Exhibit 99.1




PURE Bioscience Reports Fiscal 2020

Financial Results


Achieves Annual Profit for First Time in Company’s History on Revenue of $6.9 million


RANCHO CUCAMONGA, CA (October 8, 2020) – PURE Bioscience, Inc.

(OTCQB: PURE), creator of the patented non-toxic silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal year ended July 31, 2020.


Summary of Results – Year-End Operations


  Net product sales were $6,917,000 and $1,909,000 for the fiscal years ended July 31, 2020 and 2019, respectively. The increase of $5,008,000 was attributable to increased sales across our distribution and end-user network servicing the food processing, transportation and janitorial industry.
  Net income for the fiscal year ended July 31, 2020 was $4,000, compared to a net loss of ($6.6 million) for the fiscal year ended July 31, 2019. Net income, excluding interest expense, depreciation and amortization, share-based compensation and warrant inducement expense, for the fiscal year ended July 31, 2020 was $982,000, compared to a net loss of ($2.9 million) for the fiscal year ended July 31, 2019.
  Net income per share was $0.00 for the fiscal year ended July 31, 2020, compared to a net loss of ($0.09) for the fiscal year ended July 31, 2019.
  Gross margin, as a percentage of net product sales, was 58% and 62% for the fiscal years ended July 31, 2020 and 2019, respectively. The decrease in gross margin percentage was primarily attributable to the sale of higher margin formulations and packaging configurations of our products during the fiscal year ended July 31, 2019, compared to the fiscal year ended July 31, 2020.
  Net cash provided by operations for the fiscal year ended July 31, 2020 was $669,000, compared to net cash used of ($3.0 million) for the fiscal year ended July 31, 2019.


Business Update


  PURE® Hard Surface
    o Food Processing and Manufacturing: Our distribution network is now servicing hundreds of protein, produce, bakery and dairy facilities across the United States. Additional expansion continues with our distribution network supported by internal sales technicians.
    o Transportation Sanitization: PURE’s Transport Sanitation Solution, designed to meet the FDA Food Safety Modernization Act (FSMA) requirements, added multiple transportation companies as users, including three major companies in the channel, for a total of six of the nation’s largest food transportation companies servicing restaurant chains, food processors and grocery store chains.
    o Our janitorial and cleaning distributors are now servicing numerous federal and municipal facilities, as well as school districts and universities across the country. We have made great in-roads in this channel with the help of our regional distributors as part of a national push to provide superior efficacy with an EPA-approved, no-rinse disinfectant.


  PURE Control®
    o PURE Control is now being used to treat berries, tomatoes and pre-cut lettuce across several processors as a further step to protect America’s food chain. Expansion plans continue with current users and new customers.
    o Work is ongoing with several processors for using PURE Control to enhance the protection of fruit, herbs, onions, broccoli and other processed vegetables.





Tom Y. Lee, Chief Executive Officer, said that, “Fiscal 2020 was a breakout year for PURE. We achieved both profitability and positive cash flow from operations. Due to our partnership with Packers Sanitation Services, Inc. (PSSI) and our alliances with Whiting Systems, Inc. and Marathon Group, LLC, various industries are now aware of the numerous benefits of using PURE Hard Surface.


“Over the coming months our focus is to expand our PURE Hard Surface end-user and distribution network. Expansion is underway with our janitorial distributors servicing federal government agencies, municipal buildings and school districts across the country. We view this as a tremendous growth opportunity over the coming year. In addition, we intend to grow our current partnerships and alliances while expanding into other markets such as dairy and the GSA Ability One Program, the government procurement program that provides employment opportunities to individuals with disabilities.


“We view PURE Control as another growth opportunity during fiscal 2021. In addition to current treatment of pre-cut lettuce, berries and tomatoes, we are now being tested on numerous different forms of produce, showing efficacious results. Expansion and market acceptance is currently underway, as we have received all necessary regulatory approvals for PURE Control in produce,” concluded Lee.


About PURE Bioscience, Inc.


PURE Bioscience, Inc. is focused on developing and commercializing our proprietary antimicrobial products primarily in the food safety arena. We provide solutions to combat 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, better known as SDC. This 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 mitigation of bacterial resistance. PURE is headquartered in Rancho Cucamonga, California (San Bernardino 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 (including with respect to arrangements with Marathon Group, LLC, Whiting Systems, Inc., and PSSI), 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; economic and other disruptions resulting from COVID-19; 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 and PURE Hard Surface 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 maintain relationships with its partners and other counterparties; the Company’s ability to generate sufficient revenues and reduce its operating expenses in order to reach profitability; 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, 2020 and Form 10-Q for the third fiscal quarter ended April 30, 2020. 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.



Mark Elliott, VP Finance

PURE Bioscience, Inc.

Ph: 619-596-8600 ext: 116





PURE Bioscience, Inc.

Consolidated Balance Sheets


   July 31, 2020   July 31, 2019 
Current assets          
Cash and cash equivalents  $3,839,000   $398,000 
Accounts receivable   1,089,000    373,000 
Inventories   547,000    177,000 
Restricted cash   75,000    75,000 
Prepaid expenses   16,000    18,000 
Total current assets   5,566,000    1,041,000 
Property, plant and equipment, net   316,000    362,000 
Patents, net   441,000    529,000 
Total assets  $6,323,000   $1,932,000 
Liabilities and stockholders’ equity          
Current liabilities          
Accounts payable  $1,344,000   $553,000 
Accrued liabilities   168,000    185,000 
Total current liabilities   1,512,000    738,000 
Deferred rent       4,000 
Total liabilities   1,512,000    742,000 
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, 87,072,951 shares issued and outstanding at July 31, 2020, and 76,732,334 shares issued and outstanding at July 31, 2019   871,000    768,000 
Additional paid-in capital   127,414,000    123,900,000 
Accumulated deficit   (123,474,000)   (123,478,000)
Total stockholders’ equity   4,811,000    1,190,000 
Total liabilities and stockholders’ equity  $6,323,000   $1,932,000 





PURE Bioscience, Inc.

Consolidated Statements of Operations


   Year ended 
   July 31, 
   2020   2019 
Net product sales (including related party sales of $124,000 for the fiscal year ended July 31, 2020)  $6,917,000   $1,909,000 
Cost of goods sold   2,896,000    728,000 
Gross Profit   4,021,000    1,181,000 
Operating costs and expenses          
Selling, general and administrative   3,695,000    6,416,000 
Research and development   322,000    354,000 
Total operating costs and expenses   4,017,000    6,770,000 
Income (loss) from operations   4,000    (5,589,000)
Other income (expense)          
Inducement to exercise warrants       (960,000)
Interest expense, net   (5,000)   (6,000)
Other income, net   5,000    1,000 
Total other expense       (965,000)
Net income (loss)  $4,000   $(6,554,000)
Net income (loss) per common share - basic  $0.00   $(0.09)
Net income (loss) per common share - diluted   0.00    (0.09)
Weighted average shares - basic   82,209,487    72,880,484 
Weighted average shares - diluted   84,611,822    72,880,484 





PURE Bioscience, Inc.

Consolidated Statement of Stockholders’ Equity


   Common Stock   Additional
   Accumulated   Total
   Shares   Amount   Capital   Deficit   Equity 
Balance July 31, 2018   68,248,158   $683,000   $117,522,000   $(116,924,000)  $1,281,000 
Issuance of common stock in private placements, net   5,802,927    58,000    2,156,000         2,214,000 
Share-based compensation expense - stock options           1,387,000        1,387,000 
Share-based compensation expense - restricted stock units           1,062,000        1,062,000 
Issuance of common stock upon the vesting of restricted stock units   281,250    3,000    (3,000)        
Issuance of common stock upon exercise of warrants   2,399,999    24,000    816,000        840,000 
Inducement to exercise warrants           960,000        960,000 
Net loss               (6,554,000)   (6,554,000)
Balance July 31, 2019   76,732,334    768,000    123,900,000    (123,478,000)   1,190,000 
Issuance of common stock in private placements, net   9,758,619    97,000    2,733,000         2,830,000 
Share-based compensation expense - stock options           555,000        555,000 
Share-based compensation expense - restricted stock units           232,000        232,000 
Issuance of common stock upon the vesting of restricted stock units   400,000    4,000    (4,000)        
Issuance of common stock upon exercise of stock options   181,998    2,000    (2,000)        
Net income               4,000    4,000 
Balance July 31, 2020   87,072,951   $871,000   $127,414,000   $(123,474,000)  $4,811,000 





PURE Bioscience, Inc.

Consolidated Statements of Cash Flows


   Year Ended 
   July 31, 
   2020   2019 
Operating activities          
Net income (loss)  $4,000   $(6,554,000)
Adjustments to reconcile net loss to net cash used in operating activities:          
Share-based compensation   787,000    2,449,000 
Amortization of stock issued for services   4,000    38,000 
Depreciation and amortization   191,000    241,000 
Interest expense on promissory note       1,000 
Inducement to exercise warrants       960,000 
Changes in operating assets and liabilities:          
Accounts receivable   (716,000)   (98,000)
Inventories   (370,000)   20,000 
Prepaid expenses   (1,000)   2,000 
Accounts payable and accrued liabilities   774,000    (40,000)
Deferred rent   (4,000)   (9,000)
Net cash provided by (used) in operating activities   669,000    (2,990,000)
Investing activities          
Investment in patents       (6,000)
Purchases of property, plant and equipment   (58,000)   (7,000)
Net cash used in investing activities   (58,000)   (13,000)
Financing activities          
Net proceeds from the sale of common stock   2,830,000    1,710,000 
Net proceeds from the exercise of warrants       840,000 
Net cash provided by financing activities   2,830,000    2,550,000 
Net increase (decrease) in cash, cash equivalents, and restricted cash   3,441,000    (453,000)
Cash, cash equivalents, and restricted cash at beginning of year   473,000    926,000 
Cash, cash equivalents, and restricted cash at end of year  $3,914,000   $473,000 
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets          
Cash and cash equivalents  $3,839,000   $398,000 
Restricted cash  $75,000   $75,000 
Total cash, cash equivalents and restricted cash  $3,914,000   $473,000 
Supplemental disclosure of cash flow information          
Cash paid for taxes  $4,000   $5,000 
Non-cash financing activities          
Conversion of promissory note and accrued interest from a related party to common stock  $   $504,000 





Modified EBITDA


In addition to our GAAP results, we present Modified EBITDA as a supplemental measure of our performance. However, Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of liquidity. We define Modified EBITDA as net income (loss), plus interest expense, depreciation and amortization, stock-based compensation, and warrant inducement expense.


Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Modified EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Modified EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.


Set forth below is a reconciliation of net loss to Modified EBITDA for the fiscal year ended July 31, 2020 and 2019:


   July 31, 
   2020   2019 
Net income (loss)  $4,000   $(6,554,000)
Add (deduct)          
Other (income) expense       5,000 
Depreciation and amortization   191,000    241,000 
Inducement to exercise warrants        960,000 
Stock-based compensation   787,000    2,449,000 
Modified EBITDA  $982,000   $(2,899,000)


We present Modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Modified EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; making compensation decisions; and in communications with our board of directors concerning our financial performance. Modified EBITDA has limitations as an analytical tool, which includes, among others, the following:


  Modified EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
  Modified EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
  Modified EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and
  Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Modified EBITDA does not reflect any cash requirements for such replacements.





The following information was filed by Pure Bioscience, Inc. (PURE) on Thursday, October 8, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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