Welcome!

News Feed Item

PURE Bioscience Reports Fiscal Third Quarter 2014 Financial Results

Early SDC Food Safety Revenue Led By QSR Commercial Market Test Rollout

SAN DIEGO, CA -- (Marketwired) -- 06/10/14 -- PURE Bioscience, Inc. (OTCQB: PURE), creator of the patented silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the second fiscal quarter ended April 30, 2014.

Fiscal Q3 Milestones
The Company reported that during the third fiscal quarter 2014, the new management team generated significant momentum in advancing its business strategy to commercialize its SDC-based technology as a food safety solution:

  • Extended commercial market test launch of PURE® Hard Surface Disinfectant to over 650 stores with a national brand QSR (quick service restaurant);
    • Positive customer field feedback on both SDC product performance and ease of use
    • Phased U.S. national rollout under development for expected system-wide launch
  • Rollout plans in development for wider plant adoption from five national food processors who placed commercial pilot orders;
    • Expanding SDC usage with enhanced hygiene and operating protocols
  • Reported outstanding initial test results for the application of SDC as a direct food contact processing aid for raw poultry;
    • Test results achieved undetectable levels of salmonella in raw poultry
      • Enhanced safety profile provides benefit to both plant environment and staff
    • Estimated potential addressable U.S. market opportunity for this new application exceeds $1 billion for poultry, produce and meats
    • Filing for required regulatory authorization from the FDA and USDA is expected later this month for poultry and Q3 2014 for produce and meats
    • Expected approval for U.S. commercial use by end of calendar 2014 for poultry

Summary of Results of Operations
Revenues for the third fiscal quarter of 2014 were $261,000, compared with revenues of $258,000 for the third fiscal quarter of 2013. Total operating costs and expenses, excluding share-based compensation, other share-based expenses, and restructuring costs, for the third fiscal quarter of 2014 and 2013, were $1.7 million, and $1.7 million, respectively. The net loss for the third fiscal quarter of 2014 was $(2.1) million, or $(0.07) per share, compared with a net loss of $(1.5) million, or $(0.14) per share, in the third fiscal quarter of 2013.

Revenues for the nine months ended April 30, 2014 were $417,000, compared with revenues of $631,000 for the nine months ended April 30, 2013. Total operating costs and expenses, excluding share-based compensation, other share-based expense, and restructuring costs, were $4.4 million, and $5.2 million, respectively, a reduction of 15%. The net loss for the nine months ended April 30, 2014 was $(8.4) million, or $(0.34) per share, compared with a net loss of $(5.5) million, or $(0.53) per share, in the nine months ended April 30, 2013. The adjusted net loss for the nine months ended April 30, 2014, as adjusted for significant items, was $(3.8) million compared with prior year adjusted net loss of $(4.9) million, a decrease of approximately a $1.1 million, or 22%.

As the Company continues to execute its new business strategy, it intends to:

  • Accelerate market penetration and revenue adoption of restaurant chains and food processors with SDC-based products
  • Leverage out-sourcing of its manufacturing operations
  • Out-license the SDC-technology platform to non-food markets
  • Secure additional capital to execute its business plan

Calendar 2014 Goals

  • Increase financial strength to accelerate strategy execution.
  • Secure customer adoption in food safety with 2+ national QSR chains and 5+ national food processors;
    a. Fiscal 4Q 2014 (July 31 2014): annual revenue run rate $3-$5M
    b. Fiscal 4Q 2015 (July 31 2015): positive EBITDA
  • Leverage outsourcing of operations and supply chain;
    a. Provide incremental cost savings and increase production scale
  • Secure FDA and USDA authorization for use of SDC as a direct food contact/processing aid;
    a. Initiate commercialization as a processing aid for poultry by end of calendar 2014
  • License PURE distribution and SDC applications to non-core markets.

Food Safety Solutions Provider
PURE's near-term business focus is to drive customer adoption of its products in the food industry. Its proprietary SDC-based products uniquely address food safety issues across the supply chain and help to prevent or mitigate food contamination and the potential for food-borne illness. The Company's target customers are foodservice operators, food processors and food manufacturers.

"This quarter operating results are in line with our expectations of completing the manufacturing technology transfer and initiating out-sourced production and distribution to our QSR market test and other customers," stated Peter C. Wulff, Chief Financial Officer and Chief Operating Officer. "We believe we are well positioned with our new operating structure to meet expected market demand."

Hank R. Lambert, Chief Executive Officer, said, "The recent progress we have made in extending the usage of PURE Hard Surface in QSRs and food processors, combined with compelling results generated by our testing of SDC as a processing aid for poultry, provide strong validation for our unique antimicrobial technology and give us great optimism for building revenue momentum in the coming months. We are increasingly confident that SDC will prove to be one of the most important advances in food safety in recent history."

Q3 Results Conference Call
The Company will host an investor conference call on Tuesday, June 10th, 2014 at 1:30pm PDT (4:30pm EDT).

The Participant Dial-In Number for the conference call is 1-412-902-6720. Participants should dial in to the call at least five minutes before 1:30pm PDT (4:30pm EDT) on June 10th, 2014. The call can also be accessed "live" or via replay online on the Company's website (http://www.purebio.com/about/investor_relations). The replay of the webcast will be available by dialing 1-877-870-5176 (international participants dial 1-858-384-5517) starting June 10th, 2014, at 7:30pm EDT through June 24th, 2014 at 11:59 pm EDT. Please use PIN Number 90610.

About PURE Bioscience, Inc.
PURE Bioscience, Inc. is focused on developing and commercializing its proprietary antimicrobial products that provide solutions to the health and environmental challenges of pathogen and hygienic control within the food industry. The Company's technology platform is based on patented stabilized ionic silver, and its initial products contain silver dihydrogen citrate, or SDC. SDC is a broad-spectrum, non-toxic antimicrobial agent, which offers 24-hour residual protection. As a platform technology, SDC is distinguished from existing products in the marketplace by its superior efficacy, reduced toxicity and the inability of bacteria to form a resistance to it. 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. Forward-looking statements inherently involve risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's cash position and liquidity requirements, 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, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, 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, including our annual report on Form 10-K filed October 24, 2013. 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 Statements of Operations
                             (Unaudited)

                             Nine months ended        Three months ended
                                 April 30,                 April 30,
                         ------------------------  ------------------------
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------

Net product sales        $   417,000  $   631,000  $   261,000  $   258,000

Operating costs and
 expenses
  Cost of goods sold         145,000      155,000       89,000       67,000
  Selling, general and
   administrative          3,506,000    4,093,000    1,338,000    1,332,000
  Research and
   development               750,000      979,000      248,000      283,000
  Share-based
   compensation            2,191,000      583,000      770,000      153,000
  Other share-based
   expenses                  308,000            -            -            -
  Restructuring costs      2,754,000            -            -            -
                         -----------  -----------  -----------  -----------
Total operating costs
 and expenses              9,654,000    5,810,000    2,445,000    1,835,000
                         -----------  -----------  -----------  -----------

Loss from operations      (9,237,000)  (5,179,000)  (2,184,000)  (1,577,000)

Other income (expense)
  Change in derivative
   liability                 (56,000)     270,000        3,000       30,000
  Interest expense, net       (7,000)    (591,000)      (2,000)      (2,000)
  Gain on extinguishment
   of debt                   727,000            -            -            -
  Other income
   (expense), net            198,000      (12,000)     134,000       15,000
                         -----------  -----------  -----------  -----------
Total other income
 (expense)                   862,000     (333,000)     135,000       43,000
                         -----------  -----------  -----------  -----------

Net loss                 $(8,375,000) $(5,512,000) $(2,049,000) $(1,534,000)
                         ===========  ===========  ===========  ===========

Basic and diluted net
 loss per share          $     (0.34) $     (0.53) $     (0.07) $     (0.14)
                         ===========  ===========  ===========  ===========

Shares used in computing
 basic and diluted net
 loss per share           24,479,959   10,310,721   27,864,746   11,255,833
                         ===========  ===========  ===========  ===========



                           Pure Bioscience, Inc.
                   Condensed Consolidated Balance Sheets

                                                 April 30,       July 31,
                                                    2014           2013
                                               -------------  -------------
                                                (Unaudited)
Assets
Current assets
  Cash and cash equivalents                    $     416,000  $      32,000
  Accounts receivable, net                            34,000         18,000
  Inventories, net                                   387,000        365,000
  Prepaid expenses                                   194,000         71,000
                                               -------------  -------------
  Total current assets                             1,031,000        486,000

Property, plant and equipment, net                    42,000        146,000
Patents, net                                       1,378,000      1,430,000
                                               -------------  -------------

Total assets                                   $   2,451,000  $   2,062,000
                                               =============  =============

Liabilities and stockholders' equity (deficit)
Current liabilities
  Accounts payable                             $     529,000  $   1,134,000
  Restructuring liability                            512,000              -
  Note payable, current                                    -        368,000
  Accrued liabilities                                105,000        600,000
  Derivative liability                                10,000         51,000
                                               -------------  -------------
  Total current liabilities                        1,156,000      2,153,000

Note payable, less current portion                         -        887,000
Deferred rent                                              -         13,000
                                               -------------  -------------
Total liabilities                                  1,156,000      3,053,000
                                               -------------  -------------

Commitments and contingencies

Stockholders' equity (deficit)
  Preferred stock, $0.01 par value: 5,000,000
   shares authorized, no shares issued                     -              -
  Common stock, $0.01 par value: 100,000,000
   shares authorized, 28,555,500 shares issued
   and outstanding at April 30, 2014, and
   12,569,503 shares issued and outstanding at
   July 31, 2013                                     286,000        126,000
  Additional paid-in capital                      79,555,000     69,054,000
  Accumulated deficit                            (78,546,000)   (70,171,000)
                                               -------------  -------------
Total stockholders' equity (deficit)               1,295,000       (991,000)
                                               -------------  -------------

Total liabilities and stockholders' equity
 (deficit)                                     $   2,451,000  $   2,062,000
                                               =============  =============



                           Pure Bioscience, Inc.
               Reconciliation of Non-GAAP Financial Measures
                                (Unaudited)

                             Nine months ended        Three months ended
                                 April 30,                 April 30,
                         ------------------------  ------------------------
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------

Net loss, as reported    $(8,375,000) $(5,512,000) $(2,049,000) $(1,534,000)

Add back significant
 items:
  Share-based
   compensation            2,191,000      583,000      770,000      153,000
  Other share-based
   expenses                  308,000            -            -            -
  Restructuring costs      2,754,000            -            -            -
  Gain on extinguishment
   of debt                  (727,000)                        -            -
                         -----------  -----------  -----------  -----------
Net loss, as adjusted
 for significant items   $(3,849,000) $(4,929,000) $(1,279,000) $(1,381,000)
                         -----------  -----------  -----------  -----------



Contacts:
Tom Hemingway
Redwood Investment Group
714-978-4425
Email Contact

Terri MacInnis
VP of IR
Bibicoff + MacInnis, Inc.
818-379-8500
Email Contact

Company Contact:
Peter C. Wulff
CFO & COO
PURE Bioscience, Inc.
619-596-8600 ext.111
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...