Mon, Jun 16, 8:12 PM (28 days ago)
### PURE Bioscience, Inc. (PURE) Q1 2025 Financial Summary **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $491,000, a slight increase from $441,000 in Q1 2024, driven by increased sales across the distribution network. - **Profit Margins:** Gross margin decreased to 57% in Q1 2025 from 58% in Q1 2024 due to lower-margin packaging configurations. - **Operating Costs:** Selling, general, and administrative expenses decreased by $222,000 to $776,000 in Q1 2025, primarily due to reduced facilities costs and personnel expenses. - **Cash Flow:** Net cash used in operating activities was $1,559,000 for the nine months ended April 30, 2025, resulting in a cash balance of $540,000. - **Earnings Changes:** Net loss for Q1 2025 was $580,000, compared to $857,000 in Q1 2024, reflecting improved operational efficiency. **Quarterly Performance Discussion:** - **Revenue Trends:** Increased sales across the distribution network contributed to higher revenue, though reliance on a few key customers remains a risk. - **Cost Management:** Effective cost management led to reduced operating expenses, but high interest expenses due to convertible notes remain a concern. - **Cash Flow:** Positive cash flow from financing activities offset operational cash outflows, but the company's liquidity remains precarious. **Future Operations Impact:** - **Growth Strategy:** Focus on expanding the distribution network and developing new products to drive revenue growth. - **Financial Uncertainty:** The company faces substantial doubt regarding its ability to continue as a going concern due to recurring losses and negative cash flows. - **Funding Needs:** Continued reliance on equity and debt financing to sustain operations, with potential dilution of existing shareholders. **Uncertainties and Risks:** - **Market Acceptance:** Success depends on the acceptance and demand for products, regulatory approvals, and the ability to convert trials into customer orders. - **Financial Stability:** The company's financial stability is at risk due to recurring losses and the need for additional financing. - **Operational Challenges:** Managing costs, controlling expenses, and ensuring regulatory compliance are critical for future success. **Conclusion:** PURE Bioscience, Inc. faces significant financial challenges but is pursuing strategic initiatives to enhance revenue and operational efficiency. The company's ability to secure additional financing and manage costs will be crucial for its long-term sustainability.