UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED ~~JANUARY~~APRIL 3130, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

Commission File Number: 001-14468

PURE Bioscience, Inc.

(Exact name of registrant as specified in its charter)

Delaware		33-0530289
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

771 Jamacha Rd., #512

El Cajon, California

92019

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (619) 596-8600

Securities registered pursuant to Section 12(b) of the Act: None.

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, $0.01 par value

Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☒

Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~March~~June 1716, 2025, there were 111,~~856~~886,473 shares of the registrant’s common stock, $0.01 par value per share, outstanding.

PURE Bioscience, Inc.

Form 10-Q

for the Quarterly Period Ended ~~January~~April 3130, 2025

Table of Contents

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1516
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	2223
Item 4.	Controls and Procedures	2223
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	2324
Item 1A.	Risk Factors	2324
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2425
Item 3.	Defaults Upon Senior Securities	2425
Item 4.	Mine Safety Disclosures	2425
Item 5.	Other Information	2425
Item 6.	Exhibits	2526
	Signatures	2627

Part I - Financial Information

Item 1. Financial Statements

PURE Bioscience, Inc.

Condensed Consolidated Balance Sheets

	January 31, 2025			July 31, 2024
	April 30, 2025			July 31, 2024
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	~~202~~540,000		$	349,000
Accounts receivable		~~180~~287,000			298,000
Inventories, net		75131,000			56,000
Restricted cash		75,000			75,000
Prepaid expenses		3013,000			27,000
Total current assets		~~562~~1,046,000			805,000
Property, plant and equipment, net		1211,000			13,000
Total assets	$	~~574~~1,057,000		$	818,000
Liabilities and stockholders’ deficiency
Current liabilities
Accounts payable	$	~~700~~799,000		$	601,000
Accrued liabilities		~~166~~173,000			132,000
Total current liabilities		~~866~~972,000			733,000
Long-term liabilities
Convertible notes payable to related parties		34,~~975~~899,000			2,949,000
Total long-term liabilities		3,975,000			2,949,000
Total liabilities		5,871,000			3,682,000
Total liabilities		4,841,000			3,682,000
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, 111,856,473 shares issued and outstanding at January 31, 2025, and July 31, 2024		1,119,000			1,119,000
Common stock, $0.01 par value: 200,000,000 shares authorized, 111,856,473 shares issued and outstanding at April 30, 2025, and July 31, 2024		1,119,000			1,119,000
Additional paid-in capital		132,~~696~~729,000			132,612,000
Accumulated deficit		(138,~~082~~662,000	)		(136,595,000	)
Total stockholders’ deficiency		(4,~~267~~814,000	)		(2,864,000	)
Total liabilities and stockholders’ deficiency	$	~~574~~1,057,000		$	818,000

See accompanying notes.

PURE Bioscience, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

	2025			2024			2025			2024
	Six Months Ended						Three months Ended
	Nine Months Ended						Three months Ended
	January 31,						January 31,
	April 30,						April 30,
	2025			2024			2025			2024
Net product sales	$	~~946~~1,435,000		$	1,~~043~~483,000		$	~~391~~489,000		$	~~325~~440,000
Royalty revenue		13,000			56,000			—2,000			1,000
Total revenue		~~947~~1,438,000			1,~~048~~489,000			~~391~~491,000			~~326~~441,000
Cost of goods sold		~~395~~603,000			~~429~~612,000			~~164~~208,000			~~149~~183,000
Gross profit		~~552~~835,000			~~619~~877,000			~~227~~283,000			~~177~~258,000
Operating costs and expenses
Selling, general and administrative		12,~~752~~528,000			23,~~138~~136,000			~~871~~776,000			1998,~~065,~~000
Research and development		~~152~~243,000			~~156~~233,000			8191,000			7677,000
Total operating costs and expenses		12,~~904~~771,000			23,~~294~~369,000			~~952~~867,000			1,~~141~~075,000
Loss from operations		(1,~~352~~936,000	)		(12,~~675~~492,000	)		(~~725~~584,000	)		(~~964~~817,000	)
Other income (expense)
Other income (expense), net		(379,000	)		—1,000			(382,000	)		—1,000
Interest expense, net		(~~132~~210,000	)		(62103,000	)		(7078,000	)		(3841,000	)
Total other income (expense)		(~~135~~131,000	)		(62102,000	)		~~(73~~4,000	)		(3840,000	)
Net loss	$	(12,~~487~~067,000	)	$	(12,~~737~~594,000	)	$	(~~798~~580,000	)	$	(1857,~~002,~~000	)
Basic and diluted net loss per share	$	(0.0102	)	$	(0.0203	)	$	(0.01	)	$	(0.01	)
Shares used in computing basic and diluted net loss per share		111,856,473			111,856,473			111,856,473			111,856,473

See accompanying notes.

PURE Bioscience, Inc.

Condensed Consolidated Statement of Stockholders’ Equity (Deficiency)

(Unaudited)

	Shares		Amount		Capital		Deficit			Equity			Shares		Amount		Capital		Deficit			Equity
	Six Months Ended January 31, 2025												Six Months Ended January 31, 2024
	Nine Months Ended April 30, 2025												Nine Months Ended April 30, 2024
	Common Stock				Additional Paid-In		Accumulated			Total Stockholders’			Common Stock				Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Capital		Deficit			Equity			Shares		Amount		Capital		Deficit			Equity
Balances at beginning of period		111,856,473	$	1,119,000	$	132,612,000	$	(136,595,000	)	$	(2,864,000	)		111,856,473	$	1,119,000	$	132,398,000	$	(133,245,000	)	$	272,000
Share-based compensation expense - stock options		—		—		84114,000		—			84114,000			—		—		~~144~~176,000		—			~~144~~176,000
Share-based compensation expense - restricted stock units		—		—		—3,000		—			—3,000			—		—		—		—			—
Net loss		—		—		—		(12,~~487~~067,000	)		(12,~~487~~067,000	)		—		—		—		(12,~~737~~594,000	)		(12,~~737~~594,000	)
Balances at end of period (Unaudited)		111,856,473	$	1,119,000	$	132,~~696~~729,000	$	(138,~~082~~662,000	)	$	(4,~~267~~814,000	)		111,856,473	$	1,119,000	$	132,~~542~~574,000	$	(~~134~~135,~~982~~839,000	)	$	(12,~~321~~146,000	)

	Shares		Amount		Capital		Deficit			Equity			Shares		Amount		Capital		Deficit			Equity
	Three Months Ended January 31, 2025												Three Months Ended January 31, 2024
	Three Months Ended April 30, 2025												Three Months Ended April 30, 2024
	Common Stock				Additional Paid-In		Accumulated			Total Stockholders’			Common Stock				Additional Paid-In		Accumulated			Total Stockholders’
	Shares		Amount		Capital		Deficit			Equity			Shares		Amount		Capital		Deficit			Equity
Balances at beginning of period (Unaudited)		111,856,473	$	1,119,000	$	132,~~669~~696,000	$	(~~137~~138,~~284~~082,000	)	$	(34,~~496~~267,000	)		111,856,473	$	1,119,000	$	132,~~478~~542,000	$	(~~133~~134,~~980~~982,000	)	$	(~~383~~1,321,000	)
Balance		111,856,473	$	1,119,000	$	132,669,000	$	(137,284,000	)	$	(3,496,000	)		111,856,473	$	1,119,000	$	132,478,000	$	(133,980,000	)	$	(383,000	)
Balances		111,856,473	$	1,119,000	$	132,696,000	$	(138,082,000	)	$	(4,267,000	)		111,856,473	$	1,119,000	$	132,542,000	$	(134,982,000	)	$	(1,321,000	)
Share-based compensation expense - stock options		—		—		2730,000		—			2730,000			—		—		6432,000		—			6432,000
Share-based compensation expense - restricted stock units		—		—		—3,000		—			—3,000			—		—		—		—			—
Net loss		—		—		—		(~~798~~580,000	)		(~~798~~580,000	)		—		—		—		(1857,~~002,~~000	)		(1857,~~002,~~000	)
Balances at end of period (Unaudited)		111,856,473	$	1,119,000	$	132,~~696~~729,000	$	(138,~~082~~662,000	)	$	(4,~~267~~814,000	)		111,856,473	$	1,119,000	$	132,~~542~~574,000	$	(~~134~~135,~~982~~839,000	)	$	(12,~~321~~146,000	)
Balance		111,856,473	$	1,119,000	$	132,696,000	$	(138,082,000	)	$	(4,267,000	)		111,856,473	$	1,119,000	$	132,542,000	$	(134,982,000	)	$	(1,321,000	)
Balances		111,856,473	$	1,119,000	$	132,729,000	$	(138,662,000	)	$	(4,814,000	)		111,856,473	$	1,119,000	$	132,574,000	$	(135,839,000	)	$	(2,146,000	)

See accompanying notes.

PURE Bioscience, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	2025			2024
	Six Months Ended
	Nine Months Ended
	January 31,
	April 30,
	2025			2024
Operating activities
Net loss	$	(12,~~487~~067,000	)	$	(12,~~737~~594,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation		84117,000			~~144~~176,000
Depreciation and amortization		1,000			74,000
Depreciation		2,000			110,000
Impairment of computer software		—			60,000
Changes in operating assets and liabilities:
Accounts receivable		~~118~~11,000			~~114~~51,000
Inventories		(1975,000	)		14,000
Prepaid expenses		(314,000	)		(117,000	)
Interest on note payable to related parties		126,000			56,000
Interest on note payable		200,000			94,000
Accounts payable and accrued liabilities		~~133~~239,000			13134,000
Net cash used in operating activities		(1,~~047~~559,000	)		(1,~~323~~938,000	)
Financing activities
Net proceeds from note payable to related parties		~~900~~1,750,000			~~785~~1,285,000
Net cash provided by financing activities		~~900~~1,750,000			~~785~~1,285,000
Net decrease in cash, cash equivalents, and restricted cash		(147,000	)		(538,000	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		191,000			(653,000	)
Cash, cash equivalents, and restricted cash at beginning of period		424,000			1,170,000
Cash, cash equivalents, and restricted cash at end of period	$	~~277~~615,000		$	~~632~~517,000
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents	$	~~202~~540,000		$	~~557~~442,000
Restricted cash	$	75,000		$	75,000
Total cash, cash equivalents and restricted cash	$	~~277~~615,000		$	~~632~~517,000
Supplemental disclosure of cash flow information
Cash paid for taxes	$	—			—

See accompanying notes.

PURE Bioscience, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

For the three and ~~six~~nine months ended ~~January~~April 3130, 2025 and 2024

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the consolidated accounts of PURE Bioscience, Inc. and its wholly owned subsidiary, ETI H2O Inc., a Nevada corporation. ETI H2O, Inc. currently has no business operations and no material assets or liabilities and there have been no significant transactions related to ETI H2O, Inc. during the periods presented in the condensed consolidated financial statements. All inter-company balances and transactions have been eliminated. All references to “PURE,” “we,” “our,” “us,” “its” and the “Company” refer to PURE Bioscience, Inc. and our wholly owned subsidiary, ETI H20 Inc.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information pursuant to the instructions to Form 10-Q and Article 10/Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and ~~six~~nine months ended ~~January~~April 3130, 2025 are not necessarily indicative of the results that may be expected for other quarters or the year ending July 31, 2025. The July 31, 2024 balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP and included in our Annual Report on Form 10-K. For more complete information, these unaudited financial statements and the notes thereto should be read in conjunction with the audited financial statements for the year ended July 31, 2024 included in our Annual Report on Form 10-K covering such period filed with the Securities and Exchange Commission, or SEC, on October 29, 2024.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.

2. Liquidity and Going Concern

The Company has a history of recurring losses, and as of ~~January~~April 3130, 2025 it has a stockholders deficiency of $4,~~267~~814,000. During the ~~six~~ nine months ended ~~January~~April 3130, 2025, it recorded a net loss of $12,~~487~~067,000 on recorded net revenue of $~~947~~1,438,000. In addition, during the ~~six~~ nine months ended ~~January~~April 3130, 2025 the Company used $1,~~047~~559,000 in operating activities resulting in a cash balance of $~~202~~540,000 as of ~~January 31~~April 30, 2025. The Company’s history of recurring operating losses, and negative cash flows from operating activities give rise to substantial doubt regarding its ability to continue as a going concern. The Company’s independent registered public accounting firm, in its report on the Company’s consolidated financial statements for the year ended July 31, 2024, has also expressed substantial doubt about the Company’s 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.

The Company’s future capital requirements depend on numerous forward-looking factors. These factors may include, but are not limited to, the following: the acceptance of, and demand for, its products; the Company’s success and the success of its partners in selling our products; the Company’s success and the success of its partners in obtaining regulatory approvals to sell its products; the costs of further developing the Company’s existing products and technologies; the extent to which the Company invests in new product and technology development; and the costs associated with the continued operation, and any future growth, of its business. The outcome of these and other forward-looking factors will substantially affect its liquidity and capital resources.

Until the Company can continually generate positive cash flow from operations, it will need to continue to fund its operations with the proceeds of offerings of our equity and debt securities. However, the Company cannot ensure that additional financing will be available when needed or that, if available, financing will be obtained on terms favorable to the Company or to its stockholders. If the Company raises additional funds from the issuance of equity securities, substantial dilution to its existing stockholders would likely result. If the Company raises additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict its ability to operate its business.7

7Until the Company can continually generate positive cash flow from operations, it will need to continue to fund its operations with the proceeds of offerings of our equity and debt securities. However, the Company cannot ensure that additional financing will be available when needed or that, if available, financing will be obtained on terms favorable to the Company or to its stockholders. If the Company raises additional funds from the issuance of equity securities, substantial dilution to its existing stockholders would likely result. If the Company raises additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict its ability to operate its business.

3. Significant Accounting Policies

Revenue Recognition

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

	1.	Identify the contract with the customer
	2.	Identify the performance obligations in the contract
	3.	Determine the transaction price
	4.	Allocate the transaction price to the performance obligations in the contract
	5.	Recognize revenue when (or as) each performance obligation is satisfied

Under Topic 606, the Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services.

The Company’s technology platform is based on patented stabilized ionic silver, and its 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. The Company sells various configurations and dilutions of SDC direct to customers and through distributors. The Company currently offers PURE® Hard Surface as a food contact surface sanitizer and disinfectant to restaurant chains, food processors and food transportation companies. The Company also offers PURE Control® as a direct food contact processing aid.

Contract terms for unit price, quantity, shipping and payment are governed by sales agreements and purchase orders which it considers to be a customer’s contract in all cases. The unit price is considered the observable stand-alone selling price for the arrangements. Any promotional or sales discounts are applied evenly to the units sold for purposes of calculating the standalone selling price.

Product sales generally consist of a single performance obligation that it satisfies at a point in time. The Company recognizes product revenue when the following events have occurred: (a) it has transferred physical possession of the products, (b) it has a present right to payment, (c) the customer has legal title to the products, and (d) the customer bears significant risks and rewards of ownership of the products.

The Company’s direct customer and distributor sales are invoiced based on received purchase orders. Its payment terms on invoiced direct customer and distributor sales range between 30 and 90 days after it satisfies its performance obligation. The majority of our customers are on 30 day payment terms. The Company currently offers no right of return on invoiced sales and maintain no allowance for sales returns.

Shipping and handling are treated as activities to fulfill promises to customers and any amounts billed to a customer, if applicable, represent revenues earned for the goods provided. Costs related to such shipping and handling billings are classified as cost of sales.

~~The Company does not have significant categories of revenue that may impact how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.~~8

~~A summary~~The ofCompany ~~our~~does not have significant categories of revenue bythat ~~product~~may ~~type~~impact ~~for~~how the ~~six~~nature, ~~months~~amount, ~~ended~~timing ~~January~~and ~~31,~~uncertainty ~~2025~~of revenue and ~~2024~~cash isflows asare ~~follows:~~affected by economic factors.

~~Summary~~A summary of ~~Revenue~~the Company’s revenue by ~~Product~~ product type for the nine months ended April 30, 2025 and 2024 is as follows:

	2025		2024
	January 31,
	2025		2024
PURE Hard Surface	$	774,000	$	1,036,000
SILVÉRION		172,000		7,000
Revenue	$	946,000	$	1,043,000

Summary of Revenue by Product

	2025		2024
	April 30,
	2025		2024
PURE Hard Surface	$	1,242,000	$	1,386,000
SILVÉRION		193,000		97,000
Revenue	$	1,435,000	$	1,483,000

A summary of ~~our~~the Company’s revenue by product type for the three months ended ~~January~~April 3130, 2025 and 2024 is as follows:

	2025		2024
	January 31,
	April 30,
	2025		2024
PURE Hard Surface	$	~~384~~468,000	$	~~325~~350,000
SILVÉRION		721,000		—90,000
Revenue	$	~~391~~489,000	$	~~325~~440,000

Variable Consideration

The Company records revenue from customers in an amount that reflects the transaction price it expects to be entitled to after transferring control of those goods or services. From time to time, the Company offer sales promotions on its products such as discounts. Variable consideration is estimated at contract inception only to the extent that it is probable that a significant reversal of revenue will not occur.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements, and the disclosures made in the accompanying notes to the consolidated financial statements. Actual results could differ materially from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, inventory obsolescence, depreciable lives of property and equipment, realization of deferred tax assets, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services.

Net Loss Per Share

Basic net loss per common share is computed as net loss divided by the weighted average number of common shares outstanding for the period. The Company’s diluted net loss per common share is the same as its basic net loss per common share because itthe Company incurred a net loss during each period presented, and the potentially dilutive securities from the assumed exercise of all outstanding stock options, restricted stock units, and warrants would have an anti-dilutive effect. As of ~~January~~April 3130, 2025 and 2024, stock options, shares issuable upon the conversion of debt, and shares issuable under restricted stock unit awards of 4250,~~075~~255,~~936~~145 and 2125,~~481~~588,~~458~~602, respectively, have been excluded from the computation of diluted shares outstanding.

	2025		2024
	January 31,
	April 30,
	2025		2024
Common stock options		910,~~895~~060,000		8,355,625
Restricted stock units		~~712~~742,500		712,500
Shares issuable upon the conversion of debt		3139,~~468~~452,~~436~~645		1216,~~413~~520,~~333~~477
Total		4250,~~075~~255,~~936~~145		2125,~~481~~588,~~458~~602

~~Accounts Receivable~~Inventory

~~Trade accounts~~Inventories ~~receivable~~ are ~~recorded~~stated ~~net~~at ~~of allowances for doubtful accounts. The Company evaluates~~ the ~~collectability~~lower of ~~its~~cost ~~trade accounts~~or ~~receivable~~net ~~based~~realizable onvalue, aand ~~number~~net of ~~factors. In circumstances where the Company become aware of~~ a ~~specific~~valuation ~~customer’s~~allowance ~~inability~~for ~~to meet~~potential ~~its~~excess ~~financial~~or ~~obligations~~obsolete tomaterial. ~~the~~Cost ~~Company, a specific reserve for bad debts~~ is ~~estimated~~determined ~~and~~using ~~recorded, which reduces~~ the ~~recognized~~average ~~receivable~~cost ~~to the estimated amount the Company believes will ultimately be collected~~method. InDepreciation ~~addition~~related to ~~specific~~manufacturing ~~customer~~is ~~identification of~~systematically ~~potential~~allocated ~~bad~~to ~~debts~~inventory produced, ~~bad debt charges are recorded based on our historical losses~~ and anexpensed ~~overall~~through ~~assessment~~cost of ~~past due trade accounts~~goods ~~receivable~~sold ~~outstanding. Management determined no allowance for doubtful accounts was necessary~~ at ~~January~~the ~~31,~~time ~~2025~~inventory ~~and~~is ~~July 31, 2024~~sold.

~~Inventory~~Inventories consist of the following:

~~Inventories are~~Schedule ~~stated at the lower~~ of cost or net realizable value, and net of a valuation allowance for potential excess or obsolete material. Cost is determined using the average cost method. Depreciation related to manufacturing is systematically allocated to inventory produced, and expensed through cost of goods sold at the time inventory is sold.Inventories

Inventories consist of the following:

	April 30, 2025		July 31, 2024
Raw materials	$	22,000	$	4,000
Finished goods		109,000		52,000
Inventories	$	131,000	$	56,000

~~Schedule~~Property, ofPlant ~~Inventories~~ and Equipment

	January 31, 2025		July 31, 2024
Raw materials	$	3,000	$	4,000
Finished goods		72,000		52,000
Inventories	$	75,000	$	56,000

Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. During the nine months ended April 30, 2024, management performed an impairment test and determined that its forecasted operations could no longer support $60,000 of computer software previously capitalized as fixed assets, and as such an impairment was recognized. There were no impairments during the nine months ended April 30, 2025.

~~Inventories at~~Share-Based ~~January 31, 2025 and July 31, 2024, are net of reserve for inventory obsolescence of $230,000 and $238,000, respectively.~~Compensation

~~Share~~The Company periodically issues stock options and restricted stock awards to employees and non-~~Based~~employees ~~Compensation~~in non-capital raising transactions for services. It accounts for such grants issued and vesting to employees based on ASC 718, whereby the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period.

The Company ~~periodically~~estimates ~~issues~~the ~~stock~~fair ~~options~~value ~~and~~of ~~restricted~~share-based payment ~~stock~~ awards toat ~~employees~~the ~~and~~date ~~non-employees~~of ingrant ~~non~~using the Black-~~capital~~Scholes ~~raising~~option ~~transactions for~~valuation ~~services~~model. ItThe ~~accounts~~Black-Scholes ~~for~~option ~~such~~valuation ~~grants~~model ~~issued~~requires the ~~and~~input ~~vesting~~of tosubjective ~~employees based on ASC 718~~assumptions, ~~whereby~~including ~~the~~price ~~value~~volatility of the ~~award~~underlying isstock, ~~measured on~~risk-free ~~the~~interest ~~date~~rate, ofdividend ~~grant~~yield, and expected ~~recognized~~life asof the option. Share-based compensation expense is based on ~~the~~awards ~~straight-line~~ultimately ~~basis~~expected ~~over~~to ~~the~~vest, ~~vesting~~and ~~period~~therefore is reduced by expected forfeitures.

The Company estimates the fair value of share-based payment awards at the date of grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. Share-based compensation expense is based on awards ultimately expected to vest, and therefore is reduced by expected forfeitures.Concentrations

~~Concentrations~~Gross product sales. For the nine months ended April 30, 2025, two customers accounted for 13% and 10% of net product sales. For the three months ended April 30, 2025, no customers accounted for greater than 10% of net product sales. For the three and nine months ended April 30, 2024, one customer accounted for 20% and 23% of net product sales, respectively.

Gross product sales. For the three months ended January 31, 2025, one customer accounted for 12% of net product sales. For the six months ended January 31, 2025, two customers accounted for 18% and 11% of net product sales, respectively. For the three months ended January 31, 2024, one customer accounted for 12% of net product sales. For the six months ended January 31, 2024, one customer accounted for 30% of net product sales.10

Accounts receivable. As of ~~January~~April 3130, 2025, no ~~the~~customers ~~Company~~comprised ~~had~~greater ~~accounts~~than ~~receivable from one customer that comprised 12~~10% of total accounts receivable. As of ~~January~~July 31, 2024, the Company had accounts receivable from two customers that comprised ~~of 19~~12% and 1713% of total accounts receivable, respectively.

Purchases. For the three months ended ~~January 31~~April 30, 2025, ~~one~~three ~~vendor~~vendors accounted for 2230%, 11% and 10% of the Company’s purchases, respectively. For the ~~six~~nine months ended ~~January 31~~April 30, 2025, ~~one~~ ~~vendor~~two vendors accounted for 2826% and 10% of the Company’s purchases, respectively. For the three months ended ~~January~~April 3130, 2024, one vendor accounted for 1229% of the Company’s purchases. For the ~~six~~nine months ended ~~January~~April 3130, 2024, two vendors accounted for 1619% and 1210% of the Company’s purchases.

Accounts payable. As of ~~January~~April 3130, 2025, the Company’s largest vendor accounted for 1014% of ~~the~~ total trade accounts payable. As of ~~January~~ July 31, 2024, ~~the~~no ~~Company’s~~vendors ~~largest vendor~~ accounted for 10% or more of the total accounts payable.

Segments

The Company operates in one segment for the manufacture and distribution of our products. In accordance with the “Segment Reporting” Topic of the ASC, its chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying financial statements.

104. Recent Accounting Pronouncements

4In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure, or ASC 280, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expense categories that are regularly provided to the chief operating decision maker and included in each reported measure of a segment’s profit or loss. The update also requires ~~Recent~~all ~~Accounting~~annual ~~Pronouncements~~disclosures about a reportable segment’s profit or loss and assets to be provided in interim periods and for entities with a single reportable segment to provide all the disclosures required by ASC 280, including the significant segment expense disclosures. This standard will be effective for the Company beginning in fiscal year 2025. The Company adopted ASU 2023-07 on August 1, 2024, and there was no material impact on its financial statements.

In November ~~2023~~2024, ~~the~~ FASB issued ASU ~~2023~~2024-~~07,~~03 ~~Segment~~ Income Statement—Reporting ~~(Topic~~Comprehensive ~~280):~~Income—Expense ~~Improvements~~Disaggregation toDisclosures ~~Reportable~~(Subtopic ~~Segment~~220-40) ~~Disclosure,~~Disaggregation orof ~~ASC~~Income ~~280,~~Statement ~~which~~Expenses. isThe ~~intended~~guidance toin ~~improve~~ASU ~~reportable~~2024-03 ~~segment~~requires ~~disclosure~~public ~~requirements,~~business ~~primarily~~entities ~~through~~to ~~enhanced~~disclose ~~disclosures~~in ~~about~~the ~~significant~~notes ~~segment expense~~to ~~categories~~the ~~that~~financial ~~are~~statements, ~~regularly~~among ~~provided~~other things, tospecific ~~the~~information ~~chief~~about ~~operating~~certain ~~decision~~costs ~~maker~~ and ~~included~~expenses inincluding ~~each~~purchases ~~reported~~of ~~measure~~inventory; ofemployee acompensation; ~~segment’s~~and depreciation ~~profit~~and oramortization ~~loss.~~expense ~~The~~for ~~update~~each ~~also~~caption ~~requires~~on ~~all~~the ~~annual~~income ~~disclosures~~statement ~~about~~where asuch ~~reportable~~expenses ~~segment’s~~are ~~profit~~included. orThe ~~loss~~update ~~and~~is ~~assets~~effective tofor ~~be provided~~annual inreporting ~~interim~~ periods ~~and~~beginning ~~for~~after ~~entities~~December ~~with~~15, a2026, ~~single~~and ~~reportable~~interim ~~segment~~reporting toperiods ~~provide~~beginning ~~all~~after ~~the~~December ~~disclosures~~15, ~~required~~2027. byEarly ~~ASC~~adoption ~~280~~is permitted, ~~including~~and the ~~significant~~ ~~segment~~amendments ~~expense~~may ~~disclosures.~~be ~~This~~applied ~~standard~~prospectively ~~will~~to bereporting ~~effective~~periods ~~for~~after the ~~Company~~effective ~~beginning~~date or retrospectively to all periods presented in ~~fiscal~~the ~~year~~financial ~~2025~~statements. The Company ~~adopted ASU~~is ~~2023-07~~currently onevaluating ~~August~~the 1,provisions ~~2024,~~of ~~and~~this ~~there~~guidance ~~was~~and noassessing ~~material~~the potential impact on its financial ~~statements~~statement disclosures.

~~In November~~Other ~~2024,~~recent ~~FASB~~accounting ~~issued~~pronouncements ~~ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures~~issued ~~(Subtopic~~by ~~220-40) Disaggregation of Income Statement Expenses. The guidance in ASU 2024-03 requires public business entities to disclose in~~ the ~~notes to the financial statements~~FASB, ~~among other things, specific information about certain costs and expenses~~ including ~~purchases of~~its ~~inventory;~~Emerging ~~employee~~Issues ~~compensation;~~Task ~~and~~Force, ~~depreciation and amortization expense for each caption on~~ the ~~income~~American ~~statement~~Institute ~~where~~of ~~such~~Certified ~~expenses are~~Public ~~included. The update is effective for annual reporting periods beginning after December 15~~Accountants, ~~2026,~~ and ~~interim~~the ~~reporting~~Securities ~~periods beginning~~and ~~after~~Exchange ~~December~~Commission ~~15,~~did ~~2027.~~not ~~Early~~or ~~adoption~~are isnot ~~permitted,~~believed ~~and~~by ~~the~~management ~~amendments~~to ~~may~~have bea ~~applied~~material ~~prospectively~~impact toon ~~reporting periods after~~ the ~~effective~~ ~~date~~Company’s present or ~~retrospectively~~future ~~to all periods presented in the~~ financial statements. ~~We are currently evaluating the provisions of this guidance and assessing the potential impact on our financial statement disclosures.~~

Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.11

5. Convertible Notes Payable to Related Parties

On September 16, 2024, the Company entered into a Note Purchase Agreement, or the 2025 Note Purchase Agreement, with certain accredited investors, or 2025 Lenders, pursuant to which the Company issued the Lenders convertible promissory notes, or the 2025 Notes, collectively with the 2025 Note Purchase Agreement, the 2025 Note Documents, with an aggregate principal balance of $500,000, or the 2025 Private Placement. The 2025 Note Documents provide for subsequent closings for an aggregate offering size of $3.0 million in principal balance. Tom Y. Lee, a member of the Company’s Board of Directors, or the Board, invested $500,000 in the 2025 Private Placement, through affiliates or directly. The disinterested members of the Board approved the 2025 Private Placement.

During the ~~six~~nine months ended ~~January~~April 3130, 2025, the Company issued additional 2025 Notes to Mr. Lee pursuant to the 2025 Note Purchase Agreement in a subsequent ~~closing~~closings with an aggregate principal of $~~400~~1,250,000. As of ~~January~~April 3130, 2025, $~~900~~1,750,000 of principal was outstanding under the 2025 Note Documents.

The 2025 Note Documents provided that the interest to the 2025 Lenders shall accrue at rates between 6.79% and 7.88%, compounded annually. The Maturity Date (as defined in the 2025 Notes) of the 2025 Notes is the third-year anniversary of the date of issuance, or such earlier date as the 2024 Notes provide.

Conversion. ~~All~~ All or any portion of the principal amount of the 2025 Notes, plus accrued and unpaid interest, is convertible at any time, in whole or in part, at a 2025 Lender’s or the Company’s option, into shares of the Company’s common stock at a conversion price ~~equal~~ equal to the 30-day volume-weighted average price of the Company’s common stock as reported on the market or exchange on which the Company’s common stock is listed or quoted for trading, or the VWAP, on the date of conversion on the last trading day prior to the date of conversion, provided that such conversion price is at least $0.095 per share and less than or equal to $0.175 per share, ~~subject~~ subject to certain customary adjustments. Additionally, at any time following September 16, 2025, the holders of a majority of the outstanding principal balance under the 2025 Notes may elect specified in writing to convert all of the 2025 Notes at a conversion price equal to the VWAP, provided that the conversion price is equal to at least $0.095 per share, subject to certain customary adjustments.

11March and June 2024 Convertible Note Purchase Agreements

On March 22, 2024, the ~~and~~Company ~~June~~entered into a Note Purchase Agreement, or the 2024 ~~Convertible~~Note Purchase Agreement, with certain accredited investors, or 2024 Lenders, pursuant to which the Company issued the Lenders convertible promissory notes, or the 2024 Notes, collectively with the 2024 Note Purchase Agreement, ~~Agreements~~the 2024 Note Documents, with an aggregate principal balance of $500,000, or the 2024 Private Placement. Tom Y. Lee, a member of the Company’s Board, invested $500,000 in the 2024 Private Placement, through affiliates or directly.

On ~~March~~ 22June 21, 2024, the Company ~~entered~~issued ~~into~~an ~~a Note Purchase Agreement, or the~~ additional 2024 Note ~~Purchase~~to ~~Agreement,~~Mr. ~~with~~Lee ~~certain accredited investors, or 2024 Lenders,~~ pursuant to ~~which~~ the ~~Company issued the Lenders convertible promissory notes, or the~~ 2024 ~~Notes, collectively with the 2024~~ Note Purchase Agreement, ~~the~~in ~~2024~~a ~~Note~~subsequent ~~Documents,~~closing with an aggregate principal ~~balance~~ of $500,000,. orThe disinterested members of the Board approved the 2024 Private Placement. ~~Tom Y.~~ ~~Lee,~~As ~~a member~~ of ~~the~~April ~~Company’s~~30, ~~Board~~2025, ~~invested~~ $~~500~~1,000,000 inof ~~the~~principal ~~2024~~was ~~Private~~outstanding under ~~Placement,~~the ~~through~~2024 ~~affiliates~~Note ~~or directly~~Documents.

~~On June~~The ~~21,~~ 2024, ~~the Company issued an additional 2024~~ Note toDocuments provided ~~Mr.~~that ~~Lee~~the ~~pursuant~~interest to the 2024 ~~Note~~Lenders ~~Purchase~~shall ~~Agreement~~accrue inat athe ~~subsequent~~rate ~~closing with an aggregate principal~~ of ~~$500~~ 7.81%,~~000~~ compounded annually. The ~~disinterested~~Maturity ~~members~~Date of(as defined in the ~~Board~~2024 ~~approved~~Notes) of the 2024 ~~Private~~Notes ~~Placement.~~is Asthe third-year anniversary of ~~January~~the ~~31, 2025,~~date ~~$1,000,000~~ of ~~principal~~issuance, ~~was~~or ~~outstanding~~such ~~under~~earlier date as the 2024 ~~Note~~Notes ~~Documents~~provide.

~~The~~Conversion. All ~~2024~~or ~~Note~~any ~~Documents~~portion ~~provided~~of ~~that~~ the ~~interest~~principal toamount of the 2024 ~~Lenders~~Notes, ~~shall~~plus ~~accrue~~accrued and unpaid interest, is convertible at any time, in whole or in part, at a 2024 Lender’s or the ~~rate~~Company’s ~~of 7.81%~~option, ~~compounded~~into ~~annually.~~shares ~~The~~of ~~Maturity~~the Company’s common stock at a conversion price equal ~~Date~~to (the 30-day volume-weighted average price of the Company’s common stock as ~~defined~~reported inon the ~~2024~~market ~~Notes)~~or ofexchange on which the Company’s ~~2024~~common ~~Notes~~stock is listed or quoted for trading, or the ~~third-year~~VWAP, ~~anniversary~~on the date of conversion on the last trading day prior to the date of ~~issuance~~conversion, orprovided that such ~~earlier~~conversion ~~date~~price asis at least $0.13 per share and less than or equal to $0.21 per share for the March 2024 Note and at least $0.115 per share and less than or equal to $0.195 per share for the June 2024 Note, subject to certain customary adjustments. Additionally, at any time following March 22, 2025, the holders of a majority of the outstanding principal balance under the 2024 Notes ~~provide~~may elect specified in writing to convert all of the 2024 Notes at a conversion price equal to the VWAP, provided that the conversion price is equal to at least $0.115 and $0.13 per share, as discussed above, subject to certain customary adjustments.

Conversion. All or any portion of the principal amount of the 2024 Notes, plus accrued and unpaid interest, is convertible at any time, in whole or in part, at a 2024 Lender’s or the Company’s option, into shares of the Company’s common stock at a conversion price equal to the 30-day volume-weighted average price of the Company’s common stock as reported on the market or exchange on which the Company’s common stock is listed or quoted for trading, or the VWAP, on the date of conversion on the last trading day prior to the date of conversion, provided that such conversion price is at least $0.13 per share and less than or equal to $0.21 per share for the March 2024 Note and at least $0.115 per share and less than or equal to $0.195 per share for the June 2024 Note, subject to certain customary adjustments. Additionally, at any time following March 22, 2025, the holders of a majority of the outstanding principal balance under the 2024 Notes may elect specified in writing to convert all of the 2024 Notes at a conversion price equal to the VWAP, provided that the conversion price is equal to at least $0.115 and $0.13 per share, as discussed above, subject to certain customary adjustments.12

July and October 2023 Convertible Note Purchase Agreements

In July, 2023, the Company entered into a Note Purchase Agreement, or the 2023 Note Purchase Agreement with certain accredited investors, or the 2023 Lenders, pursuant to which the Company issued the 2023 Lenders convertible promissory notes, or the 2023 Notes, collectively with the 2023 Note Purchase Agreement, or the 2023 Note Documents, with an aggregate principal balance of $1,015,000 the 2023 Private Placement. The 2023 Note Documents provide for subsequent closings for an aggregate offering size of $1.8 million in principal balance. Messrs. Tom Y. Lee and Ivan Chen, each a member of the Company’s Board invested $1,000,000 and $15,000, as of July 31, 2023, respectively in the 2023 Private Placement, through affiliates or directly. On October 20, 2023, we issued an additional 2023 Note to Mr. Lee pursuant to the 2023 Note Purchase Agreement in a subsequent closing with an aggregate principal of $785,000. The disinterested members of the Board approved the 2023 Private Placement. As of ~~January~~April 3130, 2025, $1,800,000 of principal was outstanding under 2023 Note Documents.

The 2023 Note Documents provided that the interest to the Lender shall accrue at the rate of 7.55% and 7.81%, compounded annually, for the 2023 Notes issued in July 2023 and the October 2023 Note issued in October 2023, respectively. The Maturity Date (as defined in the Notes) of the 2023 Notes is the third-year anniversary of the date of issuance, or such earlier date as the 2023 Notes provide.

Conversion. All or any portion of the principal amount of the 2023 Notes, plus accrued and unpaid interest, is convertible at any time, in whole or in part, at a 2023 Lender’s or the Company’s option, into shares of the Company’s common stock at a conversion price equal to the VWAP on the date of conversion on the last trading day prior to the date of conversion, provided that such conversion price is at least $0.15 per share and less than or equal to $0.23 per share, subject to certain customary adjustments. Additionally, at any time following July 3, 2024, the holders of a majority of the outstanding principal balance under the 2023 Notes may elect specified in in writing to convert all of the Notes at a conversion price equal to the VWAP, provided that the conversion price is equal to at least $0.15 per share, subject to certain customary adjustments.

12Other terms of the Note Agreements.

~~Other~~Further, on all the notes ~~terms~~discussed above, in the event of certain corporate transactions, all outstanding principal and unpaid accrued interest due on such Notes shall be automatically converted into conversion shares on the ~~Note~~trading ~~Agreements~~day immediately prior to the closing date of such corporate transaction. The number of shares to be issued upon such conversion shall be based on the VWAP on the last trading day prior to the public announcement of the execution of the definitive documents with respect to such transaction.

~~Further, on~~Events ~~all the notes discussed above, in the event~~ of ~~certain corporate transactions, all outstanding principal and unpaid accrued interest~~Default. ~~due~~The onNotes ~~such~~Documents ~~Notes~~provide ~~shall~~for becertain ~~automatically~~events ~~converted~~of ~~into~~default ~~conversion~~that ~~shares~~are ontypical ~~the~~for ~~trading~~a ~~day~~transaction ~~immediately~~of ~~prior~~this totype, ~~the~~including, ~~closing~~among ~~date~~other ofthings, ~~such~~default ~~corporate~~in ~~transaction.~~the ~~The~~payment ~~number~~ of ~~shares~~principal toor beinterest ~~issued~~for ~~upon~~more ~~such~~than ~~conversion~~30 ~~shall~~days, bethe ~~based~~Company’s onmaking ~~the~~an ~~VWAP~~assignment onfor the ~~last~~benefit ~~trading~~of ~~day~~creditors, ~~prior~~within to15 ~~the~~days ~~public~~after ~~announcement~~the commencement of ~~the~~bankruptcy ~~execution~~proceedings ofagainst the ~~definitive~~Company, ~~documents~~or ~~with~~breach ~~respect~~of tocertain ~~such~~covenants ~~transaction~~described below.

~~Events of Default~~Covenants. The Company ~~Notes~~will ~~Documents~~be ~~provide~~subject ~~for~~to certain ~~events~~customary ofcovenants ~~default~~regarding ~~that~~the ~~are~~current ~~typical~~public ~~for a transaction of this type~~information, ~~including, among~~reservation ~~other things, default in the payment~~ of ~~principal~~adequate orshare ~~interest for more than 30 days~~reserve, ~~the Company’s making an assignment for~~ ~~the~~and ~~benefit~~maintenance of ~~creditors,~~intellectual ~~within~~property ~~15 days after the commencement of bankruptcy proceedings against the Company~~rights, oramong ~~breach~~other ofcustomary ~~certain covenants described below~~matters.

~~Covenants.~~During the nine months ~~The~~ended April 30, 2025 and 2024, the Company ~~will~~recognized be$200,000 and ~~subject~~$94,000 of interest expense related to ~~certain~~the ~~customary~~2025, ~~covenants~~2024 ~~regarding~~and 2023 ~~the~~Notes, ~~current~~respectively. ~~public~~As ~~information~~of April 30, ~~reservation~~2025, interest of ~~adequate~~$349,000 was ~~share~~added ~~reserve~~to the principal resulting in a balance owed of $4,899,000. ~~and~~In ~~maintenance~~addition, as of ~~intellectual~~April ~~property~~30, ~~rights~~2025, ~~among~~the ~~other~~Notes ~~customary~~and ~~matters~~accrued interest were convertible into 39,452,645 shares of common stock.

~~During the six months ended January 31, 2025 and 2024, the Company recognized $126,000 and $56,000 of interest expense related to the 2025, 2024 and 2023 Notes, respectively~~6. AsStockholders’ of January 31, 2025, interest of $275,000 was added to the principal resulting in a balance owed of $3,975,000. In addition, as of January 31, 2025, the Notes and accrued interest were convertible into 31,468,436 shares of common stock.Equity

~~6. Stockholders’~~Restricted ~~Equity~~Stock Units

~~Restricted~~The Company issues restricted stock unit awards, or RSUs, to key management and as compensation for services to consultants and others. The RSUs typically vest over a one 1 to three-year 3 period and carry a ten-year 10 term. Each RSU represents the right to receive one share of common stock, issuable at the time the RSU subsequently settles, as set forth in the Restricted Stock ~~Units~~Unit Agreement. The Company determines the fair value of awards at the date of grant and amortizes the awards as an expense over the vesting period of the award. The shares earned under the grant are usually issued when the award settles at the end of the term.

The Company issues restricted stock unit awards, or RSUs, to key management and as compensation for services to consultants and others. The RSUs typically vest over a one to three-year period and carry a ten-year term. Each RSU represents the right to receive one share of common stock, issuable at the time the RSU subsequently settles, as set forth in the Restricted Stock Unit Agreement. The Company determines that fair value of those awards at the date of grant, and amortize those awards as an expense over the vesting period of the award. The shares earned under the grant are usually issued when the award settles at the end of the term. As of January 31, 2025, all the RSUs had vested and 712,500 RSUs are issuable as of January 31, 2025.13

~~Stock~~During the nine months ended April 30, 2025, the ~~Option~~Company ~~Plans~~granted 30,000 RSU’s to a third-party consultant for manufacturing services. The RSU’s vested 100% on the date of grant. As a result, the Company recognized the entire fair value of $3,000 of compensation cost relating to the vesting of the RSUs.

During the nine months ended April 30, 2024, no ~~Equity~~compensation ~~Incentive~~cost ~~Plan~~related to RSU’s was recognized, as all outstanding RSU’s were fully vested.

~~The Company’s~~All ~~shareholders~~of ~~approved its 2024 Equity Incentive Plan, or~~ the ~~2024~~remaining ~~Plan~~742,500 RSUs inoutstanding ~~February~~are ~~2024,~~vested ~~which~~and ~~has~~issuable aas ~~share~~of ~~reserve~~April ~~of 10~~30,~~000,000 shares of~~ ~~common~~2025. ~~stock~~The RSUs ~~that~~are ~~were~~issued ~~registered~~upon ~~under~~settlement adate ~~Form~~which ~~S-8~~is ~~filed~~defined ~~with~~as ~~the~~“for ~~SEC~~each inVested ~~August~~Unit, ~~2024.~~the ~~The~~earliest ~~2024~~of ~~Plan~~(i) ~~provides for~~ the ~~grant~~ten-year anniversary of ~~incentive and~~the ~~non-qualified~~grant ~~stock~~date; ~~options,~~(ii) assixty ~~well~~days asafter ~~other~~the ~~share-based~~date ~~payment~~the ~~awards,~~grantee’s toservice ~~its~~ceases ~~employees,~~for ~~directors,~~any ~~consultants~~reason and ~~advisors. These~~such ~~awards~~cessation ~~have~~constitutes upa “separation tofrom ~~a 10-year~~service” ~~contractual~~within ~~life~~the ~~and~~meaning ~~are~~of ~~subject~~Section to409A ~~various~~of ~~vesting~~the ~~periods,~~Internal asRevenue ~~determined~~Service byCode (the ~~Compensation Committee~~“Code”); of(iii) the ~~Board.~~date ~~The~~of Grantee’s ~~2024~~death ~~Plan~~or ~~replaced~~(iv) the ~~prior~~date ~~amended~~of ~~and~~a ~~restated~~change ~~2007~~in ~~and~~control ~~2017~~that ~~shareholder~~constitutes ~~approved~~a ~~equity~~“change ~~plans.~~in Ascontrol ~~of January~~event” ~~31,~~within ~~2025,~~the meaning ~~there~~of ~~were 7,845,000 shares~~Section ~~available~~409A ~~for~~of ~~issuance under~~ the ~~2024 Plan~~Code”.

~~During the~~A ~~six~~summary ~~months ended January 31, 2025, the Compensation Committee~~ of the ~~Board of Directors granted 2,500,000 stock options to the~~ Company’s ~~employees,~~restricted ~~officers,~~stock unit ~~directors~~activity and ~~consultants~~related ~~with~~data ais ~~fair value of $148,000~~ as determined by the Black Scholes option pricing model. The vesting terms of the options vary between one and two years and carry a ten-year term. There were no stock options granted during the three months ended January 31, 2025 and 2024.follows:

~~A summary~~Schedule of ~~our~~Restricted ~~stock~~Stock ~~option activity is as follows:~~Activity

Schedule of Stock Option Activity

	Total RSU Shares		Vested and Issuable
Outstanding at July 31, 2024		712,500		712,500
Granted		30,000		30,000
Issued		—		—
Forfeited		—		—
Outstanding at April 30, 2025		742,500		742,500

	Shares			Weighted- Average Exercise Price		Aggregate Intrinsic Value
Outstanding at July 31, 2024		7,740,000		$	0.40	$	—
Granted		2,500,000		$	0.07		—
Exercised		—		$	—		—
Cancelled		(345,000	)	$	0.11		—
Outstanding at January 31, 2025		9,895,000		$	0.33	$	—

Stock Option Plans

~~The weighted-average~~2024 ~~remaining~~Equity ~~contractual~~Incentive ~~term of options outstanding at January 31, 2025 was 7.14 years.~~Plan

AtThe Company’s shareholders approved its ~~January~~2024 ~~31,~~Equity ~~2025~~Incentive Plan, ~~options~~or tothe ~~purchase~~2024 8Plan,~~575~~ in February 2024,~~417~~ which has a share reserve of 10,000,000 shares of common stock that were ~~exercisable~~registered under a Form S-8 filed with the SEC in August 2024. ~~These~~The ~~options~~2024 ~~had~~Plan aprovides ~~weighted-average~~for ~~exercise price~~the grant of ~~$0.33~~incentive and anon-qualified stock ~~weighted~~options, ~~average~~as ~~remaining~~well ~~contractual~~as ~~term~~other ofshare-based ~~6.78~~payment ~~years~~awards, to its employees, directors, consultants and advisors. ~~The~~These ~~total~~awards ~~unrecognized~~have ~~compensation~~up to ~~cost~~a 10-year ~~related~~contractual life and are subject to ~~unvested stock~~various ~~option~~vesting ~~grants~~periods, as determined by the Compensation Committee of ~~January~~the ~~31,~~Board. The ~~2025~~2024 ~~was~~Plan ~~approximately~~replaced ~~$72,000~~the prior amended and ~~the~~restated ~~weighted~~2007 ~~average~~and ~~period~~2017 ~~over~~shareholder ~~which~~approved ~~these~~equity ~~grants~~plans. ~~are~~As ~~expected~~of April 30, 2025, there were 7,500,000 shares toavailable ~~vest~~for isissuance ~~0.54~~under ~~years~~the 2024 Plan.

~~For~~ During the ~~six~~nine months ended ~~January~~April 3130, 2025, ~~share-based~~the ~~compensation~~Compensation ~~expense~~Committee ~~for~~of ~~stock~~the ~~options~~Board ~~that~~of ~~vested~~Directors ~~during~~granted 2,500,000 stock options to the ~~period~~Company’s ~~was~~employees, officers, directors and consultants with a fair value of $84148,000. as ~~For~~determined by the ~~six~~Black ~~months~~Scholes ~~ended~~option ~~January~~pricing ~~31,~~model. ~~2024,~~The ~~share-based~~vesting ~~compensation~~terms ~~expense~~of ~~for~~the ~~stock~~ options ~~that~~vary ~~vested~~between ~~during~~one ~~the~~1 and ~~period~~two years ~~was~~and ~~$144,000~~carry a ten-year 10 term.

13During the three months ended April 30, 2025, the Compensation Committee of the Board of Directors granted 165,000 stock options to Company’s employees, with a fair value of $10,000 as determined by the Black Scholes option pricing model. The vesting terms of the options vary between one 1 and two years and carry a ten-year 10 term.

We use the Black-Scholes valuation model to calculate the fair value of stock options. Stock-based compensation expense is recognized over the vesting period using the straight-line method. The fair value of stock options was estimated at the grant date using the following weighted average assumptions:14

~~Schedule~~A summary of ~~Fair~~our ~~Value~~stock ~~Assumptions~~ option activity is as follows:

	For the six months ended January 31,
	2025			2024
Volatility		118.49	%		110.95	%
Risk-free interest rate		3.86	%		4.18	%
Dividend yield		—	%		—	%
Expected life		5.26			5.36

Schedule of Stock Option Activity

Volatility is the measure by which our stock price is expected to fluctuate during the expected term of an option. Volatility is derived from the historical daily change in the market price of our common stock, as we believe that historical volatility is the best indicator of future volatility.

	Shares			Weighted- Average Exercise Price		Aggregate Intrinsic Value
Outstanding at July 31, 2024		7,740,000		$	0.40	$	—
Granted		2,665,000		$	0.07		—
Exercised		—		$	—		—
Cancelled		(345,000	)	$	0.11		—
Outstanding at April 30, 2025		10,060,000		$	0.32	$	—

The ~~risk-free~~ ~~interest rates used in the Black~~weighted-~~Scholes~~average ~~calculations~~remaining ~~are~~contractual ~~based~~term of onoptions ~~the~~outstanding ~~prevailing~~at ~~U.S.~~April ~~Treasury~~30, ~~yield~~2025 aswas ~~determined by the U~~6.S.78 ~~Federal Reserve~~years.

~~We have~~At ~~never~~April ~~paid~~30, ~~dividends~~2025, onoptions ~~our~~to purchase 9,069,167 shares of common stock were exercisable. These options had a weighted-average exercise price of $0.32 and doa ~~not~~weighted ~~anticipate~~average ~~paying~~remaining contractual ~~dividends~~term onof ~~our~~6.69 ~~common~~years. The total unrecognized compensation cost related to unvested stock inoption ~~the~~grants ~~foreseeable~~as ~~future.~~of ~~Accordingly~~April 30, 2025 wewas ~~have~~approximately ~~assumed~~$48,000 noand ~~dividend~~the ~~yield~~weighted ~~for~~average ~~purposes~~period ofover ~~estimating~~which ~~the~~these ~~fair~~grants ~~value~~are ofexpected ~~our~~to ~~share-based~~vest ~~compensation~~is 0.38 years.

~~The~~For the nine months ended April 30, 2025, share-based ~~expected~~compensation ~~life~~expense offor stock options ~~was~~that ~~estimated~~vested ~~using~~during the ~~average~~period ~~between~~was $114,000. For the ~~contractual~~nine ~~term~~months ~~and~~ended ~~the~~April ~~vesting~~30, ~~term~~2024, ofshare-based compensation ~~the~~expense for stock options that vested during the period was $176,000.

7The Company uses the Black-Scholes valuation model to calculate the fair value of stock options. Stock-based compensation expense is recognized over the vesting period using the straight-line ~~Related~~method. ~~Party~~The ~~Transactions~~fair value of stock options was estimated at the grant date using the following weighted average assumptions:

As Schedule of ~~January~~Fair ~~31,~~Value ~~2025 and January 31, 2024, accounts payable include $228,000 and $102,600 in board fees due to officers and directors, respectively.~~Assumptions

8. Subsequent Events

	For the nine months ended April 30,
	2025			2024
Volatility		118.49	%		110.95	%
Risk-free interest rate		4.17	%		4.18	%
Dividend yield		—	%		—	%
Expected life		5.25			5.36

Subsequent to January 31, 2025, the Company issued additional 2025 Notes to Mr. Lee pursuant to the 2025 Note Purchase Agreement in a subsequent closing with an aggregate principal of $500,000. The conversion and terms of the Notes are practically identical to the Notes issued during the six months ended January 31, 2025.

	For the three months ended April 30,
	2025			2024
Volatility		125.48	%		—	%
Risk-free interest rate		4.47	%		—	%
Dividend yield		—	%		—	%
Expected life		5.31			—

14Volatility is the measure by which our stock price is expected to fluctuate during the expected term of an option. Volatility is derived from the historical daily change in the market price of our common stock, as we believe that historical volatility is the best indicator of future volatility.

~~Item~~The risk-free interest rates used in the Black-Scholes 2.calculations ~~Management’s~~are ~~Discussion~~based ~~and~~on ~~Analysis~~the ofprevailing ~~Financial~~U.S. ~~Condition~~Treasury ~~and~~yield ~~Results~~as ofdetermined ~~Operations~~by the U.S. Federal Reserve.

~~All references~~The inCompany ~~this~~has ~~Item~~never 2paid ~~and~~dividends ~~elsewhere~~on ~~in this Quarterly Report to “PURE,” “we”, “~~our,” ~~“us”~~common stock and ~~the~~do ~~“Company”~~not ~~refer~~anticipate topaying ~~PURE~~dividends ~~Bioscience,~~on ~~Inc., a Delaware corporation, and~~ our ~~wholly~~common ~~owned~~stock ~~subsidiary,~~in ~~ETI~~the ~~H2O,~~foreseeable ~~Inc~~future.~~, a~~ ~~Nevada corporation. ETI H2O~~Accordingly, ~~Inc.~~we ~~currently~~have ~~has~~assumed no ~~business~~dividend ~~operations and no material assets or liabilities and there have been no~~yield ~~significant~~for ~~transactions~~purposes ~~related~~of toestimating ~~ETI H2O, Inc. during~~ the ~~periods~~fair ~~presented~~value inof ~~the~~our ~~condensed~~share-based ~~consolidated financial statements contained elsewhere in this Quarterly Report~~compensation.

The ~~discussion~~ inexpected ~~this~~life ~~section~~of ~~contains~~options ~~forward-looking~~was ~~statements.~~estimated ~~These statements relate to future events or our future financial performance.~~using We have attempted to identify forward-looking statements by terminology such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “would” or “will” or the ~~negative~~average ofbetween these terms or other comparable terminology, but their absence does not mean that a statement is not forward-looking. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which could cause our actual results to differ from those projected in any forward-looking statements we make. Several risks and uncertainties we face are discussed in more detail under “Risk Factors” in Part II, Item 1A of this Quarterly Report or in the ~~discussion~~contractual ~~and~~term ~~analysis below. You should, however, understand that it is not possible to predict or identify all risks~~ and ~~uncertainties and you should not consider~~ the ~~risks~~vesting ~~and~~term ~~uncertainties identified by us to be a complete set~~ of ~~all potential risks or uncertainties that could materially affect us. You should not place undue reliance on~~ the ~~forward-looking statements we make herein because some or all of them may turn out to be wrong~~options. We undertake no obligation to update any of the forward-looking statements contained herein to reflect future events and developments, except as required by law. The following discussion should be read in conjunction with the condensed consolidated financial statements and the notes to those financial statements included elsewhere in this Quarterly Report on Form 10-Q.

~~Overview~~7. Related Party Transactions

~~We are~~As ~~dedicated~~of toApril ~~developing~~30, ~~and~~2025 ~~commercializing proprietary antimicrobial products that address health~~ and ~~environmental~~April ~~challenges~~30, ~~related to pathogen and hygienic control. Our technology platform is based on patented stabilized ionic silver~~2024, ~~and our initial products contain~~accounts ~~Silver~~payable ~~Dihydrogen~~include ~~Citrate~~$249,000 ~~or SDC. This broad-spectrum, non-toxic antimicrobial agent is available in liquid form~~ and ~~various concentrations~~$136, ~~distinguished by its superior efficacy~~000, ~~reduced toxicity~~respectively, ~~non-causticity,~~in ~~and~~board ~~the~~fees ~~inability~~due ~~of bacteria~~ to ~~develop~~officers ~~resistance~~and directors.

Our SDC-based disinfecting and sanitizing products are registered with the United States Environmental Protection Agency, or EPA, the United States Food and Drug Administration, or FDA, and Health Canada. In addition to manufacturing and distributing these products, we also supply SDC-based formulations as raw material ingredients for personal care products.15

~~We see~~Item ~~significant market opportunities for our safe and effective SDC-based solutions, particularly in the food industry~~2. ~~Our~~Management’s ~~registered offerings~~Discussion ~~include PURE® Hard Surface, a food contact surface sanitizer~~ and ~~disinfectant~~Analysis ~~designed~~of ~~for~~Financial ~~restaurant~~Condition ~~chains, food processors,~~ and ~~transportation~~Results ~~companies,~~of as well as PURE Control®, a direct food contact processing aid. Our products are sold directly to end-use customers, as well as third-party distributors who market and sell our products across various industries, maximizing our reach and impact.Operations

15All references in this Item 2 and elsewhere in this Quarterly Report to “PURE,” “we”, “our,” “us” and the “Company” refer to PURE Bioscience, Inc., a Delaware corporation, and our wholly owned subsidiary, ETI H2O, Inc., a Nevada corporation. ETI H2O, Inc. currently has no business operations and no material assets or liabilities and there have been no significant transactions related to ETI H2O, Inc. during the periods presented in the condensed consolidated financial statements contained elsewhere in this Quarterly Report.

~~Business~~The discussion in this section contains forward-looking ~~Strategy~~statements. These statements relate to future events or our future financial performance. We have attempted to identify forward-looking statements by terminology such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “would” or “will” or the negative of these terms or other comparable terminology, but their absence does not mean that a statement is not forward-looking. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which could cause our actual results to differ from those projected in any forward-looking statements we make. Several risks and uncertainties we face are discussed in more detail under “Risk Factors” in Part II, Item 1A of this Quarterly Report or in the discussion and analysis below. You should, however, understand that it is not possible to predict or identify all risks and uncertainties and you should not consider the risks and uncertainties identified by us to be a complete set of all potential risks or uncertainties that could materially affect us. You should not place undue reliance on the forward-looking statements we make herein because some or all of them may turn out to be wrong. We undertake no obligation to update any of the forward-looking statements contained herein to reflect future events and developments, except as required by law. The following discussion should be read in conjunction with the condensed consolidated financial statements and the notes to those financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Our goal is to establish a sustainable company by commercializing SDC-based products developed through our proprietary technology platform. We aim to deliver leading antimicrobial solutions that tackle food safety risks across the entire food industry supply chain. Our products are sold directly to end-use customers and through our expanding distribution network. Key elements of our business strategy include:Overview

1.We ~~Growing~~are dedicated to developing and ~~supporting~~commercializing proprietary antimicrobial products that address health and environmental challenges related to pathogen and hygienic control. Our technology platform is based on patented stabilized ionic silver, and our ~~distribution~~initial ~~network~~products contain Silver Dihydrogen Citrate, or SDC. ~~Expanding~~This ~~sales~~broad-spectrum, non-toxic ~~through~~antimicrobial ~~distribution~~agent ~~provides~~is available in liquid form and various concentrations, distinguished by its superior efficacy, reduced toxicity, non-causticity, and the ~~following:~~inability of bacteria to develop resistance.

a.Our ~~Expanded~~SDC-based ~~Reach:~~disinfecting ~~Distributors often have established networks~~ and ~~customer~~sanitizing ~~relationships,~~products are ~~allowing~~registered ~~us to access new markets and customer segments more efficiently. b. Cost Savings: Utilizing distributors can reduce overhead costs associated~~ with ~~logistics,~~the ~~warehousing,~~United ~~and~~States ~~inventory~~Environmental ~~management.~~Protection ~~c. Market Knowledge: Distributors typically have local market insights and expertise~~Agency, ~~helping~~or ~~us navigate regional preferences and regulatory requirements. d. Faster Time to Market: Distributors can accelerate product availability in geographic regions throughout the country~~EPA, ~~enabling quicker responses and shortening~~ the ~~sales~~United ~~cycle.~~States e.Food ~~Sales Support: Distributors provide additional sales resources~~ and ~~support~~Drug Administration, ~~such~~or ~~as training~~ FDA, and ~~promotional~~Health ~~activities, enhancing product visibility~~Canada. f.In ~~Scalability:~~addition ~~Distributors can easily scale operations~~ to ~~accommodate~~manufacturing ~~growth~~and ~~without~~distributing ~~requiring~~these ~~significant investment from the manufacturer. g. Customer Service: Local distributors can offer better customer support~~products, ~~including~~we ~~faster~~also ~~response~~supply ~~times~~SDC-based ~~and~~formulations ~~tailored~~as ~~services~~raw tomaterial ingredients ~~meet~~for ~~specific~~personal ~~client~~care ~~needs~~products.

2We see significant market opportunities for our safe and effective SDC-based solutions, particularly in the food industry. ~~Continuing~~Our toregistered ~~partner~~offerings ~~with~~include ~~third~~PURE® ~~parties~~Hard ~~seeking~~Surface, ora food ~~intending~~contact tosurface ~~seek~~sanitizer and disinfectant designed for restaurant chains, ~~approvals~~food toprocessors, ~~market~~and ~~SDC-based~~transportation ~~products~~companies, ~~outside~~as ~~the~~well as ~~U.S.~~PURE 3.Control®, ~~Developing~~a ~~additional~~direct ~~proprietary~~food ~~products~~contact ~~and~~processing ~~applications~~aid. 4.Our ~~Protecting~~products are sold directly to end-use customers, as well as third-party distributors who market and ~~enhancing~~sell our ~~intellectual~~products ~~property~~across various industries, maximizing our reach and impact.

In addition to our existing food safety products, we plan to leverage our technology platform through licensing and distribution collaborations to create new products and explore additional markets, aiming to generate multiple revenue streams.16

~~Financial Overview~~Business Strategy

~~This financial~~Our ~~overview~~goal ~~provides~~is to establish a ~~general~~sustainable ~~description~~company by ofcommercializing SDC-based products developed through our ~~revenue~~proprietary technology platform. We aim to deliver leading antimicrobial solutions that tackle food safety risks across the entire food industry supply chain. Our products are sold directly to end-use customers and ~~expenses~~through our expanding distribution network. Key elements of our business strategy include:

~~Net Product~~1. ~~Sales~~Growing and supporting our distribution network. Expanding sales through distribution provides the following:

~~We contract~~a. ~~manufacture~~Expanded ~~and~~Reach: ~~sell~~Distributors ~~SDC-based~~often ~~products~~have ~~for~~established ~~end~~networks ~~use~~and customer relationships, allowing us to access new markets and ascustomer asegments ~~raw~~more ~~material~~efficiently. ~~for~~b. ~~manufacturing~~Cost ~~use~~Savings: Utilizing distributors can reduce overhead costs associated with logistics, warehousing, and inventory management. Wec. ~~recognize~~Market ~~revenue~~Knowledge: ~~when we~~Distributors ~~satisfy~~typically ahave ~~performance~~local ~~obligation~~market byinsights ~~transferring~~and ~~control~~expertise, ofhelping ~~the~~us ~~promised~~navigate ~~goods~~regional orpreferences ~~services~~and regulatory requirements. d. Faster Time to ~~our~~Market: ~~customers,~~Distributors can accelerate product availability in angeographic ~~amount~~regions ~~that~~throughout ~~reflects~~ the ~~consideration~~country, weenabling ~~expect~~quicker toresponses beand ~~entitled~~shortening tothe insales ~~exchange~~cycle. ~~for~~e. ~~those~~Sales ~~goods~~Support: orDistributors ~~services~~provide additional sales resources and support, such as training and promotional activities, enhancing product visibility. ~~Any~~f. ~~amounts~~Scalability: ~~received~~Distributors ~~prior~~can easily scale operations to ~~satisfying~~accommodate ~~revenue recognition~~growth ~~criteria~~without ~~are~~requiring ~~recorded~~significant asinvestment ~~deferred~~from ~~revenue~~the manufacturer. ~~See~~g. ~~“Critical~~Customer ~~Accounting~~Service: ~~Policies~~Local distributors can offer better customer support, including faster response times and ~~Estimates~~tailored –services ~~Revenue~~to ~~Recognition”~~meet specific client needs.

162. Continuing to partner with third parties seeking, or intending to seek, approvals to market SDC-based products outside the U.S. 3. Developing additional proprietary products and applications. 4. Protecting and enhancing our intellectual property.

~~Cost~~In ofaddition ~~Goods~~to ~~Sold~~our existing food safety products, we plan to leverage our technology platform through licensing and distribution collaborations to create new products and explore additional markets, aiming to generate multiple revenue streams.

~~Cost of~~Financial goods sold for product sales includes direct and indirect costs to manufacture products, including materials consumed, manufacturing overhead, shipping costs, salaries, benefits, reserved inventory, and related expenses of operations. Depreciation related to manufacturing is systematically allocated to inventory produced, and expensed through cost of goods sold at the time inventory is sold.Overview

~~Selling,~~This financial overview provides a general description ~~General~~of our revenue and ~~Administrative~~expenses.

~~Selling, general~~Net ~~and~~Product administrative expense consists primarily of salaries and other related costs for personnel in business development, sales, finance, accounting, information technology, and executive functions. Other selling, general and administrative costs include product marketing, advertising, and trade show costs, as well as public relations and investor relations, facility costs, and legal, accounting and other professional fees.Sales

~~Research~~We contract manufacture and sell SDC-based products for end use, and ~~Development~~as a raw material for manufacturing use. We recognize revenue when we satisfy a performance obligation by transferring control of the promised goods or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Any amounts received prior to satisfying revenue recognition criteria are recorded as deferred revenue. See “Critical Accounting Policies and Estimates – Revenue Recognition”.

Our research and development activities are focused on leveraging our technology platform to develop additional proprietary products and applications. Research and development expense consists primarily of personnel and related costs, product registration expenses, and third-party testing. We expense research and development costs as incurred.17

~~Other Income~~Cost ~~(Expense)~~of Goods Sold

WeCost of goods sold for product sales includes ~~record~~direct ~~interest~~and ~~income~~indirect costs to manufacture products, ~~interest~~including ~~expense~~materials consumed, asmanufacturing ~~well~~overhead, asshipping ~~other~~costs, ~~non-operating~~salaries, ~~transactions~~benefits, reserved asinventory, ~~other~~and ~~income~~related ~~(expense)~~expenses inof ~~our~~operations. ~~consolidated~~Depreciation related to manufacturing is systematically allocated to inventory ~~statements~~produced, and expensed through cost of ~~operations~~goods sold at the time inventory is sold.

~~Results of~~Selling, ~~Operations~~General and Administrative

~~Fluctuations~~Selling, general and administrative expense consists primarily of salaries and other related costs for personnel in ~~Operating~~business ~~Results~~development, sales, finance, accounting, information technology, and executive functions. Other selling, general and administrative costs include product marketing, advertising, and trade show costs, as well as public relations and investor relations, facility costs, and legal, accounting and other professional fees.

~~Our results~~Research ~~of operations have fluctuated significantly from period to period in the past~~ and are likely to continue to do so in the future. We anticipate that our results of operations will be affected for the foreseeable future by several factors that may contribute to these periodic fluctuations, including fluctuations in the buying patterns of our current or potential customers for which we have no visibility, the mix of product sales including a change in the percentage of higher or lower margin formulations and packaging configurations of our products, the cost of product sales including component costs, our inability for any reason to be able to meet demand, the achievement and timing of research and development and regulatory milestones, unforeseen changes in expenses, including non-cash expenses such as the fair value of equity awards granted and the fair value change of derivative liabilities, the calculation of which includes several variable assumptions, and unforeseen manufacturing or supply issues, among other issues. Due to these fluctuations, we believe that the period-to-period comparisons of our operating results are not a reliable indication of our future performance. As of the date of this filing, we are not aware of any trends in these factors or events or conditions that we believe are reasonably likely to impact our results of operations in the future.Development

17Our research and development activities are focused on leveraging our technology platform to develop additional proprietary products and applications. Research and development expense consists primarily of personnel and related costs, product registration expenses, and third-party testing. We expense research and development costs as incurred.

~~Comparison of~~Other ~~the~~Income ~~Three Months Ended January 31, 2025 and 2024~~(Expense)

~~Net~~We record interest income, interest expense, as ~~Product~~well ~~Sales~~as other non-operating transactions, as other income (expense) in our consolidated statements of operations.

~~Net product~~Results ~~sales were $391,000 and $325,000 for the three months ended January 31, 2025 and 2024, respectively. The increase~~ of ~~$66,000 was attributable to increased sales across our distribution network. Our top customer accounted for $49,000 of net product sales for the three months ended January 31, 2025.~~Operations

~~For the~~Fluctuations ~~three~~in ~~months~~Operating ended January 31, 2025, one customer accounted for 12% of 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.Results

~~For~~Our results of operations have fluctuated significantly from period to period in the ~~three~~past ~~months~~and ~~ended~~are ~~January~~likely ~~31,~~to ~~2024,~~continue ~~one~~to ~~customer~~do ~~accounted~~so in the future. We anticipate that our results of operations will be affected for ~~12%~~the foreseeable future by several factors that may contribute to these periodic fluctuations, including fluctuations in the buying patterns of ~~net~~our current or potential customers for which we have no visibility, the mix of product sales. Noincluding ~~other~~a ~~individual~~change in ~~customer~~the ~~accounted for~~percentage ~~10%~~of higher or ~~more~~lower margin formulations and packaging configurations of our ~~net~~products, the cost of product sales including component costs, our inability for any reason to be able to meet demand, the achievement and timing of research and development and regulatory milestones, unforeseen changes in expenses, including non-cash expenses such as the fair value of equity awards granted and the fair value change of derivative liabilities, the calculation of which includes several variable assumptions, and unforeseen manufacturing or supply issues, among other issues. ~~All~~Due to these fluctuations, we believe that the period-to-period comparisons of our ~~net~~operating ~~product~~results ~~sales~~are ~~were~~not a Ureliable indication of our future performance.S. ~~based~~As ~~sales~~of the date of this filing, we are not aware of any trends in these factors or events or conditions that we believe are reasonably likely to impact our results of operations in the future.

~~Cost of Goods Sold~~18

~~Cost~~ Comparison of ~~goods sold was $164,000 and $149,000 for~~ the ~~three~~Three ~~months~~Months ~~ended~~Ended ~~January 31~~April 30, 2025 and 2024~~, respectively.~~

~~The increase~~Net ofProduct ~~$15,000 was primarily attributable to increased sales.~~Sales

~~Gross margin~~Net ~~as a percentage of net~~ product sales, orwere ~~gross margin percentage~~$489,000 ~~was 58%~~ and ~~54%~~$440,000 for the three months ended ~~January~~April 3130, 2025 and 2024, respectively. The increase inof ~~gross~~$49,000 ~~margin percentage~~ was ~~primarily~~ attributable to increased sales ofacross ~~higher~~our ~~margin packaging~~distribution ~~configurations~~network. ofOur ~~our~~top ~~products~~customer ~~during~~accounted ~~the~~for ~~quarter~~$40,000 ~~ended~~of ~~January~~net ~~31,~~product ~~2025,~~sales asfor ~~compared~~the ~~with~~three ~~the~~months ~~prior~~ended ~~period~~April 30, 2025.

~~Selling~~For the three months ended April 30, 2025, no individual customer accounted for 10% or more of our net product sales. All of our net product sales ~~General~~were ~~and~~U.S. ~~Administrative~~based ~~Expense~~sales.

~~Selling, general~~For ~~and administrative expense was $871,000 and $1,065,000 for~~ the three months ended ~~January~~April 3130, ~~2025 and~~ 2024, ~~respectively. The~~one ~~decrease~~customer accounted for 20% of ~~$194,000~~net ~~was~~product ~~primarily~~sales. ~~attributable~~No toother ~~decreased~~individual ~~personnel~~customer ~~costs,~~accounted ~~professional~~for ~~service~~10% ~~fees~~or ~~and~~more ~~share-based~~of ~~compensation~~our net product sales. All ~~These~~of ~~decreases~~our ~~were~~net ~~partially~~product ~~offset~~sales bywere ~~increased~~U.S. ~~marketing~~based ~~expense~~sales.

~~Share-based compensation~~During ~~expense, included in selling, general and administrative expense, was $27,000 and $64,000 for~~ the three months ended ~~January 31~~April 30, 2025 and 2024, ~~respectively.~~we ~~The~~recognized ~~decrease of~~ $372,000 ~~is primarily due to the prior year vesting of stock options~~ and ~~restricted stock units granted to employees~~$1,000 ~~directors~~in ~~and~~royalties ~~consultants~~from ~~supporting~~a ~~our~~nonexclusive ~~selling,~~third-party ~~general and administrative functions~~distributor, respectively.

~~Research and~~Cost ~~Development~~of ~~Expense~~Goods Sold

~~Research and~~Cost ~~development expense, primarily consisting~~ of ~~third-party~~goods ~~fees~~sold ~~and personnel costs,~~ was $81208,000 and $76183,000 for the three months ended ~~January~~ 31April 30, 2025 and 2024, respectively. The increase of $25,000 was primarily attributable to increased sales during the current quarter.

~~Interest~~Gross ~~Expense~~margin as a percentage of net product sales, was 57% and 58% for the three months ended April 30, 2025 and 2024, respectively. The decrease in gross margin percentage was primarily attributable to increased sales of lower margin packaging configurations of our products during the current quarter ended April 30, 2025.

~~Interest expense was $70~~Selling,~~000~~ ~~and~~General ~~$38,000 for the three months ended January 31, 2025~~ and ~~2024,~~Administrative ~~respectively. The increase of $32,000 was primarily due to accrued interest on the convertible notes.~~Expense

18Selling, general and administrative expense was $776,000 and $998,000 for the three months ended April 30, 2025 and 2024, respectively. The decrease of $222,000 was due to reduced facilities cost, professional service fees and personnel costs.

~~Comparison~~Share-based compensation expense, included in ofselling, general and administrative expense, was $33,000 and $32,000 for the ~~Six~~three ~~Months~~months ~~Ended~~ended ~~January~~April 3130, 2025 and 2024, respectively. The slight increase is primarily due to the current year vesting of stock options and restricted stock units granted to employees, directors and consultants supporting our selling, general and administrative functions.

~~Net~~Research ~~Product~~and ~~Sales~~Development Expense

~~Net product~~Research ~~sales~~and ~~were~~development ~~$946~~expense,~~000~~ ~~and~~primarily ~~$1,043,000~~consisting of ~~for~~third-party ~~the~~fees ~~six~~and ~~months~~personnel ~~ended January 31~~costs, ~~2025~~was ~~and 2024, respectively. The decrease of~~ $9791,000 ~~was~~ ~~attributable~~and ~~to decreased sales across our end user network. Our top customer accounted for~~ $~~172~~77,000 ~~of net product sales~~ for the ~~six~~ three months ended ~~January~~April 3130, 2025 and 2024, respectively.

~~For the~~Interest six months ended January 31, 2025, two individual customers accounted for 18% and 11% 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.Expense

~~For the~~Interest ~~six~~expense ~~months~~was ~~ended~~$78,000 ~~January~~and 31$41,000 ~~2024,~~for ~~one~~the three ~~individual~~months ~~customer~~ended ~~accounted~~April ~~for~~ 30%, of2025 ~~our~~and ~~net~~2024, ~~product sales~~respectively. NoThe ~~other~~increase ~~individual~~of ~~customer accounted~~$37,000 ~~for~~was ~~10%~~primarily ordue ~~more~~to ofaccrued ~~our~~interest ~~net~~on ~~product~~convertible notes ~~sales.~~issued ~~All~~in of2025, ~~our~~2024 ~~net~~and ~~product sales were U~~2023.~~S. based sales.~~

~~During the~~Other ~~six months ended January 31, 2025 and 2024, we recognized $1,000 and $5,000 in royalties from a nonexclusive third-party distributor, respectively.~~Income

~~Cost~~Other ofincome ~~Goods~~was ~~Sold~~$82,000 and $1,000 for the three months ended April 30, 2025 and 2024, respectively. During the current quarter we received $82,000 from the U.S. Governments Employee Retention Tax Credit Program.

~~Cost of goods sold was $395,000 and $429,000 for the six months ended January 31, 2025 and 2024, respectively. The decrease of $34,000 was primarily was due to decreased sales.~~19

~~Gross margin~~Comparison ~~as a percentage~~ of ~~net product sales, or gross margin percentage, was 58% and 59% for~~ the ~~six~~Nine ~~months~~Months ~~ended~~Ended ~~January 31~~April 30, 2025 and ~~2024,~~ ~~respectively. The slight decrease in gross margin percentage was primarily attributable to the sale of higher margin packaging configurations of our products during the six months ended January 31,~~ 2024~~, as compared with the prior period.~~

~~Selling, General~~Net ~~and~~Product ~~Administrative Expense~~Sales

~~Selling, general~~Net ~~and~~product ~~administrative~~sales ~~expense~~were ~~was~~ $1,~~752~~435,000 and $21,~~138~~483,000 for the ~~six~~nine months ended ~~January~~April 3130, 2025 and 2024, respectively. The decrease of $~~386~~48,000 was ~~primarily~~ attributable to decreased ~~personnel~~sales ~~costs,~~across ~~professional~~our end ~~service~~user ~~fees,~~network. ~~and~~Our ~~share-based~~top ~~compensation. These~~customer ~~decreases~~accounted ~~were~~for ~~partially~~$193,000 ~~offset~~of bynet ~~increased~~product ~~board~~sales offor ~~director~~the ~~fees~~nine months ended April 30, 2025.

~~Share-based~~For the ~~compensation~~nine ~~expense,~~months ~~included~~ended inApril ~~selling~~30, ~~general and administrative expense~~2025, ~~was~~two ~~$84,000~~individual ~~and~~customers ~~$144,000~~accounted for ~~the~~13% ~~six~~and ~~months~~10% ~~ended~~of ~~January 31,~~our ~~2025~~net ~~and~~product ~~2024, respectively~~sales. ~~The~~No ~~decrease~~other ofindividual ~~$60,000~~customer accounted isfor ~~primarily~~10% ~~due~~or tomore ~~the prior year vesting~~ of ~~stock~~our ~~options~~net ~~and~~product ~~restricted~~sales. ~~stock units~~All ~~granted~~of toour ~~employees,~~net ~~directors~~product ~~and~~sales ~~consultants~~were ~~supporting~~U.S. ~~our~~based ~~selling, general and administrative functions~~sales.

~~Research~~For the nine months ended April 30, 2024, one ~~and~~individual ~~Development~~customer ~~Expense~~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.

~~Research and~~During ~~development~~the ~~expense,~~nine ~~primarily~~months ~~consisting~~ended ofApril ~~third-party~~30, ~~fees~~2025 and ~~personnel costs~~ 2024, ~~was~~we recognized $~~152~~3,000 and $~~156~~6,000 ~~for~~in ~~the~~royalties ~~six~~from ~~months~~a ~~ended January~~nonexclusive ~~31,~~third-party ~~2025 and 2024~~distributor, respectively.

~~Interest~~Cost ~~Expense~~of Goods Sold

~~Interest expense~~Cost of goods sold was $~~132~~603,000 and $62612,000 for the ~~six~~nine months ended ~~January~~April 3130, 2025 and 2024, respectively. The ~~increase~~decrease of $709,000 was primarily ~~due~~ attributable to ~~accrued~~decreased ~~interest~~sales on during the ~~convertible~~current ~~notes~~fiscal year.

19Gross 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.

~~Liquidity~~ Selling, General and ~~Capital~~Administrative ~~Resources~~Expense

~~As of January 31~~Selling, ~~2025,~~general weand ~~had~~administrative expense was $~~277~~2,528,000 ~~in cash~~ and ~~cash equivalents compared with~~ $~~424~~3,136,000 infor ~~cash and cash equivalents as of July 31, 2024. The net decrease in cash and cash equivalents was attributable to cash used to fund operations offset by~~ the ~~note~~nine ~~payable financings that occurred during the six~~ months ended ~~January~~April 3130, 2025. ~~Additionally,~~and ~~as of January 31~~2024, ~~2025,~~respectively. weThe ~~had~~decrease ~~$866,000~~ of ~~current liabilities, including~~ $~~700~~608,000 inwas ~~accounts~~primarily ~~payable,~~attributable to ~~compared~~decreased ~~with~~personnel ~~$733~~costs,~~000~~ ofprofessional ~~current~~service ~~liabilities,~~fees ~~including~~and ~~$601,000~~board ~~in accounts payable as~~ of ~~July 31,~~director ~~2024~~fees. ~~The~~These ~~net~~decreases ~~increase~~were inpartially ~~current~~offset ~~liabilities~~by ~~was~~increased travel ~~due to trade payables due to our vendors~~expense.

~~We have~~Share-based acompensation ~~history of recurring losses~~expense, ~~and~~included ~~as of January 31~~in selling, ~~2025~~general weand ~~have~~administrative ~~a stockholder deficiency of $4~~expense,~~267,000.~~ ~~During~~was ~~the six months ended January 31, 2025, we recorded a net loss of~~ $1117,~~487,~~000 onand ~~recorded net revenue of~~ $~~947~~176,000. Infor ~~addition, during~~ the ~~six~~nine months ended ~~January~~April 3130, 2025 weand ~~used $1~~2024,~~047,000~~ inrespectively. The ~~operating~~decrease ~~activities resulting in a cash balance~~ of $~~202~~59,000 asis ofprimarily ~~January~~due ~~31, 2025. Our history of recurring operating losses, and negative cash flows from operating activities give rise~~ to ~~substantial~~the ~~doubt~~prior ~~regarding~~year ~~our ability~~vesting toof ~~continue~~stock asoptions aand ~~going~~restricted ~~concern.~~stock ~~The~~units ~~financial~~granted ~~statements do not include any adjustments~~ to ~~reflect~~employees, ~~the possible future effects~~directors ~~on the recoverability~~ and ~~classification~~consultants ofsupporting ~~assets~~our orselling, ~~the~~general ~~amounts~~ and ~~classifications~~administrative ~~of liabilities that may result from our possible inability to continue as a going concern~~functions.

~~Our future~~Research ~~capital requirements depend on numerous forward-looking factors. These factors may include, but are not limited to, the following: the acceptance of,~~ and ~~demand~~Development for, our products; our success and the success of our partners in selling our products; our success and the success of our partners in obtaining regulatory approvals to sell our products; the costs of further developing our existing products and technologies; the extent to which we invest in new product and technology development; and the costs associated with the continued operation, and any future growth, of our business. The outcome of these and other forward-looking factors will substantially affect our liquidity and capital resources.Expense

~~Until we~~Research ~~can~~and ~~continually~~development ~~generate positive cash flow from operations~~expense, weprimarily ~~will need to continue to fund our operations with the proceeds of~~consisting ~~offerings~~ of ~~our~~third-party ~~equity~~fees and ~~debt~~personnel ~~securities. However~~costs, wewas ~~cannot assure you that additional financing will be available when needed or that~~$243,000 ifand ~~available~~$233,000 ~~financing~~for ~~will be obtained on terms favorable to us or to our stockholders. If we raise additional funds from~~ the ~~issuance~~ ofnine ~~equity~~months ~~securities,~~ended ~~substantial~~April ~~dilution to our existing stockholders would likely result. If we raise additional funds by incurring debt financing~~30, ~~the~~2025 ~~terms of the debt may involve significant cash payment obligations as well as covenants~~ and ~~specific~~2024, ~~financial ratios that may restrict our ability to operate our business~~respectively.

~~Critical Accounting~~Interest ~~Policies and Estimates~~Expense

~~The discussion~~Interest ~~and~~expense ~~analysis~~was of$210,000 ~~our financial condition~~ and ~~results~~$103,000 offor the ~~operations~~nine ~~are~~months ~~based~~ended onApril ~~our condensed consolidated financial statements~~30, ~~which~~ ~~have~~2025 ~~been~~and ~~prepared in accordance with accounting principles generally accepted in the United States~~2024, ~~or GAAP~~respectively. The ~~preparation~~increase of ~~these~~ ~~financial~~$107,000 ~~statements~~was ~~requires~~primarily usdue to ~~make~~accrued ~~estimates~~interest ~~and~~on ~~judgments that affect~~ the ~~reported amounts of assets, liabilities, revenues,~~outstanding ~~expenses~~2025, ~~and~~2024 ~~related disclosures. We evaluate our estimates on an ongoing basis. We base our estimates on historical experience~~ and on ~~other~~2023 ~~assumptions~~convertible that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sourcesnotes. ~~Actual results may differ from these estimates under different assumptions or conditions.~~

~~In addition,~~Other the condensed consolidated financial statements included in this Quarterly Report have been prepared and presented on a basis assuming we will continue as a going concern. Until we can generate significant cash from operations, we expect to continue to fund our operations with the proceeds of offerings of our equity and debt securities. However, we cannot assure you that additional financing will be available when needed or that, if available, financing will be obtained on terms favorable to us or to our stockholders. If we raise additional funds from the issuance of equity securities, substantial dilution to our existing stockholders would likely result. If we raise additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict our ability to operate our business. Further, any contracts or license arrangements we enter into to raise funds may require us to relinquish our rights to our products or technology, and we cannot assure you that we will be able to enter into any such contracts or license arrangements on acceptable terms, or at all. Having insufficient funds may require us to delay or scale back our marketing, distribution and other commercialization activities or cease our operations altogether. Our financial statements do not include any adjustment relating to recoverability or classification of recorded assets and classification of recorded liabilities.Income

~~We believe~~Other income was $79,000 and $1,000 for the ~~following~~nine months ~~accounting~~ended ~~policies~~April 30, 2025 and ~~estimates~~2024, ~~are~~respectively. ~~critical~~During tothe ~~aid~~nine ~~you~~months inended ~~understanding~~April ~~and~~30, ~~evaluating~~2025, ~~our~~we ~~reported~~received ~~financial~~$82,000 from the U.S. Governments ~~results~~Employee Retention Tax Credit Program.

~~Revenue~~Liquidity ~~Recognition~~and Capital Resources

~~We recognize~~As ~~revenue~~of April 30, 2025, we had $615,000 in ~~accordance~~cash and cash equivalents compared with ~~Financial~~$424,000 ~~Accounting~~in ~~Standards~~cash ~~Board~~and ~~(“FASB”)~~cash ~~Accounting~~equivalents ~~Standards~~as ~~Codification~~of ~~(“ASC”)~~July 31, 2024. The net increase in cash and cash equivalents ~~Topic~~was ~~606,~~attributable ~~Revenue~~to cash received from ~~Contracts~~financing ~~with~~activities, ~~Customers~~offset ~~(“Topic~~by ~~606”)~~cash used to fund continuing operations. ~~Under~~Additionally, ~~Topic~~as ~~606~~of April 30, ~~revenue~~2025, iswe ~~recognized~~had at$972,000 anof ~~amount~~current ~~that reflects~~liabilities, ~~the~~including ~~consideration~~$799,000 toin ~~which~~accounts wepayable, ~~expect~~compared towith be$733,000 ~~entitled~~of incurrent ~~exchange~~liabilities, including ~~for~~$601,000 ~~transferring~~in ~~goods~~accounts orpayable ~~services~~as toof aJuly ~~customer~~31, 2024. ~~This~~The ~~principle is~~net ~~applied~~increase ~~using~~in ~~the~~current ~~following~~liabilities ~~5-step~~was ~~process:~~due to increased trade payables owed to our contract manufactures.

1We have a history of recurring losses, and as of April 30, 2025 we have a stockholder deficiency of $4,814,000. ~~Identify~~During the ~~contract~~nine ~~with~~months ~~the~~ended ~~customer~~April 30, 2025, we recorded a net loss of $2,067,000 on recorded net revenue of $1,438,000. ~~Identify~~In addition, during the ~~performance~~nine ~~obligations~~months ended April 30, 2025 we used $1,559,000 in ~~the~~operating activities ~~contract~~resulting 3in a cash balance of $540,000 as of April 30, 2025. ~~Determine~~Our ~~the~~history ~~transaction~~of ~~price~~recurring 4operating losses, and negative cash flows from operating activities give rise to substantial doubt regarding our ability to continue as a going concern. ~~Allocate~~The ~~the~~financial ~~transaction~~statements do ~~price~~not include any adjustments to reflect the ~~performance~~possible ~~obligations~~future ineffects on the ~~contract~~recoverability 5.and ~~Recognize~~classification ~~revenue~~of ~~when~~assets (or ~~as)~~the ~~each~~amounts and ~~performance~~classifications ~~obligation~~of isliabilities ~~satisfied~~that may result from our possible inability to continue as a going concern.

~~Under Topic~~Our ~~606,~~future wecapital ~~recognize~~requirements ~~revenue~~depend ~~when~~on wenumerous forward-looking ~~satisfy~~factors. aThese ~~performance~~factors ~~obligation~~may byinclude, ~~transferring~~but ~~control~~are ofnot limited to, the ~~promised~~following: ~~goods~~the oracceptance ~~services~~of, toand demand for, our products; our ~~customers,~~success and the success of our partners in anselling ~~amount~~our ~~that~~products; ~~reflects~~our success and the ~~consideration~~success weof ~~expect~~our partners in obtaining regulatory approvals to besell ~~entitled~~our products; the costs of further developing our existing products and technologies; the extent to which we invest in ~~exchange~~new ~~for~~product ~~those~~and ~~goods~~technology ordevelopment; ~~services~~and the costs associated with the continued operation, and any future growth, of our business. The outcome of these and other forward-looking factors will substantially affect our liquidity and capital resources.

~~Our technology~~Until ~~platform~~we iscan ~~based~~continually ongenerate ~~patented~~positive ~~stabilized~~cash flow ~~ionic~~from ~~silver~~operations, ~~and~~we will need to continue to fund our ~~initial~~operations ~~products~~with ~~contain~~the ~~silver~~proceeds ~~dihydrogen~~of ~~citrate,~~offerings orof ~~SDC. SDC~~our isequity aand ~~broad-spectrum~~debt securities. However, ~~non-toxic~~we ~~antimicrobial~~cannot ~~agent,~~assure ~~which~~you ~~offers~~that ~~24-hour~~additional ~~residual~~financing ~~protection~~will ~~and~~be ~~formulates~~available ~~well~~when ~~with~~needed ~~other~~or ~~compounds. We~~that, ~~sell~~if ~~various~~available, ~~configurations~~financing ~~and~~will ~~dilutions~~be ofobtained on ~~SDC~~terms ~~direct~~favorable to ~~customers~~us ~~and~~or ~~through~~to ~~distributors~~our stockholders. WeIf ~~currently~~we ~~offer~~raise ~~PURE®~~additional funds from the issuance of equity securities, substantial dilution ~~Hard~~to ~~Surface~~our asexisting astockholders ~~food~~would ~~contact~~likely ~~surface~~result. ~~sanitizer~~If ~~and~~we ~~disinfectant~~raise toadditional ~~restaurant~~funds ~~chains~~by incurring debt financing, ~~food~~the ~~processors~~terms ~~and~~of ~~food~~the ~~transportation~~debt ~~companies.~~may Weinvolve ~~also~~significant ~~offer~~cash ~~PURE~~payment ~~Control®~~obligations as awell ~~direct~~as ~~food~~covenants ~~contact~~and ~~processing~~specific ~~aid~~financial ratios that may restrict our ability to operate our business.

~~Contract terms~~Critical ~~for~~Accounting ~~unit~~Policies ~~price, quantity, shipping~~ and payment are governed by sales agreements and purchase orders which we consider to be a customer’s contract in all cases. The unit price is considered the observable stand-alone selling price for the arrangements. Any promotional or sales discounts are applied evenly to the units sold for purposes of calculating standalone selling price.Estimates

~~Product~~The discussion and analysis of our financial condition ~~sales~~and results of operations are based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally ~~consist~~accepted in the United States, or GAAP. The preparation of athese ~~single~~financial ~~performance~~statements ~~obligation~~requires us to make estimates and judgments that weaffect ~~satisfy~~the atreported aamounts ~~point~~of inassets, ~~time~~liabilities, revenues, expenses, and related disclosures. We ~~recognize~~evaluate ~~product~~our ~~revenue~~estimates on ~~when~~an ~~the following~~ongoing ~~events~~basis. ~~have~~We ~~occurred:~~base ~~(a)~~our weestimates ~~have~~on ~~transferred~~historical ~~physical~~experience ~~possession~~and ofon ~~the~~other ~~products,~~assumptions ~~(b)~~that we ~~have~~believe ato ~~present~~be ~~right~~reasonable tounder ~~payment,~~the ~~(c)~~circumstances, the ~~customer~~results ~~has~~of ~~legal~~which ~~title~~form to the ~~products,~~basis ~~and~~for ~~(d)~~making judgments about the ~~customer~~carrying ~~bears~~values ~~significant~~of ~~risks~~assets and ~~rewards~~liabilities ofthat ~~ownership~~are ofnot readily ~~the~~apparent ~~products~~from other sources. Actual results may differ from these estimates under different assumptions or conditions.

~~Our~~In addition, the condensed consolidated financial ~~direct~~statements ~~customer~~included ~~and~~in ~~distributor~~this ~~sales~~Quarterly ~~are~~Report ~~invoiced~~have ~~based~~been prepared and presented on ~~received~~a ~~purchase~~basis ~~orders~~assuming we will continue as a going concern. Until ~~Our~~we ~~payment~~can ~~terms~~generate onsignificant ~~invoiced~~cash ~~direct~~from ~~customer~~operations, we expect to continue to fund our operations with the proceeds of offerings of our equity and debt securities. However, we cannot assure you that additional financing will be available when needed or that, if available, ~~distributor~~financing ~~sales~~will ~~range~~be ~~between~~obtained 30on ~~and~~terms 90favorable ~~days~~to ~~after~~us or to our stockholders. If we ~~satisfy~~raise additional funds from the issuance of equity securities, substantial dilution to our ~~performance~~existing ~~obligation~~stockholders would likely result. ~~The~~If ~~majority~~we raise additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict our ability ~~customers~~to ~~are~~operate onour 30business. ~~day~~Further, any contracts or license arrangements we enter into to raise funds may require us to relinquish ~~payment~~our rights to our products or technology, and we cannot assure you that we will be able to enter into any such contracts or license arrangements on acceptable terms, or at all. WeHaving ~~currently~~insufficient ~~offer~~funds nomay ~~right~~require ofus ~~return~~to ondelay ~~invoiced~~or ~~sales~~scale back our marketing, distribution and ~~maintain~~other commercialization noactivities ~~allowance~~or ~~for~~cease ~~sales~~our ~~returns~~operations altogether. Our financial statements do not include any adjustment relating to recoverability or classification of recorded assets and classification of recorded liabilities.

~~Shipping and~~We ~~handling~~believe ~~are~~the ~~treated~~following asaccounting ~~activities~~policies ~~to fulfill promises to customers~~ and estimates ~~any~~are ~~amounts~~critical ~~billed~~ to aaid ~~customer,~~you ifin ~~applicable,~~understanding ~~represent revenues earned for the goods provided. Costs related to such shipping~~ and ~~handling~~evaluating ~~billings~~our ~~are~~reported ~~classified~~financial ~~as cost of sales~~results.

~~We do not have significant categories of revenue that may impact how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.~~21

~~We do~~Revenue not allow for returns, except for damaged products when the damage occurred pre-fulfillment. Damaged product returns have historically been insignificant. Because of this, the stand-alone nature of our products, and our assessment of performance obligations and transaction pricing for our sales contracts, we do not currently maintain a contract asset or liability balance for obligations. We assess our contracts and the reasonableness of our conclusions on a quarterly basis.Recognition

21We 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:

~~The Company’s~~1. ~~licensing~~Identify ~~contracts~~the ~~typically~~contract ~~provide~~with ~~for~~the ~~royalties~~customer ~~based~~2. onIdentify the ~~licensee’s~~performance ~~sales~~obligations ofin ~~various~~the ~~configurations~~contract ~~of PURE Hard Surface~~3. ~~The~~Determine ~~Company~~the ~~records~~transaction ~~its~~price ~~royalty~~4. ~~revenue~~Allocate in the ~~month~~transaction inprice ~~which~~to the ~~licensee~~performance ~~sold~~obligations ~~our~~in ~~products~~the tocontract ~~end users~~5. ~~Payments are~~Recognize ~~generally~~revenue ~~received~~when in(or ~~the~~as) ~~subsequent~~each ~~month.~~performance obligation is satisfied

~~Variable~~Under Topic 606, we recognize revenue when we ~~Consideration~~satisfy a performance obligation by transferring control of the promised goods or services to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

~~We record~~Our ~~revenue~~technology ~~from~~platform ~~customers~~is inbased anon ~~amount~~patented ~~that~~stabilized ionic ~~reflects~~silver, ~~the~~and ~~transaction~~our ~~price~~initial weproducts ~~expect~~contain tosilver bedihydrogen ~~entitled~~citrate, toor ~~after~~SDC. ~~transferring~~SDC ~~control~~is a broad-spectrum, non-toxic antimicrobial agent, ofwhich ~~those~~offers ~~goods~~24-hour orresidual ~~services~~protection and formulates well with other compounds. ~~From~~We ~~time~~sell various configurations and dilutions of SDC direct to ~~time,~~customers weand ~~offer~~through ~~sales~~distributors. ~~promotions~~We oncurrently ~~our~~offer ~~products~~PURE® ~~such~~Hard Surface as ~~discounts.~~a ~~Variable~~food ~~consideration~~contact issurface sanitizer ~~estimated~~and atdisinfectant ~~contract~~to ~~inception~~restaurant ~~only~~chains, tofood ~~the~~processors ~~extent~~and ~~that~~food ittransportation iscompanies. ~~probable~~We ~~that~~also aoffer ~~significant~~PURE ~~reversal~~Control® ofas a ~~revenue~~direct ~~will~~food ~~not~~contact ~~occur~~processing aid.

~~Share~~Contract terms for unit price, quantity, shipping and payment are governed by sales agreements and purchase orders which we consider to be a customer’s contract in all cases. The unit price is considered the observable stand-~~Based~~alone selling price for the arrangements. Any promotional or sales discounts are applied ~~Compensation~~evenly to the units sold for purposes of calculating standalone selling price.

~~We grant~~Product ~~equity-based~~sales ~~awards~~generally ~~under~~consist ~~share-based compensation plans or stand-alone contracts. We estimate the fair value~~ of ~~share-based~~a ~~payment~~single performance ~~awards~~obligation ~~using~~that ~~the~~we ~~Black-Scholes~~satisfy ~~option~~at ~~valuation~~a ~~model.~~point ~~This~~in ~~fair value is then amortized over the requisite service periods of the awards~~time. ~~The~~ ~~Black-Scholes~~We ~~option~~recognize ~~valuation~~product ~~model~~revenue ~~requires~~when the ~~input~~following ofevents ~~subjective~~have ~~assumptions,~~occurred: ~~including~~(a) ~~price~~we ~~volatility~~have ~~of the underlying stock,~~transferred ~~risk-free~~physical ~~interest~~possession ~~rate, dividend yield, and expected life~~ of the ~~option.~~products, ~~Share-based~~(b) ~~compensation~~we ~~expense~~have isa ~~based~~present onright ~~awards ultimately expected~~ to ~~vest~~payment, ~~and~~(c) ~~therefore~~the iscustomer ~~reduced~~has bylegal ~~expected~~title ~~forfeitures.~~to ~~Changes in assumptions used under~~ the ~~Black-Scholes~~products, ~~option~~and ~~valuation~~(d) ~~model~~the ~~could~~customer ~~materially~~bears ~~affect~~significant ~~our~~risks ~~net~~and ~~loss~~rewards ~~and~~of ~~net~~ownership ~~loss~~of ~~per~~the ~~share~~products.

~~Recent~~Our direct customer and distributor sales are ~~Accounting~~invoiced ~~Pronouncements~~based on received purchase orders. Our payment terms on invoiced direct customer and distributor sales range between 30 and 90 days after we satisfy our performance obligation. The majority of our customers are on 30 day payment terms. We currently offer no right of return on invoiced sales and maintain no allowance for sales returns.

~~See~~Shipping and handling are treated as activities ~~Note~~to 4fulfill promises to customers and any amounts billed to a customer, if applicable, represent revenues earned for the ~~condensed~~goods ~~consolidated~~provided. Costs ~~financial~~related ~~statements~~to ~~included~~such inshipping ~~Item~~and 1handling ofbillings ~~this~~are ~~Quarterly~~classified ~~Report~~as oncost ~~Form~~of ~~10-Q~~sales.

~~Off~~We do not have significant categories of revenue ~~Balance~~that ~~Sheet~~may ~~Arrangements~~impact how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

We do not allow for returns, except for damaged products when the damage occurred pre-fulfillment. Damaged product returns have ~~any~~historically ~~off~~been insignificant. Because of this, the stand-alone nature of our products, and our assessment of performance obligations and transaction pricing for our sales contracts, we do not currently maintain a contract asset or liability balance ~~sheet~~for ~~arrangements~~obligations. We assess our contracts and the reasonableness of our conclusions on a quarterly basis.

~~Item 3. Quantitative and Qualitative Disclosures About Market Risk~~22

AsOur licensing acontracts ~~smaller~~typically ~~reporting~~provide ~~company~~for asroyalties ~~defined~~based byon ~~Rule 12b-2 of~~ the ~~Securities~~licensee’s ~~Exchange~~sales ~~Act~~ of ~~1934,~~various orconfigurations ~~the~~of ~~Exchange~~PURE ~~Act,~~Hard ~~and~~Surface. asWe ~~provided~~record royalty revenue in ~~Item~~ ~~10(f)(1)~~the ofmonth ~~Regulation~~in ~~S-K,~~which wethe ~~are~~licensee ~~electing~~sold ~~scaled~~our ~~disclosure~~products ~~reporting~~to ~~obligations~~end ~~and~~users. ~~therefore~~Payments are ~~not~~generally ~~required~~received toin ~~provide~~ the ~~information~~ ~~requested~~subsequent ~~by this Item~~month.

~~Item 4.~~Variable ~~Controls and Procedures~~Consideration

~~Evaluation~~We record revenue from customers in an amount that reflects the transaction price we expect to be entitled to after transferring control of ~~Disclosure~~those ~~Controls~~goods ~~and~~or ~~Procedures~~services. From time to time, we offer sales promotions on our products such as discounts. Variable consideration is estimated at contract inception only to the extent that it is probable that a significant reversal of revenue will not occur.

~~We maintain~~Share-Based disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission, or SEC, and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.Compensation

22We grant equity-based awards under share-based compensation plans or stand-alone contracts. We estimate the fair value of share-based payment awards using the Black-Scholes option valuation model. This fair value is then amortized over the requisite service periods of the awards. The Black-Scholes option valuation model requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected life of the option. Share-based compensation expense is based on awards ultimately expected to vest, and therefore is reduced by expected forfeitures. Changes in assumptions used under the Black-Scholes option valuation model could materially affect our net loss and net loss per share.

~~As required~~Recent byAccounting Rule 13a-15(b) under the Exchange Act, our management conducted an evaluation, under the supervision and with the participation of our Principal Executive Officer and our Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based on the foregoing evaluation, our Principal Executive Officer and Principal Financial Officer concluded that as of the end of the period covered by this report our disclosure controls and procedures were effective.Pronouncements

~~Changes~~See Note 4 to the condensed consolidated financial statements included in ~~Internal~~Item ~~Control~~1 ~~Over~~of ~~Financial~~this ~~Reporting~~Quarterly Report on Form 10-Q.

~~In connection~~Off ~~with~~Balance ~~the~~Sheet evaluation required by Exchange Act Rule 13a-15(d), our management, under the supervision and with the participation of our Principal Executive Officer and our Principal Financial Officer, concluded that there were no changes in our internal controls over financial reporting during the six months ended January 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.Arrangements

~~PART~~We IIdo –not ~~Other~~have ~~Information~~any off balance sheet arrangements.

Item 13. ~~Legal~~Quantitative ~~Proceedings~~and Qualitative Disclosures About Market Risk

~~From time~~As toa ~~time,~~smaller wereporting ~~may~~company ~~become~~as ~~involved~~defined inby ~~various~~Rule 12b-2 ~~lawsuits~~of ~~and legal proceedings that arise in~~ the ~~ordinary~~Securities ~~course~~Exchange ofAct ~~our business. The impact and outcome~~ of ~~litigation~~1934, ifor ~~any,~~the isExchange ~~subject to inherent uncertainties~~Act, and ~~any~~as ~~adverse~~provided ~~result~~ in ~~these~~Item or10(f)(1) ~~other~~of ~~matters~~Regulation ~~may arise~~S-K, ~~from~~we ~~time~~are toelecting scaled ~~time~~disclosure ~~that~~reporting ~~could~~obligations ~~harm~~and ~~our~~therefore ~~business. We~~ are not ~~currently~~required ~~aware of any such legal proceedings or claims~~ to ~~which~~provide ~~we or our wholly owned subsidiary is a party or of which any of our property is subject that we believe will have, individually or in~~ the ~~aggregate,~~ ainformation ~~material~~requested ~~adverse~~by ~~effect~~this ~~on our business, financial condition or results of operations~~Item.

Item 1A4. ~~Risk~~Controls ~~Factors~~and Procedures

~~In evaluating~~Evaluation us and our common stock, we urge you to carefully consider the risks and other information in this Quarterly Report on Form 10-Q, including the risk factor included below, as well as the risk factors disclosed in Item 1A. to Part I of ~~our~~Disclosure ~~Annual~~Controls ~~Report on Form 10-K for the fiscal year ended July 31, 2024, which we filed with the SEC on October 29, 2024 (the “Form 10-K”). Other than the risk factor included below, the risks~~ and uncertainties described in “Item 1A — Risk Factors” of our Form 10-K have not materially changed. Any of the risks discussed in this Quarterly Report on Form 10-Q, including the risk factor included below, or any of the risks disclosed in “Item 1A — Risk Factors” of our Form 10-K, as well as additional risks and uncertainties not currently known to us or that we currently deem immaterial, could materially and adversely affect our results of operations, financial condition or prospects.Procedures

~~Risks~~We maintain disclosure controls and procedures ~~Related~~that are designed to ~~Our~~ensure ~~Business~~that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported ~~Industry~~within the time periods specified by the rules and forms of the Securities and Exchange Commission, or SEC, and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

As required by Rule 13a-15(b) under the Exchange aAct, ~~result~~our management conducted an evaluation, under the supervision and with the participation of our ~~historical~~Principal ~~lack~~Executive ofOfficer ~~financial~~and ~~liquidity,~~our Principal weFinancial doOfficer, ~~not~~of ~~currently~~the ~~have~~effectiveness ~~sufficient~~of ~~working~~the ~~capital~~design toand ~~fund~~operation of our ~~planned~~disclosure ~~operations~~ controls and ~~may~~procedures ~~not~~as beof ~~able~~the toend of ~~continue~~the period covered by this Quarterly Report. Based on the foregoing evaluation, our Principal Executive Officer and Principal Financial Officer concluded that as aof ~~going~~the ~~concern~~end of the period covered by this report our disclosure controls and procedures were effective.

~~We have~~Changes a history of recurring losses, and as of January 31, 2025 we have incurred a cumulative net loss of $138,100,000. During the six months ended January 31, 2025, we recorded a net loss of $1,487,000 on recorded net revenue of $947,000. In addition, during the six months ended January 31, 2025 we used $1,047,000 in ~~operating~~Internal ~~activities~~Control ~~resulting~~Over ~~in a cash balance of $202,000 as of January 31, 2025.~~Financial As a result, our existing cash resources are not sufficient to meet our anticipated needs over the next twelve months from the date hereof, and we will need to raise additional capital to continue our operations and to implement our business plan, which capital may not be available on acceptable terms or at all.Reporting

23In connection with the evaluation required by Exchange Act Rule 13a-15(d), our management, under the supervision and with the participation of our Principal Executive Officer and our Principal Financial Officer, concluded that there were no changes in our internal controls over financial reporting during the nine months ended April 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

~~Our capital requirements will depend on many factors, including, among others:~~23

●PART ~~the~~II ~~market~~– ~~acceptance~~Other of, and demand for, our products; ● the timing and costs of executing our sales and marketing strategies; ● our ability to successfully complete the in-plant validation trials requested by potential customers and our ability to convert these trials into customer orders for our products; ● the costs and time required to obtain the necessary regulatory approvals for our products, including the required USDA approvals: ● the extent to which we invest in new testing and product development, including in-plant optimization trials; ● the extent to which our customers continue to place product orders as expected and expand their existing use of our products; ● the cost and time to satisfy unique customer requirements regarding validation trials or to support the value proposition and benefits of our products; ● the timing of vendor payments and the collection of receivables, among other factors affecting our working capital; ● our ability to control the timing and amount of our operating expenses, including the costs to attract and retain personnel with the skills required to implement our business plan; and ● the costs to file, prosecute and defend our intellectual property rights.Information

~~The above~~Item ~~factors, along with our history and near term forecast of incurring net losses and negative operating cash flows, raise substantial doubt about our ability to continue as a going concern~~1. IfLegal we do not obtain additional capital from external sources, we will not have sufficient working capital to fund our planned operations or be able to continue as a going concern. We cannot assure you that additional financing will be available when needed or that, if available, we can obtain financing on terms favorable to us or to our stockholders. If we raise additional funds from the issuance of equity securities, substantial dilution to our existing stockholders would likely result. If we raise additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict our ability to operate our business. Further, any contracts or license arrangements we enter into to raise funds may require us to relinquish our rights to our products or technology, and we cannot assure you that we will be able to enter into any such contracts or license arrangements on acceptable terms, or at all. Having insufficient funds may require us to delay or scale back our marketing, distribution and other commercialization activities or cease our operations altogether.Proceedings

~~Item~~From time to time, we may become involved in various 2lawsuits and legal proceedings that arise in the ordinary course of our business. ~~Unregistered~~The ~~Sales~~impact and outcome of ~~Equity~~litigation, ~~Securities~~if any, is subject to inherent uncertainties, and ~~Use~~any adverse result in these or other matters may arise from time to time that could harm our business. We are not currently aware of ~~Proceeds~~any such legal proceedings or claims to which we or our wholly owned subsidiary is a party or of which any of our property is subject that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or results of operations.

~~None~~Item 1A. Risk Factors

In evaluating us and our common stock, we urge you to carefully consider the risks and other information in this Quarterly Report on Form 10-Q, including the risk factor included below, as well as the risk factors disclosed in Item 1A. to Part I of our Annual Report on Form 10-K for the fiscal year ended July 31, 2024, 3which we filed with the SEC on October 29, 2024, or the Form 10-K. ~~Defaults~~Other ~~Upon~~than ~~Senior~~the ~~Securities~~risk factor included below, the risks and uncertainties described in “Item 1A — Risk Factors” of our Form 10-K have not materially changed. Any of the risks discussed in this Quarterly Report on Form 10-Q, including the risk factor included below, or any of the risks disclosed in “Item 1A — Risk Factors” of our Form 10-K, as well as additional risks and uncertainties not currently known to us or that we currently deem immaterial, could materially and adversely affect our results of operations, financial condition or prospects.

~~None.~~Risks Related to Our Business and Industry

~~Item~~As a result of our historical lack of financial 4.liquidity, ~~Mine~~we ~~Safety~~do ~~Disclosures~~not currently have sufficient working capital to fund our planned operations and may not be able to continue as a going concern.

~~Not~~We have a history of recurring losses, and as ~~Applicable~~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. As a result, our existing cash resources are not sufficient to meet our anticipated needs over the next twelve months from the date hereof, and we will need to raise additional capital to continue our operations and to implement our business plan, which capital may not be available on acceptable terms or at all.

~~Item 5. Other Information~~24

~~None.~~Our capital requirements will depend on many factors, including, among others:

24● the market acceptance of, and demand for, our products; ● the timing and costs of executing our sales and marketing strategies; ● our ability to successfully complete the in-plant validation trials requested by potential customers and our ability to convert these trials into customer orders for our products; ● the costs and time required to obtain the necessary regulatory approvals for our products, including the required USDA approvals: ● the extent to which we invest in new testing and product development, including in-plant optimization trials; ● the extent to which our customers continue to place product orders as expected and expand their existing use of our products; ● the cost and time to satisfy unique customer requirements regarding validation trials or to support the value proposition and benefits of our products; ● the timing of vendor payments and the collection of receivables, among other factors affecting our working capital; ● our ability to control the timing and amount of our operating expenses, including the costs to attract and retain personnel with the skills required to implement our business plan; and ● the costs to file, prosecute and defend our intellectual property rights.

~~Item~~The 6above factors, along with our history and near term forecast of incurring net losses and negative operating cash flows, raise substantial doubt about our ability to continue as a going concern. ~~Exhibits~~If we do not obtain additional capital from external sources, we will not have sufficient working capital to fund our planned operations or be able to continue as a going concern. We cannot assure you that additional financing will be available when needed or that, if available, we can obtain financing on terms favorable to us or to our stockholders. If we raise additional funds from the issuance of equity securities, substantial dilution to our existing stockholders would likely result. If we raise additional funds by incurring debt financing, the terms of the debt may involve significant cash payment obligations as well as covenants and specific financial ratios that may restrict our ability to operate our business. Further, any contracts or license arrangements we enter into to raise funds may require us to relinquish our rights to our products or technology, and we cannot assure you that we will be able to enter into any such contracts or license arrangements on acceptable terms, or at all. Having insufficient funds may require us to delay or scale back our marketing, distribution and other commercialization activities or cease our operations altogether.

~~The following~~Item ~~Exhibits~~2. ~~are~~Unregistered ~~filed~~Sales ~~as part~~ of ~~this~~Equity ~~report~~Securities ~~pursuant~~and toUse ~~Item 601~~ of ~~Regulation S-K:~~Proceeds

3.1	Certificate of Incorporation of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.1 of the Annual Report on Form 10-K filed with the SEC on October 29, 2012)
3.1.1	Certificate of Amendment to Certificate of Incorporation of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.1.1 of the Annual Report on Form 10-K filed with the SEC on October 29, 2012)
3.1.2	Certificate of Amendment to Certificate of Incorporation of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed with the SEC on May 19, 2021).
3.2	Bylaws of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.2 to the Annual Report on Form 10-K, filed with the SEC on October 29, 2012)
3.2.1	Amendment to the Bylaws of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.2.1 to the Annual Report on Form 10-K, filed with the SEC on October 29, 2012)
31.1 *	Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 *	Certification of Principal Financial Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 *	Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2 *	Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101 *	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarterly period ended January 31, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at January 31, 2025 and July 31, 2024; (ii) Condensed Consolidated Statements of Operations for the three and six months ended January 31, 2025 and 2024; (iii) Condensed Consolidated Statements of Stockholders’ equity for the three and six months ended January 31, 2025 and 2024 ;(iv) Condensed Consolidated Statements of Cash Flows for the six months ended January 31, 2025 and 2024; and (v) Notes to Condensed Consolidated Financial Statements.
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

None.

*Item ~~Filed herewith~~3. Defaults Upon Senior Securities

25None.

~~Signatures~~Item 4. Mine Safety Disclosures

~~Pursuant to~~Not ~~the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized~~Applicable.

	PURE BIOSCIENCE, INC.
Date: March 17, 2025	By:	/s/ ROBERT F. BARTLETT
		Robert F. Bartlett, Chief Executive Officer (Principal Executive Officer)
Date: March 17, 2025	By:	/s/ MARK S. ELLIOTT
		Mark S. Elliott, Vice President, Finance
		(Principal Financial and Accounting Officer)

Item 5. Other Information

26(c) Securities Trading Plans of Directors and Executive Officers

During the quarter ended April 30, 2024, none of our officers or directors, as defined in Rule 16a-1(f), informed us of the adoption or termination of a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, each as defined in Regulation S-K Item 408.

Item 6. Exhibits

The following Exhibits are filed as part of this report pursuant to Item 601 of Regulation S-K:

3.1		Certificate of Incorporation of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.1 of the Annual Report on Form 10-K filed with the SEC on October 29, 2012)

3.1.1		Certificate of Amendment to Certificate of Incorporation of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.1.1 of the Annual Report on Form 10-K filed with the SEC on October 29, 2012)

3.1.2		Certificate of Amendment to Certificate of Incorporation of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed with the SEC on May 19, 2021).

3.2		Bylaws of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.2 to the Annual Report on Form 10-K, filed with the SEC on October 29, 2012)

4.1		Form of Convertible Promissory Note (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed with the SEC on March 27, 2024).

3.2.1		Amendment to the Bylaws of PURE Bioscience, Inc. (incorporated by reference to Exhibit 3.2.1 to the Annual Report on Form 10-K, filed with the SEC on October 29, 2012)

31.1 *		Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2 *		Certification of Principal Financial Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1 *		Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2 *		Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS *		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.

101.SCH*		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents

104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*	Filed herewith.

Signatures

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PURE BIOSCIENCE, INC.

Date: June 16, 2025	By:	/s/ ROBERT F. BARTLETT
		Robert F. Bartlett, Chief Executive Officer (Principal Executive Officer)

Date: June 16, 2025	By:	/s/ MARK S. ELLIOTT
		Mark S. Elliott, Vice President, Finance
		(Principal Financial and Accounting Officer)

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