PURE Bioscience Reports Fiscal Third Quarter 2013 Results

PURE Bioscience Reports Fiscal Third Quarter 2013 Results 
SAN DIEGO, CA -- (Marketwired) -- 06/14/13 --  PURE Bioscience, Inc.
(OTCQB: PURE), creator of the patented silver dihydrogen citrate
(SDC) antimicrobial, reported results for its fiscal third quarter
ended April 30, 2013. 
Fiscal Q3 2013 Highlights 


 
--  Initiated field testing of PURE(R) Hard Surface disinfectant with
    two major quick service restaurant chains, each with thousands of
    locations worldwide.
--  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.
--  Appointed food industry leader, Dave Pfanzelter, to the company's
    board of directors and subsequent to quarter-end appointed him
    chairman.

  
Fiscal Q3 2013 Results
 Net product sales totaled $258,000, compared to
$207,000 in the same quarter last year. The increase was primarily
attributable to increased sales to two existing customers. 
Total operating costs and expenses decreased $200,000 to $1.8
million, compared to $2.0 million in the same year-ago quarter. The
decrease was primarily due to a decrease in legal fees, travel,
non-cash stock option expense, and depreciation and amortization
expense. 
Loss from operations decreased $200,000 to $1.6 million, compared to
a loss from operations of $1.8 million in the same year-ago quarter. 
Net loss was $1.5 million or $(0.14) per share, an improvement from a
net loss of $1.8 million or $(0.31) per share in the same quarter
last year. 
As of April 30, 2013, cash and cash equivalents totaled $410,000 and
current liabilities totaled $1.5 million, including accounts payable
of $848,000. The company intends to secure additional working capital
through sales of additional debt or equity securities. 
Management Commentary
 "During the quarter, we significantly cut
costs and streamlined our operations to improve our bottom line,
while making progress with key sales opportunities that should
position us for sustainable growth," said Michael L. Krall, president
and CEO of PURE Bioscience. "Our sales and marketing projects during
the quarter included coordinating field testing of PURE Hard Surface
disinfectant and sanitizer in two different quick service restaurant
chains, working with multiple meat and poultry food processors to
conduct in-plant testing, and ongoing evaluations by several
hospitals.  
"Addressing the international opportunity, we recently shipped an
opening order of PURE Hard Surface and PURE Multi-Purpose cleaner
concentrate to our new European distributor, TICE. We are seeing
progress with all of our target customer groups and remain optimistic
that our marketing, education, evaluation and field testing programs
could convert to meaningful sales in the second half of calendar
2013." 
During the second half of 2013, the company intends 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. 
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), Human
Corona Virus 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. 
Forward-Looking Statements
 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,
inclu
ding 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.                            
                   Condensed Consolidated Balance Sheets                    
                                                                            
                                                  April 30,      July 31,   
                                                     2013          2012     
                                                ------------- ------------- 
                                                 (Unaudited)                
Assets                                                                      
Current assets                                                              
  Cash and cash equivalents                     $     410,000 $     877,000 
  Accounts receivable, net                             29,000       373,000 
  Inventories, net                                    781,000       654,000 
  Prepaid expenses                                    110,000       347,000 
                                                ------------- ------------- 
  Total current assets                              1,330,000     2,251,000 
                                                                            
Property, plant and equipment, net                    171,000       257,000 
Patents, net                                        2,004,000     1,950,000 
                                                ------------- ------------- 
                                                                            
Total assets                                    $   3,505,000 $   4,458,000 
                                                ============= ============= 
                                                                            
Liabilities and stockholders' equity                                        
Current liabilities                                                         
  Accounts payable                              $     848,000 $   1,946,000 
  Loan payable, net                                         -       962,000 
  Deferred revenue                                          -        66,000 
  Note payable, current                               231,000             - 
  Accrued liabilities                                 411,000       344,000 
  Derivative liability                                 49,000       319,000 
                                                ------------- ------------- 
  Total current liabilities                         1,539,000     3,637,000 
                                                                            
Note payable, less current portion                  1,045,000             - 
Deferred rent                                          15,000         3,000 
                                                ------------- ------------- 
Total liabilities                                   2,599,000     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 12,236,170 issued and                                  
   outstanding at April 30, 2013, and 6,644,555                             
   issued and outstanding at July 31, 2012.           123,000        67,000 
  Additional paid-in capital                       68,795,000    63,251,000 
  Accumulated deficit                             (68,012,000)  (62,500,000)
                                                ------------- ------------- 
Total stockholders' equity                            906,000       818,000 
                                                ------------- ------------- 
                                                                            
Total liabilities and stockholders' equity      $   3,505,000 $   4,458,000 
                                                ============= ============= 
                                                                            
                                                                            
                                                                            
                           Pure Bioscience, Inc.                            
              Condensed Consolidated Statements of Operations               
                                (Unaudited)                                 
                                                                            
                             Nine months ended        Three months ended    
                                 April 30,                 April 30,        
                         ------------------------  ------------------------ 
                             2013         2012         2013         2012    
                         -----------  -----------  -----------  ----------- 
                                                                            
Net product sales        $   631,000  $   685,000  $   258,000  $   207,000 
                                                                            
Operating costs and                                                         
 expenses                                                                   
  Cost of goods sold         155,000      206,000       67,000       37,000 
  Selling, general and                                                      
   administrative          4,550,000    5,439,000    1,464,000    1,557,000 
  Research and                                                              
   development             1,105,000    1,421,000      304,000      439,000 
                         -----------  -----------  -----------  ----------- 
Total operating costs                                                       
 and expenses              5,810,000    7,066,000    1,835,000    2,033,000 
                         -----------  -----------  -----------  ----------- 
                                                                            
Loss from operations      (5,179,000)  (6,381,000)  (1,577,000)  (1,826,000)
                                                                            
Other income (expense)                                                      
  Change in derivative                                                      
   liability                 270,000            -       30,000            - 
  Interest expense          (591,000)           -       (2,000)           - 
  Interest income                  -        1,000            -            - 
  Other (expense)                                                           
   income, net               (12,000)      (3,000)      15,000       (3,000)
                         -----------  -----------  -----------  ----------- 
Total other (expense)                                                       
 income                     (333,000)      (2,000)      43,000       (3,000)
                         -----------  -----------  -----------  ----------- 
                                                                            
Net loss                 $(5,512,000) $(6,383,000) $(1,534,000) $(1,829,000)
                         ===========  ===========  ===========  =========== 
                                                                            
Basic and diluted net                                                       
 loss per share          $     (0.53) $     (1.18) $     (0.14) $     (0.31)
                         ===========  ===========  ===========  =========== 
                                                                            
Shares used in computing                                                    
 basic and diluted net                                                      
 loss per share           10,310,721    5,400,685   11,255,833    5,838,466 
                         ===========  ===========  ===========  =========== 

  
Investor Relations Contact:
Ron Both
Liolios Group, Inc.
Tel 949-574-3860
PURE@liolios.com