Biomerica Reports First Quarter Fiscal 2027 Financial Results

Lower operating expenses did not offset the decline in gross profit, while an August share placement supported quarter-end liquidity.

Rhea-AI Summary

Biomerica (BMRA) reported fiscal first-quarter 2027 revenue of approximately $1.3 million, down from the prior-year quarter, as gross margin contracted. For the quarter ended August 31, 2026, revenue compared with approximately $1.4 million a year earlier; gross margin fell to 8% from 31%. Net loss was approximately $1.2 million, or $0.37 per share, versus approximately $2,000 net income, which included approximately $1.1 million in Employee Retention Credit income.

Operating expenses fell approximately 14%, while over-the-counter sales rose approximately 81%. September Medicare-related inFoods IBS orders increased 120% to 22 from August. All initial valid Medicare claims processed through October 15 were paid at the full $300 rate. An August private placement raised approximately $2.23 million gross; cash reached approximately $2.7 million at quarter-end. B. Riley Securities was engaged to advise on potential partnerships and business combinations.

13 points · 1 major

MixediHow this balance works

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2 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointAugust private placement generated approximately $2.23 million in gross proceeds, with no warrants or discounted securities. 26% of market cap
• Moderate pointWorking capital increased to $2.6 million at August 31, 2026, from $1.5 million at May 31.
• Moderate pointOperating expenses decreased approximately 14% to approximately $1.3 million from approximately $1.5 million year over year.
• Moderate pointOperating cash outflow was approximately 41% lower year over year, excluding prior-year Employee Retention Credit receipts.
• Moderate pointOver-the-counter sales increased approximately 81% to $291,000 year over year, primarily from a new customer.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Diagnostic development work is progressing under an agreement with initial target development fees exceeding $1.75 million. 20% of market cap

7 minor points

• Minor pointCash increased to approximately $2.7 million at August 31, 2026, from approximately $1.3 million at May 31.
• Minor pointSeptember 2026 Medicare-related inFoods IBS orders rose 120% to 22, from 10 in August.
• Minor pointInitial valid Medicare claims processed through October 15, 2026 had 100% payment at the full $300 rate.
• Minor pointMedicare ordering locations increased 28% to 32 by October 15, from 25 at August 31, 2026.
• Minor pointMedicare-related orders came from 13 locations by October 15, 2026, including nine with multiple orders.
• Minor pointMiddle East sales increased approximately 59% compared with the prior-year quarter.
• Minor pointHp+detect continues receiving reorders from a large European clinical laboratory chain for the United Kingdom market.

Negative

• Major pointQuarterly net loss was approximately $1.2 million, or $0.37 per share, versus approximately $2,000 prior-year net income.
• Major pointPrivate placement issued approximately 1.39 million common shares at $1.60 per share, diluting existing holders.
• Moderate pointGross profit fell to approximately $103,000, or 8% of sales, from approximately $424,000, or 31%, year over year.
• Moderate pointOperating cash use rose to approximately $802,000 from approximately $268,000; the prior year included approximately $1.1 million in credit receipts.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Development fee targets require additional Statements of Work; future revenue depends on their scope and progress.

4 minor points

• Minor pointQuarterly revenue declined to approximately $1.3 million from approximately $1.4 million a year earlier.
• Minor pointPrior-year net income included approximately $1.1 million in Employee Retention Credit income, affecting the earnings comparison.
• Minor pointOperating loss widened to approximately $1.2 million from approximately $1.1 million in the prior-year quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Medicare claims remain subject to individual, claim-by-claim consideration.

News Explained

The MSA’s fee target above one million seven hundred fifty thousand dollars depends on additional work orders, and revenue is recognized as work is performed.

The release specifies that the completed August private placement issued 1.39 million Biomerica common shares at $1.60 each, for $2.23 million in gross proceeds, with no warrants or discounted securities; the added shares increase the share count and reduce existing holders’ percentage ownership absent offsetting changes.

CDM development work is progressing under an MSA with initial target development fees above $1.75 million, but those fees depend on additional statements of work; payments are tied to contractual milestones, and revenue is recognized over time as services are performed, with future timing and amount depending on scope and progress.

Key Figures

Net sales: Approximately $1.3 million vs. approximately $1.4 million Gross margin: 8% vs. 31%; gross profit approximately $103,000 vs. $424,000 Operating expenses: Decreased approximately 14% to $1.3 million from approximately $1.5 million +5 more

Net sales

Approximately $1.3 million vs. approximately $1.4 million

First quarter fiscal 2027 vs. prior-year quarter

Gross margin

8% vs. 31%; gross profit approximately $103,000 vs. $424,000

First quarter fiscal 2027 vs. prior-year quarter

Operating expenses

Decreased approximately 14% to $1.3 million from approximately $1.5 million

First quarter fiscal 2027 vs. prior-year quarter

Net loss

Approximately $1.2 million, or $0.37 per share, vs. approximately $2,000 net income

First quarter fiscal 2027 vs. prior-year quarter

Medicare claims paid

100% of initial valid claims processed paid at the full $300 rate

As of October 15, 2026; under the Clinical Laboratory Fee Schedule

Initial target development fees

Exceeding $1.75 million

Under the MSA; subject to additional Statements of Work

Over-the-counter sales

Increased approximately 81% to $291,000

First quarter fiscal 2027 vs. first quarter fiscal 2026

Private placement

Approximately 1.39 million shares at $1.60 per share; approximately $2.23 million gross proceeds

Completed in August 2026

Previous Earnings Reports

2 past events · Latest: Sep 01

Same Type 2 events

1. Sep 01

   annual earnings

   24h Move

   -1.7%

   Annual results showed lower revenue and ongoing losses alongside improving quarterly sales.

2. Oct 15

   quarterly earnings

   24h Move

   -0.7%

   Same-quarter results showed lower sales, while gross margin improved on product mix.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

cpt, in vitro diagnostic, private placement

3 terms

cpt regulatory

"under the applicable CPT® Proprietary Laboratory Analyses (“PLA”) code"

CPT stands for Current Procedural Terminology, a standardized set of codes used to describe medical procedures and services for billing and insurance purposes. For investors, CPT codes determine how and whether healthcare providers get paid for treatments, affecting revenue streams and reimbursement risk; think of them like product barcodes that decide price and payment for clinical services. Changes to codes or coverage policies can directly alter a healthcare company's cash flow and profitability.

in vitro diagnostic medical

"development of proprietary in vitro diagnostic (“IVD”) assay"

In vitro diagnostics are tests, instruments and kits used to analyze samples taken from the body—such as blood, urine or swabs—outside the body (in a lab or cartridge) to detect disease, infections, genetic traits or other biological signs. Investors care because these products generate sales, recurring revenue from consumable test kits, and value that hinges on test accuracy, regulatory approvals and reimbursement policies; like a home pregnancy test but for many medical conditions.

private placement financial

"completed a private placement of approximately 1.39 million shares"

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

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• InFoods® IBS Commercial Progress: Medicare-related test orders increased 120% in September 2026 compared to August, with growing physician participation and repeat ordering activity
  
  
• InFoods® IBS update: 100% of all initial valid Medicare claims processed as of October 15, 2026 have been paid at the full CMS payment rate of $300
  
  
• Engaged B. Riley Securities, Inc. to support the Board's ongoing evaluation of potential strategic opportunities, including partnerships and business combinations
  
  
• Total operating expenses decreased approximately 14% year over year
  
  
• Over-the-counter sales increased approximately 81% compared to the first quarter of fiscal 2026
  
  
• Cash and cash equivalents more than doubled to approximately $2.7 million at August 31, 2026, from approximately $1.3 million at May 31, 2026
  
  

IRVINE, Calif., Oct. 16, 2026 (GLOBE NEWSWIRE) -- Biomerica, Inc. (NASDAQ: BMRA) ("Biomerica" or the "Company") today reported financial results for the first quarter of fiscal 2027, ended August 31, 2026.

Business Highlights

inFoods® IBS Commercialization and Medicare Reimbursement Progress: Biomerica continues to advance commercialization of inFoods® IBS, focusing on expanding physician adoption and increasing testing activity through the Medicare channel. As of October 15, 2026, 32 customer locations had been set up for Medicare ordering, up 28% from 25 at August 31. Of these, 13 had placed Medicare-related orders, including nine with multiple orders, reflecting encouraging progress in physician adoption and continued utilization.

Following the quarter-end, Medicare-related test orders increased 120% to 22 in September 2026, compared to 10 in August, reaching the highest monthly level recorded through September. Early ordering patterns illustrate how utilization can build over time: one practice placed two Medicare-related orders in July, three in August and seven in September, reflecting growing Medicare-related testing activity and continued physician engagement.

Biomerica's laboratory partner began submitting Medicare claims for inFoods® IBS under the applicable CPT® Proprietary Laboratory Analyses (“PLA”) code after May 31, 2026. As of October 15, 2026, 100% of all initial valid claims processed have been paid at the full CMS payment rate of $300 under the Clinical Laboratory Fee Schedule. Claims are currently considered on an individual, claim-by-claim basis.  

Biomerica continues to expand Medicare billing availability while engaging both existing and new physicians to support broader adoption of inFoods® IBS, including physicians who currently use or have previously offered the test on a cash-pay basis.

CDM Program Progressing: Biomerica continues to pursue contract development and manufacturing (“CDM”) opportunities to expand its revenue base while leveraging its existing capabilities. Development work is progressing under Biomerica's Master Services Agreement (“MSA”) with a confidential life sciences company for development of proprietary in vitro diagnostic (“IVD”) assay. The MSA has initial target development fees exceeding $1.75 million, subject to the execution of additional Statements of Work under the MSA. Payments are tied to contractual milestones, while revenue is recognized over time as Biomerica performs the development services. The timing and amount of future revenue depend on the scope and progress under the applicable Statements of Work. The work is being performed at Biomerica's FDA-registered, ISO 13485-certified facility in Irvine, California, using existing personnel, equipment and infrastructure.

Hp+detect™ Reorders: Biomerica continues to receive reorders for hp+detect™, its FDA-cleared and U.K. Medicines and Healthcare products Regulatory Agency registered H. pylori test, from one of the largest clinical laboratory chains operating across Europe, for the United Kingdom market. Biomerica continues to market hp+detect™ to laboratories in the United States and Europe.

Over-the-Counter and Regional Growth: Over-the-counter sales increased approximately 81% to $291,000 in the first quarter of fiscal year 2027 compared to the first quarter of fiscal year 2026, driven primarily by sales to a new customer. Separately, total sales in the Middle East increased approximately 59% compared to the prior-year quarter.

Financing: In August 2026, Biomerica completed a private placement of approximately 1.39 million shares of common stock at $1.60 per share, generating gross proceeds of approximately $2.23 million, with no warrants or discounted securities. The financing included participation from B. Riley Principal Capital, LLC and all members of Biomerica's Board of Directors. Biomerica also engaged B. Riley Securities, Inc. as its exclusive financial advisor to support the Board's ongoing evaluation of potential strategic opportunities, including partnerships and business combinations. There can be no assurance that this evaluation will result in any transaction.

First Quarter Fiscal 2027 Financial Results

Net Sales

Net sales for the first quarter of fiscal 2027 were approximately $1.3 million, compared to approximately $1.4 million in the prior-year quarter. The decrease primarily reflected fluctuations in clinical laboratory customer orders and shipment timing, partially offset by an approximately 81% increase in over-the-counter sales and growth in contract manufacturing revenue. Biomerica continues to advance existing contract development and manufacturing projects while expanding commercialization efforts for inFoods® IBS and its other diagnostic products.

Gross Margin

Gross profit was approximately $103,000, or 8% of net sales, compared to approximately $424,000, or 31% of net sales, in the prior-year quarter. The decrease primarily reflected changes in product mix, lower sales volume, and differences in the timing of manufacturing costs included in cost of sales. Management remains focused on improving gross margins over time as sales of inFoods® IBS and hp+detect™ expand, while continuing to develop contract manufacturing opportunities that leverage Biomerica's existing capabilities.

Operating Expenses

Total operating expenses decreased approximately 14% to $1.3 million, compared to approximately $1.5 million in the prior-year quarter, reflecting Biomerica's continued focus on cost discipline. The reduction primarily reflected lower administrative and personnel-related expenses, including reduced professional service fees. Biomerica also increased utilization of existing personnel on contract development and manufacturing projects, supporting revenue-generating activities while leveraging existing resources.

Operating Results

Operating loss was approximately $1.2 million, compared to approximately $1.1 million in the prior-year quarter, as lower gross profit was partially offset by reduced operating expenses. Net loss was approximately $1.2 million, or $0.37 per share, compared to net income of approximately $2,000 in the prior-year quarter, which included approximately $1.1 million in Employee Retention Credit ("ERC") income.

Cash Flow and Liquidity

Net cash used in operating activities was approximately $802,000, compared to approximately $268,000 in the prior-year quarter, which included approximately $1.1 million in Employee Retention Credit (“ERC”) cash receipts. Excluding the impact of these prior-year receipts, operating cash outflow was approximately 41% lower year over year.

As of August 31, 2026, Biomerica had approximately $2.7 million in cash and cash equivalents and $2.6 million in working capital, compared to approximately $1.3 million and $1.5 million, respectively, as of May 31, 2026. The increase in cash primarily reflected proceeds from Biomerica's August 2026 private placement.

Selected Financial Results				Three Months Ended				Three Months Ended
				August 31, 2026				August 31, 2025
($ in millions, except percentages)
Revenue				$1.3				$1.4
Gross margin					8%				31%
Operating expenses				$1.3				$1.5
Operating loss				($1.2)				($1.1)
Net (loss) income				($1.2)				$0.0

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. Biomerica'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 Biomerica has multiple diagnostic and therapeutic products in development. Biomerica'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 Biomerica’s current and future cash position, balance sheet, cost savings, sales, revenues, overhead, expenses, cost of goods, operations, and earnings; Biomerica's need for raising additional capital; Biomerica's expected sales growth for Biomerica's inFoods® IBS product, hp+detect™ product, CDM offerings and other existing products; and diversification of Biomerica'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 Biomerica’s inFoods tests and other products; regulatory approvals necessary prior to commercialization of Biomerica’s products; availability of Biomerica’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 Biomerica to maintain current operations; regulatory compliance and oversight, and Biomerica’s ability to obtain patent protection on any aspects of its diagnostic or therapeutic technologies; fluctuations in Biomerica's operating results due to its business model and expansion plans; downturns in international and/or national economies; Biomerica’s ability to raise additional capital; the competitive environment in which Biomerica will be competing; and Biomerica'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 Biomerica'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.

Biomerica 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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Biomerica's first-quarter fiscal 2027 financial results?

Biomerica reported approximately $1.3 million in revenue and a net loss of approximately $1.2 million, or $0.37 per share, for the quarter ended August 31, 2026. Revenue was approximately $1.4 million in the prior-year quarter, while gross margin declined to 8% from 31%.

What Medicare reimbursement progress did Biomerica report for inFoods IBS?

As of October 15, 2026, 100% of all initial valid Medicare claims processed had been paid at the full CMS payment rate of $300. Claims are considered individually, on a claim-by-claim basis. Medicare-related test orders increased 120% to 22 in September 2026 from 10 in August.

How will Biomerica receive payments under its diagnostic development agreement?

Payments under Biomerica's agreement with a confidential life sciences company are tied to contractual milestones, while revenue is recognized over time as development services are performed. Initial target development fees exceed $1.75 million, subject to additional Statements of Work; future revenue timing and amounts depend on their scope and progress.