Biomerica Reports Fiscal 2026 Year-End Financial Results
IRVINE, Calif., Sept. 01, 2026 (GLOBE NEWSWIRE) -- Biomerica, Inc. (NASDAQ: BMRA) today reported its financial results for the fiscal year ended May 31, 2026 (“Fiscal 2026”).
Business Highlights
InFoods ® IBS Medicare Claims Update: Biomerica and its laboratory partner have been submitting initial Medicare claims for inFoods ® IBS. The Company noted that 100% of all initial valid claims processed to date have been paid at the full CMS payment rate of $300. The Company plans to expand Medicare billing availability to more than 200 physicians who currently use or have previously tried inFoods ® IBS on a cash-pay basis.
$1.75 Million CDMO Agreement: The Company entered into a Master Services Agreement (MSA) with a confidential life sciences company to develop proprietary in vitro diagnostic (IVD) assays. The engagement carries an initial contract development target fee of over $1.75 million, expected to be earned on a milestone-completion basis across multiple Statements of Work. All development work will be performed at Biomerica’s FDA-licensed, ISO 13485-certified facility in Irvine, California, utilizing existing personnel, equipment and infrastructure. Biomerica was selected following a competitive evaluation involving multiple CDMO organizations. The engagement is expected to require minimal incremental costs while providing incremental revenue and improved utilization of the Company’s existing manufacturing infrastructure.
First Commercial Order for H. pylori Test: Biomerica received its first commercial order for hp+detect™ from one of the largest clinical laboratory chains operating across Europe, and subsequently received several reorders. The Company also has evaluations of the test with additional prospective laboratories which are part of one of the largest lab chains in Europe.
InFoods ® IBS Real-World Data: Nearly 60% of IBS patients achieved clinically meaningful pain reduction, and 68% achieved bloating reduction with the inFoods ® IBS Therapy. The real-world clinical effectiveness data for inFoods ® IBS was presented at Digestive Disease Week (DDW) 2026 in Chicago.
Reimbursement Infrastructure for inFoods ® IBS Established: During fiscal 2026, the American Medical Association CPT Editorial Panel issued a dedicated CPT ® Proprietary Laboratory Analyses (PLA) code for inFoods ® IBS; the Centers for Medicare and Medicaid Services (CMS) established a national Medicare payment rate of $300 under the Clinical Laboratory Fee Schedule (CLFS); and the Medicare Administrative Contractor (MAC) responsible for processing inFoods ® IBS claims confirmed to the Company’s CLIA-certified laboratory partner that the test is eligible for Medicare coverage on an individual, claim-by-claim basis, opening a scalable Medicare commercialization pathway.
AI-Backed inFoods ® IBS Trigger Food Navigator Launched: Biomerica launched a comprehensive AI-backed digital companion tool designed to better enable patient dietary compliance and improve treatment success for individuals with Irritable Bowel Syndrome (IBS). The new AI-backed Trigger Food Navigator builds on this therapeutic technology by making it easier for patients to follow their personalized dietary plan through smart meal suggestions, ingredient substitutions, and simplified meal planning tools (www.infoodsibs.com).
Q4 and Full-Year Fiscal 2026 Financial Results
For the fourth quarter of Fiscal 2026, net sales were approximately $875,000, an increase of approximately 17% compared to approximately $749,000 in the fourth quarter of Fiscal 2025. The increase was driven primarily by higher contract manufacturing and inFoods revenues in the quarter. Net loss for the fourth quarter of Fiscal 2026 improved by 27% to approximately $1.1 million, compared to a net loss of approximately $1.5 million in the fourth quarter of Fiscal 2025.
Net sales for Fiscal 2026 were approximately $4.50 million, compared to $5.30 million in Fiscal 2025. The decrease was primarily attributable to lower clinical laboratory sales reflecting variability in the timing and periodic nature of customer orders, reduced over-the-counter sales resulting from lower retail market activity from international distributors, including the impact of uncertainties related to tariffs and international trade, and lower contract manufacturing revenue following completion of a prior research and development project. These decreases were partially offset by increased demand for inFoods ® IBS, which remained in the early stages of commercialization.
Gross profit for Fiscal 2026 was approximately $362,000, compared to approximately $498,000 in Fiscal 2025. Gross margin was approximately 8% and 9%, respectively, remaining relatively consistent year over year.
Biomerica continued to focus resources on key commercial opportunities while maintaining disciplined expense management. Total operating expenses were approximately $5.68 million in Fiscal 2026, compared to approximately $5.64 million in Fiscal 2025, an increase of less than 1%. Research and development (“R&D”) expenses decreased approximately 23% to $788,000, compared to approximately $1.02 million in Fiscal 2025, primarily reflecting lower personnel costs and reduced development spending as programs including inFoods ® IBS and hp+detect™ continued their transition from development toward commercialization. This decrease was offset by higher selling, general and administrative expenses, primarily related to legal and regulatory fees and continued investment in sales and commercialization activities.
Net cash used in operating activities decreased approximately 11% to $3.42 million in Fiscal 2026, compared to approximately $3.84 million in Fiscal 2025, representing an improvement of approximately $421,000 year over year.
Net loss improved approximately 24% to $3.8 million, compared to approximately $5.0 million in Fiscal 2025. Net loss per share improved to $(1.30), compared to $(2.16) in the prior year. The improvement in net loss was primarily driven by higher other income, including approximately $1.1 million related to the Employee Retention Credit and an approximately $335,000 unrealized holding gain related to the remeasurement of the Company’s investment in Diagnosis S.A.
As of May 31, 2026, Biomerica had approximately $1.3 million in cash and cash equivalents, compared to approximately $2.4 million as of May 31, 2025.
Subsequent to fiscal year-end, in August 2026, the Company completed a private placement of approximately 1.39 million shares of common stock at a purchase price of $1.60 per share, generating aggregate gross proceeds of approximately $2.23 million. The financing included participation from B. Riley Principal Capital, LLC, as well as all members of Biomerica's Board of Directors. In connection with the transaction, the Company also engaged B. Riley Securities, Inc. as its exclusive financial advisor and investment banker in connection with the evaluation and potential pursuit of strategic opportunities, including potential acquisitions, mergers, joint ventures, partnerships, spin-offs and other strategic combinations.
About Biomerica (NASDAQ: BMRA)
Biomerica, Inc. (www.biomerica.com) is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and in physicians' offices) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. The Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Biomerica primarily focuses on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development. The Company's Board of Directors continues to evaluate potential strategic opportunities with the goal of maximizing long-term shareholder value.
About inFoods ® IBS
The inFoods ® IBS test involves a simple blood collection procedure and is designed to assess a patient’s above normal immunoreactivity to specific foods. Instead of difficult-to-manage broad dietary restrictions, physicians can now use the inFoods ® IBS information to make targeted, patient-specific recommendations about specific foods that, when removed from the diet, may alleviate IBS symptoms such as pain, bloating, diarrhea and constipation. Further information about Biomerica’s patented inFoods ® Technology Platform can be found at: https://biomerica.com/inFoods/our-technology/. The inFoods ® IBS clinical study was performed at several prominent centers including Mayo Clinic, Beth Israel Deaconess Medical Center Inc. - a Harvard Medical School Teaching Hospital, Houston Methodist Hospital, and the University of Michigan. The clinical results for the Abdominal Pain Intensity (API) responder endpoint of >30% showed a statistically significant improvement for IBS patients in the treatment diet arm compared with patients in the placebo diet arm (p-value of 0.0246). The improvement in the treatment arm compared with the placebo arm is considered clinically significant and is similar to, and in some cases better than, that reported for currently marketed drugs.
For more information about inFoods ® IBS, visit www.inFoodsibs.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the Company’s current and future cash position, balance sheet, cost savings, sales, revenues, overhead, expenses, cost of goods, operations, and earnings; the Company's need for raising additional capital; the Company's expected sales growth for the Company's inFoods ® IBS product, hp+detect™ product, CDMO offerings and other existing products; and diversification of the Company's revenue streams. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results. Such important risks and uncertainties include, among others: earnings and other financial results; results of studies testing the efficacy of the Company’s inFoods tests and other products; regulatory approvals necessary prior to commercialization of the Company’s products; availability of the Company’s test kits and other products; capacity, shipping logistics, resource and other constraints on our suppliers; dependence on our third party manufacturers; dependence on international shipping carriers; governmental import/export regulations; demand for our various tests and other products; competition from other similar products and from competitors that have significantly more financial and other resources available to them; governmental virus control regulations that make it difficult or impossible for the company to maintain current operations; regulatory compliance and oversight, and the Company’s ability to obtain patent protection on any aspects of its diagnostic or therapeutic technologies; fluctuations in the Company's operating results due to its business model and expansion plans; downturns in international and/or national economies; the Company’s ability to raise additional capital; the competitive environment in which the Company will be competing; and the Company's dependence on strategic relationships. Additional factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the U.S. Securities and Exchange Commission (the “SEC”), and available on the SEC's website (www.sec.gov). In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica.
The Company is under no obligation to update any forward-looking statements after the date of this release.
Corporate Contact:
Zack Irani
949-645-2111
investors@biomerica.com
Source: Biomerica, Inc.