Core Insights - Biomerica, Inc. reported financial results for the second quarter of fiscal 2026, highlighting a strategic shift towards higher-margin diagnostic-guided therapy products and the commercialization of its inFoods IBS test [1][6]. Financial Performance - Net sales for the second quarter of fiscal 2026 were $1.21 million, down from $1.64 million in the prior year, primarily due to the absence of large initial distributor orders in the MENA region [9]. - For the six months ended November 30, 2025, net sales were $2.59 million, compared to $3.44 million in the prior year period [10]. - Gross margin for the six-month period was 18%, down from 21% in the prior year, reflecting the transition to higher-margin products [10]. - Operating expenses for the second quarter were $1.42 million, slightly down from $1.43 million in the same period last year [11]. - The net loss for the second quarter was $1.32 million, compared to $0.95 million in the prior year quarter, while the net loss for the six months improved to $1.31 million from $2.27 million in the prior year [12]. Strategic Developments - Biomerica entered a marketing services agreement with Henry Schein to support the commercialization of the inFoods IBS test in the U.S., enhancing awareness among healthcare providers [2]. - The company launched the AI-backed inFoods IBS Trigger Food Navigator, designed to improve dietary compliance for IBS patients by providing personalized meal suggestions [3]. - The Centers for Medicare & Medicaid Services established a national Medicare payment rate of $300 for the inFoods IBS test, effective January 1, 2026, which is expected to enhance patient access [4]. - The Egyptian Drug Authority authorized Biomerica's complete screening test portfolio, facilitating international expansion of its diagnostic products [5]. Management Commentary - The CEO emphasized a strategic pivot from lower-margin products to higher-value diagnostic-guided therapy products, indicating that current revenue softness is a result of this transition rather than a decline in business fundamentals [6]. - The CFO noted a 27% reduction in research and development expenses while continuing to invest in high-value diagnostic programs, indicating a focus on operational efficiency [8].

Core Insights - Biomerica, Inc. reported financial results for the first quarter ended August 31, 2025, highlighting a decrease in net sales but an improvement in gross profit due to a favorable product mix and higher-margin services [1][7][9] Financial Performance - Net sales for Q1 fiscal 2026 were $1.4 million, down from $1.8 million in Q1 fiscal 2025, attributed to reduced retail activity and international order timing, partially offset by increased sales of inFoods IBS products [7][10] - Gross margin improved to 31% from 16% year-over-year, driven by a higher-margin product mix [10] - Operating expenses decreased to $1.5 million from $1.7 million, reflecting ongoing cost discipline [8][10] - Operating loss improved to $1.1 million from $1.4 million, with a net profit of approximately $2,000 compared to a net loss of $1.3 million in the prior year [9][10] Product Developments - The inFoods IBS test received a Proprietary Laboratory Analysis (PLA) code, facilitating reimbursement claims for healthcare providers [2] - The UAE Ministry of Health approved the Fortel Ulcer Test and Fortel Kidney Test for home use, enhancing access to diagnostic tools for gastric diseases and kidney damage [3][4] - Biomerica launched the AI-backed inFoods IBS Trigger Food Navigator to support personalized dietary plans for IBS patients [5] Clinical Validation - A multicenter trial published in June 2025 demonstrated the effectiveness of the inFoods IBS test, with significant outcomes in symptom relief for IBS patients [12][14]