Biomerica Inc. Reports 16% Decline in Net Sales for Fiscal Year Ending May 31, 2026

Biomerica Inc. reported a decline in financial performance for the fiscal year ending May 31, 2026, with net sales totaling approximately $4.45 million, down 16% from $5.31 million in the previous fiscal year. This decrease was primarily attributed to lower sales in clinical laboratories and over-the-counter markets, as well as reduced contract manufacturing revenue. The company noted that distributor ordering patterns and the timing of international shipments contributed to this decline. Despite these challenges, Biomerica experienced increased demand for its inFoods® IBS product, which is still in the early stages of commercialization.

The company's operating expenses saw a slight increase of about 1% year-over-year, totaling approximately $5.68 million. Selling, general, and administrative expenses rose by 6% to $4.89 million, driven by higher regulatory fees and sales-related compensation. In contrast, research and development expenses decreased by 23% to $788,000, reflecting a shift in focus from development to commercialization for certain products, including inFoods® IBS and hp+detect™. The overall cost of sales was approximately $4.09 million, representing 92% of net sales, which remained consistent with the previous year.

Strategically, Biomerica has made significant advancements, including the FDA clearance for its hp+detect™ test, which detects Helicobacter pylori, a major risk factor for gastric cancer. The company has also established a national Medicare payment rate of $300 for the inFoods® IBS product, effective January 1, 2026, which is expected to enhance market access. Biomerica is actively pursuing partnerships and distribution opportunities to support the broader commercialization of its products, including a marketing services agreement with Henry Schein to promote inFoods® IBS to physicians.

As of May 31, 2026, Biomerica's cash and cash equivalents stood at approximately $1.31 million, down from $2.40 million the previous year. The company reported net cash used in operating activities of about $3.42 million, an improvement from $3.84 million in the prior year. To bolster liquidity, Biomerica raised approximately $1.83 million through its at-the-market offering program during the fiscal year. However, the company expressed concerns about its ability to continue as a going concern, emphasizing the need for additional financing and revenue generation to meet its operational needs.

Looking ahead, Biomerica remains focused on expanding its product offerings and market presence while navigating potential challenges related to international trade policies and supply chain dynamics. The company is committed to managing costs and enhancing shareholder value through strategic initiatives, including the development of proprietary in vitro diagnostic assays under a new Master Services Agreement. Despite the current financial pressures, management believes that ongoing efforts in commercialization and partnerships will support future growth and operational stability.