Biomerica(BMRA) - 2024 Q4 - Annual Report

Financial Performance - For fiscal 2024, the company's net sales were approximately $5,415,000, representing an increase of $76,000, or 1%, compared to $5,339,000 for fiscal 2023[147] - The consolidated cost of sales for fiscal 2024 was approximately $4,804,000, or 89% of net sales, compared to $4,893,000, or 92% of net sales, for fiscal 2023[148] - Selling, general, and administrative expenses decreased by $598,000, or 10%, to approximately $5,487,000 for fiscal 2024[150] - Research and development expenses were approximately $1,491,000 for fiscal 2024, a decrease of $93,000, or 6%, compared to fiscal 2023[151] - Cash used in operating activities for fiscal 2024 was approximately $5,361,000, a slight decrease from $5,474,000 in fiscal 2023, with a loss of approximately $5,978,000 reported in 2024 compared to $7,140,000 in 2023[160][161] - Cash used in investing activities increased to approximately $115,000 in fiscal 2024 from $78,000 in fiscal 2023, with $51,000 spent on property and equipment and $64,000 on patent expenditures in 2024[162] - Cash used in financing activities was approximately $81,000 in fiscal 2024, a significant decrease from cash provided by financing activities of $9,390,000 in fiscal 2023[163] - The company reported no net proceeds from the sale of common stock in fiscal 2024, compared to $9,309,000 in fiscal 2023[164] Cash Position - The company had cash and cash equivalents of approximately $4,170,000 as of May 31, 2024, down from $9,719,000 in 2023[153] - Cash and cash equivalents decreased from $9,719,000 in May 2023 to $4,170,000 in May 2024, representing a decline of approximately 57%[157] Cost-Cutting Measures - The company has initiated significant cost-cutting measures, including a workforce reduction of nearly 15%, to extend its cash runway[146] - The company implemented a workforce reduction of nearly 15% in July 2024 as part of cost-cutting measures[168] Product Development - The company received FDA clearance in December 2023 for hp+detect, a new diagnostic test for detecting H. pylori, which affects an estimated 35% of the U.S. population[145] - The company launched the inFoods IBS product, which utilizes a simple blood test to identify patient-specific foods that may alleviate IBS symptoms[142] Inventory Management - Inventory valuation reserves totaled $467,000 as of May 31, 2024, representing approximately 16% of total inventory, down from $672,000 or 25% in 2023[175] Strategic Planning and Financing - The company is actively pursuing strategies to increase sales, reduce expenses, and seek additional financing to sustain operations beyond the next year[153] - The company has significant reliance on successful execution of strategic plans and securing additional financing to continue as a going concern[158] Regulatory and Accounting Changes - The company adopted ASU 2016-03 on June 1, 2023, which did not have a material impact on its financial statements[177] - The FASB issued ASU 2023-09, effective for fiscal years beginning after December 15, 2024, focusing on enhanced income tax disclosures[179] - The company is currently evaluating the impact of adopting ASU 2023-09 on its financial statements and disclosures[179] Public Float and Market Value - The public float was reported at $7,037,587, limiting the aggregate market value of securities sold under the 2023 Shelf Registration Statement to $2,345,862[166] Financial Statements - Consolidated financial statements include balance sheets, statements of operations, shareholders' equity, and cash flows for the years ended May 31, 2024, and 2023[180]