Biomerica(BMRA) - 2021 Q4 - Annual Report

Financial Performance - Consolidated net sales for fiscal 2021 were $7,199,027, an increase of $506,316 or 8% compared to fiscal 2020[72] - Consolidated cost of sales increased from $4,910,935 in fiscal 2020 to $6,702,046 in fiscal 2021, representing an increase of $1,791,111 or 36.4%[72] - Selling, general and administrative expenses rose by 103% to $4,608,950 in fiscal 2021, up from $2,274,415 in fiscal 2020[72] - Research and development expenses increased by 26% to $2,410,506 in fiscal 2021, compared to $1,910,209 in fiscal 2020[73] - Cash used in operating activities was $5,251,748 in fiscal 2021, compared to $4,297,498 in fiscal 2020[76] - As of May 31, 2021, cash and cash equivalents were $4,199,311, down from $8,641,027 as of May 31, 2020[74] Strategic Plans - The company plans to file for 510K clearance with the FDA for its H. Pylori laboratory diagnostic test during the second fiscal quarter of 2022[71] - The company is finalizing a clinical trial for its InFoods® IBS product, expecting all patients to be enrolled or completed by the end of the second fiscal quarter of 2022[70] - The company intends to increase sales of existing non-COVID products by adding new employees in its sales and marketing department[71] - The company may seek additional financing through debt and equity to satisfy capital requirements for ongoing operations[74] Stock and Financing Activities - The company exercised options to purchase 1,500 shares of common stock at an exercise price of $2.68 per share, generating proceeds of approximately $4,000[81] - The company sold 201,553 shares of common stock at an average sale price of $4.16 per share, resulting in net proceeds of approximately $824,000[81] Intellectual Property and Agreements - An exclusive distribution and marketing agreement was signed in Canada for the Helicobacter Pylori test[81] - The company received a patent in Japan for a digital health system that provides food recommendations based on food sensitivity testing, enhancing dietary restriction implementation[81] - A notice of allowance for a patent in Japan was received, covering the use of InFoods® technology for diagnosing and treating depression[81] Tax and Revenue Recognition - The company established a valuation allowance of $5,590,000 against its deferred tax assets, fully covering the asset due to recent losses and ongoing research and development plans[85] - Revenues from product sales are recognized at the time of shipment, with no allowance for returns except for defective merchandise[86] - The company manufactures clinical lab products for various customers, including hospitals, medical research institutions, and pharmaceutical companies[86]