Biomerica Reports $1.232 Million Net Loss and 8% Decrease in Net Sales for Q3 2026

Biomerica, Inc. reported a net loss of $1.232 million for the three months ended August 31, 2026, compared to a slight profit of $2,000 during the same period in 2025. The company's net sales decreased by 8% to approximately $1.265 million, down from $1.380 million in the prior year. This decline was primarily attributed to reduced sales in the clinical laboratory segment, which fell by 24% to $775,000, reflecting variability in customer orders and challenges related to international shipping. However, over-the-counter sales increased by 81% to $291,000, driven by new customer acquisitions.

In terms of operational efficiency, Biomerica's cost of sales rose to $1.162 million, representing 92% of net sales, compared to 69% in the previous year. This increase was largely due to higher costs associated with contract manufacturing and product mix changes. The gross profit margin consequently decreased, reflecting the impact of these rising costs alongside lower overall sales. Operating expenses also saw a reduction, with selling, general, and administrative expenses decreasing by 15% to $1.124 million, primarily due to lower administrative costs and a decrease in payroll expenses.

On the balance sheet, Biomerica reported total assets of $8.071 million as of August 31, 2026, an increase from $6.759 million at the end of the previous fiscal year. This growth was driven by a significant rise in cash and cash equivalents, which increased to $2.733 million from $1.308 million, largely due to a private placement that generated approximately $2.231 million in gross proceeds. The company’s total liabilities also increased to $4.423 million, up from $4.129 million, primarily due to higher accounts payable and accrued expenses.

Strategically, Biomerica is focusing on expanding its product offerings and market reach. The company is actively pursuing commercialization of its inFoods® IBS product, which aims to assist patients with irritable bowel syndrome through personalized dietary interventions. Additionally, Biomerica has received FDA clearance for its hp+detect™ test, designed to detect Helicobacter pylori infections, and is working on expanding its market presence in Europe. The company is also exploring contract development and manufacturing opportunities to leverage its existing infrastructure for additional revenue streams.

Looking ahead, Biomerica faces challenges related to its liquidity and ability to sustain operations. The company has indicated that its existing cash reserves may not be sufficient to meet its operational needs over the next twelve months. Management is actively pursuing strategies to increase sales, reduce expenses, and secure additional financing. The recent filing of a replacement shelf registration statement with the SEC, allowing for the potential issuance of up to $250 million in securities, is part of these efforts to enhance financial stability and support future growth initiatives.