Biomerica, Inc.

What they do

Biomerica develops, patents, manufactures and markets diagnostic test kits that analyze blood, urine, nasal or fecal samples to aid in diagnosis of diseases, food intolerances and other conditions. It sells primarily to clinical laboratories and in point-of-care settings such as physicians' offices, and also through over-the-counter channels, with most products carrying CE marking and several cleared by the FDA. The company additionally provides contract development and manufacturing services to third parties using its underlying assay technology.

Revenue drivers

• Diagnostic test kit portfolio — The core business is worldwide sales of rapid and laboratory diagnostic kits for bacteria, hormones, antibodies and antigens; this is the revenue base from which total annual revenue fell to $4.5M in fiscal 2026.
• inFoods IBS — A product being commercialized through physician-directed and laboratory-based channels including third-party reimbursement pathways; inFoods IBS continued its transition toward commercialization in fiscal 2026.
• hp+detect — An FDA 510(k)-cleared proprietary test for detecting Helicobacter pylori and monitoring treatment; it transitioned from development to commercialization in fiscal 2026.
• Contract development and manufacturing — Biomerica provides contract assay development and manufacturing services to third parties that utilize its product technology; the filings do not break out this revenue separately.

Recent performance

Total annual revenue declined from $18.9M in fiscal 2022 to $5.3M in 2023, then moved only slightly: $5.4M in 2024, $5.3M in 2025 and $4.5M in fiscal 2026. Recent quarterly revenue also trended down, from $1.4M in the quarter ended 2025-08-31 to $1.2M, $987,000 and $876,000 in the following three quarters. Annual net losses narrowed to $3.8M in fiscal 2026 from $5.0M in fiscal 2025 and $6.0M in fiscal 2024. Diluted EPS was -$1.30 in fiscal 2026 versus -$2.16 in fiscal 2025; operating cash flow was -$3.4M in fiscal 2026. At 2026-05-31 the company reported $6.8M in total assets, $4.1M in total liabilities, $2.6M in shareholder equity and $1.3M in cash and equivalents.

Strategy

Biomerica is pushing both new products through the transition from development toward commercialization: hp+detect moved to commercialization, and inFoods IBS continues its transition. It intends to pursue additional applications of the inFoods technology for Functional Dyspepsia, Crohn's Disease, Ulcerative Colitis, GERD, Migraine Headaches, Depression and Osteoarthritis, and has filed patents globally for these indications, with patents issued in the United States and multiple foreign jurisdictions. R&D expense fell to about $788,000 in fiscal 2026 from about $1,023,000 in fiscal 2025, which the company attributed to lower R&D personnel costs and reduced activity as those two products transitioned. The company also says it intends to keep leveraging its scientific, product development, regulatory and manufacturing capabilities to pursue contract assay development work. It is commercializing inFoods IBS through physician-directed and laboratory-based channels, including third-party reimbursement pathways.

Risks

• Going concern doubt — The 10-K states the current level of cash and cash equivalents is not sufficient to meet operating plans for the next 12 months, raising substantial doubt about the ability to continue as a going concern.
• History of losses and negative cash flow — The company has a history of operating losses and negative cash flows from operations, with no guarantee of achieving profitability or positive cash flows, and net loss was $3.8M and operating cash flow was -$3.4M in fiscal 2026.
• Revenue decline — Annual revenue fell from $18.9M in fiscal 2022 to $4.5M in fiscal 2026, and quarterly revenue declined across the four most recent reported quarters to $876,000.
• Competition from larger players — The 10-K risk factors cite the ability to compete against competitors with significantly greater financial, technical and marketing resources.

Outlook

Management's stated plans focus on commercializing hp+detect and inFoods IBS and expanding inFoods into additional disease indications. The company also flags the need to raise additional capital and continue as a going concern, listing that risk first among factors that could cause results to differ from expectations. Global economic and political developments, regulatory certification maintenance and distributor relationships are among the other factors it cites. No specific revenue or earnings guidance is provided in the excerpts.