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PURE Bioscience Reports Fiscal 2019 Third Quarter and Nine-Month Financial Results

June 13, 2019

Update on SDC-Based Antimicrobial Food Safety Solutions

SAN DIEGO, CA (June 13, 2019) – 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

  • Revenues for the fiscal third quarter ended April 30, 2019 decreased 20% to $312,000, compared with revenues of $390,000 in the prior year fiscal third quarter. The decrease was due to a change in timing of a legacy customer’s orders and somewhat lower food safety sales.
  • Net loss for the fiscal third quarter in 2019 was ($1.9 million), as compared with a loss of ($1.7 million) for fiscal third quarter in 2018. Net loss, excluding inducement expense, for the third fiscal quarter in 2019 was ($913,000), as compared with a loss of ($1.7 million) for the third quarter in 2018.
  • Net loss per share was ($0.03) in 2019 as compared with ($0.02) for the fiscal third quarter ended 2018.
  • Gross margin was 63% during the third quarter of fiscal 2019 as compared with 57% during the same period in fiscal 2018. The increase in gross margin percentage was primarily attributable to the sale of higher margin formulations and packaging configurations of our products during the quarter ended April 30, 2019, as compared with the prior period.

Nine Months: Summary of Results of Operations

  • Revenues for the nine-months ended April 30, 2019 increased 2% to $1,296,000 compared with prior year nine-month revenues of $1,265,000.
    • Core food safety revenues for the nine months ended 2019 increased 31% as compared with food safety revenues in the nine months ended 2018. The increase in both total and food safety revenues was due to growing customer adoption.
  • Net loss for the nine months ended April 30, 2019, was ($5.7 million) compared with ($6.1 million) for the nine-month period in 2018. Net loss, excluding derivative income, inducement expense and share-based compensation, for the nine months ended April 30, 2019 was ($2.4 million), as compared with ($3.7 million) for the nine-month period in 2018.
  • Net loss per share was ($0.08) in 2019 as compared with ($0.09) for the nine months ended fiscal 2018.
  • Gross margin remained relatively unchanged at 63% for the nine months ended April 30, 2019 and 2018, respectively.

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.

Contacts:

 

Hank Lambert, CEO

Terri MacInnis, VP of IR

PURE Bioscience, Inc.

Bibicoff + MacInnis, Inc.

619-596-8600 ext.103

818-379-8500

hlambert@purebio.com

terri@bibimac.com