Biomerica Inc 10-Q for FY2022 Q1

Biomerica Inc (BMRA)

10-Q 2021-10-14 For: 2021-08-31

Added on April 07, 2026

About this 10-Q

Biomerica Inc filed this 10-Q on October 14, 2021, covering the quarter ended August 31, 2021 (FY2022 Q1).

Headline figures

Quarter ended August 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.26M; up 10.3% from $1.14M a year earlier
Net loss: $1.54M; compared with a net loss of $1.89M a year earlier
Diluted EPS: -$0.12; compared with -$0.16 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

(TITLE OF EACH CLASS)	(TICKER SYMBOL)	(NAME OF EACH EXCHANGE ON WHICH REGISTERED)
-----------------------------------	-----------------------------------	-------------------------------------------------------------------------------
Common, par value $.08	BMRA	NASDAQ Capital Market

Large Accelerated Filer [ ]		Accelerated Filer [ ]
Non-Accelerated Filer [X]		Smaller Reporting Company [X]
		Emerging Growth Company [ ]

BIOMERICA, INC.

INDEX

PART I	Financial Information

Item 1.	Financial Statements:

	Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) – Three Months Ended August 31, 2021 and 2020 (restated)	1

	Condensed Consolidated Balance Sheets (unaudited) August 31, 2021 and May 31, 2021 (restated)	2

	Condensed Consolidated Statements of Shareholders’ Equity – (unaudited) Three Months Ended August 31, 2021 and 2020 (restated)	3

	Condensed Consolidated Statements of Cash Flows (unaudited) - Three Months Ended August 31, 2021 and 2020 (restated)	4

	Notes to Condensed Consolidated Financial Statements (unaudited)	5 - 14

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14 - 16

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	16

Item 4.	Controls and Procedures	16 - 17

PART II	Other Information

Item 1.	Legal Proceedings	17

Item 1A.	Risk and Uncertainties	17 - 18

Item 5.	Other Information	18

Item 6.	Exhibits	18

	Signatures	19

	Three Months Ended
			August 31, 2020
		August 31, 2021	( As Restated)
Net sales	$	1,261,787	$	1,143,806
Cost of sales		(1,350,757)		(1,025,717)
Gross (Loss) Profit		(88,970)		118,089

Operating Expenses:
Selling, general and administrative		1,011,535		1,305,944
Research and development		439,864		711,505
Total operating expense		1,451,399		2,017,449

Loss from operations		(1,540,369)		(1,899,360)

Other Income:
Dividend and interest income		6,805		8,091

Loss before income taxes		(1,533,564)		(1,891,269)

Provision for income taxes		(9,017)		(1,125)

Net loss	$	(1,542,581)	$	(1,892,394)

Basic net loss per common share	$	(0.12)	$	(0.16)

Diluted net loss per common share	$	(0.12)	$	(0.16)

Weighted average number of common and common equivalent shares:
Basic		12,426,784		11,748,377

Diluted		12,426,784		11,748,377

Net loss	$	(1,542,581)	$	(1,892,394)

Other comprehensive loss, net of tax:
Foreign currency translation		(5,613)		(1,721)

Comprehensive loss	$	(1,548,194)	$	(1,894,115)

	August 31, 2021		May 31, 2021
	(Unaudited)		(As Restated)
Assets

Current Assets:
Cash and cash equivalents	$	4,996,623	$	4,199,311
Accounts receivable, less allowance for doubtful accounts of $742,524 and $837,415 as of August 31, 2021 and May 31, 2021, respectively		772,190		1,455,051
Inventories, net		2,861,779		3,206,255
Prepaid expenses and other		315,221		370,290
Total current assets		8,945,813		9,230,907

Property and equipment, net of accumulated depreciation and amortization of $2,000,167 and $1,972,357 as of August 31, 2021 and May 31, 2021, respectively		287,852		310,520

Right of use assets, net of accumulated amortization of $531,974 and $469,077 as of August 31, 2021 and May 31, 2021, respectively		1,490,184		1,553,081

Investments		165,324		165,324

Intangible assets, net of accumulated amortization of $83,683 and $126,769 as of August 31, 2021 and May 31, 2021, respectively		360,292		294,830

Other assets		266,582		264,151
Total Assets	$	11,516,047	$	11,818,813

Liabilities and Shareholders' Equity

Current Liabilities:
Accounts payable and accrued expenses	$	641,404	$	583,380
Accrued compensation		507,722		388,896
Lease liability, current portion		332,967		327,944
Total current liabilities		1,482,093		1,300,220
Lease liability, net of current portion		1,230,898		1,291,570
Total Liabilities		2,712,991		2,591,790

Commitments and contingencies (Notes 1 and 6)

Shareholders' Equity:

Preferred stock, Series A 5% convertible, $0.08 par value, 571,429 shares authorized, none issued and outstanding as of August 31, 2021 and May 31, 2021		-		-
Preferred stock, undesignated, no par value, 4,428,571 shares authorized, none issued and outstanding as of August 31, 2021 and May 31, 2021		-		-
Common stock, $0.08 par value, 25,000,000 shares authorized, 12,510,210 and 12,307,157 issued and outstanding at August 31, 2021 and May 31, 2021, respectively		1,000,815		984,571
Additional paid-in-capital		39,944,726		38,836,743
Accumulated other comprehensive loss		(53,569)		(47,956)
Accumulated deficit		(32,088,916)		(30,546,335)
Total Shareholders' Equity		8,803,056		9,227,023
Total Liabilities and Shareholders' Equity	$	11,516,047	$	11,818,813

				Series A 5% Convertible					Accumulated Other
	Common Stock			Preferred Stock			Additional		Comprehensive		Accumulated
	Shares	Amount		Shares	Amount		Paid-in Capital		Loss		Deficit		Total
Balances, May 31, 2020. restated	11,740,089	$	939,205	321,429	$	25,714	$	36,388,056	$	(39,841)	$	(23,100,081)	$	14,213,053

Exercise of stock options	12,500		1,000	-		-		13,900		-		-		14,900

Foreign currency translation	-		-	-		-		-		(1,721)		-		(1,721)

Compensation expense in connection with options granted	-		-	-		-		246,787		-		-		246,787

Net loss	-		-	-		-		-		-		(1,892,394)		(1,892,394)

Balances, August 31, 2020, restated	11,752,589	$	940,205	321,429	$	25,714	$	36,648,743	$	(41,562)	$	(24,992,475)	$	12,580,625

	August 31, 2021		August 31, 2020 (As Restated)
Cash flows from operating activities:

Net loss	$	(1,542,581)	$	(1,892,394)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		34,722		32,570
Change in allowance on accounts receivable		(94,891)		201,375
Inventory reserve		179,744		5,005
Stock option expense		319,622		246,787
Amortization of right-of-use asset		62,897		57,257
Changes in assets and liabilities:
Accounts receivable		777,752		(18,924)
Inventories		164,732		(1,255,573)
Prepaid expenses and other		55,069		1,038,149
Reduction in lease liability		(55,649)		(49,880)
Other assets		(2,431)		(276,438)
Accounts payable and accrued expenses		58,024		284,202
Accrued compensation		118,826		30,718
Net cash provided by (used in) operating activities		75,836		(1,597,146)

Cash flows from investing activities:
Increase in intangibles		(72,375)		(53,158)
Purchases of property and equipment		(5,141)		(39,588)
Net cash used in investing activities		(77,516)		(92,746)

Cash flows from financing activities:
Proceeds from sale of common stock, net		800,710		-
Proceeds from exercise of stock options		3,895		14,900
Net cash provided by financing activities		804,605		14,900

Effect of exchange rate changes in cash		(5,613)		(1,721)
Net increase (decrease) in cash and cash equivalents		797,312		(1,676,713)

Cash and cash equivalents at beginning of period		4,199,311		8,641,027

Cash and cash equivalents at end of period	$	4,996,623	$	6,964,314

Supplemental Disclosure of Cash-Flow Information:
Cash paid during the period for:
Income taxes	$	9,017	$	1,125

	August 31, 2021		May 31, 2021
Raw materials	$	1,493,000	$	1,583,000
Work in progress		926,000		1,006,000
Finished products		443,000		617,000
Total	$	2,862,000	$	3,206,000

	Option Shares	Exercise Price Weighted Average
Outstanding May 31, 2021	2,081,366	$	3.59
Granted	24,000		4.25
Exercised	(1,500)		2.68
Cancelled or expired	(22,750)		3.02
Outstanding August 31, 2021	2,081,116	$	3.60

Operating cash flows from operating leases	$	80,697
Right-of-use assets obtained in exchange for
new operating lease liabilities	$	-
Weighted average remaining lease term (in years)		5.02
Weighted average discount rate		6.50%

Less than 1 year	$	342,640
1 to 2 years		352,869
2 to 3 years		363,404
3 to 4 years		374,253
4 to 5 years		385,426
5 to 10 years		7,517
Total undiscounted lease payments		1,826,109
Less imputed interest		262,244
Total operating lease liabilities	$	1,563,865

	As Previously Reported		Adjustments		As Restated
Cost of sales	$	960,930	$	64,787	$	1,025,717
Gross Profit		182,876		(64,787)		118,089

Operating Expenses:
Selling, general and administrative		1,164,564		141,380		1,305,944
Research and development		674,693		36,812		711,505
Total operating expense		1,839,257		178,192		2,017,449

Loss from operations		(1,656,381)		(242,979)		(1,899,360)

Loss before income taxes		(1,648,290)		(242,979)		(1,891,269)

Net loss	$	(1,649,415)	$	(242,979)	$	(1,892,394)

Basic net loss per common share	$	(0.14)	$	(0.02)	$	(0.16)

Diluted net loss per common share	$	(0.14)	$	(0.02)	$	(0.16)

Comprehensive loss	$	(1,651,136)	$	(242,979)	$	(1,894,115)


Exhibit No.			Description

	31.1	*	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act — Zackary S. Irani

	31.2	*	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act — Steve Sloan

	32.1	*	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act — Zackary S. Irani

	32.2	*	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act — Steve Sloan

	101		Interactive data files pursuant to Rule 405 Regulation S-T, as follows:

		101. INS-XBRL Instance Document
		101. SCH-XBRL Taxonomy Extension Schema Document
		101. CAL-XBRL Taxonomy Extension Calculation Linkbase Document
		101. DEF–XBRL Taxonomy Extension Definition Linkbase Document
		101. LAB-XBRL Taxonomy Extension Label Linkbase Document
		101.PRE-XBRL Taxonomy Extension Presentation Linkbase Document

	BIOMERICA, INC.

Date: October 14, 2021
	By:	/S/ Zackary S. Irani
		Zackary S. Irani
		Chief Executive Officer
		(Principal Executive Officer)


Date: October 14, 2021
	By:	/S/ Steve Sloan
		Steve Sloan
		Chief Financial Officer
		(Principal Financial Officer)

	Three Months Ended
	August 31, 2021		August 31, 2020
Clinical lab	$	886,000	$	582,000
Physician's office		257,000		197,000
Over-the-counter		79,000		185,000
Contract Manufacturing		40,000		180,000
Total	$	1,262,000	$	1,144,000

	Three Months Ended
	August 31, 2021		August 31, 2020
Revenues from sales to unaffiliated customers:
Asia	$	675,000	$	347,000
Europe		471,000		591,000
North America		105,000		134,000
Middle East		8,000		29,000
South America		3,000		43,000
	$	1,262,000	$	1,144,000