PURE Bioscience Reports 2013 Second Fiscal Quarter Financial Results

  PURE Bioscience Reports 2013 Second Fiscal Quarter Financial Results

  22% reduction in year-to-date loss from operations compared to prior year

Business Wire

SAN DIEGO -- February 26, 2013

PURE Bioscience (NASDAQ: PURE), creator of the patented silver dihydrogen
citrate (SDC) antimicrobial, today reported financial results for the second
fiscal quarter ended January 31, 2013.

Revenues for the second fiscal quarter of 2013 were $263,000, compared with
revenues of $221,000 for the second fiscal quarter of 2012. Total operating
costs and expenses for the second fiscal quarter of 2013 were $2.1 million, a
decrease of $300,000 compared to operating costs and expenses of $2.4 million
in the second fiscal quarter of 2012. The loss from operations for the second
fiscal quarter of 2013 was $1.8 million, a decrease of $400,000, or 18.2%,
compared to the loss from operations of $2.2 million in the second fiscal
quarter of 2012. The net loss for the second fiscal quarter of 2013 was $1.8
million, or $0.17 per share, compared to a net loss of $2.2 million, or $0.41
per share, in the second fiscal quarter of 2012.

Revenues for the six months ended January 31, 2013 were $373,000, compared to
revenues of $478,000 for the six months ended January 31, 2012. Total
operating costs and expenses for the six months ended January 31, 2013 were
$4.0 million, a decrease of $1.0 million compared to operating costs and
expenses of $5.0 million for the six months ended January 31, 2012. The loss
from operations for the six months ended January 31, 2013 was $3.6 million, a
decrease of $1.0 million, or 21.7%, compared to the loss from operations of
$4.6 million for the six months ended January 31, 2012. The net loss for the
six months ended January 31, 2013 was $4.0 million or $0.40 per share,
compared to a net loss of $4.6 million, or $0.88 per share, in the six months
ended January 31, 2012.

As of January 31, 2013, the Company had cash and cash equivalents of
approximately $920,000 and $1,170,000 of current liabilities, including
$621,000 in accounts payable. The Company intends to secure additional working
capital through sales of additional debt or equity securities.

“During the second fiscal quarter of 2013, we saw significant progress in our
business development activities, particularly in the food service and food
processing industries. We believe our proprietary SDC antimicrobial products
address public and industry concerns for food safety,” said Michael L. Krall,
President and CEO of PURE Bioscience. “With our multi-prong strategy to
commercialize our technology in various channels, including food, medical and
institutional facilities, we look forward to driving commercial adoption
through calendar 2013. We are also focused on the corporate development goals
of strengthening both our balance sheet and our Board of Directors.”

Recent Business Highlights:

  *Appointed food industry leader Dave Pfanzelter to the Board of Directors,
    bringing board membership to six directors of which four are considered
    independent. The appointment significantly strengthens the Board’s
    commercial expertise and also helps satisfy NASDAQ listing requirements
    regarding independent board members.
  *Completed initial quality assurance testing, entered into a supplier
    testing and development agreement, and obtained approval to conduct a
    limited in-store evaluation with PURE Hard Surface disinfectant and food
    contact surface sanitizer in a quick service restaurant unit that manages
    more than 5,000 U.S. restaurant locations. The Company also successfully
    completed a 30-day in-plant product testing process with a major meat and
    poultry food processor that manages multiple processing plants across the
    U.S. The Company intends to continue educating, evaluating and testing its
    PURE technologies through these food service and food processing providers
    to provide a cost-effective and efficacious solution in mitigating
    potential food contamination in the U.S food chain. The Company believes
    it will successfully complete the testing and evaluation processes during
    the first half of calendar 2013 and anticipates commencing
    commercialization in the second half of calendar 2013.
  *Intends by mid-2013 to submit a notification of GRAS determination to the
    U.S. FDA for its review under the GRAS standards (Generally Recognized As
    Safe) for use of the SDC technology as a direct food contact antimicrobial
    (processing aid) and secondarily as a preservative (food additive). The
    additional GRAS claims for SDC are designed to expand its potential
    commercial adoption for direct use on produce and meats. The Company has
    already obtained GRAS status for SDC when used on food processing
    facilities, equipment, machinery, and processing utensils. The FDA’s
    stated goal is to respond within 180 days of the initial notification
    submission.
  *Reported the availability of the PURE Hard Surface disinfectant and food
    contact surface sanitizer for commercial sale under the Office Depot
    Business Solutions Division. The Company remains focused in gaining market
    entry of these products in corporate, government and medical facilities.

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy any security and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offering, solicitation
or sale would be unlawful.

About PURE Bioscience, Inc.

PURE Bioscience, Inc. develops and markets technology-based bioscience
products that provide solutions to numerous global health challenges,
including Staph (MRSA) and Carbapenem-resistant Enterobacteriaceae
(CRE)/NDM-1+. PURE’s proprietary high efficacy/low toxicity bioscience
technologies, including its silver dihydrogen citrate-based antimicrobials,
represent innovative advances in diverse markets and lead today’s global trend
toward industry and consumer use of “green” products while providing
competitive advantages in efficacy and safety. Patented SDC is an
electrolytically generated source of stabilized ionic silver, which formulates
well with other compounds. As a platform technology, SDC is distinguished from
competitors in the marketplace because of 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.

This press release contains forward-looking statements in which the Company
discusses its potential future performance. Forward-looking statements are all
statements other than statements of historical facts, such as those statements
regarding the Company’s anticipated capital requirements, future financing
activities, future submissions to the FDA related to its technologies and
anticipated timing of commercialization of its technologies. The words
"believe," “anticipate,” “intend,” "estimate," "project,” "expect" and similar
expressions are intended to identify those assertions as forward-looking
statements. The Company cautions readers that forward-looking statements are
not guarantees of future performance and its actual results may differ
materially from those anticipated, projected or assumed in the forward-looking
statements. Important factors that could cause the Company’s actual results to
differ materially from those anticipated in the forward-looking statements
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 initiatives and business 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, and other risks described in more detail under the
heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the
fiscal year ended July 31, 2012, filed with the SEC, as updated by its
subsequent filings with the SEC, including its Quarterly Reports on Form 10-Q.
Investors are cautioned that many of the assumptions on which the Company’s
forward-looking statements are based are likely to change after its
forward-looking statements are made. 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 Statements of Operations
(Unaudited)

                  Six months ended                       Three months ended
                     January 31,                               January 31,
                     2013              2012                 2013              2012
                                                                                      
Net product          $ 373,000            $ 478,000            $ 263,000            $ 221,000
sales
                                                                                      
Operating
costs and
expenses
Cost of goods          88,000               169,000              57,000               40,000
sold
Selling,
general and            3,086,000            3,882,000            1,610,000            1,885,000
administrative
Research and          801,000            982,000            406,000            489,000    
development
Total
operating             3,975,000          5,033,000          2,073,000          2,414,000  
costs and
expenses
                                                                                      
Loss from              (3,602,000 )         (4,555,000 )         (1,810,000 )         (2,193,000 )
operations
                                                                                      
Other income
(expense)
Change in
derivative             240,000              -                    12,000               -
liability
Interest               (589,000   )         -                    (1,000     )         -
expense
Interest               -                    1,000                -                    -
income
Other
(expense)             (27,000    )        -                  (25,000    )        -          
income, net
Total other
(expense)             (376,000   )        1,000              (14,000    )        -          
income
                                                                                      
Net loss             $ (3,978,000 )       $ (4,554,000 )       $ (1,824,000 )       $ (2,193,000 )
                                                                                      
Basic and
diluted net          $ (0.40      )       $ (0.88      )       $ (0.17      )       $ (0.41      )
loss per share
                                                                                      
Shares used in
computing
basic
and diluted
net loss per          9,853,575          5,186,553          10,986,170         5,328,156  
share
                                                                                                 

Pure Bioscience, Inc.
Consolidated Balance Sheets

                                    January 31,         July 31,
                                       2013                    2012
                                       (Unaudited)
Assets
Current assets
Cash and cash equivalents              $ 920,000               $ 877,000
Accounts receivable, net                 95,000                  373,000
Inventories, net                         836,000                 654,000
Prepaid expenses                        85,000                347,000     
Total current assets                     1,936,000               2,251,000
                                                                 
Property, plant and equipment,           199,000                 257,000
net
Patents, net                            1,992,000             1,950,000   
                                                                 
Total assets                           $ 4,127,000            $ 4,458,000   
                                                                 
Liabilities and stockholders'
equity
Current liabilities
Accounts payable                       $ 621,000               $ 1,946,000
Loan payable, net                        -                       962,000
Deferred revenue                         -                       66,000
Note payable, current                    86,000                  -
Accrued liabilities                      384,000                 344,000
Derivative liability                    79,000                319,000     
Total current liabilities                1,170,000               3,637,000
                                                                 
Note payable, less current               1,213,000               -
portion
Deferred rent                           2,000                 3,000       
Total liabilities                       2,385,000             3,640,000   
                                                                 
Commitments and contingencies
                                                                 
Stockholders' equity
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
10,986,170 issued and
outstanding at January 31, 2013,
and
6,644,555 issued and outstanding         110,000                 67,000
at July 31, 2012.
Additional paid-in capital               68,110,000              63,251,000
Accumulated deficit                     (66,478,000 )          (62,500,000 )
Total stockholders' equity              1,742,000             818,000     
                                                                 
Total liabilities and                  $ 4,127,000            $ 4,458,000   
stockholders' equity

Contact:

PURE Bioscience Investor Contact:
Don Markley, Senior Vice President of LHA
310-691-7100
dmarkley@lhai.com
 
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