PURE Bioscience (PURE, Financial) filed Quarterly Report for the period ended 2008-10-31.
Innovative Medical Services is engaged principally in the business of manufacturing and marketing the Fillmaster a water purification measuring and dispensing apparatus used in pharmacies to reconstitute oral antibiotic suspensions. Innovative Medical Services has also entered the consumer market with Nutripure a residential drinking water system. The company markets for both products proprietary filters that require changing at intervals of nine to twelve months or whenever indicated by the systems' water quality monitors. PURE Bioscience has a market cap of $110.01 million; its shares were traded at around $3.27 with and P/S ratio of 73.98. PURE Bioscience had an annual average earning growth of 5.8% over the past 5 years.
General and administrative expenses increased by $554,800, to $1,262,400 in the First Quarter, compared with the three months ended October 31, 2007. Accounting fees increased by $97,300 compared with the same period in the prior fiscal year. The increase was mainly due to costs associated with Sarbanes-Oxley compliance. Legal fees charged to general and administrative expense, primarily related to the development of contracts and protection of our intellectual property, increased by $127,000 compared to the same period in the prior fiscal year. Additionally, payroll related expenses increased quarter-over-quarter by $207,400 due to new hires, salary increases and bonuses. Other general and administrative expenditures such as depreciation, insurance and board of director fees also increased during the First Quarter.
Total cash inflows from financing activities for the First Quarter were $165,100. In August 2008, we received an aggregate of $150,000 from the exercise of non-employee options to purchase 50,000 shares of our common stock at an exercise price of $3.00, and received $15,100 from the exercise of options to purchase 28,450 shares of our common stock by two officers, at an average exercise price of $0.53. Cash and cash equivalents at October 31, 2008 were $1,047,800, a decrease for the three month period from July 31, 2008 of $976,600, while short-term investments decreased over the same period by $526,800, to $4,081,100.
During the First Quarter, cash provided by investing activities was $451,700. Of this amount, a net amount (cash purchases less cash sales) of $512,300 was invested in short-term investments. In addition, during the First Quarter we invested $19,700 in patents; however, the capitalized value of our patents at October 31, 2008, primarily related to our silver ion technology, declined by $23,000 due to an excess of patent amortization over capitalization. Total property, plant and equipment at October 31, 2008 of $1,010,000 declined by $24,800 from July 31, 2008 due to an excess of depreciation over new asset acquisitions of $40,900.
Cash used in operating activities for the First Quarter was $1,593,400, compared with $1,087,000 for the same three month period of the prior fiscal year. The increase in operating cash expenditures is primarily a result of increased general and administrative expenses including payroll, insurance, patent related research and development and amounts paid for professional services. Accounts receivable grew by $8,100 from July 31, 2008 to October 31, 2008, while the value of our raw materials and finished goods inventory grew by $62,000 over the same period, primarily due to the purchase of raw materials for our concentrate manufacturing and our bottling processes. In addition, prepaid expenses decreased by $30,400 from July 31, 2008 to October 31, 2008, due to the amortization of prepaid insurance policies of the succeeding year.
We had a loss of $1,605,316 after taxes for the three month period ended October 31, 2008, a loss of $6,540,300 after taxes for the fiscal year ended July 31, 2008, and a loss of $4,654,900 after taxes for the fiscal year ended July 31, 2007. As of October 31, 2008, we had an accumulated deficit of approximately $33.0 million. We may continue to have losses in the future. If the penetration into the marketplace of SDC is later than anticipated, revenue growth is slower than anticipated or operating expenses exceed expectations, it may take an unforeseen period of time to achieve or sustain profitability and we may never achieve or sustain profitability. Slower than anticipated revenue growth could force us to reduce research, testing, development and marketing of our technology and/or force us to reduce the size and scope of our operations, or cease operations altogether. If we do become profitable in future periods, we have an employment contract with our Chief Executive Officer and President which includes a provision for him to be paid an amount equal to 3% of our net income before taxes, if any. Such payments would reduce our profitability.
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More on PURE:
Gurus buys and sells of PURE
10-year financial history of PURE.
Insider buys/sells of PURE.
Innovative Medical Services is engaged principally in the business of manufacturing and marketing the Fillmaster a water purification measuring and dispensing apparatus used in pharmacies to reconstitute oral antibiotic suspensions. Innovative Medical Services has also entered the consumer market with Nutripure a residential drinking water system. The company markets for both products proprietary filters that require changing at intervals of nine to twelve months or whenever indicated by the systems' water quality monitors. PURE Bioscience has a market cap of $110.01 million; its shares were traded at around $3.27 with and P/S ratio of 73.98. PURE Bioscience had an annual average earning growth of 5.8% over the past 5 years.
Highlight of Business Operations:
Operating Costs Operating costs increased by $616,600, from $1,084,000 in the three months ended October 31, 2007, to $1,700,600 in the First Quarter. Within these aggregate operating costs, selling expenses increased by $63,000 to $151,200 in the First Quarter compared with the same period in the prior fiscal year. The increase in selling expenses is primarily due to approximately $75,500 of additional salary expense, which was partially offset by $12,500 of consulting fees in the three month period ended October 31, 2007.General and administrative expenses increased by $554,800, to $1,262,400 in the First Quarter, compared with the three months ended October 31, 2007. Accounting fees increased by $97,300 compared with the same period in the prior fiscal year. The increase was mainly due to costs associated with Sarbanes-Oxley compliance. Legal fees charged to general and administrative expense, primarily related to the development of contracts and protection of our intellectual property, increased by $127,000 compared to the same period in the prior fiscal year. Additionally, payroll related expenses increased quarter-over-quarter by $207,400 due to new hires, salary increases and bonuses. Other general and administrative expenditures such as depreciation, insurance and board of director fees also increased during the First Quarter.
Total cash inflows from financing activities for the First Quarter were $165,100. In August 2008, we received an aggregate of $150,000 from the exercise of non-employee options to purchase 50,000 shares of our common stock at an exercise price of $3.00, and received $15,100 from the exercise of options to purchase 28,450 shares of our common stock by two officers, at an average exercise price of $0.53. Cash and cash equivalents at October 31, 2008 were $1,047,800, a decrease for the three month period from July 31, 2008 of $976,600, while short-term investments decreased over the same period by $526,800, to $4,081,100.
During the First Quarter, cash provided by investing activities was $451,700. Of this amount, a net amount (cash purchases less cash sales) of $512,300 was invested in short-term investments. In addition, during the First Quarter we invested $19,700 in patents; however, the capitalized value of our patents at October 31, 2008, primarily related to our silver ion technology, declined by $23,000 due to an excess of patent amortization over capitalization. Total property, plant and equipment at October 31, 2008 of $1,010,000 declined by $24,800 from July 31, 2008 due to an excess of depreciation over new asset acquisitions of $40,900.
Cash used in operating activities for the First Quarter was $1,593,400, compared with $1,087,000 for the same three month period of the prior fiscal year. The increase in operating cash expenditures is primarily a result of increased general and administrative expenses including payroll, insurance, patent related research and development and amounts paid for professional services. Accounts receivable grew by $8,100 from July 31, 2008 to October 31, 2008, while the value of our raw materials and finished goods inventory grew by $62,000 over the same period, primarily due to the purchase of raw materials for our concentrate manufacturing and our bottling processes. In addition, prepaid expenses decreased by $30,400 from July 31, 2008 to October 31, 2008, due to the amortization of prepaid insurance policies of the succeeding year.
We had a loss of $1,605,316 after taxes for the three month period ended October 31, 2008, a loss of $6,540,300 after taxes for the fiscal year ended July 31, 2008, and a loss of $4,654,900 after taxes for the fiscal year ended July 31, 2007. As of October 31, 2008, we had an accumulated deficit of approximately $33.0 million. We may continue to have losses in the future. If the penetration into the marketplace of SDC is later than anticipated, revenue growth is slower than anticipated or operating expenses exceed expectations, it may take an unforeseen period of time to achieve or sustain profitability and we may never achieve or sustain profitability. Slower than anticipated revenue growth could force us to reduce research, testing, development and marketing of our technology and/or force us to reduce the size and scope of our operations, or cease operations altogether. If we do become profitable in future periods, we have an employment contract with our Chief Executive Officer and President which includes a provision for him to be paid an amount equal to 3% of our net income before taxes, if any. Such payments would reduce our profitability.
Read the The complete Report
More on PURE:
Gurus buys and sells of PURE
10-year financial history of PURE.
Insider buys/sells of PURE.
