PURE Bioscience Reports $1.487 Million Net Loss and Decreased Revenue in Q2 FY 2025

PURE Bioscience, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a net loss of $1.487 million on total revenue of $947,000 for the six months ended January 31, 2025. This represents a decrease in revenue compared to $1.048 million for the same period in the previous fiscal year. The company's net product sales also declined to $946,000 from $1.043 million year-over-year, primarily due to decreased sales across its end-user network. The gross profit for the six months was $552,000, down from $619,000 in the prior year, reflecting a gross margin percentage of 58% compared to 59% in the previous year.

In terms of operational changes, PURE Bioscience's selling, general, and administrative expenses decreased to $1.752 million from $2.138 million in the prior year, attributed to reduced personnel costs and professional service fees. The company also reported a decrease in share-based compensation expenses, which fell to $84,000 from $144,000. Research and development expenses remained relatively stable at $152,000 compared to $156,000 in the previous year. The company’s interest expense increased to $132,000 from $62,000, primarily due to accrued interest on convertible notes.

As of January 31, 2025, PURE Bioscience had total assets of $574,000, down from $818,000 as of July 31, 2024. Current liabilities increased to $866,000 from $733,000, with accounts payable rising to $700,000 from $601,000. The company reported a stockholders' deficiency of $4.267 million, reflecting a cumulative net loss of $138.1 million since inception. The company’s cash and cash equivalents stood at $202,000, down from $349,000 at the end of the previous fiscal year, raising concerns about its liquidity and ability to continue as a going concern.

Strategically, PURE Bioscience continues to focus on its proprietary antimicrobial products based on stabilized ionic silver, with offerings such as PURE® Hard Surface and PURE Control®. The company aims to expand its distribution network and explore new markets for its products. However, it faces significant challenges, including the need for additional capital to fund operations and the uncertainty surrounding market acceptance of its products. The company has indicated that it may need to raise funds through equity or debt offerings, which could lead to dilution for existing shareholders.

Looking ahead, PURE Bioscience's management has expressed concerns about its ability to continue as a going concern without generating positive cash flow from operations. The company is actively seeking to improve its financial position through strategic partnerships and product development, but the outcome of these efforts remains uncertain. The management's forward-looking statements highlight the importance of market demand, regulatory approvals, and operational efficiency in determining the company's future financial health.