Biomerica Reports Modest Sales Growth Amid Continued Operational Losses

Biomerica, Inc. reported its financial results for the three and six months ended November 30, 2024, showing a modest increase in net sales but continued operational losses. For the three months, the company generated net sales of approximately $1.636 million, a 4% increase from $1.567 million in the same period last year. For the six months, net sales reached $3.444 million, up 5% from $3.281 million in the prior year. Despite this growth, the company recorded a net loss of $950,000 for the quarter, compared to a loss of $1.507 million in the same quarter of 2023, and a total net loss of $2.266 million for the six months, down from $2.639 million in the previous year.

The financial performance reflects significant changes in operating expenses, which decreased due to cost-cutting measures, including a workforce reduction of nearly 15% implemented in July 2024. Selling, general, and administrative expenses fell to $1.173 million for the three months ended November 30, 2024, down 23% from $1.521 million in the same period last year. Research and development expenses also decreased by 38% to $257,000, primarily due to reduced staffing costs. The company’s gross profit for the quarter was $437,000, compared to $325,000 in the prior year, indicating improved efficiency in managing costs.

Operationally, Biomerica has focused on expanding its product offerings, particularly in the gastrointestinal diagnostics market. The company has launched its inFoods® IBS product, which aims to identify specific foods that trigger symptoms in patients with irritable bowel syndrome. The product has been introduced to various gastroenterology practices, and the company is actively working to broaden its market reach. Additionally, Biomerica is developing the hp+detect™ test for Helicobacter pylori, a significant health concern linked to gastric cancer.

As of November 30, 2024, Biomerica's total assets were approximately $7.274 million, down from $9.254 million at the end of the previous fiscal period. The company reported cash and cash equivalents of $2.372 million, a decrease from $4.170 million. Total liabilities also decreased to $2.160 million from $2.663 million, reflecting improved management of current liabilities. However, the company continues to face challenges related to its accumulated deficit, which stood at approximately $50.5 million.

Looking ahead, Biomerica's management has expressed concerns regarding its ability to continue as a going concern, citing the need for additional revenue generation and access to capital markets to meet operational needs. The company is pursuing strategies to enhance sales, reduce expenses, and explore financing options, including a recent at-the-market offering that raised approximately $567,000. The outlook remains cautious as the company navigates its financial challenges while aiming to capitalize on new product launches and market opportunities.