Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
May 31, 2022 | Aug. 29, 2022 | Nov. 30, 2021 | |
Document Information Line Items | |||
Entity Registrant Name | BIOMERICA, INC. | ||
Trading Symbol | BMRA | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --05-31 | ||
Entity Common Stock, Shares Outstanding | 13,391,901 | ||
Entity Public Float | $ 55,709,903 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000073290 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | May 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-37863 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-2645573 | ||
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 $0.08 | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Auditor Name | HASKELL & WHITE LLP | ||
Auditor Firm ID | 200 | ||
Auditor Location | Irvine, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | May 31, 2022 | May 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 5,916,983 | $ 4,199,311 |
Accounts receivable, less allowance for doubtful accounts of $153,231 and $837,415 as of May 31, 2022 and 2021, respectively | 773,818 | 1,455,051 |
Inventories, net | 2,416,447 | 3,206,255 |
Prepaid expenses and other | 320,283 | 370,290 |
Total current assets | 9,427,531 | 9,230,907 |
Property and equipment, net of accumulated depreciation and amortization of $1,305,360 and $1,972,357 as of May 31, 2022 and 2021, respectively | 214,487 | 310,520 |
Right of use assets, net of accumulated amortization of $724,802 and $469,077 as of May 31, 2022 and 2021, respectively | 1,301,834 | 1,553,081 |
Investments | 165,324 | 165,324 |
Intangible assets, net of accumulated amortization of $18,994 and $126,769 as of May 31, 2022 and 2021, respectively | 169,516 | 294,830 |
Other assets | 95,588 | 264,151 |
Total Assets | 11,374,280 | 11,818,813 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 972,372 | 583,380 |
Accrued compensation | 646,944 | 388,896 |
Advance from customers | 50,670 | |
Lease liability, current portion | 341,296 | 327,944 |
Total current liabilities | 2,011,282 | 1,300,220 |
Lease liability, net of current portion | 1,038,284 | 1,291,570 |
Total Liabilities | 3,049,566 | 2,591,790 |
Commitments and contingencies (Notes 6 and 9) | ||
Shareholders' Equity: | ||
Preferred stock, Series A 5% convertible, $0.08 par value, 571,429 shares authorized, none issued and outstanding as of May 31, 2022 and 2021 | ||
Preferred stock, undesignated, no par value, 4,428,571 shares authorized, none issued and outstanding as of May 31, 2022 and 2021 | ||
Common stock, $0.08 par value, 25,000,000 shares authorized, 12,867,924 and 12,307,157 issued and outstanding at May 31, 2022 and 2021, respectively | 1,029,432 | 984,571 |
Additional paid-in-capital | 42,446,597 | 38,836,743 |
Accumulated other comprehensive loss | (73,936) | (47,956) |
Accumulated deficit | (35,077,379) | (30,546,335) |
Total Shareholders' Equity | 8,324,714 | 9,227,023 |
Total Liabilities and Shareholders' Equity | 11,374,280 | 11,818,813 |
5% Convertible Preferred Stock [Member] | Series A Preferred Stock [Member] | ||
Shareholders' Equity: | ||
Preferred stock, Series A 5% convertible, $0.08 par value, 571,429 shares authorized, none issued and outstanding as of May 31, 2022 and 2021 | ||
Preferred stock, undesignated, no par value, 4,428,571 shares authorized, none issued and outstanding as of May 31, 2022 and 2021 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | May 31, 2022 | May 31, 2021 |
Allowance for doubtful accounts (in Dollars) (in Dollars) | $ 153,231 | $ 837,415 |
Accumulated depreciation and amortization (in Dollars) (in Dollars) | 1,305,360 | 1,972,357 |
Accumulated amortization, Right of Use Assets (in Dollars) (in Dollars) | 724,802 | 469,077 |
Accumulated amortization, Intangible Assets (in Dollars) (in Dollars) | $ 18,994 | $ 126,769 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Preferred Stock, No Par Value (in Dollars per share) (in Dollars per share) | $ 0 | $ 0 |
Preferred Stock, undesignated shares | 4,428,571 | 4,428,571 |
Common stock par value (in Dollars per share) (in Dollars per share) | $ 0.08 | $ 0.08 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 12,867,924 | 12,307,157 |
Common stock, shares outstanding | 12,867,924 | 12,307,157 |
5% Convertible Preferred Stock [Member] | Series A Preferred Stock [Member] | ||
Preferred Stock, Par Value (in Dollars per share) (in Dollars per share) | $ 0.08 | $ 0.08 |
Preferred Stock, shares authorized | 571,429 | 571,429 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 18,871,409 | $ 7,199,027 |
Cost of sales | (15,893,991) | (6,832,742) |
Gross profit | 2,977,418 | 366,285 |
Operating expenses: | ||
Selling, general and administrative | 5,698,958 | 5,671,517 |
Research and development | 1,812,424 | 2,194,461 |
Total operating expense | 7,511,382 | 7,865,978 |
Loss from operations | (4,533,964) | (7,499,693) |
Other income: | ||
Dividend and interest income | 26,639 | 66,863 |
Interest expense | (367) | |
Total other income | 26,639 | 66,496 |
Loss before income taxes | (4,507,325) | (7,433,197) |
Provision for income taxes | (23,719) | (13,057) |
Net loss | $ (4,531,044) | $ (7,446,254) |
Basic net loss per common share (in Dollars per share) | $ (0.36) | $ (0.62) |
Diluted net loss per common share (in Dollars per share) | $ (0.36) | $ (0.62) |
Weighted average number of common and common equivalent shares: | ||
Basic (in Shares) | 12,673,245 | 11,928,941 |
Diluted (in Shares) | 12,673,245 | 11,928,941 |
Net loss | $ (4,531,044) | $ (7,446,254) |
Other comprehensive loss, net of tax: | ||
Foreign currency translation | (25,980) | (8,115) |
Comprehensive loss | $ (4,557,024) | $ (7,454,369) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS` EQUITY - USD ($) | Series A Preferred Stock [Member] 5% Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balances at May. 31, 2020 | $ 25,714 | $ 939,205 | $ 36,388,056 | $ (39,841) | $ (23,100,081) | $ 14,213,053 |
Balances (in Shares) at May. 31, 2020 | 321,429 | 11,740,089 | ||||
Exercise of stock options | $ 6,940 | 95,315 | 102,255 | |||
Exercise of stock options (in Shares) | 86,750 | |||||
Net proceeds from ATM | $ 12,712 | 998,763 | 1,011,475 | |||
Net proceeds from ATM (in Shares) | 158,889 | |||||
Foreign currency translation | (8,115) | (8,115) | ||||
Conversion of preferred to common stock | $ (25,714) | $ 25,714 | ||||
Conversion of preferred to common stock (in Shares) | (321,429) | 321,429 | ||||
Compensation expense in connection with options granted | 1,354,609 | 1,354,609 | ||||
Net loss | (7,446,254) | (7,446,254) | ||||
Balances at May. 31, 2021 | $ 984,571 | 38,836,743 | (47,956) | (30,546,335) | 9,227,023 | |
Balances (in Shares) at May. 31, 2021 | 12,307,157 | |||||
Exercise of stock options | $ 3,160 | 74,200 | 77,360 | |||
Exercise of stock options (in Shares) | 39,500 | |||||
Net proceeds from ATM | $ 41,701 | 2,275,459 | 2,317,160 | |||
Net proceeds from ATM (in Shares) | 521,267 | |||||
Foreign currency translation | (25,980) | (25,980) | ||||
Compensation expense in connection with options granted | 1,260,195 | 1,260,195 | ||||
Net loss | (4,531,044) | (4,531,044) | ||||
Balances at May. 31, 2022 | $ 1,029,432 | $ 42,446,597 | $ (73,936) | $ (35,077,379) | $ 8,324,714 | |
Balances (in Shares) at May. 31, 2022 | 12,867,924 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (4,531,044) | $ (7,446,254) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 339,096 | 138,267 |
Loss on disposal of property and equipment | 52,587 | |
Provision for allowance on accounts receivable | (684,184) | 766,434 |
Inventory reserve | (771,736) | 1,550,594 |
Stock option expense | 1,260,195 | 1,354,609 |
Amortization of right-of-use asset | 255,725 | 237,588 |
Changes in assets and liabilities: | ||
Accounts receivable | 1,365,417 | (455,614) |
Inventories | 1,561,544 | (1,906,013) |
Prepaid expenses and other | 50,007 | 1,138,793 |
Reduction in lease liability | (244,412) | (241,132) |
Other assets | 168,563 | (95,958) |
Accounts payable and accrued expenses | 388,992 | (403,331) |
Accrued compensation | 258,048 | 110,269 |
Advance from customers | 50,670 | |
Net cash used in operating activities | (480,532) | (5,251,748) |
Cash flows from investing activities: | ||
Expenditure related to intangibles | (113,436) | (159,727) |
Purchases of property and equipment | (56,900) | (135,856) |
Net cash used in investing activities | (170,336) | (295,583) |
Cash flows from financing activities: | ||
Gross proceeds from sale of common stock | 2,401,734 | 1,177,394 |
Costs from sale of common stock | (84,574) | (165,919) |
Proceeds from exercise of stock options | 77,360 | 102,255 |
Net cash provided by financing activities | 2,394,520 | 1,113,730 |
Effect of exchange rate changes in cash | (25,980) | (8,115) |
Net increase (decrease) in cash and cash equivalents | 1,717,672 | (4,441,716) |
Cash and cash equivalents at beginning of year | 4,199,311 | 8,641,027 |
Cash and cash equivalents at end of year | 5,916,983 | 4,199,311 |
Cash paid during the year for: | ||
Income taxes | 23,719 | 27,171 |
Non-cash investing and financing activities: | ||
Increase in right-of-use asset due to lease extension or establishment | 4,478 | 79,159 |
Increase in lease liability due to lease extension or establishment | 4,478 | 79,159 |
Write off of fixed assets, cost | 819,931 | |
Write off of fixed assets, accumulated depreciation | 767,344 | |
Write off of intangible assets, cost | 246,756 | |
Write off of intangible assets, accumulated amortization | $ 37,221 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
May 31, 2022 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1: ORGANIZATION 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 in certain cases regulatory approval, of patented, diagnostic-guided therapy (“DGT”) products to treat gastrointestinal diseases, such as irritable bowel syndrome, and other inflammatory diseases. These products are directed at chronic inflammatory illnesses that are widespread and common, and as such address very large markets. Our InFoods® IBS product uses a simple blood sample and is designed to identify patient-specific foods that, when removed from the diet, may alleviate IBS symptoms such as pain, bloating, diarrhea 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 specific foods. A food identified as positive and causing an abnormal immune response in the patient is simply removed from the diet to help alleviate IBS symptoms. Our 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 drugstores like Walmart and Walgreens). 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. Due to the global 2019 SARS-CoV-2 novel coronavirus pandemic , in March 2020 we in fiscal 2022 The other existing products that contributed to our 2022 revenues are primarily focused on gastrointestinal 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
May 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The consolidated financial statements for the years ended May 31, 2022 and 2021, include the accounts of Biomerica, Inc. ("Biomerica") as well as its wholly-owned 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 consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“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 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 past 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. Due to the Coronavirus global pandemic, the Company’s operations have been negatively impacted. The Company has faced disruptions in the following areas, (and may face further challenges): supply chain disruptions, loss of contracts and/or customers, closure of the Company’s manufacturing or distribution facilities or of the facilities of the Company’s suppliers, partners and customers, travel, shipping and logistical disruptions, government responses of all types, international business risks in countries where the Company makes and/or sells its products, loss of human capital or personnel at the Company, its partners and its customers, interruptions of production, customer credit risk, and general economic calamities. These ongoing pandemic related disruptions can materially negatively impact the Company’s operations and financial performance and may continue to have significant material negative impacts on the Company. LIQUIDITY The Company has incurred net losses and negative cash flows from operations and has an accumulated deficit of approximately $35.3 million as of May 31, 2022. Management expects to continue to incur significant costs as it advances its trials and development activities. As of May 31, 2022, the Company had cash and cash equivalents of approximately $5,917,000 and working capital of approximately $7,416,000. On January 22, 2021, the Company filed a Prospectus Supplement for purposes of raising up to $15,000,000 to the base prospectus filed with the SEC on July 21, 2020, and was declared effective by the SEC on September 30, 2020, and an ATM “at the market offering” Agreement. The Company intends to use the net proceeds from such offering for general corporate purposes, including, without limitation, sales and marketing activities, clinical studies, and product development, making acquisitions of assets, businesses, companies or securities, capital expenditures, and for working capital needs. Under an ATM Agreement, sales of the Placement Shares are deemed to be “at the market offering” as defined in Rule 415 promulgated under the Securities Act. The agent acts as sales agent under the ATM and uses commercially reasonable efforts to sell on the Company’s behalf all the Placement Shares requested to be sold from time to time by the Company, consistent with its normal trading and sales practices, on mutually agreed terms between the agent and the Company. The Company has no obligation to sell any of the Placement Shares under the ATM Agreement, and may at any time suspend offers under, or terminate the ATM Agreement. During the year ended May 31, 2022, the Company sold 521,267 shares of its common stock at prices ranging from $4.02 to $5.63 under its Form S-3 Registration Statement ( File No. 333-239980) and ATM Agreement which resulted in gross proceeds of approximately $2,402,000 and net proceeds to the Company of $2,317,000 after deducting commissions for each sale and legal, accounting, and other fees related to the filing of the Form S-3. As a result of cash and cash equivalents on hand on May 31, 2022, and the ability to raise additional funds through the ATM noted above, management believes the Company has sufficient funds to operate through at least August 2023. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company has financial instruments whereby the fair market value of the financial instruments could be different than that recorded on a historical basis. The Company's financial instruments consist of its cash and cash equivalents, accounts receivable, and accounts payable. The carrying amounts of the Company's financial instruments approximate their fair values. The Company also maintains an investment in privately held company (see below). CONCENTRATION OF CREDIT RISK The Company maintains cash balances at certain financial institutions in excess of amounts insured by federal agencies. As of May 31, 2022, the Company had approximately $5,702,000 of uninsured cash. The Company does not believe it is exposed to any significant credit risks. The Company provides credit in the normal course of business to customers throughout the United States and in foreign markets. The Company performs ongoing credit evaluations of its customers and requires accelerated prepayment in some circumstances. Our net sales were approximately $18,871,000 for fiscal 2022 compared to $7,199,000 for fiscal 2021. For the fiscal years ended May 31, 2022 and 2021, the Company had two distributors, which accounted for a total of 65% and 60% of our net sales, respectively. Of this, for the fiscal years ended May 31, 2022 and 2021, the largest of the distributors mentioned above accounted for 55% and 33%, respectively, of net sales. Total gross receivables on May 31, 2022 and 2021 were approximately $927,000 and $2,292,000, respectively. On May 31, 2022 and 2021, the Company had one distributor and two distributors, respectively, which accounted for a total of 50% and 73%, respectively, of gross accounts receivable. Of the 50% as of May 31, 2022, 50% was owed by a distributor in Asia. For the fiscal years ended May 31, 2022 and 2021, the Company had one vendor, which accounted for 84% and 58%, respectively, of our purchases of raw materials. GEOGRAPHIC CONCENTRATION As of May 31, 2022 and 2021, a pproximately $621,000 and $803,000, respectively As of May 31, 2022 and 2021, and $25,000, respectively 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. 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. Management evaluates receivables on a quarterly basis and adjusts the allowance for doubtful accounts accordingly. Balances over ninety days old are usually reserved for unless collection is reasonably assured. Occasionally certain long-standing customers, who routinely place large orders, will have unusually large receivables 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 May 31, 2022 and 2021, the Company has established a reserve of approximately $153,000 and $837,000, respectively, for doubtful accounts. PREPAIDS The Company occasionally prepays for items such as inventory, insurance, and other items. These items are reported as prepaids, until either the inventory is physically received or the insurance and other items are utilized. As of May 31, 2022 and 2021, the prepaids were approximately $320,000 and $370,000, respectively, composed of prepayments to insurance and various other suppliers. 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. The following is a summary of approximate net inventories: May 31, 2022 2021 Raw materials $ 1,717,000 $ 1,812,000 Work in progress 763,000 1,687,000 Finished products 782,000 1,324,000 Total gross inventory $ 3,262,000 $ 4,823,000 Inventory reserve (846,000) (1,617,000) Net inventory $ 2,416,000 $ 3,206,000 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 May 31, 2022 and 2021, inventory reserves were approximately $846,000 and $1,617,000, respectively. During the fiscal 2022 the Company disposed of COVID-19 antibody inventory that wasn’t sellable, this has been partially reserved for in fiscal 2021. The reduction in our inventory reserve relates to the COVID-19 antibody disposal. The Company continues to sell COVID-19 antigen tests. 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 to 10 years, using the straight-line method. Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or the term of the lease. Depreciation and amortization expense on property and equipment amounted to approximately $100,000 and $105,000 for the years ended May 31, 2022 and 2021, respectively. INTANGIBLE ASSETS, NET Intangible assets include trademarks, product rights, technology rights and patents, and are accounted for based on Accounting Standards Codification (“ASC”), ASC 350 Intangibles – Goodwill and Other (“ASC 350”). In that regard, intangible assets that have indefinite useful lives are not amortized but are tested at least 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 years for marketing and distribution rights, 10 years for purchased technology use rights, and 20 years for patents. Amortization amounted to approximately $239,000 and $34,000 for the years ended May 31, 2022 and 2021, respectively. 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. As of May 31, 2022 and 2021, an impairment adjustment was made of $210,000 and $0, respectively. INVESTMENTS From time-to-time, the Company makes investments in privately held companies. Investments represent the Company’s investment in a Polish distributor, which is primarily engaged in distributing medical products and devices. The Company owns approximately 6% of the investee and, accordingly, applies the cost method holdings to account for the investment. The Company invested approximately $165,000 into the Polish distributor. 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 May 31, 2022 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 Holding during the year ended May 31, 2022. 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 options-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 $1,260,000 and $1,355,000 of stock-based compensation during the years ended May 31, 2022 and 2021, respectively. In applying the Black-Scholes options-pricing model, assumptions used were as follows: For the year ended May 31, 2022 2021 Dividend yield 0% 0% Expected volatility 102.54 - 105.48% 71.19 - 107.53% Risk free interest rate 0.97-2.75% 0.34-1.18% Expected term 5.50-6.25 Years 5.50-6.25 Years 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 allow for returns 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 they receive purchase discounts for achieving specified sales volumes. The Company regularly evaluates the status of these contracts and does not believe that any additional discounts will be given through the end of the contract periods. Services for contract work are invoiced and recognized for work that has been performed 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. Physicians’ 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. Disaggregation of revenue: The following is an approximate breakdown of revenues according to primary markets to which the products are sold: For the year ended May 31, 2022 2021 Physician's office $ 14,259,000 $ 2,801,000 Clinical lab 3,064,000 3,077,000 Over-the-counter 1,089,000 766,000 Contract manufacturing 459,000 555,000 Total $ 18,871,000 $ 7,199,000 See Note 8 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 $1,812,000 and $2,194,000 of research and development costs during the years ended May 31, 2022 and 2021, respectively. INCOME TAXES The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities arise from temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years and the benefits of net operating loss and tax credit carryforwards. These temporary differences and the benefits of net operating loss and tax credit carryforwards are measured using enacted tax rates. A valuation allowance is recorded to reduce deferred tax assets to the extent that management considers it is more likely than not that a deferred tax asset will not be realized. In determining the valuation allowance, the Company considers factors such as the reversal of deferred income tax assets, projected taxable income, and the character of income tax assets and tax planning strategies. A change to these factors could impact the estimated valuation allowance and income tax expense. On May 31, 2022 and 2021, in accordance with ASC 740, the Company has a valuation allowance for substantially all of its net deferred tax assets. During the fiscal year ended May 31, 2022, this valuation allowance was increased to $6,967,000, which fully covers the net tax asset of $6,967,000 . The Company accounts for its uncertain tax provisions by using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not, based solely on the technical merits, that the position will be sustained in an audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the appropriate amount of the benefit to recognize. The amount of benefit to recognize is measured as the maximum amount which is more likely than not to be realized. The tax position is derecognized when it is no longer more likely than not capable of being sustained. On subsequent recognition and measurement, the maximum amount which is more likely than not to be recognized at each reporting date will represent the Company’s best estimate, given the information available at the reporting date, although the outcome of the tax position is not absolute or final. The Company elected to follow an accounting policy to classify accrued interest related to liabilities for income taxes within the “Interest expense” line and penalties related to liabilities for income taxes within the “Other expense” line of the consolidated statements of operations and comprehensive loss. ADVERTISING COSTS The Company reports the cost of all advertising as expense in the period in which those costs are incurred. Advertising costs were approximately $76,000 10,000 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 year, and revenues and costs are translated using average exchange rates for the year. The resulting 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 consolidated statements of operations for the years ended May 31, 2022 and 2021. RIGHT-OF-USE ASSETS AND LEASE LIABILITY In February 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update which requires lessees to recognize most leases on the balance sheet with a corresponding right-of-use asset. 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 adopted this guidance as of June 1, 2019, the required effective date, which resulted in a right-of-use asset being recorded of approximately $1,943,000 and a lease liability being recorded of approximately $1,981,000. On April 9, 2021, the Company exercised its second option to extend its lease for an additional five years. As part of that lease extension agreement, the Company was granted an additional right to extend its lease for five years, up through August 2031. However, given the recent growth in the Company’s operations, and the expectation that operations will continue to grow in the near future, the Company believes that it will be necessary to relocate into larger facilities by the end of the current lease term. Therefore, the Company has elected to not include the additional five-year extension option, from August 2026 to August 2031, into its right-of-use asset or its lease liability accounts. For additional information, see Note 9-Commitments and Contingencies. 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 amounts of anti-dilutive stock options not included in the loss per share calculation for the years ended May 31, 2022 and 2021 were 2,321,616 and 2,081,366, respectively. SEGMENT REPORTING ASC 280, Segment Reporting (“ASC 280”), establishes standards for reporting, by public business enterprises, information about operating segments, products and services, geographic areas, and major customers. The Company’s operations are analyzed by management and its chief operating decision maker as being part of a single industry segment: the design, development, marketing, and sales of diagnostic kits. REPORTING COMPREHENSIVE LOSS Comprehensive loss represents net loss and any revenues, expenses, gains and losses that, under GAAP, are excluded from net loss and recognized directly as a component of shareholders’ equity. Items of other comprehensive loss consist solely of foreign currency translation adjustments for the years ended May 31, 2022 and 2021. RECENT ACCOUNTING PRONOUNCEMENTS Recent ASU's issued by the FASB and guidance issued by the SEC did not, or are not believed by 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, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This ASU will require 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 201·9- 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 Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted. The Company is currently reviewing the requirements of this ASU to determine its impact on the Company’s consolidated results of operations and financial position. RECLASSIFICATIONS Certain comparative figures in the 2021 Statement of Operations have been reclassified to conform to the current year’s presentation. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
May 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 3: PROPERTY AND EQUIPMENT, NET The following is an approximate breakdown of property and equipment, net of accumulated depreciation: May 31, 2022 2021 Equipment $ 1,292,000 $ 1,850,000 Furniture, fixtures and leasehold improvements 227,000 433,000 Less accumulated depreciation (1,305,000) (1,972,000) Net property and equipment $ 214,000 $ 311,000 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
May 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE 4: INTANGIBLE ASSETS, NET The following is an approximate breakdown of intangible assets, net of accumulated amortization: May 31, 2022 2021 Licenses $ - $ 182,000 Patents 189,000 240,000 Less accumulated amortization-licenses - (107,000) Less accumulated amortization-patents (19,000) (20,000) Intangible asssets, net $ 170,000 $ 295,000 Expected amortization of intangible assets for the years ending May 31: 2023 $ 13,000 2024 13,000 2025 13,000 2026 13,000 2027 13,000 Thereafter 105,000 Total $ 170,000 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
May 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 5: ACCOUNTS PAYABLE AND ACCRUED EXPENSES The following is an approximate breakdown of accounts payable and accrued expenses balances: May 31, 2022 2021 Accounts payable $ 736,000 $ 431,000 Accrued expenses 236,000 152,000 Total $ 972,000 $ 583,000 As of May 31, 2022 and 2021 the Company had two vendors and one vendor, respectively, which accounted for 69% and 17%, respectively, of accounts payable. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
May 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 6: SHAREHOLDERS' EQUITY STOCK OPTION AND RESTRICTED STOCK PLANS In December 2014, the Company adopted a stock option and restricted stock plan (the "2014 Plan") which provides that non-qualified options and incentive stock options and restricted stock covering an aggregate of 850,000 shares of the Company's unissued common stock may be granted to affiliates, employees, or consultants of the Company. This plan was approved by shareholders in December 2014. The 2014 Plan expires in December 2024. Options granted under the 2014 Plan will be granted at prices not less than 80% of the then fair market value of the common stock and will expire not more than 10 years after the date of grant. In December 2017, the Company adopted a stock option and restricted stock plan (the “2017 Plan”) which provides that non-qualified options and incentive stock options and restricted stock covering an aggregate of 900,000 shares of the Company’s unissued common stock may be granted to affiliates, employees, or consultants of the Company. This plan was approved by shareholders in December 2017. The 2017 Plan expires in December 2027. Options granted under the 2017 Plan will be granted at prices not less than 80% of the then fair market value of the common stock and will expire not more than 10 years after the date of grant. In February 2020, the Board approved the 2020 Stock Incentive Plan (the “2020 Plan”) and on December 11, 2020, the shareholders of the Company approved The Plan. The 2020 Plan authorizes the issuance of an aggregate number of common stock options and/or restricted common shares to be issued in an amount not to exceed 900,000. The 2020 Plan authorizes the issuance of common stock options and restricted common shares to employees, directors, and consultants of the Company. During fiscal 2020, certain common stock options were granted under this plan. Stock option expense during fiscal 2022 was approximately $1,260,000. This included, by department, $954,000 for administrative, $159,000 for production, $80,000 for research and development and $67,000 for sales and marketing. Stock option expense during fiscal 2021 was approximately $1,355,000. This included, by department, $957,000 for administrative, $205,000 for production, $125,000 for research and development and $68,000 for sales and marketing Activity as to aggregate stock options outstanding is as follows: NUMBER OF EXCERCISE WEIGHTED Options outstanding at May 31, 2020 1,789,251 $0.82-$8.18 $ 2.75 Options granted 430,616 $5.14-$8.70 $ 6.73 Options excercised (86,750) $0.82-$3.62 $ 1.20 Options canceled or expired (51,751) $2.35-$8.18 $ 4.77 Options outstanding at May 31, 2021 2,081,366 $0.82-$8.70 $ 3.59 Options granted 344,000 $4.25-$4.46 $ 4.43 Options excercised (39,500) $1.20-$3.62 $ 1.99 Options canceled or expired (64,250) $1.61-$8.18 $ 4.41 Options outstanding at May 31, 2022 2,321,616 $0.82-$8.70 $ 3.72 The weighted average fair value of options granted during 2022 and 2021 were $4.43 and $6.73, respectively. The aggregate intrinsic value of options exercised during 2022 and 2021 was approximately $90,000 and $501,000, respectively. The aggregate intrinsic value of options outstanding on May 31, 2022 and 2021 was approximately $1,838,000 and $2,132,000, respectively. The aggregate intrinsic value of options vested and exercisable on May 31, 2022 and 2021 was approximately $1,731,000 and $1,872,000, respectively. The number of non-vested stock options included in the table above is as follows: Number of Stock options Non-vested shares at May 31, 2021 793,241 $ 5.54 Granted 344,000 4.43 Vested (347,279) 5.40 Forfeited (43,500) 5.22 Non-vested shares at May 31, 2022 746,462 $ 5.11 On May 31, 2022, total compensation cost related to non-vested stock option awards not yet recognized totaled approximately $1,982,000. The weighted-average period over which this amount is expected to be recognized is 2.32 years. The weighted average remaining contractual term of options that were exercisable on May 31, 2022, was 5.47 years. The following summarizes information about all the Company's stock options outstanding on May 31, 2022. These options are comprised of those granted under the 2014, 2017 and 2020 plans. RANGE OF NUMBER WEIGHTED WEIGHTED NUMBER WEIGHTED $0.82-$1.52 456,000 3.33 $1.04 456,000 $1.04 $2.25-$4.25 1,015,750 6.14 $2.90 852,500 $2.88 $4.34-$8.70 849,866 8.75 $6.13 266,654 $7.06 COMMON STOCK ACTIVITY On January 22, 2021, the Company filed a Prospectus Supplement, for purposes of raising up to $15,000,000 to the base prospectus filed with the SEC on July 21, 2020, and declared effective by the SEC on September 30, and an ATM Agreement. On May 21, 2021, in conjunction with the Company’s 2020 Stock Incentive Plan, that was approved by shareholders at the Company’s annual meeting in December 2020, the Company filed an S-8 Registration Statement to register up to 900,000 shares of the Company’s common stock that could be issued under this Plan. Under ATM Agreements, sales of the Placement Shares are deemed to be “at the market offering” as defined in Rule 415 promulgated under the Securities Act. The agent acts as sales agent under the ATM and uses commercially reasonable efforts to sell on the Company’s behalf all of the Placement Shares requested to be sold from time to time by the Company, consistent with its normal trading and sales practices, on mutually agreed terms between the agent and the Company. The Company has no obligation to sell any of the Placement Shares under the ATM Agreement, and may at any time suspend offers under, or terminate the ATM Agreement. During the year ended May 31, 2022, the Company sold 521,267 shares of its common stock at prices ranging from $4.02 to $5.63 under its Form S-3 Registration Statement ( File No. 333-239980) and ATM Agreement which resulted in gross proceeds of approximately $2,402,000 and net proceeds to the Company of $2,317,000 after deducting commissions for each sale and legal, accounting, and other fees related to the filing of the Form S-3. During the year ended May 31, 2021, the Company sold 158,889 shares of its common stock at prices ranging from $7.06 to $7.79 under its Form S-3 Registration Statement (File No. 333-239980) and ATM Agreement which resulted in gross proceeds of approximately $1,177,000 and net proceeds to the Company of $1,011,000 after deducting commissions for each sale and legal, accounting, and other fees related to the filing of the Form S-3. During the year ended May 31, 2022, options to purchase 39,500 shares of common stock were exercised at prices ranging from $1.20 to $3.62. Total net proceeds to the Company were approximately $77,000. During the year ended May 31, 2021, 321,429 shares of common stock were converted from Preferred Stock as described below in “Preferred Stock Activity”. PREFERRED STOCK ACTIVITY On February 24, 2020, the Company entered into and closed on a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Palm Global Small Cap Master Fund LP (“Palm”) pursuant to which the Company agreed to sell and issue to Palm, and Palm agreed to purchase from the Company, 571,429 shares of the Company’s Series A 5% Convertible Preferred Stock, $0.08 par value per share for a purchase price of approximately $2 million, or $3.50 per Series A Convertible Preferred Stock. Under the terms of the Stock Purchase Agreement, each share of issued Convertible Preferred Stock can be converted at any time by Palm into one share of the Company’s common stock, subject to certain adjustments. The Series A 5% Convertible Preferred Stock accrued annual preferred dividends at a rate of $0.175 per Series A 5% Convertible Preferred Share. However, accruing dividends were payable only when, as, and if declared by the Board and the Company had no obligation to pay such accruing dividends. On March 24, 2020, Palm converted 250,000 shares of Convertible Preferred Stock into 250,000 shares of unregistered common stock. On July 21, 2020, the Company filed with the SEC a registration statement on Form S-3, that among other things, registered 571,429 common shares issued, or to be issued, to Palm upon conversion of the Convertible Preferred Stock into common shares. On September 30, 2020, the Company received a Notice of Effectiveness from the Securities and Exchange Commission for registration of these shares. On January 21, 2021, Palm Converted their remaining 321,429 Convertible Preferred Shares into registered common shares. On May 30, 2021, the Company had no shares of Preferred Stock outstanding. Under the terms of the Preferred Stock Purchase Agreement, none of the cumulative Dividends were paid to Palm during the period they owned the Preferred Stock. Once converted to common shares, Palm lost all rights to receive any past cumulative dividends. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
May 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 7: INCOME TAXES Provision for income taxes for the years ended May 31 consists of the following: For the year ended May 31, 2022 2021 Current: U.S. Federal $ - $ - Foreign Taxes Subsidiaries (23,000) (12,000) State and local (1,000) (1,000) Total current (24,000) (13,000) Deferred: U.S. Federal - - State and local - - Total deferred - - Income tax expense $ (24,000) $ (13,000) Provision for income taxes differs from the amounts computed by applying the U.S. Federal income tax rate applicable for each year ( 21% For the year ended May 31, 2022 2021 Computed "expected" tax benefit $ 947,000 $ 1,561,000 Increase (reduction) in income taxes resulting from: Change in valuation allowance (1,022,000) (2,292,000) State income taxes, net of federal benefit 300,000 217,000 Research and development tax credits 50,000 456,000 Permanent tax differences and other (217,000) (88,000) Stock based compensation benefit 11,000 145,000 Foreign taxes of subsidiaries (113,000) (12,000) Income tax expense $ (24,000) $ (13,000) The tax effect of significant temporary differences is presented below: May 31, 2022 2021 Deferred tax assets: Accounts receivable, principally due to allowance for doubtful accounts $ 43,000 $ 200,000 Inventory valuation 237,000 387,000 Compensated absences 120,000 85,000 Net operating loss carryforwards 4,349,000 3,194,000 Tax credit carryforwards 1,096,000 1,055,000 Deferred rent expense/Capitalized leases 20,000 15,000 Stock Options 1,035,000 613,000 Losses of foreign subsidiaries & Other, net 41,000 370,000 Accumulated depreciation and amortization 26,000 (15,000) Total deferred tax assets 6,967,000 5,904,000 Less valuation allowance (6,967,000) (5,904,000) Net deferred tax asset $ - $ - The Company has provided a valuation allowance of approximately $6,967,000 $1,063,000 On May 31, 2022, the Company has Federal income tax net operating loss carryforwards of approximately $17,116,000 $10,805,000 2023 and 2037 2018 On May 31, 2022, the Company has Federal research and development tax credit carryforward of approximately $784,000 2027 of $395,000 Pursuant to Internal Revenue Code (“IRC”) Sections 382 and 383, annual use of the Company's net operating loss ("NOL") and credit carryforwards may be limited by statute because of a cumulative change in ownership of more than 50%. Pursuant to Sections 382 and 383 of the IRC, the annual use of the Company's NOLs and credit carryforwards would be limited if there is a cumulative change of ownership (as that term is defined in Section 382(g) of the IRC of greater than 50% in a three-year period. Management has not performed an analysis to determine if the Company has had a cumulative change in ownership of greater than 50%. For the year ended May 31, 2022, the Company did an analysis of its ASC 740 position and has not identified any uncertain tax positions as defined under ASC 740 2018 |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
May 31, 2022 | |
Geographic Information Disclosure Abstract | |
Geographic Information Disclosure [Text Block] | NOTE 8: GEOGRAPHIC INFORMATION The Company operates as one segment. Geographic information regarding net sales is approximately as follows: For the year ended May 31, 2022 2021 Asia $ 13,375,000 71% $ 1,908,000 26% Europe 4,339,000 23% 4,301,000 60% North America 997,000 5% 548,000 8% South America 90,000 1% 250,000 3% Middle East 70,000 0% 192,000 3% Total $ 18,871,000 100% $ 7,199,000 100% |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
May 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 9: COMMITMENTS AND CONTINGENCIES OPERATING LEASES The Company leases its facilities. On May 31, 2022, the Company had approximately 22,000 square feet of floor space at its corporate headquarters at 17571 Von Karman Avenue in Irvine, California, which it has been leasing since 2009. The lease for its headquarters expired on August 31, 2016. The Company had an option to extend the term of its lease for two additional sixty-month periods. On November 30, 2015, the Company exercised its option to extend its lease for an additional sixty-month period and entered into the First Amendment to Lease wherein it extended its lease until August 31, 2021. On April 9, 2021, the Company exercised its second option to extend its lease for an additional five years. When the Company extended its lease in April 2021, it was also granted an additional five-year lease extension option. The current rent is approximately $25,000 per month and will increase on September 1, 2022, to $26,000 per month. The security deposit is approximately $22,000. In November 2016, the Company’s Mexican subsidiary, Biomerica de Mexico, entered into a 10-year lease for approximately 8,100 square feet of manufacturing space. The Company has one 10-year option to renew at the end of the initial lease period. The current rent is approximately $3,400 per month. Biomerica de Mexico also leases a smaller unit on a month-to-month basis for use in one manufacturing process. In addition, the Company leases a small office in Lindau, Germany on a month-to-month basis, as headquarters for BioEurope GmbH, its Germany subsidiary. Total gross rent expense in the United States for fiscal 2022 was approximately $310,000, and for fiscal 2021 was $295,000. Rent expense for the Mexico facility for fiscal 2022 and 2021 was approximately $42,000 and $25,000, respectively. 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 liability. 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 liability but are instead recognized as variable lease expense in the Consolidated Statements of Operations and Comprehensive Loss when they are incurred. Supplemental cash flow information related to leases for the year ended May 31, 2022: Operating cash flows from operating leases $ 338,206 Right-of-use assets obtained in exchange for $ - Weighted average remaining lease term (in years) 4.28 Weighted average discount rate 6.50% Future minimum lease payments under operating leases on May 31, 2022, are as follows: Less than 1 year $ 351,000 1 to 2 years 362,000 2 to 3 years 373,000 3 to 4 years 384,000 4 to 5 years 104,000 Total undiscounted lease payments 1,574,000 Less imputed interest 194,000 Total operating lease liabilities $ 1,380,000 According to the terms of the lease in Irvine, the Company is also responsible for routine repairs of the building and for certain increases in property tax. The Company also has various insignificant leases for office equipment. RETIREMENT SAVINGS PLAN Effective September 1, 1986, the Company established a 401(k) plan for the benefit of its employees. The plan permits eligible employees to contribute to the plan up to the maximum percentage of total annual compensation allowable under the limits of IRC Sections 415, 401(k) and 404. The Company, at the discretion of its Board of Directors, may make contributions to the plan in amounts determined by the Board each year. No contributions by the Company have been made since the plan's inception. LITIGATION The Company is, from time to time, involved in legal proceedings, claims and litigation arising in the ordinary course of business. While the amounts claimed may be substantial, the ultimate liability cannot presently be determined because of considerable uncertainties that exist. Therefore, it is possible the outcome of such legal proceedings, claims and litigation could have a material effect on quarterly or annual operating results or cash flows when resolved in a future period. However, based on facts currently available, management believes such matters will not have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. There were no legal proceedings pending as of May 31, 2022. CONTRACTS Contracts and Licensing Agreements The Company has one royalty agreement in which it has obtained rights to manufacture and market certain products for the life of the products. Royalty expense of approximately $19,000 and $11,000 is included in cost of sales for the agreement for each of the years ended May 31, 2022 and 2021, respectively. Sales of products manufactured under these agreements comprise approximately 1.5% and 1.5% of total sales for the years ended May 31, 2022 and 2021, respectively. The Company may license other products or technology in the future as it deems necessary for conducting business. The Company has other royalty agreements however they are not considered material. On May 25, 2016, the Company entered into an Exclusive Marketing License Agreement (“Telcon Agreement”) with Celtis Pharm Co., Ltd., who subsequently changed their name to Telcon Pharmaceutical Co., LTD (“Telcon”), a medical company in South Korea. The Telcon Agreement grants to Telcon an exclusive license to market and sell Biomerica’s new InFoods® IBS products (“IBS Products”) in South Korea. The term of the agreement is for a period of five years following Korean FDA clearance of the product and provides an additional two years for Telcon to attain such Korean FDA clearance. The sequential two-year and five-year terms do not begin until after Biomerica first receives final clearance for sale of the IBS Products in the United States from the FDA. Telcon, at its sole cost and expense, must use its commercially reasonable good faith efforts to obtain Korean FDA for the IBS Product to be sold in South Korea. The agreement may be cancelled if Biomerica has not obtained final USFDA clearance for sale of the IBS Products on or before December 31, 2019. The required FDA approval was not obtained by December 31, 2019, however, neither party has terminated the agreement. Once the IBS Product is cleared by the United States FDA, Biomerica is also obligated to maintain a full quality assurance system for the IBS Products following the harmonized standards according to Annex IV of Directive 98/79/EC. The terms of the Telcon Agreement provide up to $1.25 million in future exclusivity fees to be possibly paid to Biomerica based on certain milestones including Biomerica’s starting clinical trials in the United States, receipt of U.S. FDA clearance and Telcon’s first sales of IBS Products in Korea. If Biomerica commences FDA Trials and Telcon pays the initial $250,000 milestone-based exclusivity fees, and the Agreement is subsequently terminated by either party for lack of performance, then Biomerica shall issue to Telcon 83,333 shares of Biomerica common stock in consideration for the $250,000 of paid exclusivity fee. No exclusivity fees have yet been paid. Additionally, the Telcon Agreement provides for a royalty of 15% paid to Biomerica on all sales in Korea of the IBS Product, and further sets the pricing of IBS Products sold to Telcon. In order to retain the exclusivity within South Korea, Telcon must meet certain annual minimum royalty payments to Biomerica following Telcon’s receipt of Korean FDA approval or clearance for the IBS Product to be sold in Korea, which in no case will be later than May 31, 2019. On April 1, 2020, the Company entered into two separate non-exclusive license agreements (the “Mount Sinai License Agreements”) with the Mount Sinai Icahn School of Medicine in New York (“Mount Sinai”) to license technology from Mount Sinai that the Company intends to use to scale up and manufacture a laboratory version serological test for SARS-CoV-2 coronavirus. The non-exclusive Mount Sinai License Agreements provide for royalty payments to Mount Sinai based on a percentage of gross sales of commercial products manufactured and sold by Biomerica that incorporate the Mount Sinai technology licensed under the Mount Sinai License Agreement. On June 20, 2020, the Company filed for Emergency Use Authorization (“EUA”) with the FDA for the sale of a product developed by the Company that is based on this technology. The FDA has still not approved the Company’s Emergency Use Authorization for this product to be sold. As such, no royalty fees have been paid yet on these agreements. The Company is selling a COVID-19 rapid test outside of the United States, which is unrelated to the EUA product discussed above. On May 7, 2020, the Company entered into an exclusive license agreement (the “UC License Agreement”) with The Regents of the University of California (“UC”) to license all patent rights pertaining to certain licensed technology from UC. This technology is being developed at UC-San Diego by one of the professors and his team utilizing CRISPR technology. This group is developing a viral detection test for SARS-CoV-2 coronavirus. If this technology development is successful, the Company will work with the UC to transfer the technology to Biomerica where the CRISPR based product will need to be further developed, validated, and cleared with regulatory agencies for commercial sale into the market. The exclusive UC License Agreement provides for an initial and annual license fee, and a royalty payment on all commercial revenues, to the UC Regents. The UC License Agreement also includes certain investment requirements and milestones the Company will need to meet for the launch of a commercial product based on the licensed technology. The Company paid an initial license fee of $5,000 with the execution of the agreement. An additional $5,000 was paid in September 2020. No royalties have been paid yet on this agreement. A license maintenance fee of $10,000 is due annually. This is creditable against earned royalties due each year in the amount of five percent on net sales of licensed products. Clinical Trial Agreements In September 2017, the Company signed a Clinical Samples Agreement with the University of Southern California for the purpose of providing clinical samples for use by the Company in conducting future clinical trials for one of the products which the Company is developing. The initial budget was estimated to be approximately $82,000. The work started in October 2017 with charges for work performed being invoiced and paid monthly. This study ended in February 2020. Approximately $17,000 in fees has been accrued for unbilled charges as of May 31, 2022. The Company entered into a Clinical Trial Agreement with a research institute for the purpose of conducting a clinical trial of the Biomerica InFoods® product. The term of the agreement shall be until completion of the work outlined and the charges will be invoiced monthly for work performed in the previous month. The maximum budgeted costs will be approximately $107,000. This study ended in March 2022. Approximately $28,000 in fees has been accrued for unbilled charges as of May 31, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
May 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 10: SUBSEQUENT EVENTS Subsequent to May 31, 2022, as of the filing of Form 10-K, the Company sold 523,977 shares of its common stock under its Form S-3 “shelf” Registration statement. The average sale price was $3.46 per share. Net proceeds to the Company were approximately $1,765,000. On July 14, 2022, the Company announced they had entered into a General Merchandise Supplier Agreement with Walmart, for the Company’s Aware ® |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
May 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | PRINCIPLES OF CONSOLIDATION The consolidated financial statements for the years ended May 31, 2022 and 2021, include the accounts of Biomerica, Inc. ("Biomerica") as well as its wholly-owned German subsidiary (BioEurope GmbH) and Mexican subsidiary (Biomerica de Mexico). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | ACCOUNTING ESTIMATES The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“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 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 past 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. Due to the Coronavirus global pandemic, the Company’s operations have been negatively impacted. The Company has faced disruptions in the following areas, (and may face further challenges): supply chain disruptions, loss of contracts and/or customers, closure of the Company’s manufacturing or distribution facilities or of the facilities of the Company’s suppliers, partners and customers, travel, shipping and logistical disruptions, government responses of all types, international business risks in countries where the Company makes and/or sells its products, loss of human capital or personnel at the Company, its partners and its customers, interruptions of production, customer credit risk, and general economic calamities. These ongoing pandemic related disruptions can materially negatively impact the Company’s operations and financial performance and may continue to have significant material negative impacts on the Company. |
Liquidity [Policy Text Block] | LIQUIDITY The Company has incurred net losses and negative cash flows from operations and has an accumulated deficit of approximately $35.3 million as of May 31, 2022. Management expects to continue to incur significant costs as it advances its trials and development activities. As of May 31, 2022, the Company had cash and cash equivalents of approximately $5,917,000 and working capital of approximately $7,416,000. On January 22, 2021, the Company filed a Prospectus Supplement for purposes of raising up to $15,000,000 to the base prospectus filed with the SEC on July 21, 2020, and was declared effective by the SEC on September 30, 2020, and an ATM “at the market offering” Agreement. The Company intends to use the net proceeds from such offering for general corporate purposes, including, without limitation, sales and marketing activities, clinical studies, and product development, making acquisitions of assets, businesses, companies or securities, capital expenditures, and for working capital needs. Under an ATM Agreement, sales of the Placement Shares are deemed to be “at the market offering” as defined in Rule 415 promulgated under the Securities Act. The agent acts as sales agent under the ATM and uses commercially reasonable efforts to sell on the Company’s behalf all the Placement Shares requested to be sold from time to time by the Company, consistent with its normal trading and sales practices, on mutually agreed terms between the agent and the Company. The Company has no obligation to sell any of the Placement Shares under the ATM Agreement, and may at any time suspend offers under, or terminate the ATM Agreement. During the year ended May 31, 2022, the Company sold 521,267 shares of its common stock at prices ranging from $4.02 to $5.63 under its Form S-3 Registration Statement ( File No. 333-239980) and ATM Agreement which resulted in gross proceeds of approximately $2,402,000 and net proceeds to the Company of $2,317,000 after deducting commissions for each sale and legal, accounting, and other fees related to the filing of the Form S-3. As a result of cash and cash equivalents on hand on May 31, 2022, and the ability to raise additional funds through the ATM noted above, management believes the Company has sufficient funds to operate through at least August 2023. |
Fair Value Measurement, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company has financial instruments whereby the fair market value of the financial instruments could be different than that recorded on a historical basis. The Company's financial instruments consist of its cash and cash equivalents, accounts receivable, and accounts payable. The carrying amounts of the Company's financial instruments approximate their fair values. The Company also maintains an investment in privately held company (see below). |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | CONCENTRATION OF CREDIT RISK The Company maintains cash balances at certain financial institutions in excess of amounts insured by federal agencies. As of May 31, 2022, the Company had approximately $5,702,000 of uninsured cash. The Company does not believe it is exposed to any significant credit risks. The Company provides credit in the normal course of business to customers throughout the United States and in foreign markets. The Company performs ongoing credit evaluations of its customers and requires accelerated prepayment in some circumstances. Our net sales were approximately $18,871,000 for fiscal 2022 compared to $7,199,000 for fiscal 2021. For the fiscal years ended May 31, 2022 and 2021, the Company had two distributors, which accounted for a total of 65% and 60% of our net sales, respectively. Of this, for the fiscal years ended May 31, 2022 and 2021, the largest of the distributors mentioned above accounted for 55% and 33%, respectively, of net sales. Total gross receivables on May 31, 2022 and 2021 were approximately $927,000 and $2,292,000, respectively. On May 31, 2022 and 2021, the Company had one distributor and two distributors, respectively, which accounted for a total of 50% and 73%, respectively, of gross accounts receivable. Of the 50% as of May 31, 2022, 50% was owed by a distributor in Asia. For the fiscal years ended May 31, 2022 and 2021, the Company had one vendor, which accounted for 84% and 58%, respectively, of our purchases of raw materials. |
Concentration Risk Geographic Policy [Policy Text Block] | GEOGRAPHIC CONCENTRATION As of May 31, 2022 and 2021, a pproximately $621,000 and $803,000, respectively As of May 31, 2022 and 2021, and $25,000, respectively |
Cash and Cash Equivalents, Policy [Policy Text Block] | 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 [Policy Text Block] | 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. 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. Management evaluates receivables on a quarterly basis and adjusts the allowance for doubtful accounts accordingly. Balances over ninety days old are usually reserved for unless collection is reasonably assured. Occasionally certain long-standing customers, who routinely place large orders, will have unusually large receivables 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 May 31, 2022 and 2021, the Company has established a reserve of approximately $153,000 and $837,000, respectively, for doubtful accounts. |
Prepaids Policy [Policy Text Block] | PREPAIDS The Company occasionally prepays for items such as inventory, insurance, and other items. These items are reported as prepaids, until either the inventory is physically received or the insurance and other items are utilized. As of May 31, 2022 and 2021, the prepaids were approximately $320,000 and $370,000, respectively, composed of prepayments to insurance and various other suppliers. |
Inventory, Policy [Policy Text Block] | 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. The following is a summary of approximate net inventories: May 31, 2022 2021 Raw materials $ 1,717,000 $ 1,812,000 Work in progress 763,000 1,687,000 Finished products 782,000 1,324,000 Total gross inventory $ 3,262,000 $ 4,823,000 Inventory reserve (846,000) (1,617,000) Net inventory $ 2,416,000 $ 3,206,000 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 May 31, 2022 and 2021, inventory reserves were approximately $846,000 and $1,617,000, respectively. During the fiscal 2022 the Company disposed of COVID-19 antibody inventory that wasn’t sellable, this has been partially reserved for in fiscal 2021. The reduction in our inventory reserve relates to the COVID-19 antibody disposal. The Company continues to sell COVID-19 antigen tests. |
Property, Plant and Equipment, Policy [Policy Text Block] | 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 to 10 years, using the straight-line method. Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or the term of the lease. Depreciation and amortization expense on property and equipment amounted to approximately $100,000 and $105,000 for the years ended May 31, 2022 and 2021, respectively. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | INTANGIBLE ASSETS, NET Intangible assets include trademarks, product rights, technology rights and patents, and are accounted for based on Accounting Standards Codification (“ASC”), ASC 350 Intangibles – Goodwill and Other (“ASC 350”). In that regard, intangible assets that have indefinite useful lives are not amortized but are tested at least 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 years for marketing and distribution rights, 10 years for purchased technology use rights, and 20 years for patents. Amortization amounted to approximately $239,000 and $34,000 for the years ended May 31, 2022 and 2021, respectively. 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. As of May 31, 2022 and 2021, an impairment adjustment was made of $210,000 and $0, respectively. |
Investment, Policy [Policy Text Block] | INVESTMENTS From time-to-time, the Company makes investments in privately held companies. Investments represent the Company’s investment in a Polish distributor, which is primarily engaged in distributing medical products and devices. The Company owns approximately 6% of the investee and, accordingly, applies the cost method holdings to account for the investment. The Company invested approximately $165,000 into the Polish distributor. 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 May 31, 2022 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 Holding during the year ended May 31, 2022. |
Share-Based Payment Arrangement [Policy Text Block] | 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 options-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 $1,260,000 and $1,355,000 of stock-based compensation during the years ended May 31, 2022 and 2021, respectively. In applying the Black-Scholes options-pricing model, assumptions used were as follows: For the year ended May 31, 2022 2021 Dividend yield 0% 0% Expected volatility 102.54 - 105.48% 71.19 - 107.53% Risk free interest rate 0.97-2.75% 0.34-1.18% Expected term 5.50-6.25 Years 5.50-6.25 Years |
Revenue [Policy Text Block] | 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 allow for returns 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 they receive purchase discounts for achieving specified sales volumes. The Company regularly evaluates the status of these contracts and does not believe that any additional discounts will be given through the end of the contract periods. Services for contract work are invoiced and recognized for work that has been performed 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. Physicians’ 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. Disaggregation of revenue: The following is an approximate breakdown of revenues according to primary markets to which the products are sold: For the year ended May 31, 2022 2021 Physician's office $ 14,259,000 $ 2,801,000 Clinical lab 3,064,000 3,077,000 Over-the-counter 1,089,000 766,000 Contract manufacturing 459,000 555,000 Total $ 18,871,000 $ 7,199,000 See Note 8 for additional information regarding geographic revenue concentrations. |
Cost of Goods and Service [Policy Text Block] | SHIPPING AND HANDLING FEES The Company includes shipping and handling fees billed to customers in net sales. |
Research and Development Expense, Policy [Policy Text Block] | RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred. The Company expensed approximately $1,812,000 and $2,194,000 of research and development costs during the years ended May 31, 2022 and 2021, respectively. |
Income Tax, Policy [Policy Text Block] | INCOME TAXES The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities arise from temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years and the benefits of net operating loss and tax credit carryforwards. These temporary differences and the benefits of net operating loss and tax credit carryforwards are measured using enacted tax rates. A valuation allowance is recorded to reduce deferred tax assets to the extent that management considers it is more likely than not that a deferred tax asset will not be realized. In determining the valuation allowance, the Company considers factors such as the reversal of deferred income tax assets, projected taxable income, and the character of income tax assets and tax planning strategies. A change to these factors could impact the estimated valuation allowance and income tax expense. On May 31, 2022 and 2021, in accordance with ASC 740, the Company has a valuation allowance for substantially all of its net deferred tax assets. During the fiscal year ended May 31, 2022, this valuation allowance was increased to $6,967,000, which fully covers the net tax asset of $6,967,000 . The Company accounts for its uncertain tax provisions by using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not, based solely on the technical merits, that the position will be sustained in an audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the appropriate amount of the benefit to recognize. The amount of benefit to recognize is measured as the maximum amount which is more likely than not to be realized. The tax position is derecognized when it is no longer more likely than not capable of being sustained. On subsequent recognition and measurement, the maximum amount which is more likely than not to be recognized at each reporting date will represent the Company’s best estimate, given the information available at the reporting date, although the outcome of the tax position is not absolute or final. The Company elected to follow an accounting policy to classify accrued interest related to liabilities for income taxes within the “Interest expense” line and penalties related to liabilities for income taxes within the “Other expense” line of the consolidated statements of operations and comprehensive loss. |
Advertising Cost [Policy Text Block] | ADVERTISING COSTS The Company reports the cost of all advertising as expense in the period in which those costs are incurred. Advertising costs were approximately $76,000 10,000 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 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 year, and revenues and costs are translated using average exchange rates for the year. The resulting 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 consolidated statements of operations for the years ended May 31, 2022 and 2021. |
Lessee, Leases [Policy Text Block] | RIGHT-OF-USE ASSETS AND LEASE LIABILITY In February 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update which requires lessees to recognize most leases on the balance sheet with a corresponding right-of-use asset. 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 adopted this guidance as of June 1, 2019, the required effective date, which resulted in a right-of-use asset being recorded of approximately $1,943,000 and a lease liability being recorded of approximately $1,981,000. On April 9, 2021, the Company exercised its second option to extend its lease for an additional five years. As part of that lease extension agreement, the Company was granted an additional right to extend its lease for five years, up through August 2031. However, given the recent growth in the Company’s operations, and the expectation that operations will continue to grow in the near future, the Company believes that it will be necessary to relocate into larger facilities by the end of the current lease term. Therefore, the Company has elected to not include the additional five-year extension option, from August 2026 to August 2031, into its right-of-use asset or its lease liability accounts. For additional information, see Note 9-Commitments and Contingencies. 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. |
Earnings Per Share, Policy [Policy Text Block] | 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 amounts of anti-dilutive stock options not included in the loss per share calculation for the years ended May 31, 2022 and 2021 were 2,321,616 and 2,081,366, respectively. |
Segment Reporting, Policy [Policy Text Block] | SEGMENT REPORTING ASC 280, Segment Reporting (“ASC 280”), establishes standards for reporting, by public business enterprises, information about operating segments, products and services, geographic areas, and major customers. The Company’s operations are analyzed by management and its chief operating decision maker as being part of a single industry segment: the design, development, marketing, and sales of diagnostic kits. |
Comprehensive Income, Policy [Policy Text Block] | REPORTING COMPREHENSIVE LOSS Comprehensive loss represents net loss and any revenues, expenses, gains and losses that, under GAAP, are excluded from net loss and recognized directly as a component of shareholders’ equity. Items of other comprehensive loss consist solely of foreign currency translation adjustments for the years ended May 31, 2022 and 2021. |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENT ACCOUNTING PRONOUNCEMENTS Recent ASU's issued by the FASB and guidance issued by the SEC did not, or are not believed by 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, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This ASU will require 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 201·9- 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 Securities and Exchange Commission to fiscal years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted. The Company is currently reviewing the requirements of this ASU to determine its impact on the Company’s consolidated results of operations and financial position. |
Reclassification, Comparability Adjustment [Policy Text Block] | RECLASSIFICATIONS Certain comparative figures in the 2021 Statement of Operations have been reclassified to conform to the current year’s presentation. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
May 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | May 31, 2022 2021 Raw materials $ 1,717,000 $ 1,812,000 Work in progress 763,000 1,687,000 Finished products 782,000 1,324,000 Total gross inventory $ 3,262,000 $ 4,823,000 Inventory reserve (846,000) (1,617,000) Net inventory $ 2,416,000 $ 3,206,000 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | For the year ended May 31, 2022 2021 Dividend yield 0% 0% Expected volatility 102.54 - 105.48% 71.19 - 107.53% Risk free interest rate 0.97-2.75% 0.34-1.18% Expected term 5.50-6.25 Years 5.50-6.25 Years |
Disaggregation of Revenue [Table Text Block] | For the year ended May 31, 2022 2021 Physician's office $ 14,259,000 $ 2,801,000 Clinical lab 3,064,000 3,077,000 Over-the-counter 1,089,000 766,000 Contract manufacturing 459,000 555,000 Total $ 18,871,000 $ 7,199,000 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
May 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | May 31, 2022 2021 Equipment $ 1,292,000 $ 1,850,000 Furniture, fixtures and leasehold improvements 227,000 433,000 Less accumulated depreciation (1,305,000) (1,972,000) Net property and equipment $ 214,000 $ 311,000 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
May 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | May 31, 2022 2021 Licenses $ - $ 182,000 Patents 189,000 240,000 Less accumulated amortization-licenses - (107,000) Less accumulated amortization-patents (19,000) (20,000) Intangible asssets, net $ 170,000 $ 295,000 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2023 $ 13,000 2024 13,000 2025 13,000 2026 13,000 2027 13,000 Thereafter 105,000 Total $ 170,000 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
May 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | May 31, 2022 2021 Accounts payable $ 736,000 $ 431,000 Accrued expenses 236,000 152,000 Total $ 972,000 $ 583,000 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
May 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | NUMBER OF EXCERCISE WEIGHTED Options outstanding at May 31, 2020 1,789,251 $0.82-$8.18 $ 2.75 Options granted 430,616 $5.14-$8.70 $ 6.73 Options excercised (86,750) $0.82-$3.62 $ 1.20 Options canceled or expired (51,751) $2.35-$8.18 $ 4.77 Options outstanding at May 31, 2021 2,081,366 $0.82-$8.70 $ 3.59 Options granted 344,000 $4.25-$4.46 $ 4.43 Options excercised (39,500) $1.20-$3.62 $ 1.99 Options canceled or expired (64,250) $1.61-$8.18 $ 4.41 Options outstanding at May 31, 2022 2,321,616 $0.82-$8.70 $ 3.72 |
Schedule of Nonvested Share Activity [Table Text Block] | Number of Stock options Non-vested shares at May 31, 2021 793,241 $ 5.54 Granted 344,000 4.43 Vested (347,279) 5.40 Forfeited (43,500) 5.22 Non-vested shares at May 31, 2022 746,462 $ 5.11 |
Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | RANGE OF NUMBER WEIGHTED WEIGHTED NUMBER WEIGHTED $0.82-$1.52 456,000 3.33 $1.04 456,000 $1.04 $2.25-$4.25 1,015,750 6.14 $2.90 852,500 $2.88 $4.34-$8.70 849,866 8.75 $6.13 266,654 $7.06 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
May 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the year ended May 31, 2022 2021 Current: U.S. Federal $ - $ - Foreign Taxes Subsidiaries (23,000) (12,000) State and local (1,000) (1,000) Total current (24,000) (13,000) Deferred: U.S. Federal - - State and local - - Total deferred - - Income tax expense $ (24,000) $ (13,000) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the year ended May 31, 2022 2021 Computed "expected" tax benefit $ 947,000 $ 1,561,000 Increase (reduction) in income taxes resulting from: Change in valuation allowance (1,022,000) (2,292,000) State income taxes, net of federal benefit 300,000 217,000 Research and development tax credits 50,000 456,000 Permanent tax differences and other (217,000) (88,000) Stock based compensation benefit 11,000 145,000 Foreign taxes of subsidiaries (113,000) (12,000) Income tax expense $ (24,000) $ (13,000) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | May 31, 2022 2021 Deferred tax assets: Accounts receivable, principally due to allowance for doubtful accounts $ 43,000 $ 200,000 Inventory valuation 237,000 387,000 Compensated absences 120,000 85,000 Net operating loss carryforwards 4,349,000 3,194,000 Tax credit carryforwards 1,096,000 1,055,000 Deferred rent expense/Capitalized leases 20,000 15,000 Stock Options 1,035,000 613,000 Losses of foreign subsidiaries & Other, net 41,000 370,000 Accumulated depreciation and amortization 26,000 (15,000) Total deferred tax assets 6,967,000 5,904,000 Less valuation allowance (6,967,000) (5,904,000) Net deferred tax asset $ - $ - |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
May 31, 2022 | |
Geographic Information Disclosure Abstract | |
Revenue from External Customers by Geographic Areas [Table Text Block] | For the year ended May 31, 2022 2021 Asia $ 13,375,000 71% $ 1,908,000 26% Europe 4,339,000 23% 4,301,000 60% North America 997,000 5% 548,000 8% South America 90,000 1% 250,000 3% Middle East 70,000 0% 192,000 3% Total $ 18,871,000 100% $ 7,199,000 100% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
May 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Cash Flow Supplemental Disclosures Related To Lease [Table Text Block] | Operating cash flows from operating leases $ 338,206 Right-of-use assets obtained in exchange for $ - Weighted average remaining lease term (in years) 4.28 Weighted average discount rate 6.50% |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Less than 1 year $ 351,000 1 to 2 years 362,000 2 to 3 years 373,000 3 to 4 years 384,000 4 to 5 years 104,000 Total undiscounted lease payments 1,574,000 Less imputed interest 194,000 Total operating lease liabilities $ 1,380,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | ||
May 31, 2022 | May 31, 2021 | Jan. 22, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ (35,077,379) | $ (30,546,335) | |
Cash and Cash Equivalents, at Carrying Value | 5,916,983 | 4,199,311 | |
Working Capital | 7,416,000 | ||
Shelf Registration Statement, Maximum Authorized Common Stock Issuance, Value | $ 15,000,000 | ||
Proceeds from Issuance of Common Stock | 2,401,734 | 1,177,394 | |
Proceeds from Stock Options Exercised | 77,360 | 102,255 | |
Cash, Uninsured Amount | 5,702,000 | ||
Revenues | 18,871,409 | 7,199,027 | |
Other Receivables, Gross, Current | 927,000 | ||
Inventory, Gross | 3,262,000 | 4,823,000 | |
Property, Plant and Equipment, Net | $ 214,487 | 310,520 | |
Threshold Period Past Due for Write-off of Trade Accounts Receivable | 90 days | ||
Accounts Receivable, Credit Loss Expense (Reversal) | $ (684,184) | 766,434 | |
Increase (Decrease) in Prepaid Supplies | 320,000 | 370,000 | |
Inventory Valuation Reserves | 846,000 | 1,617,000 | |
Depreciation, Depletion and Amortization | 100,000 | 105,000 | |
Amortization of Intangible Assets | 239,000 | 34,000 | |
Asset Impairment Charges | 210,000 | 0 | |
Investments | 165,324 | 165,324 | |
Share-Based Payment Arrangement, Expense | 1,260,000 | 1,355,000 | |
Research and Development Expense | 1,812,424 | 2,194,461 | |
Deferred Tax Assets, Valuation Allowance | 6,967,000 | 5,904,000 | |
Deferred Tax Assets, Gross | 6,967,000 | 5,904,000 | |
Advertising Expense | 76,000 | 10,000 | |
Operating Lease, Right-of-Use Asset | 1,301,834 | $ 1,553,081 | |
Operating Lease, Liability | $ 1,380,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 2,321,616 | 2,081,366 | |
Retained Earnings [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ 35,300,000 | ||
Minimum [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Maximum [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Accounting Standards Update 2016-02 [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 1,943,000 | ||
Operating Lease, Liability | 1,981,000 | ||
Accounts Receivable [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Accounts Receivable, Credit Loss Expense (Reversal) | $ 153,000 | $ 837,000 | |
Distribution Rights [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 18 years | ||
Purchased Technology Rights [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Patents [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
MEXICO | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Inventory, Gross | $ 621,000 | 803,000 | |
Property, Plant and Equipment, Net | $ 17,000 | $ 25,000 | |
Polish Distributor [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 6% | ||
Investments | $ 165,000 | ||
Two Distributors [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 65% | 60% | |
Two Distributors [Member] | Accounts Payable [Member] | Customer Concentration Risk [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 73% | ||
One Distributor [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 55% | 33% | |
One Distributor [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Other Receivables, Gross, Current | $ 2,292,000 | ||
One Vendor [Member] | Accounts Payable [Member] | Customer Concentration Risk [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 17% | ||
One Vendor [Member] | Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 84% | 58% | |
ATM Agreement [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Stock Issued During Period, Shares, New Issues (in Shares) | 521,267 | ||
Proceeds from Issuance of Common Stock | $ 2,402,000 | ||
Proceeds from Stock Options Exercised | $ 2,317,000 | ||
ATM Agreement [Member] | Minimum [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Share Price (in Dollars per share) | $ 4.02 | ||
ATM Agreement [Member] | Maximum [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Share Price (in Dollars per share) | $ 5.63 | ||
One Distributor [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 50% | ||
Distributors in Asia [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Concentration Risk, Percentage | 50% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Inventories - USD ($) | May 31, 2022 | May 31, 2021 |
Inventories Abstract | ||
Raw materials | $ 1,717,000 | $ 1,812,000 |
Work in progress | 763,000 | 1,687,000 |
Finished products | 782,000 | 1,324,000 |
Total Gross Inventory | 3,262,000 | 4,823,000 |
Inventory Reserve | (846,000) | (1,617,000) |
Net Inventory | $ 2,416,447 | $ 3,206,255 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Share based compensation assumptions | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Share based compensation assumptions [Line Items] | ||
Dividend yield | 0% | 0% |
Minimum [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Share based compensation assumptions [Line Items] | ||
Expected volatility | 102.54% | 71.19% |
Risk free interest rate | 0.97% | 0.34% |
Expected term | 5 years 6 months | 5 years 6 months |
Maximum [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Share based compensation assumptions [Line Items] | ||
Expected volatility | 105.48% | 107.53% |
Risk free interest rate | 2.75% | 1.18% |
Expected term | 6 years 3 months | 6 years 3 months |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue from contracts with customers - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | $ 18,871,000 | $ 7,199,000 |
Physicians Office [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | 14,259,000 | 2,801,000 |
Clinical Lab [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | 3,064,000 | 3,077,000 |
Over-the-counter [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | 1,089,000 | 766,000 |
Contract Manufacturing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue From Customers | $ 459,000 | $ 555,000 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - Property and equipment, net - USD ($) | May 31, 2022 | May 31, 2021 |
Property And Equipment Net Abstract | ||
Equipment | $ 1,292,000 | $ 1,850,000 |
Furniture, fixtures and leasehold improvements | 227,000 | 433,000 |
Less accumulated depreciation | (1,305,360) | (1,972,357) |
Net property and equipment | $ 214,487 | $ 310,520 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - Intangible assets, net - USD ($) | May 31, 2022 | May 31, 2021 |
Intangible Assets Net Abstract | ||
Licenses | $ 182,000 | |
Patents | 189,000 | 240,000 |
Less accumulated amortization-licenses | (107,000) | |
Less accumulated amortization-patents | (19,000) | (20,000) |
Intangible asssets, net | $ 169,516 | $ 294,830 |
INTANGIBLE ASSETS, NET (Detai_2
INTANGIBLE ASSETS, NET (Details) - Expected amortization of intangible assets | May 31, 2022 USD ($) |
Expected Amortization Of Intangible Assets Abstract | |
2023 | $ 13,000 |
2024 | 13,000 |
2025 | 13,000 |
2026 | 13,000 |
2027 | 13,000 |
Thereafter | 105,000 |
Total | $ 170,000 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - Accounts Payable [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Two Vendor [Member] | ||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) [Line Items] | ||
Concentration Risk, Percentage | 69% | |
One Vendor [Member] | ||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) [Line Items] | ||
Concentration Risk, Percentage | 17% |
ACCOUNTS PAYABLE AND ACCRUED _4
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - Accounts payable and accrued expense balances - USD ($) | May 31, 2022 | May 31, 2021 |
Accounts Payable And Accrued Expense Balances Abstract | ||
Accounts payable | $ 736,000 | $ 431,000 |
Accrued expenses | 236,000 | 152,000 |
Total | $ 972,372 | $ 583,380 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - STOCK OPTION AND RESTRICTED STOCK PLANS - Share-Based Payment Arrangement, Option [Member] - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2014 | May 31, 2022 | May 31, 2021 | Dec. 11, 2020 | |
SHAREHOLDERS' EQUITY (Details) - STOCK OPTION AND RESTRICTED STOCK PLANS [Line Items] | |||||
Share-Based Payment Arrangement, Expense | $ 1,260,000 | $ 1,355,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 4.43 | $ 6.73 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 90,000 | $ 501,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | 1,838,000 | 2,132,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value | 1,731,000 | 1,872,000 | |||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 1,982,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 3 months 25 days | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 5 months 19 days | ||||
2014 Plan [Member] | |||||
SHAREHOLDERS' EQUITY (Details) - STOCK OPTION AND RESTRICTED STOCK PLANS [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in Shares) | 850,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Purchase Price of Common Stock, Percent | 80% | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | ||||
2017 Plan [Member] | |||||
SHAREHOLDERS' EQUITY (Details) - STOCK OPTION AND RESTRICTED STOCK PLANS [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in Shares) | 900,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Purchase Price of Common Stock, Percent | 80% | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years | ||||
2020 Plan [Member] | |||||
SHAREHOLDERS' EQUITY (Details) - STOCK OPTION AND RESTRICTED STOCK PLANS [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in Shares) | 900,000 | ||||
General and Administrative Expense [Member] | |||||
SHAREHOLDERS' EQUITY (Details) - STOCK OPTION AND RESTRICTED STOCK PLANS [Line Items] | |||||
Share-Based Payment Arrangement, Expense | $ 954,000 | 957,000 | |||
Cost of Sales [Member] | |||||
SHAREHOLDERS' EQUITY (Details) - STOCK OPTION AND RESTRICTED STOCK PLANS [Line Items] | |||||
Share-Based Payment Arrangement, Expense | 159,000 | 205,000 | |||
Research and Development Expense [Member] | |||||
SHAREHOLDERS' EQUITY (Details) - STOCK OPTION AND RESTRICTED STOCK PLANS [Line Items] | |||||
Share-Based Payment Arrangement, Expense | 80,000 | 125,000 | |||
Selling and Marketing Expense [Member] | |||||
SHAREHOLDERS' EQUITY (Details) - STOCK OPTION AND RESTRICTED STOCK PLANS [Line Items] | |||||
Share-Based Payment Arrangement, Expense | $ 67,000 | $ 68,000 |
SHAREHOLDERS' EQUITY (Details_2
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY - USD ($) | 12 Months Ended | |||
Jan. 22, 2021 | May 31, 2022 | May 31, 2021 | May 21, 2021 | |
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Proceeds from Issuance of Common Stock | $ 2,401,734 | $ 1,177,394 | ||
Proceeds from Stock Options Exercised | $ 77,360 | $ 102,255 | ||
Common Stock [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in Shares) | 39,500 | 86,750 | ||
Conversion of Stock, Shares Converted (in Shares) | 321,429 | |||
2020 Stock Incentive Plan [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in Shares) | 900,000 | |||
Common Stock [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Sale of Stock, Consideration Received on Transaction | $ 2,402,000 | $ 1,177,000 | ||
Sale of Stock, Number of Shares Issued in Transaction (in Shares) | 521,267 | 158,889 | ||
Proceeds from Issuance of Common Stock | $ 2,317,000 | $ 1,011,000 | ||
Common Stock [Member] | Maximum [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Sale of Stock, Price Per Share (in Dollars per share) | $ 5.63 | $ 7.79 | ||
Common Stock [Member] | Maximum [Member] | ATM Agreement [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Sale of Stock, Consideration Received on Transaction | $ 15,000,000 | |||
Common Stock [Member] | Minimum [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Sale of Stock, Price Per Share (in Dollars per share) | $ 4.02 | $ 7.06 | ||
Convertible Preferred Stock [Member] | Common Stock [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Conversion of Stock, Shares Converted (in Shares) | 321,429 | |||
Share-Based Payment Arrangement, Option [Member] | Common Stock [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in Shares) | 39,500 | |||
Proceeds from Stock Options Exercised | $ 77,000 | |||
Share-Based Payment Arrangement, Option [Member] | Common Stock [Member] | Maximum [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ 3.62 | |||
Share-Based Payment Arrangement, Option [Member] | Common Stock [Member] | Minimum [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - COMMON STOCK ACTIVITY [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share) | $ 1.2 |
SHAREHOLDERS' EQUITY (Details_3
SHAREHOLDERS' EQUITY (Details) - PREFERRED STOCK ACTIVITY - Convertible Preferred Stock [Member] - Series A Preferred Stock [Member] - USD ($) $ / shares in Units, $ in Millions | Mar. 24, 2020 | Feb. 24, 2020 | Jan. 21, 2021 | Jul. 21, 2020 |
SHAREHOLDERS' EQUITY (Details) - PREFERRED STOCK ACTIVITY [Line Items] | ||||
Dividends Payable, Amount Per Share (in Dollars per share) | $ 0.175 | |||
Conversion of Stock, Shares Converted (in Shares) | 250,000 | |||
Palm [Member] | Common Stock [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - PREFERRED STOCK ACTIVITY [Line Items] | ||||
Conversion of Stock, Shares Issued (in Shares) | 250,000 | |||
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 321,429 | 571,429 | ||
Stock Purchase Agreement [Member] | Palm [Member] | ||||
SHAREHOLDERS' EQUITY (Details) - PREFERRED STOCK ACTIVITY [Line Items] | ||||
Preferred Stock, Shares Issued (in Shares) | 571,429 | |||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.08 | |||
Sale of Stock, Consideration Received on Transaction | $ 2 | |||
Sale of Stock, Price Per Share (in Dollars per share) | $ 3.5 |
SHAREHOLDERS' EQUITY (Details_4
SHAREHOLDERS' EQUITY (Details) - Activity as to aggregate stock options outstanding - $ / shares | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Exercise Price Range Per Share $0.82 - $8.18 [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Activity as to aggregate stock options outstanding [Line Items] | ||
Options outstanding, number of stock options | 1,789,251 | |
Options outstanding, weighted average exercise price | $ 2.75 | |
Exercise Price Range Per Share $5.14 - $8.70 [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Activity as to aggregate stock options outstanding [Line Items] | ||
Options granted, number of stock options | 430,616 | |
Options granted, weighted average exercise price | $ 6.73 | |
Exercise Price Range Per Share $0.82 - $3.62 [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Activity as to aggregate stock options outstanding [Line Items] | ||
Options exercised, number of stock options | (86,750) | |
Options exercised, weighted average exercise price | $ 1.2 | |
Exercise Price Range Per Share $2.35 - $8.18 [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Activity as to aggregate stock options outstanding [Line Items] | ||
Options canceled or expired, number of stock options | (51,751) | |
Options canceled or expired, weighted average exercise price | $ 4.77 | |
Exercise Price Range Per Share $0.82 - $8.70 [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Activity as to aggregate stock options outstanding [Line Items] | ||
Options outstanding, number of stock options | 2,081,366 | |
Options outstanding, weighted average exercise price | $ 3.59 | |
Options outstanding, number of stock options | 2,321,616 | 2,081,366 |
Options outstanding, weighted average exercise price | $ 3.72 | $ 3.59 |
Exercise Price Range Per Share $4.25 - $4.46 [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Activity as to aggregate stock options outstanding [Line Items] | ||
Options granted, number of stock options | 344,000 | |
Options granted, weighted average exercise price | $ 4.43 | |
Exercise Price Range Per Share $1.20 - $3.62 [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Activity as to aggregate stock options outstanding [Line Items] | ||
Options exercised, number of stock options | (39,500) | |
Options exercised, weighted average exercise price | $ 1.99 | |
Exercise Price Range Per Share $1.61 - $8.18 [Member] | ||
SHAREHOLDERS' EQUITY (Details) - Activity as to aggregate stock options outstanding [Line Items] | ||
Options canceled or expired, number of stock options | (64,250) | |
Options canceled or expired, weighted average exercise price | $ 4.41 |
SHAREHOLDERS' EQUITY (Details_5
SHAREHOLDERS' EQUITY (Details) - Non-vested Stock Options Activity | 12 Months Ended |
May 31, 2022 $ / shares shares | |
Non Vested Stock Options Activity Abstract | |
Non-vested shares, number of shares | shares | 793,241 |
Non-vested shares, weighted average grant date fair value | $ / shares | $ 5.54 |
Granted, number of shares | shares | 344,000 |
Granted, weighted average grant date fair value | $ / shares | $ 4.43 |
Vested, number of shares | shares | (347,279) |
Vested, weighted average grant date fair value | $ / shares | $ 5.4 |
Forfeited, number of shares | shares | (43,500) |
Forfeited, weighted average grant date fair value | $ / shares | $ 5.22 |
Non-vested shares, number of shares | shares | 746,462 |
Non-vested shares, weighted average grant date fair value | $ / shares | $ 5.11 |
SHAREHOLDERS' EQUITY (Details_6
SHAREHOLDERS' EQUITY (Details) - Stock Options Summary | 12 Months Ended |
May 31, 2022 $ / shares shares | |
Range Of Exercise Price $0.82 - $1.52 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Price, Minimum | $ 0.82 |
Range of Exercise Price, Maximum | $ 1.52 |
Options Outstanding, Number (in Shares) | shares | 456,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 3 months 29 days |
Options Outstanding, Weighted Average Exercise Price | $ 1.04 |
Options Exercisable, Number (in Shares) | shares | 456,000 |
Options Exercisable, Weighted Average Exercise Price | $ 1.04 |
Range Of Exercise Price $2.25 - $4.25 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Price, Minimum | 2.25 |
Range of Exercise Price, Maximum | $ 4.25 |
Options Outstanding, Number (in Shares) | shares | 1,015,750 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 1 month 20 days |
Options Outstanding, Weighted Average Exercise Price | $ 2.9 |
Options Exercisable, Number (in Shares) | shares | 852,500 |
Options Exercisable, Weighted Average Exercise Price | $ 2.88 |
Range Of Exercise Price $4.34 - $8.70 [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of Exercise Price, Minimum | 4.34 |
Range of Exercise Price, Maximum | $ 8.7 |
Options Outstanding, Number (in Shares) | shares | 849,866 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 9 months |
Options Outstanding, Weighted Average Exercise Price | $ 6.13 |
Options Exercisable, Number (in Shares) | shares | 266,654 |
Options Exercisable, Weighted Average Exercise Price | $ 7.06 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
INCOME TAXES (Details) [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% |
Deferred Tax Assets, Valuation Allowance | $ 6,967,000 | $ 5,904,000 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 1,063,000 | $ 2,292,000 |
Domestic Tax Authority [Member] | ||
INCOME TAXES (Details) [Line Items] | ||
Operating Loss Carryforwards | 17,116,000 | |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | ||
INCOME TAXES (Details) [Line Items] | ||
Tax Credit Carryforward, Amount | 784,000 | |
California State Income Tax [Member] | ||
INCOME TAXES (Details) [Line Items] | ||
Operating Loss Carryforwards | 10,805,000 | |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | ||
INCOME TAXES (Details) [Line Items] | ||
Tax Credit Carryforward, Amount | $ 395,000 |
INCOME TAXES (Details) - Income
INCOME TAXES (Details) - Income tax expense - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Current: | ||
U.S. Federal | ||
Foreign Taxes Subsidiaries | (23,000) | (12,000) |
State and local | (1,000) | (1,000) |
Total current | (24,000) | (13,000) |
Deferred: | ||
U.S. Federal | ||
State and local | ||
Total deferred | ||
Income tax expense | $ (23,719) | $ (13,057) |
INCOME TAXES (Details) - Inco_2
INCOME TAXES (Details) - Income Tax Rate Reconciliation - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Income Tax Rate Reconciliation Abstract | ||
Computed "expected" tax benefit | $ 947 | $ 1,561 |
Increase (reduction) in income taxes resulting from: | ||
Change in valuation allowance | (1,022) | (2,292) |
State income taxes, net of federal benefit | 300 | 217 |
Research and development tax credits | 50 | 456 |
Permanent tax differences and other | (217) | (88) |
Stock based compensation benefit | 11 | 145 |
Foreign taxes of subsidiaries | (113) | (12) |
Income tax expense | $ (24) | $ (13) |
INCOME TAXES (Details) - Deferr
INCOME TAXES (Details) - Deferred Tax - USD ($) | May 31, 2022 | May 31, 2021 |
Deferred tax assets: | ||
Accounts receivable, principally due to allowance for doubtful accounts | $ 43,000 | $ 200,000 |
Inventory valuation | 237,000 | 387,000 |
Compensated absences | 120,000 | 85,000 |
Net operating loss carryforwards | 4,349,000 | 3,194,000 |
Tax credit carryforwards | 1,096,000 | 1,055,000 |
Deferred rent expense/Capitalized leases | 20,000 | 15,000 |
Stock Options | 1,035,000 | 613,000 |
Losses of foreign subsidiaries & Other, net | 41,000 | 370,000 |
Accumulated depreciation and amortization | 26,000 | (15,000) |
Total deferred tax assets | 6,967,000 | 5,904,000 |
Less valuation allowance | (6,967,000) | (5,904,000) |
Net deferred tax asset |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details) | 12 Months Ended |
May 31, 2022 | |
Geographic Information Disclosure Abstract | |
Number of Operating Segments | 1 |
GEOGRAPHIC INFORMATION (Detai_2
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales | $ 18,871,409 | $ 7,199,027 |
Revenue, Segment Benchmark [Member] | Geographic Concentration Risk [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales Percent | 100% | 100% |
Asia [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales | $ 13,375,000 | $ 1,908,000 |
Asia [Member] | Revenue, Segment Benchmark [Member] | Geographic Concentration Risk [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales Percent | 71% | 26% |
Europe [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales | $ 4,339,000 | $ 4,301,000 |
Europe [Member] | Revenue, Segment Benchmark [Member] | Geographic Concentration Risk [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales Percent | 23% | 60% |
North America [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales | $ 997,000 | $ 548,000 |
North America [Member] | Revenue, Segment Benchmark [Member] | Geographic Concentration Risk [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales Percent | 5% | 8% |
South America [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales | $ 90,000 | $ 250,000 |
South America [Member] | Revenue, Segment Benchmark [Member] | Geographic Concentration Risk [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales Percent | 1% | 3% |
Middle East [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales | $ 70,000 | $ 192,000 |
Middle East [Member] | Revenue, Segment Benchmark [Member] | Geographic Concentration Risk [Member] | ||
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales [Line Items] | ||
Net Sales Percent | 0% | 3% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - OPERATING LEASES - USD ($) | 12 Months Ended | ||
Nov. 01, 2016 | May 31, 2022 | May 31, 2021 | |
Building In Irvine California [Member] | First Amendment To Lease [Member] | |||
COMMITMENTS AND CONTINGENCIES (Details) - OPERATING LEASES [Line Items] | |||
Lease Expiration Date | Aug. 31, 2021 | ||
Operating Lease, Expense | $ 25,000 | ||
Security Deposit | 26,000 | ||
Property Available for Operating Lease [Member] | MEXICO | |||
COMMITMENTS AND CONTINGENCIES (Details) - OPERATING LEASES [Line Items] | |||
Operating Lease, Expense | $ 3,400 | 42,000 | $ 25,000 |
Lease Expiration Period | 10 years | ||
Property Available for Operating Lease [Member] | UNITED STATES | |||
COMMITMENTS AND CONTINGENCIES (Details) - OPERATING LEASES [Line Items] | |||
Operating Lease, Expense | $ 310,000 | $ 295,000 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) - CONTRACTS - USD ($) | 12 Months Ended | ||||
Sep. 01, 2020 | May 07, 2020 | May 31, 2022 | May 31, 2021 | Sep. 30, 2017 | |
Royalty Agreements [Member] | |||||
COMMITMENTS AND CONTINGENCIES (Details) - CONTRACTS [Line Items] | |||||
Royalty Expense | $ 19,000 | $ 11,000 | |||
Royalty Expense Percentage Of Sales | 1.50% | 1.50% | |||
Telcon Agreement [Member] | |||||
COMMITMENTS AND CONTINGENCIES (Details) - CONTRACTS [Line Items] | |||||
Accrued Fees and Other Revenue Receivable | $ 1,250,000 | ||||
Stock Issued During Period, Shares, Other (in Shares) | 83,333 | ||||
Proceeds from Fees Received | $ 250,000 | ||||
Royalty Percentage | 15% | ||||
UC License Agreements [Member] | |||||
COMMITMENTS AND CONTINGENCIES (Details) - CONTRACTS [Line Items] | |||||
Payments for Other Fees | $ 5,000 | $ 5,000 | |||
License Maintenance Fee, Payable | $ 10,000 | ||||
University OF Southern California [Member] | |||||
COMMITMENTS AND CONTINGENCIES (Details) - CONTRACTS [Line Items] | |||||
Clinical Trial Agreement Maximum Budgeted Costs | $ 82,000 | ||||
Accrued Liabilities, Current | $ 17,000 | ||||
Biomerica InFoods [Member] | |||||
COMMITMENTS AND CONTINGENCIES (Details) - CONTRACTS [Line Items] | |||||
Clinical Trial Agreement Maximum Budgeted Costs | 107,000 | ||||
Accrued Liabilities, Current | $ 28,000 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details) - Supplemental cash flow information related to leases | 12 Months Ended |
May 31, 2022 USD ($) | |
Supplemental Cash Flow Information Related To Leases Abstract | |
Operating cash flows from operating leases | $ 338,206 |
Right-of-use assets obtained in exchange for new operating lease liabilities | |
Weighted average remaining lease term (in years) | 4 years 3 months 10 days |
Weighted average discount rate | 6.50% |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES (Details) - Future minimum lease payments under operating leases | May 31, 2022 USD ($) |
Future Minimum Lease Payments Under Operating Leases Abstract | |
Less than 1 year | $ 351,000 |
1 to 2 years | 362,000 |
2 to 3 years | 373,000 |
3 to 4 years | 384,000 |
4 to 5 years | 104,000 |
Total undiscounted lease payments | 1,574,000 |
Less imputed interest | 194,000 |
Total operating lease liabilities | $ 1,380,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] | 3 Months Ended |
Aug. 31, 2022 USD ($) $ / shares shares | |
SUBSEQUENT EVENTS (Details) [Line Items] | |
Stock Issued During Period, Shares, New Issues | shares | 523,977 |
Share Price | $ / shares | $ 3.46 |
Proceeds from Issuance of Common Stock | $ | $ 1,765,000 |