Biomerica Reports 10% Revenue Growth in Third Quarter, Faces Liquidity Challenges

Biomerica, Inc. reported its financial results for the three and nine months ended February 28, 2025, showing a net sales increase of approximately 10% to $1.12 million for the third quarter, compared to $1.02 million in the same period last year. For the nine months, total net sales reached $4.56 million, a 6% increase from $4.30 million in the prior year. The company attributed this growth primarily to increased demand for its inFoods® IBS product and enhanced contract manufacturing billings, despite a decline in over-the-counter sales.

The company’s gross profit for the third quarter was $19,000, a significant improvement from a gross loss of $149,000 in the same quarter of the previous year. For the nine-month period, gross profit was $742,000, up from $591,000 year-over-year. Operating expenses decreased notably, with selling, general, and administrative expenses dropping by 33% to $1.01 million in the third quarter, and by 16% to $3.54 million for the nine months. This reduction was largely due to a workforce reduction of nearly 15% implemented in July 2024, which helped lower payroll and stock compensation costs.

As of February 28, 2025, Biomerica's total assets were approximately $7.38 million, down from $9.25 million at the end of the previous fiscal year. Current assets also decreased to $6.20 million from $7.73 million, primarily due to a reduction in cash and cash equivalents, which fell to $3.06 million from $4.17 million. The company’s total liabilities decreased significantly to $1.84 million from $2.66 million, reflecting a reduction in accounts payable and accrued expenses.

In terms of strategic developments, Biomerica has been focusing on expanding its product offerings and market reach. The company is actively commercializing its inFoods® IBS product and has begun marketing its hp+detect™ test for detecting H. pylori infections. Additionally, Biomerica has filed a new shelf registration statement allowing it to issue up to $20 million in common shares, which is intended to support its operational and growth strategies. The company raised approximately $2.02 million in net proceeds from its at-the-market offerings during the nine months ended February 28, 2025.

Looking ahead, Biomerica faces challenges related to liquidity, as its cash reserves are deemed insufficient to meet operational needs over the next twelve months. The company is pursuing various strategies to enhance revenue, reduce expenses, and secure additional financing. Management has expressed a commitment to executing these plans, although they acknowledge the uncertainty surrounding their success. The ongoing focus will be on optimizing operations and expanding market presence to achieve sustainable growth.