Cover
Cover - shares | 9 Months Ended | |
Feb. 29, 2024 | Apr. 12, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Feb. 29, 2024 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --05-31 | |
Entity File Number | 001-37863 | |
Entity Registrant Name | BIOMERICA, INC. | |
Entity Central Index Key | 0000073290 | |
Entity Tax Identification Number | 95-2645573 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 17571 Von Karman Avenue | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92614 | |
City Area Code | 949 | |
Local Phone Number | 645-2111 | |
Title of 12(b) Security | COMMON STOCK, PAR VALUE $0.08 | |
Trading Symbol | BMRA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,821,646 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Feb. 29, 2024 | May 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 5,319,000 | $ 9,719,000 |
Accounts receivable, net | 1,130,000 | 722,000 |
Inventories, net | 2,129,000 | 2,056,000 |
Prepaid expenses and other | 268,000 | 300,000 |
Total current assets | 8,846,000 | 12,797,000 |
Property and equipment, net of accumulated depreciation and amortization | 194,000 | 213,000 |
Right-of-use assets, net of accumulated amortization of $835,000 and $617,000 as of February 29, 2024 and May 31, 2023, respectively | 817,000 | 1,035,000 |
Investments | 165,000 | 165,000 |
Intangible assets, net of accumulated amortization of $44,000 and $30,000 as of February 29, 2024 and May 31, 2023, respectively | 216,000 | 165,000 |
Other assets | 104,000 | 79,000 |
Total Assets | 10,342,000 | 14,454,000 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 885,000 | 892,000 |
Accrued compensation | 702,000 | 696,000 |
Advance from customers | 85,000 | 60,000 |
Lease liabilities, current portion | 319,000 | 297,000 |
Total current liabilities | 1,991,000 | 1,945,000 |
Lease liabilities, net of current portion | 543,000 | 785,000 |
Total Liabilities | 2,534,000 | 2,730,000 |
Commitments and contingencies (Note 6) | ||
Shareholders’ Equity: | ||
Preferred stock, value | ||
Common stock, $0.08 par value, 25,000,000 shares authorized, 16,821,646 issued and outstanding at February 29, 2024 and May 31, 2023, respectively | 1,346,000 | 1,346,000 |
Additional paid-in capital | 53,338,000 | 52,705,000 |
Accumulated other comprehensive loss | (102,000) | (110,000) |
Accumulated deficit | (46,774,000) | (42,217,000) |
Total Shareholders’ Equity | 7,808,000 | 11,724,000 |
Total Liabilities and Shareholders’ Equity | 10,342,000 | 14,454,000 |
Series A Preferred Stock [Member] | ||
Shareholders’ Equity: | ||
Preferred stock, value |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Feb. 29, 2024 | May 31, 2023 |
Accumulated amortization | $ 835,000 | $ 617,000 |
Intangible assets, net of accumulated amortization | $ 44,000 | $ 30,000 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 4,428,571 | 4,428,571 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.08 | $ 0.08 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 16,821,646 | 16,821,646 |
Common stock, shares outstanding | 16,821,646 | 16,821,646 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.08 | $ 0.08 |
Preferred stock, shares authorized | 571,429 | 571,429 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,017,000 | $ 1,111,000 | $ 4,299,000 | $ 4,231,000 |
Cost of sales | (1,166,000) | (991,000) | (3,708,000) | (3,814,000) |
Gross (loss) profit | (149,000) | 120,000 | 591,000 | 417,000 |
Operating expenses: | ||||
Selling, general and administrative | 1,508,000 | 1,379,000 | 4,204,000 | 4,589,000 |
Research and development | 343,000 | 392,000 | 1,226,000 | 1,215,000 |
Total operating expenses | 1,851,000 | 1,771,000 | 5,430,000 | 5,804,000 |
Loss from operations | (2,000,000) | (1,651,000) | (4,839,000) | (5,387,000) |
Other income: | ||||
Interest and dividend income | 86,000 | 36,000 | 317,000 | 77,000 |
Total other income | 86,000 | 36,000 | 317,000 | 77,000 |
Loss before income taxes | (1,914,000) | (1,615,000) | (4,522,000) | (5,310,000) |
Provision (benefit) for income taxes | (4,000) | (35,000) | (35,000) | (38,000) |
Net loss | $ (1,918,000) | $ (1,650,000) | $ (4,557,000) | $ (5,348,000) |
Basic net loss per common share | $ (0.11) | $ (0.12) | $ (0.27) | $ (0.40) |
Diluted net loss per common share | $ (0.11) | $ (0.12) | $ (0.27) | $ (0.40) |
Weighted average number of common and common equivalent shares: | ||||
Basic | 16,821,646 | 13,481,490 | 16,821,646 | 13,341,000 |
Diluted | 16,821,646 | 13,481,490 | 16,821,646 | 13,341,000 |
Net loss | $ (1,918,000) | $ (1,650,000) | $ (4,557,000) | $ (5,348,000) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | 2,000 | (15,000) | 8,000 | (37,000) |
Comprehensive loss | $ (1,916,000) | $ (1,665,000) | $ (4,549,000) | $ (5,385,000) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balances at May. 31, 2022 | $ 1,029,000 | $ 42,447,000 | $ (74,000) | $ (35,077,000) | $ 8,325,000 |
Balance, shares at May. 31, 2022 | 12,867,924 | ||||
Foreign currency translation | (13,000) | (13,000) | |||
Share-based compensation | 304,000 | 304,000 | |||
Net loss | (2,072,000) | (2,072,000) | |||
Exercise of stock options | $ 1,000 | 13,000 | 14,000 | ||
Exercise of stock options, shares | 15,000 | ||||
Net proceeds from ATM | $ 42,000 | 1,722,000 | 1,764,000 | ||
Net proceeds from ATM, shares | 523,977 | ||||
Balances at Aug. 31, 2022 | $ 1,072,000 | 44,486,000 | (87,000) | (37,149,000) | 8,322,000 |
Balance, shares at Aug. 31, 2022 | 13,406,901 | ||||
Balances at May. 31, 2022 | $ 1,029,000 | 42,447,000 | (74,000) | (35,077,000) | 8,325,000 |
Balance, shares at May. 31, 2022 | 12,867,924 | ||||
Foreign currency translation | (37,000) | ||||
Net loss | (5,348,000) | ||||
Balances at Feb. 28, 2023 | $ 1,079,000 | 45,445,000 | (111,000) | (40,425,000) | 5,988,000 |
Balance, shares at Feb. 28, 2023 | 13,488,313 | ||||
Balances at Aug. 31, 2022 | $ 1,072,000 | 44,486,000 | (87,000) | (37,149,000) | 8,322,000 |
Balance, shares at Aug. 31, 2022 | 13,406,901 | ||||
Foreign currency translation | (9,000) | (9,000) | |||
Share-based compensation | 318,000 | 318,000 | |||
Net loss | (1,626,000) | (1,626,000) | |||
Exercise of stock options | $ 3,000 | 63,000 | 66,000 | ||
Exercise of stock options, shares | 31,500 | ||||
Net proceeds from ATM | $ 3,000 | 170,000 | 173,000 | ||
Net proceeds from ATM, shares | 41,012 | ||||
Balances at Nov. 30, 2022 | $ 1,078,000 | 45,037,000 | (96,000) | (38,775,000) | 7,244,000 |
Balance, shares at Nov. 30, 2022 | 13,479,413 | ||||
Foreign currency translation | (15,000) | (15,000) | |||
Share-based compensation | 384,000 | 384,000 | |||
Net loss | (1,650,000) | (1,650,000) | |||
Net proceeds from ATM | $ 1,000 | 24,000 | 25,000 | ||
Net proceeds from ATM, shares | 8,900 | ||||
Balances at Feb. 28, 2023 | $ 1,079,000 | 45,445,000 | (111,000) | (40,425,000) | 5,988,000 |
Balance, shares at Feb. 28, 2023 | 13,488,313 | ||||
Balances at May. 31, 2023 | $ 1,346,000 | 52,705,000 | (110,000) | (42,217,000) | 11,724,000 |
Balance, shares at May. 31, 2023 | 16,821,646 | ||||
Foreign currency translation | 6,000 | 6,000 | |||
Share-based compensation | 170,000 | 170,000 | |||
Net loss | (1,132,000) | (1,132,000) | |||
Balances at Aug. 31, 2023 | $ 1,346,000 | 52,875,000 | (104,000) | (43,349,000) | 10,768,000 |
Balance, shares at Aug. 31, 2023 | 16,821,646 | ||||
Balances at May. 31, 2023 | $ 1,346,000 | 52,705,000 | (110,000) | (42,217,000) | 11,724,000 |
Balance, shares at May. 31, 2023 | 16,821,646 | ||||
Foreign currency translation | 8,000 | ||||
Net loss | (4,557,000) | ||||
Balances at Feb. 29, 2024 | $ 1,346,000 | 53,338,000 | (102,000) | (46,774,000) | 7,808,000 |
Balance, shares at Feb. 29, 2024 | 16,821,646 | ||||
Balances at Aug. 31, 2023 | $ 1,346,000 | 52,875,000 | (104,000) | (43,349,000) | 10,768,000 |
Balance, shares at Aug. 31, 2023 | 16,821,646 | ||||
Foreign currency translation | |||||
Share-based compensation | 122,000 | 122,000 | |||
Net loss | (1,507,000) | (1,507,000) | |||
Balances at Nov. 30, 2023 | $ 1,346,000 | 52,997,000 | (104,000) | (44,856,000) | 9,383,000 |
Balance, shares at Nov. 30, 2023 | 16,821,646 | ||||
Foreign currency translation | 2,000 | 2,000 | |||
Share-based compensation | 341,000 | 341,000 | |||
Net loss | (1,918,000) | (1,918,000) | |||
Balances at Feb. 29, 2024 | $ 1,346,000 | $ 53,338,000 | $ (102,000) | $ (46,774,000) | $ 7,808,000 |
Balance, shares at Feb. 29, 2024 | 16,821,646 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (4,557,000) | $ (5,348,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 59,000 | 66,000 |
Recovery for allowance on accounts receivable | (6,000) | (136,000) |
Inventory reserve | (181,000) | (38,000) |
Share-based compensation | 633,000 | 1,006,000 |
Amortization of right-of-use asset | 218,000 | 202,000 |
Changes in assets and liabilities: | ||
Accounts receivable | (402,000) | 155,000 |
Inventories | 109,000 | 390,000 |
Prepaid expenses and other | 33,000 | 2,000 |
Other assets | (26,000) | 17,000 |
Accounts payable and accrued expenses | (8,000) | (585,000) |
Accrued compensation | 6,000 | (126,000) |
Advance from customers | 25,000 | 87,000 |
Reduction in lease liabilities | (220,000) | (203,000) |
Net cash used in operating activities | (4,317,000) | (4,511,000) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (27,000) | (64,000) |
Expenditures related to intangibles | (64,000) | |
Net cash used in investing activities | (91,000) | (64,000) |
Cash flows from financing activities: | ||
Gross proceeds from sale of common stock | 2,014,000 | |
Costs from sale of common stock | (53,000) | |
Proceeds from exercise of stock options | 79,000 | |
Net cash provided by financing activities | 2,040,000 | |
Effect of exchange rate changes in cash | 8,000 | (37,000) |
Net decrease in cash and cash equivalents | (4,400,000) | (2,572,000) |
Cash and cash equivalents at beginning of year | 9,719,000 | 5,917,000 |
Cash and cash equivalents at end of period | 5,319,000 | 3,345,000 |
Cash paid during the period for: | ||
Income taxes | 34,000 | 38,000 |
Non-cash investing and financing activities: | ||
Write off of intangible assets, cost | 2,000 | |
Write off of intangible assets, accumulated amortization | $ 2,000 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1: BASIS OF PRESENTATION Biomerica, Inc. and its subsidiaries (which includes wholly-owned subsidiaries, Biomerica de Mexico and BioEurope GmbH) is a biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (physicians’ offices and over-the-counter through drugstores and online) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. Our diagnostic test kits are used to analyze blood, urine, nasal or fecal material from patients in the diagnosis of various diseases, food intolerances and other medical complications, or to measure the level of specific hormones, antibodies, antigens or other substances, which may exist in the human body in extremely small concentrations. The Company’s products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Our primary focus is the research, development, commercialization and eventual regulatory approval, of patented, diagnostic-guided therapy (“DGT”) products based on our inFoods® Technology platform that treat gastrointestinal diseases, such as irritable bowel syndrome (“IBS”), and other inflammatory diseases. These inFoods based products are directed at chronic inflammatory illnesses that are widespread and common, and as such address very large markets. The first product we are launching using this patented inFoods Technology is our inFoods IBS product which uses a simple blood sample to identify patient-specific foods that, when removed from their diet, may alleviate IBS symptoms such as pain, bloating, diarrhea, cramping and constipation. Instead of broad and difficult to manage dietary restrictions, the inFoods IBS product works by identifying a patient’s above normal immunoreactivity to a panel of specific foods that have been shown to often be problematic to IBS sufferers. A food identified as positive (causing an abnormally high immune response in the patient) is simply removed from the diet to help alleviate IBS symptoms. We have successfully launched our product across numerous gastroenterology (“GI”) physician groups in various states and regions. This includes collaboration with one of the largest GI groups in the US, now offering inFoods to their patients. The feedback from the GI specialty has been positive, and we are actively expanding our network by onboarding additional physician practices. These GI practices are beginning to prescribe inFoods IBS to their patients. At the same time, we recognize the potential to extend our product’s application to other physician segments. We are convinced that forming partnerships in these other segments is the most effective strategy for market penetration. Currently, we are engaging in discussions with several potential partners. This strategy enables our newly formed sales team to focus on building strong relationships within the GI segment, capitalizing on the distinct advantages of the inFoods IBS product. Consequently, we anticipate sustained revenue growth from the inFoods IBS product rollout in the upcoming quarters. In addition to our focus on the inFoods products, during the quarter, we also recently received FDA clearance for a new diagnostic test called hp+detect™, which is used for the detection of the H. pylori bacteria in a patient’s GI tract. The H. pylori bacteria is estimated to infect 35% of the U.S. population and 45% of the population in Europe’s five largest countries. H. pylori infection is the strongest known risk factor for gastric cancer and gastric cancer is the third most common cause of cancer-related death worldwide. Physicians and medical centers will now be able use hp+detect™ to diagnose H. pylori infection and monitor the safety and efficacy of treatment. This diagnostic test is sold directly to labs where patient samples are tested and diagnosis occurs. During the quarter, we hired a small sales team to market this product. We also began making this test available to the end customer labs. Our other existing medical diagnostic products are sold worldwide primarily in two markets: 1) clinical laboratories and 2) point-of-care (physicians’ offices and over-the-counter at Walmart, CVS Pharmacy and Amazon). The diagnostic test kits are used to analyze blood, urine, nasal or fecal specimens from patients in the diagnosis of various diseases, food intolerances and other medical complications, by measuring or detecting the existence and/or level of specific bacteria, hormones, antibodies, antigens, or other substances, which may exist in a patient’s body, stools, or blood, often in extremely small concentrations. In March 2020, we began developing COVID-19 diagnostic tests to indicate if a person has been infected by COVID-19 or is currently infected. We began selling these COVID-19 diagnostic tests during fiscal 2021, and we experienced significant revenues from such sales during fiscal 2021 and 2022 with lesser sales in fiscal 2023. Due to falling demand, there were no sales of our COVID-19 related products in the twelve months ended February 29, 2024. As such, our COVID-19 product sales caused significant swings in our revenues over the past over the last four years Our products that accounted for all of our revenues during the nine months ended February 29, 2024, are primarily focused on gastrointestinal diseases, colorectal diseases, food intolerances, and certain esoteric tests. These diagnostic test products utilize immunoassay technology. Most of our products are CE marked and/or sold for diagnostic use where they are registered by each country’s regulatory agency. In addition, some products are cleared for sale in the United States by the FDA. The unaudited condensed consolidated financial statements herein have been prepared by management pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The accompanying unaudited condensed consolidated financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited consolidated financial statements for the latest fiscal year ended May 31, 2023. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended February 29, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending May 31, 2024. For further information, refer to the audited consolidated financial statements and notes thereto for the fiscal year ended May 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 25, 2023. Management has evaluated all subsequent events and transactions through the date of filing this report. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The condensed consolidated financial statements include the accounts of Biomerica, Inc. as well as its German subsidiary (BioEurope GmbH) and Mexican subsidiary (Biomerica de Mexico). All significant intercompany accounts and transactions have been eliminated in consolidation. ACCOUNTING ESTIMATES The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reported period. Estimates that are made include the allowance for doubtful accounts, which is estimated based on current as well as historical practices with a customer; stock option forfeiture rates, which are calculated based on historical data; inventory obsolescence, which is based on projected and historical usage of materials; and lease liability and right-of-use assets, which are calculated based on certain assumptions such as borrowing rate, the likelihood of lease extensions to occur, asset valuation, among other things; and other items that may be necessary to estimate using current, historical and judgment based information. Actual results could materially differ from those estimates. MARKETS AND METHODS OF DISTRIBUTION The Company employs a diverse range of distribution methods to deliver our products to our customers. We currently serve approximately 80 customers in our diagnostic business. Among these, roughly 40 are foreign distributors, 10 are domestic distributors, and the remainder primarily consists of domestic hospital and clinical laboratories, medical research institutions, medical schools, pharmaceutical companies, chain drugstores, wholesalers, physicians’ offices, and e-commerce customers. The Company derives the majority of its revenues from the sale of domestically manufactured products in the U.S. and Mexico, with some raw materials sourced from Asia and other global regions. Primarily, the Company’s revenue stream is bolstered by international sales of its products. However, the Company’s operations have been adversely affected by various global and economic disruptions stemming from the COVID-19 pandemic, ongoing conflicts such as the war in Ukraine and Israel, and geopolitical tensions between China and the United States. These challenges have resulted in disruptions across multiple facets of the Company’s operations, including supply chain disruptions, cost inflation, potential loss of contracts and customers, travel restrictions, shipping and logistical challenges, diverse government responses, and inherent international business risks in the Company’s operational regions. Additionally, there is a risk of human capital depletion among the Company, its partners, and customers, as well as potential interruptions to production and customer credit risks. Furthermore, the Company remains vulnerable to general economic downturns. In light of these prevailing global challenges, the Company remains steadfast in its strategic direction. Our focus continues to be driving inFoods IBS product growth within the U.S. and launching our new H. pylori test which recently received FDA clearance to further strengthen our domestic portfolio. Both products are domestically manufactured and marketed, enhancing the Company’s resilience amidst global uncertainties. Looking ahead, we remain committed to expanding both products in certain international markets in the future. LIQUIDITY The Company has incurred net losses and negative cash flows from operations and has an accumulated deficit of approximately $ 46,774,000 5,319,000 6,855,000 On July 20, 2020, the Company filed with the Securities and Exchange Commission (“SEC”) a Form S-3 shelf registration statement and base prospectus which was declared effective by the SEC on September 30, 2020. This shelf registration statement registered the sale of up to $ 90,000,000 Under the Company’s outstanding Registration Statement, on March 7, 2023, the Company sold 3,333,333 2.40 700,000 7,300,000 To replace the shelf registration statement that was set to expire on September 30, 2023, on September 27, 2023, the Company filed with the SEC a new Form S-3 shelf registration statement and base prospectus which was declared effective by the SEC on September 29, 2023. This new shelf registration statement registers the sale of up to $ 20,000,000 The Company intends to use the net proceeds from past offerings and any future offerings for general corporate purposes, including, without limitation, sales and marketing activities, clinical studies, product development, making acquisitions of assets, businesses, companies or securities, capital expenditures, and for working capital needs. Management has analyzed the cash requirements of the Company’s business through at least May 2025. As a result of cash and cash equivalents on hand on February 29, 2024, largely from the public offering, and the ability to raise additional funds if needed through the sale of shares of the Company’s common stock, management believes the Company has sufficient funds to operate through at least May 2025. CONCENTRATION OF CREDIT RISK The Company maintains cash balances at certain financial institutions in excess of amounts insured by federal agencies. From time to time, the Company has uninsured balances. The Company does not believe it is exposed to any significant credit risks. Net consolidated sales were approximately $ 1,017,000 1,111,000 4,299,000 4,231,000 For the three months ended February 29, 2024, the Company had three key customers who are located in the United States and Aisa which accounted for 44 22 40 38 Total gross receivables on February 29, 2024 and May 31, 2023 were approximately $ 1,153,000 751,000 44 36 For the three months ended February 29, 2024, the Company had one key vendor which accounted for 50 31 18 10 As of February 29, 2024, the Company had two key vendors which accounted for 52 23 CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of demand deposits and money market accounts with original maturities of less than three months. ACCOUNTS RECEIVABLE The Company extends unsecured credit to its customers on a regular basis. International accounts are usually required to prepay until they establish a history with the Company and at that time, they are extended credit at levels based on a number of criteria. Based on various criteria, initial credit levels for individual distributors are approved by designated officers and managers of the Company. All increases in credit limits are also approved by designated upper-level management. The Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (codified as Accounting Standards Codification (“ASC”) 326) on June 1, 2023. ASC 326 adds to U.S. GAAP the current expected credit loss (“CECL”) model, a measurement model based on expected losses rather than incurred losses. Prior to the adoption of ASC 326, the Company evaluated receivables on a quarterly basis and adjusted the allowance for doubtful accounts accordingly. Balances over ninety days old were usually reserved for unless collection was reasonably assured. Under the application of ASC 326, the Company’s historical credit loss experience provides the basis for the estimation of expected credit losses, as well as current economic and business conditions, and anticipated future economic events that may impact collectability. In developing its expected credit loss estimate, the Company evaluated the appropriate grouping of financial assets based upon its evaluation of risk characteristics, including consideration of the types of products and services sold. Account balances are written off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. Occasionally, certain long-standing customers who routinely place large orders will have unusually large receivable balances relative to the total gross receivables. Management monitors the payments for these large balances closely and very often requires payment of existing invoices before shipping new sales orders. As of February 29, 2024 and May 31, 2023, the Company has established a reserve of approximately $ 23,000 29,000 PREPAID EXPENSES AND OTHER The Company occasionally prepays for items such as inventory, insurance, and other items. These items are reported as prepaid expenses and other, until either the inventory is physically received, or the insurance and other items are expensed. As of February 29, 2024 and May 31, 2023, the prepaids were approximately $ 268,000 300,000 INVENTORIES, NET The Company values inventory at the lower of cost (determined using a combination of specific lot identification and the first-in, first-out methods) or net realizable value. Management periodically reviews inventory for excess quantities and obsolescence. Management evaluates quantities on hand, physical condition, and technical functionality as these characteristics may be impacted by anticipated customer demand for current products and new product introductions. The reserve is adjusted based on such evaluation, with a corresponding provision included in cost of sales. Abnormal amounts of idle facility expenses, freight, handling costs and wasted material are recognized as current period charges and the allocation of fixed production overhead is based on the normal capacity of the production facilities. Net inventories are comprised of approximately the following: SCHEDULE OF NET INVENTORIES February 29, 2024 May 31, 2023 Raw materials $ 1,490,000 $ 1,677,000 Work in progress 892,000 869,000 Finished products 238,000 182,000 Total gross inventory 2,620,000 2,728,000 Inventory reserves (491,000 ) (672,000 ) Net inventory $ 2,129,000 $ 2,056,000 Reserves for inventory obsolescence are recorded as necessary to reduce obsolete inventory to estimated net realizable value or to specifically reserve for obsolete inventory. As of February 29, 2024, and May 31, 2023, inventory reserves were approximately $ 491,000 672,000 PROPERTY AND EQUIPMENT, NET Property and equipment are stated at cost. Expenditures for additions and major improvements are capitalized. Repairs and maintenance costs are charged to operations as incurred. When property and equipment are sold, retired, or otherwise disposed of, the related cost and accumulated depreciation or amortization are removed from the accounts, and gains or losses from sales, retirements and dispositions are credited or charged to income. Depreciation and amortization are provided over the estimated useful lives of the related assets, ranging from 5 10 16,000 15,000 46,000 51,000 INTANGIBLE ASSETS, NET Intangible assets include trademarks, product rights, technology rights and patents, and are accounted for based on ASC 350 Intangibles – Goodwill and Other (“ASC 350”). In that regard, intangible assets that have indefinite useful lives are not amortized but are tested annually for impairment or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets are being amortized using the straight-line method over the useful life, not to exceed 18 10 15 4,000 3,000 13,000 15,000 The Company assesses the recoverability of these intangible assets by determining whether the amortization of the asset’s balance over its remaining life can be recovered through projected undiscounted future cash flows. The Company uses a qualitative assessment to determine whether there was any impairment. During the nine months ended February 29, 2024, management did not identify any indicators of 6,000 INVESTMENTS The Company has made investments in a privately held Polish distributor, which is primarily engaged in distributing medical products and devices, including the distribution of the products sold by the Company. The Company invested approximately $ 165,000 6 Equity holdings in nonmarketable unconsolidated entities in which the Company is not able to exercise significant influence (“Cost Method Holdings”) are accounted for at the Company’s initial cost, minus any impairment (if any), plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar holding or security of the same issuer. Dividends received are recorded as other income. The Company assesses its equity holdings for impairment whenever events or changes in circumstances indicate that the carrying value of an equity holding may not be recoverable. Management reviewed the underlying net assets of the Company’s equity method holding as of February 29, 2024 and determined that the Company’s proportionate economic interest in the entity indicates that the equity holding was not impaired. There were no observable price changes in orderly transactions for identical or a similar holding or security of the Company’s Cost Method Holdings during the period ended February 29, 2024. SHARE-BASED COMPENSATION The Company follows the guidance of ASC 718, Share-based Compensation (“ASC 718”), which requires the use of the fair-value based method to determine compensation for all arrangements under which employees and others receive shares of stock or equity instruments (options). The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses assumptions for expected volatility, expected dividends, expected forfeiture rate, expected term, and the risk-free interest rate. The Company has not paid dividends historically and does not expect to pay them in the foreseeable future. Expected volatilities are based on weighted averages of the historical volatility of the Company’s common stock estimated over the expected term of the options. The expected forfeiture rate is based on historical forfeitures experienced. The expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term as historically the Company had limited exercise activity surrounding its options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term. The grant date fair value of the award is recognized under the straight-line attribution method. The Company expensed approximately $ 633,000 1,006,000 The following summary presents the options granted, exercised, expired, canceled and outstanding for the nine months ended February 29, 2024: SUMMARY OF OPTIONS ACTIVITY Option Shares Weighted Average Exercise Price Options Outstanding at May 31, 2023 2,342,616 $ 3.52 Granted 1,328,500 1.13 Cancelled or expired (164,500 ) 4.97 Options Outstanding at February 29, 2024 3,506,616 $ 2.54 REVENUE RECOGNITION The Company has various contracts with customers. All of the contracts specify that revenues from product sales are recognized at the time the product is shipped, customarily FOB shipping point, which is when the transfer of control of goods has occurred, and at which point title passes. The Company does not typically allow for returns from customers except in the event of defective merchandise and therefore does not establish an allowance for returns. In addition, the Company has contracts with customers wherein customers receive purchase discounts for achieving specified sales volumes. The Company evaluated the status of these contracts during the nine months ended February 29, 2024 and 2023, and does not believe that any additional discounts will be given through the end of the contract periods. Services for contract work performed by the Company for others are invoiced and recognized as that work has been performed and as the project progresses. The Company sells clinical lab products to domestic and international distributors, including hospitals and clinical laboratories, medical research institutions, medical schools and pharmaceutical companies. OTC products are sold directly to drug stores and e-commerce customers as well as to distributors. Physician’s office products are sold to physicians and distributors, all of whom are categorized below according to the type of products sold to them. We also manufacture certain components on a contract basis for domestic and international manufacturers. As of February 29, 2024, the Company had approximately $ 85,000 Disaggregation of revenue: The following is a breakdown of revenues according to markets to which the products are sold: SCHEDULE OF DISAGGREGATION REVENUE February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Three Months Ended Nine Months Ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Clinical lab $ 404,000 $ 532,000 $ 2,683,000 $ 2,580,000 Over-the-counter 329,000 292,000 1,078,000 971,000 Contract manufacturing 281,000 284,000 530,000 431,000 Physician’s office 3,000 3,000 8,000 249,000 Total $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 Revenues $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 See Note 4 for additional information regarding geographic revenue concentrations. SHIPPING AND HANDLING FEES The Company includes shipping and handling fees billed to customers in net sales. RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred. The Company expensed approximately $ 343,000 392,000 1,226,000 1,215,000 INCOME TAXES For the three months ended February 29, 2024, the Company had an income tax expense of approximately $ 4,000 35,000 The Company’s policy is to recognize any interest and penalties related to unrecognized tax benefits as a component of income tax expense. For the nine months ended February 29, 2024, the Company had no accrued interest or penalties related to uncertain tax positions. ADVERTISING COSTS The Company reports the cost of advertising as expense in the period in which those costs are incurred. For the three months ended February 29, 2024, and February 28, 2023, advertising costs were approximately $ 25,000 51,000 80,000 87,000 FOREIGN CURRENCY TRANSLATION The subsidiary located in Mexico operates primarily using the Mexican peso. The subsidiary located in Germany operates primarily using the U.S. dollar, with an immaterial amount of transactions occurring using the Euro. Accordingly, assets and liabilities of these subsidiaries are translated using exchange rates in effect at the end of the period, and revenues and costs are translated using average exchange rates for the period. The resulting translation adjustments to assets and liabilities are presented as a separate component of accumulated other comprehensive loss. There are no foreign currency transactions that are included in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended February 29, 2024 and February 28, 2023. RIGHT-OF-USE ASSETS AND LEASE LIABILITY Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. Leases are classified as financing or operating which will drive the expense recognition pattern. The Company has elected to exclude short-term leases. The Company leases office space and copy machines, all of which are operating leases. Most leases include the option to renew and the exercise of the renewal options is at the Company’s sole discretion. Options to extend or terminate a lease are considered in the lease term to the extent that the option is reasonably certain of exercise. The leases do not include the options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. NET LOSS PER SHARE Basic loss per share is computed as net loss divided by the weighted average number of common shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants and other convertible securities using the treasury stock method. The total amount of anti-dilutive stock options not included in the loss per share calculation was 3,506,616 2,336,116 RECENT ACCOUNTING PRONOUNCEMENTS Recent ASU’s issued by the FASB and guidance issued by the SEC did not, or are not believed by the management to, have a material effect on the Company’s present or future consolidated financial statements. In June 2016, the FASB issued ASU 2016-13. This ASU requires the measurement of all expected credit losses for financial assets, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance was initially effective for the Company for annual reporting periods beginning after December 15, 2019, and interim periods within those fiscal years. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” which, among other things, defers the effective date of ASU 2016-13 for public filers that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted. The Company adopted ASU 2016-03 on June 1, 2023, and the adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 9 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 3: SHAREHOLDERS’ EQUITY During the six months ended November 30, 2022, the Company sold 564,989 3.15 4.26 1,988,000 1,937,000 3,333,333 2.40 7,300,000 |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 9 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 4: GEOGRAPHIC INFORMATION The Company operates as one SCHEDULE OF GEOGRAPHIC INFORMATION February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Three Months Ended Nine Months Ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Revenues from sales to unaffiliated customers: Asia $ 210,000 $ 345,000 $ 1,843,000 $ 1,822,000 Europe 331,000 301,000 1,085,000 1,268,000 North America 393,000 461,000 1,069,000 1,130,000 Middle East 78,000 - 291,000 - South America 5,000 4,000 11,000 11,000 Total $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 Revenues $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 As of February 29, 2024, and May 31, 2023, approximately $ 575,000 626,000 As of February 29, 2024, and May 31, 2023, approximately $ 15,000 17,000 |
LEASES
LEASES | 9 Months Ended |
Feb. 29, 2024 | |
Leases | |
LEASES | NOTE 5: LEASES The Company operates through leased facilities. As of February 29, 2024, our corporate headquarters, situated at 17571 Von Karman Avenue in Irvine, California, encompasses approximately 22,000 22,000 In November 2016, our Mexican subsidiary, Biomerica de Mexico, entered a 10-year lease for approximately 8,100 For purposes of determining straight-line rent expense, the lease term is calculated from the date the Company first takes possession of the facility, including any periods of free rent and any renewal options periods that the Company is reasonably certain of exercising. The Company’s office and equipment leases generally have contractually specified minimum rent and annual rent increases are included in the measurement of the right-of-use asset and related lease liabilities. Additionally, under these lease arrangements, the Company may be required to pay directly, or reimburse the lessors, for some maintenance and operating costs. Such amounts are generally variable and therefore not included in the measurement of the right-of-use asset and related lease liabilities but are instead recognized as variable lease expense in the consolidated statements of operations and comprehensive loss when they are incurred. The following table presents information on our operating leases for the three months and nine months ended February 29, 2024 and February 28, 2023: SCHEDULE OF OPERATING LEASES February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Three Months Ended Nine Months Ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Operating lease cost $ 88,000 $ 88,000 $ 265,000 265,000 Variable lease cost 3,000 - 8,000 - Short-term lease cost 8,000 1,500 10,000 3,000 Total lease cost $ 99,000 $ 89,500 $ 283,000 $ 268,000 The approximate maturity of lease liabilities as of February 29, 2024 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year Ending February 29: Operating Leases 2024 $ 365,000 2025 373,000 2026 195,000 Total minimum future lease payments 933,000 Less: imputed interest 71,000 Total operating lease liabilities $ 862,000 The following table summarizes the Company’s other supplemental lease information for the nine months ended February 29, 2024 and February 28, 2023: SCHEDULE OF OTHER SUPPLEMENTAL LEASE INFORMATION February 29, 2024 February 28, 2023 Nine Months Ended February 29, 2024 February 28, 2023 Cash paid for operating lease liabilities $ 267,000 $ 174,000 Weighted-average remaining lease term (years) 2.77 3.77 Weighted-average discount rate 6.50 % 6.50 % The Company also has various insignificant leases for office equipment. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Feb. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6: COMMITMENTS AND CONTINGENCIES LITIGATION The Company is, from time to time, involved in legal proceedings, claims, and litigation arising in the ordinary course of business. There were no material legal proceedings pending as of February 29, 2024. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Feb. 29, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 7: SUBSEQUENT EVENTS None. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The condensed consolidated financial statements include the accounts of Biomerica, Inc. as well as its German subsidiary (BioEurope GmbH) and Mexican subsidiary (Biomerica de Mexico). All significant intercompany accounts and transactions have been eliminated in consolidation. |
ACCOUNTING ESTIMATES | ACCOUNTING ESTIMATES The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reported period. Estimates that are made include the allowance for doubtful accounts, which is estimated based on current as well as historical practices with a customer; stock option forfeiture rates, which are calculated based on historical data; inventory obsolescence, which is based on projected and historical usage of materials; and lease liability and right-of-use assets, which are calculated based on certain assumptions such as borrowing rate, the likelihood of lease extensions to occur, asset valuation, among other things; and other items that may be necessary to estimate using current, historical and judgment based information. Actual results could materially differ from those estimates. |
MARKETS AND METHODS OF DISTRIBUTION | MARKETS AND METHODS OF DISTRIBUTION The Company employs a diverse range of distribution methods to deliver our products to our customers. We currently serve approximately 80 customers in our diagnostic business. Among these, roughly 40 are foreign distributors, 10 are domestic distributors, and the remainder primarily consists of domestic hospital and clinical laboratories, medical research institutions, medical schools, pharmaceutical companies, chain drugstores, wholesalers, physicians’ offices, and e-commerce customers. The Company derives the majority of its revenues from the sale of domestically manufactured products in the U.S. and Mexico, with some raw materials sourced from Asia and other global regions. Primarily, the Company’s revenue stream is bolstered by international sales of its products. However, the Company’s operations have been adversely affected by various global and economic disruptions stemming from the COVID-19 pandemic, ongoing conflicts such as the war in Ukraine and Israel, and geopolitical tensions between China and the United States. These challenges have resulted in disruptions across multiple facets of the Company’s operations, including supply chain disruptions, cost inflation, potential loss of contracts and customers, travel restrictions, shipping and logistical challenges, diverse government responses, and inherent international business risks in the Company’s operational regions. Additionally, there is a risk of human capital depletion among the Company, its partners, and customers, as well as potential interruptions to production and customer credit risks. Furthermore, the Company remains vulnerable to general economic downturns. In light of these prevailing global challenges, the Company remains steadfast in its strategic direction. Our focus continues to be driving inFoods IBS product growth within the U.S. and launching our new H. pylori test which recently received FDA clearance to further strengthen our domestic portfolio. Both products are domestically manufactured and marketed, enhancing the Company’s resilience amidst global uncertainties. Looking ahead, we remain committed to expanding both products in certain international markets in the future. |
LIQUIDITY | LIQUIDITY The Company has incurred net losses and negative cash flows from operations and has an accumulated deficit of approximately $ 46,774,000 5,319,000 6,855,000 On July 20, 2020, the Company filed with the Securities and Exchange Commission (“SEC”) a Form S-3 shelf registration statement and base prospectus which was declared effective by the SEC on September 30, 2020. This shelf registration statement registered the sale of up to $ 90,000,000 Under the Company’s outstanding Registration Statement, on March 7, 2023, the Company sold 3,333,333 2.40 700,000 7,300,000 To replace the shelf registration statement that was set to expire on September 30, 2023, on September 27, 2023, the Company filed with the SEC a new Form S-3 shelf registration statement and base prospectus which was declared effective by the SEC on September 29, 2023. This new shelf registration statement registers the sale of up to $ 20,000,000 The Company intends to use the net proceeds from past offerings and any future offerings for general corporate purposes, including, without limitation, sales and marketing activities, clinical studies, product development, making acquisitions of assets, businesses, companies or securities, capital expenditures, and for working capital needs. Management has analyzed the cash requirements of the Company’s business through at least May 2025. As a result of cash and cash equivalents on hand on February 29, 2024, largely from the public offering, and the ability to raise additional funds if needed through the sale of shares of the Company’s common stock, management believes the Company has sufficient funds to operate through at least May 2025. |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK The Company maintains cash balances at certain financial institutions in excess of amounts insured by federal agencies. From time to time, the Company has uninsured balances. The Company does not believe it is exposed to any significant credit risks. Net consolidated sales were approximately $ 1,017,000 1,111,000 4,299,000 4,231,000 For the three months ended February 29, 2024, the Company had three key customers who are located in the United States and Aisa which accounted for 44 22 40 38 Total gross receivables on February 29, 2024 and May 31, 2023 were approximately $ 1,153,000 751,000 44 36 For the three months ended February 29, 2024, the Company had one key vendor which accounted for 50 31 18 10 As of February 29, 2024, the Company had two key vendors which accounted for 52 23 |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of demand deposits and money market accounts with original maturities of less than three months. |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE The Company extends unsecured credit to its customers on a regular basis. International accounts are usually required to prepay until they establish a history with the Company and at that time, they are extended credit at levels based on a number of criteria. Based on various criteria, initial credit levels for individual distributors are approved by designated officers and managers of the Company. All increases in credit limits are also approved by designated upper-level management. The Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (codified as Accounting Standards Codification (“ASC”) 326) on June 1, 2023. ASC 326 adds to U.S. GAAP the current expected credit loss (“CECL”) model, a measurement model based on expected losses rather than incurred losses. Prior to the adoption of ASC 326, the Company evaluated receivables on a quarterly basis and adjusted the allowance for doubtful accounts accordingly. Balances over ninety days old were usually reserved for unless collection was reasonably assured. Under the application of ASC 326, the Company’s historical credit loss experience provides the basis for the estimation of expected credit losses, as well as current economic and business conditions, and anticipated future economic events that may impact collectability. In developing its expected credit loss estimate, the Company evaluated the appropriate grouping of financial assets based upon its evaluation of risk characteristics, including consideration of the types of products and services sold. Account balances are written off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. Occasionally, certain long-standing customers who routinely place large orders will have unusually large receivable balances relative to the total gross receivables. Management monitors the payments for these large balances closely and very often requires payment of existing invoices before shipping new sales orders. As of February 29, 2024 and May 31, 2023, the Company has established a reserve of approximately $ 23,000 29,000 |
PREPAID EXPENSES AND OTHER | PREPAID EXPENSES AND OTHER The Company occasionally prepays for items such as inventory, insurance, and other items. These items are reported as prepaid expenses and other, until either the inventory is physically received, or the insurance and other items are expensed. As of February 29, 2024 and May 31, 2023, the prepaids were approximately $ 268,000 300,000 |
INVENTORIES, NET | INVENTORIES, NET The Company values inventory at the lower of cost (determined using a combination of specific lot identification and the first-in, first-out methods) or net realizable value. Management periodically reviews inventory for excess quantities and obsolescence. Management evaluates quantities on hand, physical condition, and technical functionality as these characteristics may be impacted by anticipated customer demand for current products and new product introductions. The reserve is adjusted based on such evaluation, with a corresponding provision included in cost of sales. Abnormal amounts of idle facility expenses, freight, handling costs and wasted material are recognized as current period charges and the allocation of fixed production overhead is based on the normal capacity of the production facilities. Net inventories are comprised of approximately the following: SCHEDULE OF NET INVENTORIES February 29, 2024 May 31, 2023 Raw materials $ 1,490,000 $ 1,677,000 Work in progress 892,000 869,000 Finished products 238,000 182,000 Total gross inventory 2,620,000 2,728,000 Inventory reserves (491,000 ) (672,000 ) Net inventory $ 2,129,000 $ 2,056,000 Reserves for inventory obsolescence are recorded as necessary to reduce obsolete inventory to estimated net realizable value or to specifically reserve for obsolete inventory. As of February 29, 2024, and May 31, 2023, inventory reserves were approximately $ 491,000 672,000 |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment are stated at cost. Expenditures for additions and major improvements are capitalized. Repairs and maintenance costs are charged to operations as incurred. When property and equipment are sold, retired, or otherwise disposed of, the related cost and accumulated depreciation or amortization are removed from the accounts, and gains or losses from sales, retirements and dispositions are credited or charged to income. Depreciation and amortization are provided over the estimated useful lives of the related assets, ranging from 5 10 16,000 15,000 46,000 51,000 |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET Intangible assets include trademarks, product rights, technology rights and patents, and are accounted for based on ASC 350 Intangibles – Goodwill and Other (“ASC 350”). In that regard, intangible assets that have indefinite useful lives are not amortized but are tested annually for impairment or more frequently if events or changes in circumstances indicate that the asset might be impaired. Intangible assets are being amortized using the straight-line method over the useful life, not to exceed 18 10 15 4,000 3,000 13,000 15,000 The Company assesses the recoverability of these intangible assets by determining whether the amortization of the asset’s balance over its remaining life can be recovered through projected undiscounted future cash flows. The Company uses a qualitative assessment to determine whether there was any impairment. During the nine months ended February 29, 2024, management did not identify any indicators of 6,000 |
INVESTMENTS | INVESTMENTS The Company has made investments in a privately held Polish distributor, which is primarily engaged in distributing medical products and devices, including the distribution of the products sold by the Company. The Company invested approximately $ 165,000 6 Equity holdings in nonmarketable unconsolidated entities in which the Company is not able to exercise significant influence (“Cost Method Holdings”) are accounted for at the Company’s initial cost, minus any impairment (if any), plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar holding or security of the same issuer. Dividends received are recorded as other income. The Company assesses its equity holdings for impairment whenever events or changes in circumstances indicate that the carrying value of an equity holding may not be recoverable. Management reviewed the underlying net assets of the Company’s equity method holding as of February 29, 2024 and determined that the Company’s proportionate economic interest in the entity indicates that the equity holding was not impaired. There were no observable price changes in orderly transactions for identical or a similar holding or security of the Company’s Cost Method Holdings during the period ended February 29, 2024. |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company follows the guidance of ASC 718, Share-based Compensation (“ASC 718”), which requires the use of the fair-value based method to determine compensation for all arrangements under which employees and others receive shares of stock or equity instruments (options). The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses assumptions for expected volatility, expected dividends, expected forfeiture rate, expected term, and the risk-free interest rate. The Company has not paid dividends historically and does not expect to pay them in the foreseeable future. Expected volatilities are based on weighted averages of the historical volatility of the Company’s common stock estimated over the expected term of the options. The expected forfeiture rate is based on historical forfeitures experienced. The expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term as historically the Company had limited exercise activity surrounding its options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term. The grant date fair value of the award is recognized under the straight-line attribution method. The Company expensed approximately $ 633,000 1,006,000 The following summary presents the options granted, exercised, expired, canceled and outstanding for the nine months ended February 29, 2024: SUMMARY OF OPTIONS ACTIVITY Option Shares Weighted Average Exercise Price Options Outstanding at May 31, 2023 2,342,616 $ 3.52 Granted 1,328,500 1.13 Cancelled or expired (164,500 ) 4.97 Options Outstanding at February 29, 2024 3,506,616 $ 2.54 |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company has various contracts with customers. All of the contracts specify that revenues from product sales are recognized at the time the product is shipped, customarily FOB shipping point, which is when the transfer of control of goods has occurred, and at which point title passes. The Company does not typically allow for returns from customers except in the event of defective merchandise and therefore does not establish an allowance for returns. In addition, the Company has contracts with customers wherein customers receive purchase discounts for achieving specified sales volumes. The Company evaluated the status of these contracts during the nine months ended February 29, 2024 and 2023, and does not believe that any additional discounts will be given through the end of the contract periods. Services for contract work performed by the Company for others are invoiced and recognized as that work has been performed and as the project progresses. The Company sells clinical lab products to domestic and international distributors, including hospitals and clinical laboratories, medical research institutions, medical schools and pharmaceutical companies. OTC products are sold directly to drug stores and e-commerce customers as well as to distributors. Physician’s office products are sold to physicians and distributors, all of whom are categorized below according to the type of products sold to them. We also manufacture certain components on a contract basis for domestic and international manufacturers. As of February 29, 2024, the Company had approximately $ 85,000 Disaggregation of revenue: The following is a breakdown of revenues according to markets to which the products are sold: SCHEDULE OF DISAGGREGATION REVENUE February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Three Months Ended Nine Months Ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Clinical lab $ 404,000 $ 532,000 $ 2,683,000 $ 2,580,000 Over-the-counter 329,000 292,000 1,078,000 971,000 Contract manufacturing 281,000 284,000 530,000 431,000 Physician’s office 3,000 3,000 8,000 249,000 Total $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 Revenues $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 See Note 4 for additional information regarding geographic revenue concentrations. |
SHIPPING AND HANDLING FEES | SHIPPING AND HANDLING FEES The Company includes shipping and handling fees billed to customers in net sales. |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred. The Company expensed approximately $ 343,000 392,000 1,226,000 1,215,000 |
INCOME TAXES | INCOME TAXES For the three months ended February 29, 2024, the Company had an income tax expense of approximately $ 4,000 35,000 The Company’s policy is to recognize any interest and penalties related to unrecognized tax benefits as a component of income tax expense. For the nine months ended February 29, 2024, the Company had no accrued interest or penalties related to uncertain tax positions. |
ADVERTISING COSTS | ADVERTISING COSTS The Company reports the cost of advertising as expense in the period in which those costs are incurred. For the three months ended February 29, 2024, and February 28, 2023, advertising costs were approximately $ 25,000 51,000 80,000 87,000 |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION The subsidiary located in Mexico operates primarily using the Mexican peso. The subsidiary located in Germany operates primarily using the U.S. dollar, with an immaterial amount of transactions occurring using the Euro. Accordingly, assets and liabilities of these subsidiaries are translated using exchange rates in effect at the end of the period, and revenues and costs are translated using average exchange rates for the period. The resulting translation adjustments to assets and liabilities are presented as a separate component of accumulated other comprehensive loss. There are no foreign currency transactions that are included in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended February 29, 2024 and February 28, 2023. |
RIGHT-OF-USE ASSETS AND LEASE LIABILITY | RIGHT-OF-USE ASSETS AND LEASE LIABILITY Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. Leases are classified as financing or operating which will drive the expense recognition pattern. The Company has elected to exclude short-term leases. The Company leases office space and copy machines, all of which are operating leases. Most leases include the option to renew and the exercise of the renewal options is at the Company’s sole discretion. Options to extend or terminate a lease are considered in the lease term to the extent that the option is reasonably certain of exercise. The leases do not include the options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. |
NET LOSS PER SHARE | NET LOSS PER SHARE Basic loss per share is computed as net loss divided by the weighted average number of common shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants and other convertible securities using the treasury stock method. The total amount of anti-dilutive stock options not included in the loss per share calculation was 3,506,616 2,336,116 |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recent ASU’s issued by the FASB and guidance issued by the SEC did not, or are not believed by the management to, have a material effect on the Company’s present or future consolidated financial statements. In June 2016, the FASB issued ASU 2016-13. This ASU requires the measurement of all expected credit losses for financial assets, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance was initially effective for the Company for annual reporting periods beginning after December 15, 2019, and interim periods within those fiscal years. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” which, among other things, defers the effective date of ASU 2016-13 for public filers that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted. The Company adopted ASU 2016-03 on June 1, 2023, and the adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
SCHEDULE OF NET INVENTORIES | Net inventories are comprised of approximately the following: SCHEDULE OF NET INVENTORIES February 29, 2024 May 31, 2023 Raw materials $ 1,490,000 $ 1,677,000 Work in progress 892,000 869,000 Finished products 238,000 182,000 Total gross inventory 2,620,000 2,728,000 Inventory reserves (491,000 ) (672,000 ) Net inventory $ 2,129,000 $ 2,056,000 |
SUMMARY OF OPTIONS ACTIVITY | The following summary presents the options granted, exercised, expired, canceled and outstanding for the nine months ended February 29, 2024: SUMMARY OF OPTIONS ACTIVITY Option Shares Weighted Average Exercise Price Options Outstanding at May 31, 2023 2,342,616 $ 3.52 Granted 1,328,500 1.13 Cancelled or expired (164,500 ) 4.97 Options Outstanding at February 29, 2024 3,506,616 $ 2.54 |
SCHEDULE OF DISAGGREGATION REVENUE | The following is a breakdown of revenues according to markets to which the products are sold: SCHEDULE OF DISAGGREGATION REVENUE February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Three Months Ended Nine Months Ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Clinical lab $ 404,000 $ 532,000 $ 2,683,000 $ 2,580,000 Over-the-counter 329,000 292,000 1,078,000 971,000 Contract manufacturing 281,000 284,000 530,000 431,000 Physician’s office 3,000 3,000 8,000 249,000 Total $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 Revenues $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
SCHEDULE OF GEOGRAPHIC INFORMATION | SCHEDULE OF GEOGRAPHIC INFORMATION February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Three Months Ended Nine Months Ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Revenues from sales to unaffiliated customers: Asia $ 210,000 $ 345,000 $ 1,843,000 $ 1,822,000 Europe 331,000 301,000 1,085,000 1,268,000 North America 393,000 461,000 1,069,000 1,130,000 Middle East 78,000 - 291,000 - South America 5,000 4,000 11,000 11,000 Total $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 Revenues $ 1,017,000 $ 1,111,000 $ 4,299,000 $ 4,231,000 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Feb. 29, 2024 | |
Leases | |
SCHEDULE OF OPERATING LEASES | The following table presents information on our operating leases for the three months and nine months ended February 29, 2024 and February 28, 2023: SCHEDULE OF OPERATING LEASES February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Three Months Ended Nine Months Ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Operating lease cost $ 88,000 $ 88,000 $ 265,000 265,000 Variable lease cost 3,000 - 8,000 - Short-term lease cost 8,000 1,500 10,000 3,000 Total lease cost $ 99,000 $ 89,500 $ 283,000 $ 268,000 |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS | The approximate maturity of lease liabilities as of February 29, 2024 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year Ending February 29: Operating Leases 2024 $ 365,000 2025 373,000 2026 195,000 Total minimum future lease payments 933,000 Less: imputed interest 71,000 Total operating lease liabilities $ 862,000 |
SCHEDULE OF OTHER SUPPLEMENTAL LEASE INFORMATION | The following table summarizes the Company’s other supplemental lease information for the nine months ended February 29, 2024 and February 28, 2023: SCHEDULE OF OTHER SUPPLEMENTAL LEASE INFORMATION February 29, 2024 February 28, 2023 Nine Months Ended February 29, 2024 February 28, 2023 Cash paid for operating lease liabilities $ 267,000 $ 174,000 Weighted-average remaining lease term (years) 2.77 3.77 Weighted-average discount rate 6.50 % 6.50 % |
SCHEDULE OF NET INVENTORIES (De
SCHEDULE OF NET INVENTORIES (Details) - USD ($) | Feb. 29, 2024 | May 31, 2023 |
Accounting Policies [Abstract] | ||
Raw materials | $ 1,490,000 | $ 1,677,000 |
Work in progress | 892,000 | 869,000 |
Finished products | 238,000 | 182,000 |
Total gross inventory | 2,620,000 | 2,728,000 |
Inventory reserves | (491,000) | (672,000) |
Net inventory | $ 2,129,000 | $ 2,056,000 |
SUMMARY OF OPTIONS ACTIVITY (De
SUMMARY OF OPTIONS ACTIVITY (Details) | 9 Months Ended |
Feb. 29, 2024 $ / shares shares | |
Accounting Policies [Abstract] | |
Option outstanding, begining balance | shares | 2,342,616 |
Weighted average exercise price, begining balance | $ / shares | $ 3.52 |
Options granted | shares | 1,328,500 |
Weighted average exercise price, granted | $ / shares | $ 1.13 |
Options cancelled or expired | shares | (164,500) |
Weighted average exercise price, cancelled or expired | $ / shares | $ 4.97 |
Option outstanding, ending balance | shares | 3,506,616 |
Weighted average exercise price, ending balance | $ / shares | $ 2.54 |
SCHEDULE OF DISAGGREGATION REVE
SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Product Information [Line Items] | ||||
Revenues | $ 1,017,000 | $ 1,111,000 | $ 4,299,000 | $ 4,231,000 |
Clinical Lab [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 404,000 | 532,000 | 2,683,000 | 2,580,000 |
Over-the-counter [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 329,000 | 292,000 | 1,078,000 | 971,000 |
Contract Manufacturing [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 281,000 | 284,000 | 530,000 | 431,000 |
Physician's Office [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 3,000 | $ 3,000 | $ 8,000 | $ 249,000 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Feb. 29, 2024 | Sep. 27, 2023 | Mar. 07, 2023 | Jul. 20, 2020 | Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | May 31, 2023 | |
Product Information [Line Items] | |||||||||
Accumulated deficit | $ 46,774,000 | $ 46,774,000 | $ 46,774,000 | $ 42,217,000 | |||||
Cash and cash equivalents | 5,319,000 | 5,319,000 | 5,319,000 | 9,719,000 | |||||
Working capital | 6,855,000 | 6,855,000 | 6,855,000 | ||||||
Shelf registration statement maximum authorized common stock issuance value | $ 20,000,000 | $ 90,000,000 | |||||||
Proceeds from issuance of common stock | $ 2,014,000 | ||||||||
Revenues | 1,017,000 | $ 1,111,000 | 4,299,000 | 4,231,000 | |||||
Other receivables, gross, current | 1,153,000 | 1,153,000 | 1,153,000 | 751,000 | |||||
Accounts receivable, credit loss expense (Reversal) | 23,000 | 23,000 | 23,000 | 29,000 | |||||
Prepaid expense and other assets | 268,000 | 268,000 | 268,000 | 300,000 | |||||
Inventory reserves | 491,000 | 491,000 | 491,000 | 672,000 | |||||
Amortization of intangible assets | 4,000 | 3,000 | 13,000 | 15,000 | |||||
Intangible asset impairment charges | 6,000 | ||||||||
Investments | 165,000 | 165,000 | 165,000 | $ 165,000 | |||||
Share-based payment arrangement, expense | 633,000 | 1,006,000 | |||||||
Proceeds from customers | 85,000 | ||||||||
Research and development expense | 343,000 | 392,000 | 1,226,000 | 1,215,000 | |||||
Income tax expense | 4,000 | 35,000 | 35,000 | 38,000 | |||||
Advertising expense | 25,000 | 51,000 | $ 80,000 | $ 87,000 | |||||
Share-Based Payment Arrangement, Option [Member] | |||||||||
Product Information [Line Items] | |||||||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 3,506,616 | 2,336,116 | |||||||
Polish Distributor [Member] | |||||||||
Product Information [Line Items] | |||||||||
Investments | $ 165,000 | $ 165,000 | $ 165,000 | ||||||
Equity method investment, ownership percentage | 6% | 6% | 6% | ||||||
Marketing and Distribution Rights [Member] | |||||||||
Product Information [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 18 years | 18 years | 18 years | ||||||
Purchased Technology Rights [Member] | |||||||||
Product Information [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 10 years | 10 years | 10 years | ||||||
Patents [Member] | |||||||||
Product Information [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 15 years | 15 years | 15 years | ||||||
Property, Plant and Equipment [Member] | |||||||||
Product Information [Line Items] | |||||||||
Depreciation, depletion and amortization | $ 16,000 | $ 15,000 | $ 46,000 | $ 51,000 | |||||
Minimum [Member] | |||||||||
Product Information [Line Items] | |||||||||
Property, plant and equipment, useful life | 5 years | 5 years | 5 years | ||||||
Maximum [Member] | |||||||||
Product Information [Line Items] | |||||||||
Property, plant and equipment, useful life | 10 years | 10 years | 10 years | ||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Key Customers [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 44% | ||||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Key Customer [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 22% | 40% | 38% | ||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Key Customers [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 44% | ||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Key Customer [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 36% | ||||||||
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | One Key Vendor [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 50% | ||||||||
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Two Key Vendors [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 31% | ||||||||
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | One Vendors [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 18% | ||||||||
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | No Individual Vendor [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 10% | ||||||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | One Key Vendor [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 23% | ||||||||
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Two Key Vendors [Member] | |||||||||
Product Information [Line Items] | |||||||||
Concentration risk, percentage | 52% | ||||||||
ATM Agreement [Member] | |||||||||
Product Information [Line Items] | |||||||||
Net proceeds from ATM in shares | 3,333,333 | ||||||||
Share price | $ 2.40 | ||||||||
Sale of stock expenses | $ 700,000 | ||||||||
Proceeds from issuance of common stock | $ 7,300,000 |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended | |
Mar. 31, 2023 | Nov. 30, 2022 | Feb. 29, 2024 | Feb. 28, 2023 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of stock, net proceeds | $ 2,014,000 | |||
Common Stock [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of stock shares issued | 3,333,333 | |||
Sale of stock, price per share | $ 2.40 | |||
Sale of stock, net proceeds | $ 7,300,000 | |||
Common Stock [Member] | ATM Offering [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of stock shares issued | 564,989 | |||
Sale of stock gross proceeds | $ 1,988,000 | |||
Sale of stock, net proceeds | $ 1,937,000 | |||
Common Stock [Member] | ATM Offering [Member] | Minimum [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of stock, price per share | $ 3.15 | |||
Common Stock [Member] | ATM Offering [Member] | Maximum [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Sale of stock, price per share | $ 4.26 |
SCHEDULE OF GEOGRAPHIC INFORMAT
SCHEDULE OF GEOGRAPHIC INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 1,017,000 | $ 1,111,000 | $ 4,299,000 | $ 4,231,000 |
Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 210,000 | 345,000 | 1,843,000 | 1,822,000 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 331,000 | 301,000 | 1,085,000 | 1,268,000 |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 393,000 | 461,000 | 1,069,000 | 1,130,000 |
Middle East [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 78,000 | 291,000 | ||
South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 5,000 | $ 4,000 | $ 11,000 | $ 11,000 |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details Narrative) | 9 Months Ended | |
Feb. 29, 2024 USD ($) Segment | May 31, 2023 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of operating segments | Segment | 1 | |
Inventory, gross | $ 2,620,000 | $ 2,728,000 |
Property and equipment, net | 194,000 | 213,000 |
MEXICO | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Inventory, gross | 575,000 | 626,000 |
Property and equipment, net | $ 15,000 | $ 17,000 |
SCHEDULE OF OPERATING LEASES (D
SCHEDULE OF OPERATING LEASES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Leases | ||||
Operating lease cost | $ 88,000 | $ 88,000 | $ 265,000 | $ 265,000 |
Variable lease cost | 3,000 | 8,000 | ||
Short-term lease cost | 8,000 | 1,500 | 10,000 | 3,000 |
Total lease cost | $ 99,000 | $ 89,500 | $ 283,000 | $ 268,000 |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) | Feb. 29, 2024 USD ($) |
Leases | |
2024 | $ 365,000 |
2025 | 373,000 |
2026 | 195,000 |
Total minimum future lease payments | 933,000 |
Less: imputed interest | 71,000 |
Total operating lease liabilities | $ 862,000 |
SCHEDULE OF OTHER SUPPLEMENTAL
SCHEDULE OF OTHER SUPPLEMENTAL LEASE INFORMATION (Details) - USD ($) | 9 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Leases | ||
Cash paid for operating lease liabilities | $ 267,000 | $ 174,000 |
Weighted average remaining lease term (years) | 2 years 9 months 7 days | 3 years 9 months 7 days |
Weighted-average discount rate | 6.50% | 6.50% |
LEASES (Details Narrative)
LEASES (Details Narrative) | 1 Months Ended | |
Nov. 30, 2016 ft² | Feb. 29, 2024 USD ($) ft² | |
Leases | ||
Area of land | ft² | 8,100 | 22,000 |
Security deposit | $ | $ 22,000 | |
Lease term description | In November 2016, our Mexican subsidiary, Biomerica de Mexico, entered a 10-year lease for approximately 8,100 square feet of manufacturing space, with a single 10-year renewal option at lease end. Additionally, Biomerica de Mexico leases a smaller unit on a month-to-month basis for specific manufacturing processes. |