Biomerica Reports Q3 Fiscal 2023 Results

Rhea-AI Summary

Biomerica, Inc. (BMRA) reported its fiscal third quarter and nine-month results for the period ending February 28, 2023. The company registered consolidated net revenues of $4.2 million, down from $13.6 million in the same period in fiscal 2022, largely due to the cessation of Covid test sales. However, excluding Covid-related revenues, the company saw a 16% increase in revenue. For Q3 alone, revenues were $1.1 million, a decrease from $7.6 million year-over-year, alongside a net loss of $1.6 million. To support the upcoming launch of its inFoods^® IBS product, Biomerica recently closed a public offering at $2.40 per share, yielding approximately $7.4 million in proceeds. The validation testing for the inFoods IBS test has completed, and patient testing is underway.

Positive

• Revenue excluding Covid-related products increased by 16%.
• Completed validation testing for InFoods IBS Lab Developed Test.
• Successful public offering raised approximately $7.4 million.

Negative

• Consolidated net revenues declined to $4.2 million from $13.6 million year-over-year.
• Net loss of $5.3 million for nine months ended February 28, 2023.

• For the nine months ended February 28, 2023 vs. the same period in 2022, revenues, excluding sales of Covid-related products, increased by 16%.
• InFoods^® IBS Laboratory Developed Test (LDT) validation testing at the CLIA Lab has been completed, patient testing now underway.

IRVINE, Calif., April 14, 2023 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA), a global provider of advanced medical diagnostic and therapeutic products, today announced its fiscal third quarter and nine month results ended February 28, 2023.

For the nine months ended February 28, 2023, Biomerica reported consolidated net revenues of $4.2 million compared to $13.6 million for the same period in fiscal 2022. Revenues excluding sales of Covid-related products increased by 16% for the nine months ended February 28, 2023 as compared to the same period in fiscal 2022. For the third quarter ended February 28, 2023, Biomerica reported revenue of $1.1 million as compared to the prior year third quarter revenues of $7.6 million. Again, the decrease in revenue was primarily a result of the company no longer selling Covid tests. For the three months and the nine months ended February 28, 2023, the company reported a net loss of $1.6 million and $5.3 million respectively. Net loss for the three months and nine months ended February 28, 2023, excluding non-cash items such as equity compensation expense, was $1.3 million and $4.0 million respectively. Finally, to ensure the company has adequate cash runway to execute on the national launch of the inFoods IBS product, in early March 2023, following the end of the third fiscal quarter, Biomerica closed on a public offering of registered common shares at a price of $2.40 per share, with net proceeds after expenses of approximately $7.4 million.

Zack Irani, Chairman and Chief Executive Officer of Biomerica, commented; “While the transitory sales of our Covid tests in fiscal 2022 was helpful to fund operations as we prepared to launch our inFoods IBS product, our focus has always been on the commercialization of the revolutionary inFoods IBS product. With the much welcomed drop off in the Covid pandemic worldwide in fiscal 2023, we are now fully focused on scaling up sales of our inFoods IBS product in the US market. I am encouraged by the response we’ve seen for this product.”

Mr. Irani continues; "As a company, Biomerica is committed to providing innovative and effective solutions for gastrointestinal disorders, and the launch of our inFoods IBS LDT represents a major milestone in our mission. We believe that this test has the potential to revolutionize the way Irritable Bowel Syndrome is treated. We are excited to now be bringing this product to market and to have a positive impact in the lives of millions of people worldwide. We are now pleased to announce that the inFoods^® IBS product validation testing at the CLIA Lab has been completed, and we are now processing patient samples. We anticipate expanding the availability of this product through leading institutions in coming months.”

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’s primary focus is on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.

About InFoods^®
The Biomerica InFoods^® IBS product is designed to allow physicians to identify patient-specific foods (e.g., eggs, broccoli, wheat, potatoes, pork, etc.), that when removed from the diet, may alleviate or improve an individual's IBS symptoms including, but not limited to, constipation, diarrhea, bloating, cramping, pain and indigestion. This patented, diagnostic-guided therapy is designed to allow for a patient-specific, guided dietary regimen to improve IBS outcomes. A point-of-care version of the product is being developed to allow physicians to perform the test in-office using a finger stick blood sample while a clinical lab version of the product is expected to be the first for which the Company will seek regulatory approval. A billable CPT code that can be used by both clinical labs and physicians' offices is already available for InFoods^® diagnostic products. Since the InFoods^® product is a diagnostic-guided therapy, and not a drug, it has no drug type side effects. An estimated 45 million people in America currently suffer from IBS making it a leading cause for patient doctor visits.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Biomerica) contains statements that are forward-looking, such as statements relating to the future revenues, earnings, profit margins, sales growth and product demand, as well as efficacy of the Company’s inFoods IBS test, the Company’s clinical trial designs, FDA clearance of the Company’s inFoods IBS test and commercialization of the inFoods IBS test, including the Company’s ability to find a strategic partners to help commercialize inFoods IBS test. Such forward-looking statements and information involve important risks and uncertainties that could significantly affect anticipated results in the future, including, without limitation: adoption by physicians and patients of the iFoods IBS test, revenues, commercialization costs, earnings and cash flows, as well as the Company’s ability to design and enroll patients in a pivotal trial for inFoods IBS test, or delays in the anticipated timing of such clinical trials, meeting with FDA, risks that the costs of a pivotal trial will exceed expectations, risks that a pivotal trial will not replicate the results of the Company’s endpoint clinical trial, risks associated with the unpredictability of the regulatory approval process. Accordingly, such financial results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. Additionally, potential risks and uncertainties include, among others, 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 if needed, the competitive environment in which the Company competes, and the Company's dependence on strategic relationships, and such other risks described in the Company’s Annual Report on Form 10-K and other reports the Company files with the Securities and Exchange Commission from time to time. The Company is under no obligation to update any forward-looking statements after the date of this release.

Corporate Contact:
Allen Barbieri
abarbieri@biomerica.com
Ph 949-645-2111

Source: Biomerica

FAQ

What were Biomerica's revenues for the third quarter of fiscal 2023?

Biomerica reported revenues of $1.1 million for the third quarter ended February 28, 2023.

How did Biomerica's revenues change compared to the previous year?

Biomerica's consolidated net revenues decreased from $13.6 million in fiscal 2022 to $4.2 million in fiscal 2023.

What is the significance of the InFoods IBS product for Biomerica?

The InFoods IBS product aims to revolutionize the treatment of Irritable Bowel Syndrome by identifying patient-specific foods that may trigger symptoms.

What is the net loss reported by Biomerica for the nine months ended February 28, 2023?

Biomerica reported a net loss of $5.3 million for the nine months ended February 28, 2023.

How much funding did Biomerica raise from the recent public offering?

Biomerica raised approximately $7.4 million from the public offering of registered common shares.