Executive Summary

Q1 FY2025 revenue declined to $0.56M, down 22.9% YoY, with net loss narrowing modestly to $0.69M; management cited a product flow interruption to a major customer in 2024 and budget constraints at a large end-user as primary drivers .
No formal guidance or Wall Street consensus estimates were available/retrievable for this micro-cap OTC name this quarter; thus, no beat/miss analysis vs Street is provided (S&P Global consensus not available via our session)*.
Management reiterated its transition to a distributor-led model and highlighted ongoing onboarding/training; multiple new distribution agreements (AFCO/Zep, Quip Labs, Madison Chemical, Zee Company) were signed around the period, which could expand channel reach but are still early in ramp .
Balance sheet remains constrained: cash and restricted cash totaled $0.42M at quarter-end while related-party convertible notes rose to $3.51M, underscoring reliance on financing as the new channel strategy scales .

What Went Well and What Went Wrong

What Went Well
- Operating discipline: SG&A declined YoY ($0.88M vs $1.07M), contributing to a slight narrowing of net loss despite lower sales .
- Channel build-out: Management underscored the pivot to a distributor-led model and ongoing onboarding and training, noting this broader reach across food and beverage end-markets will continue into 2025 .
- Strategic partnerships: Signed multi-year distribution agreements with AFCO (Zep), Quip Labs, Madison Chemical, and Zee Company, expanding access to food/beverage, life sciences, and other targets .
- Quote: “Significant resources are being dedicated to onboarding new distributors, providing the necessary training, and ensuring the proper marketing of our products, which will continue into 2025.” – CEO Robert Bartlett .
What Went Wrong
- Top-line pressure: Net product sales fell to $0.56M (from $0.72M) as a large end-user faced budget constraints; total revenue declined 22.9% YoY .
- Customer/product flow disruption: Management cited an “unexpected interruption in the flow of products to one of our major customers in 2024,” with replacement revenue not yet materializing .
- Financing dependence rising: Interest expense to related parties increased YoY ($0.06M vs $0.02M), and related-party convertible notes climbed to $3.51M from $2.95M at FY year-end, indicating continued reliance on financing to fund operations .

Financial Results

Quarterly trend (oldest → newest)

Metric	Q2 2024 (Three months ended Jan 31, 2024)	Q3 2024 (Three months ended Apr 30, 2024)	Q1 2025 (Three months ended Oct 31, 2024)
Total Revenue ($USD)	$326,000	$441,000	$556,000
Net Product Sales ($USD)	$325,000	$440,000	$555,000
Royalty Revenue ($USD)	$1,000	$1,000	$1,000
Cost of Goods Sold ($USD)	$149,000	$183,000	$231,000
Gross Profit ($USD)	$177,000	$258,000	$325,000
SG&A ($USD)	$1,065,000	$998,000	$881,000
R&D ($USD)	$76,000	$77,000	$71,000
Operating Loss ($USD)	$(964,000)	$(817,000)	$(627,000)
Interest Expense (net) ($USD)	$(38,000)	$(41,000)	$(62,000)
Net Loss ($USD)	$(1,002,000)	$(857,000)	$(689,000)
EPS (Basic & Diluted)	$(0.01)	$(0.01)	$(0.01)

YoY comparison

Metric	Q1 2024 (Three months ended Oct 31, 2023)	Q1 2025 (Three months ended Oct 31, 2024)
Net Product Sales ($USD)	$718,000	$555,000
Royalty Revenue ($USD)	$4,000	$1,000
Total Revenue ($USD)	$722,000	$556,000
Cost of Goods Sold ($USD)	$280,000	$231,000
Gross Profit ($USD)	$442,000	$325,000
SG&A ($USD)	$1,073,000	$881,000
R&D ($USD)	$80,000	$71,000
Operating Loss ($USD)	$(711,000)	$(627,000)
Interest Expense to Related Parties (net) ($USD)	$(24,000)	$(62,000)
Net Loss ($USD)	$(735,000)	$(689,000)
EPS (Basic & Diluted)	$(0.01)	$(0.01)
Net Loss ex-SBC ($USD)	$(655,000)	$(632,000)

Balance sheet snapshots

Metric	Jul 31, 2024	Oct 31, 2024
Cash and Cash Equivalents ($USD)	$349,000	$346,000
Restricted Cash ($USD)	$75,000	$75,000
Accounts Receivable ($USD)	$298,000	$371,000
Inventories, net ($USD)	$56,000	$72,000
Accounts Payable ($USD)	$601,000	$718,000
Convertible Notes to Related Parties ($USD)	$2,949,000	$3,509,000
Total Stockholders’ Deficiency ($USD)	$(2,864,000)	$(3,496,000)

Cash flow (quarter)

Metric	Q1 2024	Q1 2025
Net Cash Used in Operating Activities ($USD)	$(440,000)	$(503,000)
Net Cash Provided by Financing Activities ($USD)	$785,000	$500,000
Ending Cash + Restricted Cash ($USD)	$1,515,000	$421,000

Notes:

The company did not provide standalone Q4 FY2024 quarterly figures in a separate 8-K/press release; thus “vs prior quarter” comparisons to Q4 FY2024 are not available from company materials .

Guidance Changes

No formal quantitative guidance (revenue/margins/OpEx/tax) was provided in Q1 FY2025 materials.

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	FY2025	None	None	Not provided

Earnings Call Themes & Trends

No Q1 FY2025 earnings call transcript was found in the document catalog for the period; themes below reflect management commentary across recent quarterly communications.

Topic	Previous Mentions (Q2 FY2024)	Previous Mentions (Q3 FY2024)	Current Period (Q1 FY2025)	Trend
Go-to-market shift to distributor model	Announced strategic shift from direct sales to distributor model; rationale and benefits outlined .	Emphasis on tiered pricing, distributor training, brand building and trade show presence .	Continued onboarding/training of key distributors; broader product offering across larger customer base .	Execution continues; timeline longer than expected.
Customer disruption/budget constraints	Noted unexpected interruption in product flow to major customer; Q2 revenue “very disappointing” .	N/A	Q1 YoY decline attributed to budget constraints of a large end-user and lack of replacement revenue .	Headwind persists; replacement pipeline developing.
Partnerships/channel expansion	Building distributor network .	Program gaining attention; training/education program in progress .	New distribution agreements with AFCO (Zep), Quip Labs, Madison Chemical, Zee Company .	Channel breadth expanding.
R&D and application innovation	New equipment/application solutions; exploring dairy and animal health .	Continued innovation; cost-saving, sustainability-focused solutions .	Continued emphasis; training/marketing to support adoption in food & beverage .	Ongoing, long-cycle validation.

Management Commentary

“This year’s first-quarter revenue was anticipated to be lower than the previous year due to an unexpected interruption in the flow of products to one of our major customers in 2024 and the lack of replacement revenue thus far.” – Robert Bartlett, CEO .
“Significant resources are being dedicated to onboarding new distributors, providing the necessary training, and ensuring the proper marketing of our products, which will continue into 2025.” – Robert Bartlett, CEO .
Prior context: “Our fiscal second quarter revenue was very disappointing… [due to] an unexpected interruption in the flow of PURE products to one of our major customers.” – Robert Bartlett, CEO (Q2 FY2024) .
Prior context: “While it is obvious sales growth has not been at the rate it needs to be, the team is dedicated to building our foundation… transform into an innovative customer solutions company using a distribution model for greater reach.” – Robert Bartlett, CEO (Q3 FY2024) .

Q&A Highlights

No public Q1 FY2025 earnings call transcript was available; consequently, there are no Q&A highlights to report for this quarter.

Estimates Context

Wall Street consensus estimates were not available/retrievable for PURE during this session; as a result, we cannot provide a comparison to consensus for revenue or EPS this quarter. Coverage for OTC micro-caps is typically limited, and the company did not reference consensus in its materials .
Implication: With no formal guidance and no consensus baseline, estimate revisions are unlikely to be a near-term stock driver; execution updates on distributor ramp and customer wins will likely anchor expectations .

Key Takeaways for Investors

Revenue softness stemmed from customer-specific issues (budget constraints, product flow interruption), not from demand broad-based across channels; watch for pace of replacement revenue as new distributors ramp .
Operating expense control is evident (lower SG&A YoY), helping narrow losses even on lower sales; continued discipline will be important as the company scales the distributor model .
Liquidity remains tight and reliance on related-party financing increased; balance sheet risk is a key consideration pending a clearer revenue inflection from distribution partners .
Multiple strategic distribution agreements (AFCO/Zep, Quip Labs, Madison Chemical, Zee Company) expand end-market reach; tangible order flow and account conversions over the next few quarters are the primary catalysts to watch .
Absence of guidance and lack of Street coverage shift investor focus to operational milestones: new customer wins, repeat orders, and validation of new application methods (e.g., clean-in-place, membrane treatment) referenced in recent communications .
Without a call transcript/Q&A, narrative relies on press materials; any incremental disclosures (order wins, regulatory developments, segment expansions) via 8-K/press releases could have outsized impact on the stock near-term .

Footnote: *Consensus estimates via S&P Global were not available/retrievable in this session; therefore, no estimate figures are shown.

PURE BIOSCIENCE, INC. (PURE)·Q1 2025 Earnings Summary