PURE Bioscience Narrows Loss, Revenue Jumps Amid Going Concern Doubts

TL;DR

**PURE Bioscience is still bleeding cash and relying on related-party debt, making it a high-risk bet despite a revenue bump.**

AI Summary

PURE Bioscience, Inc. reported a net loss of $464,000 for the three months ended October 31, 2025, an improvement from the $689,000 net loss in the same period of 2024. Total revenue increased by 27.3% to $708,000 in Q1 2026, up from $556,000 in Q1 2025, primarily driven by a significant increase in PURE Hard Surface sales to $707,000 from $389,000. Gross profit also rose to $450,000 from $325,000 year-over-year. Despite these improvements, the company continues to face substantial doubt about its ability to continue as a going concern, evidenced by a stockholders' deficiency of $5,546,000 as of October 31, 2025, and $250,000 in cash used in operating activities during the quarter. Current liabilities surged to $3,159,000 from $938,000, largely due to $2,104,000 in current convertible notes payable to related parties. The company's cash and cash equivalents increased to $434,000 from $334,000, supported by $350,000 in net proceeds from notes payable to related parties.

Why It Matters

For investors, PURE's improved revenue and reduced net loss offer a glimmer of hope, but the persistent 'going concern' warning and substantial stockholders' deficiency of $5,546,000 signal significant financial instability. The reliance on related-party debt for financing, with $2,104,000 now classified as current, indicates a precarious capital structure. Employees and customers might face uncertainty regarding the company's long-term viability, especially given its history of recurring losses. In a competitive antimicrobial market, PURE's ability to secure additional, non-dilutive financing and achieve sustained profitability is critical for its survival and market position.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt regarding its ability to continue as a going concern' due to a history of recurring losses, a stockholders' deficiency of $5,546,000, and $250,000 in cash used in operating activities for the quarter ended October 31, 2025. Furthermore, current liabilities have dramatically increased to $3,159,000 from $938,000, largely driven by $2,104,000 in current convertible notes payable to related parties.

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Given the 'going concern' warning and reliance on related-party financing, potential investors should wait for clear evidence of sustained profitability and a strengthened balance sheet before considering a position.

Key Numbers

• $464,000 — Net loss for Q1 2026 (Reduced from $689,000 in Q1 2025)
• $708,000 — Total revenue for Q1 2026 (Increased 27.3% from $556,000 in Q1 2025)
• $5,546,000 — Stockholders' deficiency as of October 31, 2025 (Indicates significant financial instability)
• $250,000 — Net cash used in operating activities for Q1 2026 (Highlights ongoing cash burn)
• $2,104,000 — Current convertible notes payable to related parties (Significant increase in short-term debt obligations)
• $434,000 — Cash and cash equivalents as of October 31, 2025 (Increased from $334,000 at July 31, 2025)
• 43% — Percentage of net product sales from one customer (Indicates customer concentration risk for Q1 2026)
• $707,000 — PURE Hard Surface sales for Q1 2026 (Increased from $389,000 in Q1 2025)

Key Players & Entities

• PURE Bioscience, Inc. (company) — registrant
• ETI H2O Inc. (company) — wholly owned subsidiary
• Securities and Exchange Commission (regulator) — filing authority
• Chief Executive Officer (person) — Chief Operating Decision Maker
• President (person) — Chief Operating Decision Maker
• SDC (company) — patented stabilized ionic silver technology
• PURE Hard Surface (company) — product offering
• PURE Control (company) — product offering
• Bloomberg (company) — publisher

FAQ

Key Financial Figures

• $0.01 — Section 12(g) of the Act: Common Stock, $0.01 par value Indicate by check mark whet

Filing Documents

• form10-q.htm (10-Q) — 534KB
• ex31-1.htm (EX-31.1) — 20KB
• ex31-2.htm (EX-31.2) — 20KB
• ex32-1.htm (EX-32.1) — 9KB
• ex32-2.htm (EX-32.2) — 9KB
• 0001493152-25-027749.txt ( ) — 3428KB
• pure-20251031.xsd (EX-101.SCH) — 24KB
• pure-20251031_cal.xml (EX-101.CAL) — 34KB
• pure-20251031_def.xml (EX-101.DEF) — 132KB
• pure-20251031_lab.xml (EX-101.LAB) — 227KB
• pure-20251031_pre.xml (EX-101.PRE) — 185KB
• form10-q_htm.xml (XML) — 437KB

Financial Statements

Financial Statements 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 21 Item 4.

Controls and Procedures

Controls and Procedures 21 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 22 Item 1A.

Risk Factors

Risk Factors 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23 Item 3. Defaults Upon Senior Securities 23 Item 4. Mine Safety Disclosures 23 Item 5. Other Information 23 Item 6. Exhibits 24

Signatures

Signatures 25 2 Part I - Financial Information Item 1. Financial Statements PURE Bioscience, Inc. Condensed Consolidated Balance Sheets October 31, 2025 July 31, 2025 (Unaudited) Assets Current assets Cash and cash equivalents $ 434,000 $ 334,000 Accounts receivable 389,000 474,000 Inventories, net 237,000 141,000 Restricted cash 75,000 75,000 Prepaid expenses 41,000 23,000 Total current assets 1,176,000 1,047,000 Property, plant and equipment, net 10,000 11,000 Total assets $ 1,186,000 $ 1,058,000 Liabilities and stockholders' deficiency Current liabilities Accounts payable $ 879,000 $ 784,000 Convertible notes payable to related parties, current 2,104,000 — Accrued liabilities 176,000 154,000 Total current liabilities 3,159,000 938,000 Convertible notes payable to related parties, non-current 3,573,000 5,236,000 Total liabilities 6,732,000 6,174,000 Commitments and contingencies - Stockholders' deficiency Preferred stock, $ 0.01 par value: 5,000,000 shares authorized, no shares issued and outstanding — — Common stock, $ 0.01 par value: 200,000,000 shares authorized, 111,886,473 shares issued and outstanding at October 31, 2025, and July 31, 2025 1,119,000 1,119,000 Additional paid-in capital 132,793,000 132,759,000 Accumulated deficit ( 139,458,000 ) ( 138,994,000 ) Total stockholders' deficiency ( 5,546,000 ) ( 5,116,000 ) Total liabilities and stockholders' deficiency $ 1,186,000 $ 1,058,000 See accompanying notes. 3 PURE Bioscience, Inc. Condensed Consolidated Statements of Operations (Unaudited) 2025 2024 Three months ended October 31, 2025 2024 Net product sales $ 707,000 $ 555,000 Royalty revenue 1,000 1,000 Total revenue 708,000 556,000 Cost of goods sold 258,000 231,000 Gross Profit 450,000 325,000 Operating costs and expenses Selling, general and administrative 743,000 881,000 Research and developmen

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View this 10-Q filing on SEC EDGAR