Biomerica(BMRA) - 2026 Q2 - Quarterly Report

Financial Performance - Consolidated net sales for the three months ended November 30, 2025, were approximately $1,210,000, a decrease of 26% compared to $1,636,000 for the same period in 2024[41] - For the six months ended November 30, 2025, consolidated net sales were approximately $2,590,000, down 25% from $3,444,000 for the same period in 2024[41] - Gross profit for the three months ended November 30, 2025, was $51,000, down from $437,000 in the same period of 2024, indicating a significant decline in profitability[81] - The company reported a net loss of $1,320,000 for the three months ended November 30, 2025, compared to a net loss of $950,000 for the same period in 2024[81] - Total operating expenses for the six months ended November 30, 2025, were $2,966,000, slightly down from $3,087,000 in 2024[81] - For the three months ended November 30, 2025, total revenues were $1,210,000, a decrease from $1,636,000 in the same period of 2024, representing a decline of approximately 26%[90] - For the six months ended November 30, 2025, total revenues were $2,590,000, down from $3,444,000 in the same period of 2024, indicating a decrease of about 25%[90] Cash and Assets - As of November 30, 2025, the company had an accumulated deficit of approximately $54,486,000 and cash and cash equivalents of approximately $2,543,000[31] - As of November 30, 2025, total gross receivables were approximately $1,043,000, with four key customers accounting for 75% of gross accounts receivable[43] - Net inventory as of November 30, 2025, was approximately $1,524,000, with inventory reserves recorded at approximately $434,000[52] - The company had approximately $30,000 in advances from domestic customers as of November 30, 2025, representing prepayments for future shipments[69] - As of November 30, 2025, the company had approximately $469,000 of gross inventory located in Mexicali, Mexico[90] Financing and Investments - The company sold 391,125 shares of common stock during the six months ended November 30, 2025, resulting in gross proceeds of approximately $1,432,000[33] - The company intends to use net proceeds from the 2024 ATM Offering for general corporate purposes, including sales and marketing activities, clinical studies, and product development[34] - The company invested approximately $165,000 into a privately held Polish distributor, owning approximately 6% of the distributor[59] - The company filed a Shelf Registration allowing the issuance of up to $20,000,000 in common stock, with a prospectus supplement filed for $5,500,000 through the 2024 ATM Offering[88] - During the six months ended November 30, 2025, the company sold 391,125 shares at prices ranging from $3.34 to $4.02, resulting in gross proceeds of approximately $1,432,000 and net proceeds of $1,395,000 after expenses[89] Operational Challenges - The company has incurred net losses and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern[35] - The company is actively pursuing strategies to increase sales, reduce expenses, and seek additional financing to address capital needs[37] Expenses and Costs - Share-based compensation expenses for the six months ended November 30, 2025, were approximately $145,000, a decrease of 37.5% from $232,000 in 2024[64] - Research and development costs for the three months ended November 30, 2025, were $193,000, compared to $257,000 for the same period in 2024, reflecting a reduction of 25%[72] - The company reported operating lease costs of $88,000 for both the three months ended November 30, 2025, and 2024, with total lease costs remaining consistent at $93,000[97] Legal and Compliance - There were no material legal proceedings pending as of November 30, 2025, indicating a stable legal environment for the company[100] - The company is currently evaluating the impact of new accounting standards issued by the FASB on its financial statements and disclosures[86][87] Stock Options - The weighted average exercise price of options outstanding as of November 30, 2025, was $17.85, reflecting a change from $19.29 at the beginning of the period[64] - The total number of options outstanding increased to 444,708 as of November 30, 2025, from 413,866 at the end of May 2025[64] - The weighted-average remaining lease term as of November 30, 2025, was 0.77 years, with a weighted-average discount rate of 6.50%[98]