Capital | Deficit | Equity | Shares | Amount | Capital | Deficit | Equity | |||||||||||||||||||||||||||||||||||
| Balances at beginning of period (Unaudited) | 71,713,372 | $ | 717,000 | $ | 121,186,000 | $ | (120,786,000 | ) | $ | 1,117,000 | 68,057,658 | $ | 681,000 | $ | 116,441,000 | $ | (113,848,000 | ) | $ | 3,274,000 | ||||||||||||||||||||||||
| Share-based compensation expense - stock options | — | — | 83,000 | — | 83,000 | — | — | 429,000 | — | 429,000 | ||||||||||||||||||||||||||||||||||
| Share-based compensation expense - restricted stock units | — | — | 53,000 | — | 53,000 | — | — | 151,000 | — | 151,000 | ||||||||||||||||||||||||||||||||||
| Stock issued for services | — | — | — | — | — | 18,750 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Issuance of common stock upon the exercise of warrants | 2,399,999 | 24,000 | 816,000 | — | 840,000 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Warrant inducement | 960,000 | — | 960,000 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | (1,873,000 | ) | (1,873,000 | ) | — | — | — | (1,692,000 | ) | (1,692,000 | ) | ||||||||||||||||||||||||||||||
| Balances at end of period (Unaudited) | 74,113,371 | $ | 741,000 | $ | 123,098,000 | $ | (122,659,000 | ) | $ | 1,180,000 | 68,076,408 | $ | 681,000 | $ | 117,021,000 | $ | (115,540,000 | ) | $ | 2,162,000 | ||||||||||||||||||||||||
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PURE Bioscience, Inc. |