Biomerica Reports Decline in Sales and Increased Losses for Three and Nine Months Ended February 28, 2026

Biomerica, Inc. reported a decline in financial performance for the three and nine months ended February 28, 2026, compared to the same periods in the previous fiscal year. For the three months, net sales decreased by 12% to approximately $987,000, down from $1,119,000, while for the nine months, sales fell by 22% to $3,578,000 from $4,562,000. The company experienced a net loss of $1,312,000 for the three months and $2,630,000 for the nine months, compared to losses of $1,163,000 and $3,429,000, respectively, in the prior year. The gross profit for the three months ended February 28, 2026, was a loss of $44,000, contrasting with a profit of $19,000 in the same period last year.

The decline in revenue was primarily attributed to reduced contract manufacturing activity following the completion of a prior research and development project, alongside decreased sales in the clinical lab and over-the-counter product lines. The company noted a significant drop in contract manufacturing revenue, which fell by 48% in the most recent quarter. However, there was a 16% increase in over-the-counter sales, reflecting variability in demand from international customers. Operating expenses increased slightly, with selling, general, and administrative expenses rising by 6% to $1,076,000, driven by restructuring costs related to the commercialization of the inFoods® IBS product.

Biomerica's total assets decreased to $4,878,000 as of February 28, 2026, down from $5,945,000 at the end of the previous fiscal year. Current assets also fell, primarily due to a reduction in cash and cash equivalents, which decreased to $1,336,000 from $2,399,000. The company reported a working capital of approximately $2,562,000, down from $3,135,000. The decrease in cash was attributed to ongoing operational losses and a need for additional financing to sustain operations.

In terms of strategic developments, Biomerica has been focusing on the commercialization of its inFoods® IBS product, which aims to address gastrointestinal conditions. The company has engaged with gastroenterology physician groups to gather feedback and optimize its marketing strategy. Additionally, Biomerica received FDA clearance for its hp+detect™ test, designed to detect Helicobacter pylori infections, and has begun marketing this product to laboratories in Europe. The company is also pursuing reimbursement opportunities through Medicare for its inFoods® IBS product, which could enhance market access.

Looking ahead, Biomerica faces significant challenges, including the need to generate additional revenue and secure financing to continue operations. The company has filed a shelf registration statement to issue up to $20 million in common stock and has raised approximately $1,495,000 through an at-the-market offering. Management has indicated that the future viability of the company depends on successful execution of its strategic plans, including increasing sales and managing operating expenses effectively.