PURE BIOSCIENCE, INC.

Previous wording

Net product sales were $489,000 and $440,000 for the three months ended April 30, 2025 and 2024, respectively. The increase of $49,000 was attributable to increased sales across our distribution network. Our top customer accounted for $40,000 of net product sales for the three months ended April 30, 2025.

Current wording

Net product sales were $707,000 and $555,000 for the three months ended October 31, 2025 and 2024, respectively. The increase of $152,000 was attributable to increased sales across our end user customer base. Our top customer accounted for $301,000 of net product sales for the three months ended October 31, 2025.

Previous wording

For the nine months ended April 30, 2024, one individual customer accounted for 23% of our net product sales. No other individual customer accounted for 10% or more of our net product sales. All of our net product sales were U.S. based sales.

Current wording

For the three months ended October 31, 2025, one individual customer accounted for 43% of our net product sales. No other individual customer accounted for 10% or more of our net product sales. All of our net product sales were U.S. based sales.

Previous wording

For the nine months ended April 30, 2025, two individual customers accounted for 13% and 10% of our net product sales. No other individual customer accounted for 10% or more of our net product sales. All of our net product sales were U.S. based sales.

Current wording

For the three months ended October 31, 2024, two individual customers accounted for 30% and 10% of our net product sales, respectively. No other individual customer accounted for 10% or more of our net product sales. All of our net product sales were U.S. based sales.

Previous wording

During the three months ended April 30, 2025 and 2024, we recognized $2,000 and $1,000 in royalties from a nonexclusive third-party distributor, respectively.

Current wording

During the three months ended October 31, 2025 and 2024, we recognized $1,000 in royalties from a nonexclusive third-party distributor, respectively.

Previous wording

Gross margin as a percentage of net product sales, or gross margin percentage, was 58% and 59% for the nine months ended April 30, 2025 and 2024, respectively. The decrease in gross margin percentage was primarily attributable to the sale of lower margin packaging configurations of our products during the nine months ended April 30, 2025, as compared with the prior period.

Current wording

Gross margin as a percentage of net product sales, or gross margin percentage, was 64% and 58% for the three months ended October 31, 2025 and 2024, respectively. The increase in gross margin percentage was primarily attributable to the sale of higher packaging configurations of our products during the quarter ended October 31, 2025, as compared with the prior period.

Previous wording

Selling, general and administrative expense was $2,528,000 and $3,136,000 for the nine months ended April 30, 2025 and 2024, respectively. The decrease of $608,000 was primarily attributable to decreased personnel costs, professional service fees and board of director fees. These decreases were partially offset by increased travel expense.

Current wording

Selling, general and administrative expense was $743,000 and $881,000 for the three months ended October 31, 2025 and 2024, respectively. The decrease of $138,000 was primarily attributable to decreased board fees, personnel costs and facilities expenses. These decreases were partially offset by increased marketing expense.

Previous wording

Share-based compensation expense, included in selling, general and administrative expense, was $117,000 and $176,000 for the nine months ended April 30, 2025 and 2024, respectively. The decrease of $59,000 is primarily due to the prior year vesting of stock options and restricted stock units granted to employees, directors and consultants supporting our selling, general and administrative functions.

Current wording

Share-based compensation expense, included in selling, general and administrative expense, was $34,000 and $57,000 for the three months ended October 31, 2025 and 2024, respectively. The decrease of $23,000 is primarily due to the prior year vesting of stock options granted to employees, directors and consultants supporting our selling, general and administrative functions.

Previous wording

Research and development expense, primarily consisting of third-party fees and personnel costs, was $91,000 and $77,000 for the three months ended April 30, 2025 and 2024, respectively.

Current wording

Research and development expense, primarily consisting of third-party fees and personnel costs, was $86,000 and $71,000 for the three months ended October 31, 2025 and 2024, respectively.

Previous wording

Interest expense was $78,000 and $41,000 for the three months ended April 30, 2025 and 2024, respectively. The increase of $37,000 was primarily due to accrued interest on convertible notes issued in 2025, 2024 and 2023.

Current wording

Interest expense was $94,000 and $62,000 for the three months ended October 31, 2025 and 2024, respectively. The increase of $32,000 was due to accrued interest on the convertible notes payable due to related parties.

Previous wording

As of April 30, 2025, we had $615,000 in cash and cash equivalents compared with $424,000 in cash and cash equivalents as of July 31, 2024. The net increase in cash and cash equivalents was attributable to cash received from financing activities, offset by cash used to fund continuing operations. Additionally, as of April 30, 2025, we had $972,000 of current liabilities, including $799,000 in accounts payable, compared with $733,000 of current liabilities, including $601,000 in accounts payable as of July 31, 2024. The net increase in current liabilities was due to increased trade payables owed to our contract manufactures.

Current wording

As of October 31, 2025, we had $509,000 in cash and cash equivalents compared with $409,000 in cash and cash equivalents as of July 31, 2025. The net increase in cash and cash equivalents was attributable to the note payable financing that occurred in September 2025 offset by cash used to fund operations. Additionally, as of October 31, 2025, we had $3,159,000 of current liabilities, including $879,000 in accounts payable, compared with $938,000 of current liabilities, including $784,000 in accounts payable as of July 31, 2025. The net increase in current liabilities was due to trade payables due to our vendors and the current note payable due to related parties.

Previous wording

We have a history of recurring losses, and as of April 30, 2025 we have a stockholder deficiency of $4,814,000. During the nine months ended April 30, 2025, we recorded a net loss of $2,067,000 on recorded net revenue of $1,438,000. In addition, during the nine months ended April 30, 2025 we used $1,559,000 in operating activities resulting in a cash balance of $540,000 as of April 30, 2025. Our history of recurring operating losses, and negative cash flows from operating activities give rise to substantial doubt regarding our ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from our possible inability to continue as a going concern.

Current wording

We have a history of recurring losses, and as of October 31, 2025 we have a stockholder deficiency of $5,546,000. During the three months ended October 31, 2025, we recorded a net loss of $464,000 on recorded net revenue of $708,000. In addition, during the three months ended October 31, 2025 we used $250,000 in operating activities resulting in a cash balance of $434,000 as of October 31, 2025. Our history of recurring operating losses, and negative cash flows from operating activities give rise to substantial doubt regarding our ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from our possible inability to continue as a going concern.

Previous wording

We recognize revenue in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, ASC, Topic 606, Revenue from Contracts with Customers, Topic 606. Under Topic 606, revenue is recognized at an amount that reflects the consideration to which we expect to be entitled in exchange for transferring goods or services to a customer. This principle is applied using the following 5-step process:

Current wording

We recognize revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), Topic 606, Revenue from Contracts with Customers (“Topic 606”). Under Topic 606, revenue is recognized at an amount that reflects the consideration to which we expect to be entitled in exchange for transferring goods or services to a customer. This principle is applied using the following 5-step process:

Previous wording

Our technology platform is based on patented stabilized ionic silver, and our initial products contain silver dihydrogen citrate, or SDC. SDC is a broad-spectrum, non-toxic antimicrobial agent, which offers 24-hour residual protection and formulates well with other compounds. We sell various configurations and dilutions of SDC direct to customers and through distributors. We currently offer PURE® Hard Surface as a food contact surface sanitizer and disinfectant to restaurant chains, food processors and food transportation companies. We also offer PURE Control® as a direct food contact processing aid.

Current wording

Our technology platform is based on patented stabilized ionic silver, and our initial products contain silver dihydrogen citrate, or SDC. SDC is a broad-spectrum, non-toxic antimicrobial agent, which offers residual protection and formulates well with other compounds. We sell various configurations and dilutions of SDC direct to customers and through distributors. We currently offer PURE® Hard Surface as a food contact surface sanitizer and disinfectant to restaurant chains, food processors and food transportation companies. We also offer PURE Control® as a direct food contact processing aid.

Previous wording

Our licensing contracts typically provide for royalties based on the licensee’s sales of various configurations of PURE Hard Surface. We record royalty revenue in the month in which the licensee sold our products to end users. Payments are generally received in the subsequent month.

Current wording

The Company’s licensing contracts typically provide for royalties based on the licensee’s sales of various configurations of PURE Hard Surface. The Company records its royalty revenue in the month in which the licensee sold our products to end users. Payments are generally received in the subsequent month.