Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Nov. 30, 2022 | Jan. 11, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | BIOMERICA, INC. | |
Trading Symbol | BMRA | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --05-31 | |
Entity Common Stock, Shares Outstanding | 13,479,413 | |
Amendment Flag | false | |
Entity Central Index Key | 0000073290 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Nov. 30, 2022 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly 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 $0.08 | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Nov. 30, 2022 | May 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 5,066,521 | $ 5,916,983 |
Accounts receivable, less allowance for doubtful accounts of $522,234 and $153,231 as of November 30, 2022 and May 31, 2022, respectively | 850,014 | 773,818 |
Inventories, net of inventory reserves of $773,916 and $845,549 as of November 30, 2022 and May 31, 2022, respectively | 2,061,444 | 2,416,447 |
Prepaid expenses and other | 120,721 | 320,283 |
Total current assets | 8,098,700 | 9,427,531 |
Property and equipment, net of accumulated depreciation and amortization of $1,317,141 and $1,305,360 as of November 30, 2022 and May 31, 2022, respectively | 236,719 | 214,487 |
Right of use assets, net of accumulated amortization of $859,269 and $724,802 as of November 30, 2022 and May 31, 2022, respectively | 1,169,456 | 1,301,834 |
Investments | 165,324 | 165,324 |
Intangible assets, net of accumulated amortization of $24,327 and $18,994 as of November 30, 2022 and May 31, 2022, respectively | 157,694 | 169,516 |
Other assets | 79,654 | 95,588 |
Total Assets | 9,907,547 | 11,374,280 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 670,074 | 972,372 |
Accrued compensation | 697,179 | 646,944 |
Advance from customers | 49,013 | 50,670 |
Lease liability, current portion | 346,937 | 341,296 |
Total current liabilities | 1,763,203 | 2,011,282 |
Lease liability, net of current portion | 901,449 | 1,038,284 |
Total Liabilities | 2,664,652 | 3,049,566 |
Commitments and contingencies (Notes 5 and 6) | ||
Common stock, $0.08 par value, 25,000,000 shares authorized, 13,479,413 and 12,867,924 issued and outstanding at November 30, 2022 and May 31, 2022, respectively | 1,078,353 | 1,029,432 |
Additional paid-in-capital | 45,035,298 | 42,446,597 |
Accumulated other comprehensive loss | (95,413) | (73,936) |
Accumulated deficit | (38,775,343) | (35,077,379) |
Total Shareholders' Equity | 7,242,895 | 8,324,714 |
Total Liabilities and Shareholders' Equity | $ 9,907,547 | $ 11,374,280 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) | Nov. 30, 2022 | May 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 522,234 | $ 153,231 |
Inventory reserves | 773,916 | 845,549 |
Accumulated depreciation and amortization | 1,317,141 | 1,305,360 |
Accumulated amortization, Right of Use Assets | 859,269 | 724,802 |
Accumulated amortization, Intangible Assets | $ 24,327 | $ 18,994 |
Common stock, shares authorized (in Shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in Shares) | 13,479,413 | 12,867,924 |
Common stock, shares outstanding (in Shares) | 13,479,413 | 12,867,924 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,481,915 | $ 4,646,900 | $ 3,119,350 | $ 5,908,687 |
Cost of sales | (1,130,040) | (3,875,141) | (2,822,430) | (5,225,898) |
Gross profit | 351,875 | 771,759 | 296,920 | 682,789 |
Operating expenses: | ||||
Selling, general and administrative | 1,556,022 | 1,353,587 | 3,209,843 | 2,423,442 |
Research and development | 461,941 | 547,933 | 823,112 | 929,477 |
Total operating expenses | 2,017,963 | 1,901,520 | 4,032,955 | 3,352,919 |
Loss from operations | (1,666,088) | (1,129,761) | (3,736,035) | (2,670,130) |
Other income: | ||||
Dividend and interest income | 41,254 | 6,916 | 41,282 | 13,721 |
Loss before income taxes | (1,624,834) | (1,122,845) | (3,694,753) | (2,656,409) |
Provision for income taxes | (1,254) | (2,429) | (3,211) | (11,446) |
Net loss | $ (1,626,088) | $ (1,125,274) | $ (3,697,964) | $ (2,667,855) |
Basic net loss per common share (in Dollars per share) | $ (0.12) | $ (0.09) | $ (0.28) | $ (0.21) |
Diluted net loss per common share (in Dollars per share) | $ (0.12) | $ (0.09) | $ (0.28) | $ (0.21) |
Basic (in Shares) | 13,455,166 | 12,592,341 | 13,271,845 | 12,509,110 |
Diluted (in Shares) | 13,455,166 | 12,592,341 | 13,271,845 | 12,509,110 |
Net loss | $ (1,626,088) | $ (1,125,274) | $ (3,697,964) | $ (2,667,855) |
Foreign currency translation | (8,950) | (4,750) | (21,477) | (10,363) |
Comprehensive loss | $ (1,635,038) | $ (1,130,024) | $ (3,719,441) | $ (2,678,218) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balances at May. 31, 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 | $ 120 | 3,775 | 3,895 | ||
Exercise of stock options (in Shares) | 1,500 | ||||
Net proceeds from ATM | $ 16,124 | 784,586 | 800,710 | ||
Net proceeds from ATM (in Shares) | 201,553 | ||||
Foreign currency translation | (5,613) | (5,613) | |||
Stock option expense | 319,622 | 319,622 | |||
Net loss | (1,542,581) | (1,542,581) | |||
Balances, August 31, 2022 at Aug. 31, 2021 | $ 1,000,815 | 39,944,726 | (53,569) | (32,088,916) | 8,803,056 |
Balances, August 31, 2022 (in Shares) at Aug. 31, 2021 | 12,510,210 | ||||
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 | ||||
Foreign currency translation | (10,363) | ||||
Net loss | (2,667,855) | ||||
Balances, August 31, 2022 at Nov. 30, 2021 | $ 1,015,385 | 41,158,551 | (58,319) | (33,214,190) | 8,901,427 |
Balances, August 31, 2022 (in Shares) at Nov. 30, 2021 | 12,692,327 | ||||
Balances at Aug. 31, 2021 | $ 1,000,815 | 39,944,726 | (53,569) | (32,088,916) | 8,803,056 |
Balances (in Shares) at Aug. 31, 2021 | 12,510,210 | ||||
Exercise of stock options | $ 1,600 | 28,985 | 30,585 | ||
Exercise of stock options (in Shares) | 20,000 | ||||
Net proceeds from ATM | $ 12,970 | 870,443 | 883,413 | ||
Net proceeds from ATM (in Shares) | 162,117 | ||||
Foreign currency translation | (4,750) | (4,750) | |||
Stock option expense | 314,397 | 314,397 | |||
Net loss | (1,125,274) | (1,125,274) | |||
Balances, August 31, 2022 at Nov. 30, 2021 | $ 1,015,385 | 41,158,551 | (58,319) | (33,214,190) | 8,901,427 |
Balances, August 31, 2022 (in Shares) at Nov. 30, 2021 | 12,692,327 | ||||
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 | ||||
Exercise of stock options | $ 1,200 | 12,750 | 13,950 | ||
Exercise of stock options (in Shares) | 15,000 | ||||
Net proceeds from ATM | $ 41,918 | 1,721,650 | 1,763,568 | ||
Net proceeds from ATM (in Shares) | 523,977 | ||||
Foreign currency translation | (12,527) | (12,527) | |||
Stock option expense | 303,755 | 303,755 | |||
Net loss | (2,071,876) | (2,071,876) | |||
Balances, August 31, 2022 at Aug. 31, 2022 | $ 1,072,550 | 44,484,752 | (86,463) | (37,149,255) | 8,321,584 |
Balances, August 31, 2022 (in Shares) at Aug. 31, 2022 | 13,406,901 | ||||
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 | ||||
Exercise of stock options (in Shares) | 46,500 | ||||
Foreign currency translation | $ (21,477) | ||||
Net loss | (3,697,964) | ||||
Balances, August 31, 2022 at Nov. 30, 2022 | $ 1,078,353 | 45,035,298 | (95,413) | (38,775,343) | 7,242,895 |
Balances, August 31, 2022 (in Shares) at Nov. 30, 2022 | 13,479,413 | ||||
Balances at Aug. 31, 2022 | $ 1,072,550 | 44,484,752 | (86,463) | (37,149,255) | 8,321,584 |
Balances (in Shares) at Aug. 31, 2022 | 13,406,901 | ||||
Exercise of stock options | $ 2,520 | 62,685 | 65,205 | ||
Exercise of stock options (in Shares) | 31,500 | ||||
Net proceeds from ATM | $ 3,283 | 169,631 | 172,914 | ||
Net proceeds from ATM (in Shares) | 41,012 | ||||
Foreign currency translation | (8,950) | (8,950) | |||
Stock option expense | 318,230 | 318,230 | |||
Net loss | (1,626,088) | (1,626,088) | |||
Balances, August 31, 2022 at Nov. 30, 2022 | $ 1,078,353 | $ 45,035,298 | $ (95,413) | $ (38,775,343) | $ 7,242,895 |
Balances, August 31, 2022 (in Shares) at Nov. 30, 2022 | 13,479,413 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED - USD ($) | 6 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (3,697,964) | $ (2,667,855) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 47,690 | 68,668 |
Provision for allowance on accounts receivable | 369,003 | (809,638) |
Inventory reserve | (71,633) | 181,825 |
Stock option expense | 621,985 | 634,019 |
Amortization of right-of-use asset | 134,467 | 126,039 |
Changes in assets and liabilities: | ||
Accounts receivable | (445,199) | 1,139,450 |
Inventories | 426,636 | 42,229 |
Prepaid expenses and other | 199,562 | (726,460) |
Other assets | 15,933 | 114,570 |
Accounts payable and accrued expenses | (302,299) | 997,327 |
Accrued compensation | 50,235 | 285,431 |
Advance from customers | (1,657) | 2,150,466 |
Reduction in lease liability | (133,283) | (117,321) |
Net cash (used in) provided by operating activities | (2,786,524) | 1,418,750 |
Cash flows from investing activities: | ||
Expenditures related to intangibles | (108,917) | |
Purchases of property and equipment | (58,098) | (18,212) |
Net cash used in investing activities | (58,098) | (127,129) |
Cash flows from financing activities: | ||
Gross proceeds from sale of common stock | 1,988,422 | 1,751,222 |
Costs from sale of common stock | (51,940) | (67,108) |
Proceeds from exercise of stock options | 79,155 | 34,480 |
Net cash provided by financing activities | 2,015,637 | 1,718,594 |
Effect of exchange rate changes on cash | (21,477) | (10,363) |
Net (decrease) increase in cash and cash equivalents | (850,462) | 2,999,852 |
Cash and cash equivalents at beginning of year | 5,916,983 | 4,199,311 |
Cash and cash equivalents at end of the period | 5,066,521 | 7,199,163 |
Cash paid during the period for: | ||
Income taxes | 3,211 | 10,646 |
Non-cash investing and financing activities: | ||
Increase in right-of-use asset due to CPI rent adjustment | 2,089 | |
Increase in lease liability due to CPI rent adjustment | 2,089 | |
Write off of intangible assets, cost | 6,489 | |
Write off of intangible assets, accumulated amortization | $ 850 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting [Text Block] | NOTE 1: BASIS OF PRESENTATION Biomerica, Inc. and its subsidiaries (which includes wholly-owned subsidiaries, Biomerica de Mexico and BioEurope GmbH) is a biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (physicians' offices and over-the-counter through drugstores and online) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases . Our diagnostic test kits are used to analyze blood, urine, nasal or fecal material from patients in the diagnosis of various diseases, food intolerances and other medical complications, or to measure the level of specific hormones, antibodies, antigens or other substances, which may exist in the human body in extremely small concentrations. The Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Our primary focus is the research, development, commercialization, and in certain cases regulatory approval, of patented, diagnostic-guided therapy (“DGT”) products based on our InFoods ® ® ® 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 at Walmart, Amazon, 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 began developing COVID-19 products to indicate if a person has been infected by COVID-19 or is currently infected. While we initially offered a COVID-19 antibody diagnostic test to determine if a person has previously been infected by the COVID-19 virus, all of our COVID-19 revenues in fiscal 2022 and 2023 have come from international sales of our COVID-19 antigen tests that use a patient’s nasal fluid sample to detect if the patient is currently infected with the virus. Due to falling demand, approximately 13% of our revenues during the six months ended November 30, 2022 were from sales of our COVID-19 related products, as compared to 57% of our revenue during the six months ended November 30, 2021. Our non-COVID-19 products that accounted for approximately 87% and 43% of our revenues during the six months ended November 30, 2022 and 2021, respectively, 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. The unaudited consolidated financial statements herein have been prepared by management pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"). The accompanying interim unaudited consolidated financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited consolidated financial statements for the latest fiscal year ended May 31, 2022. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the six months ended November 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending May 31, 2023. For further information, refer to the audited consolidated financial statements and notes thereto for the fiscal year ended May 31, 2022 included in the Company's Annual Report on Form 10-K filed with the SEC on August 29, 2022. Management has evaluated all subsequent events and transactions through the date of filing this report. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The condensed consolidated financial statements include the accounts of Biomerica, Inc. as well as its German subsidiary (BioEurope GmbH) and Mexican subsidiary (Biomerica de Mexico). All significant intercompany accounts and transactions have been eliminated in consolidation. ACCOUNTING ESTIMATES The preparation of the condensed consolidated financial statements in conformity with 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 condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reported period. Estimates that are made include the allowance for doubtful accounts, which is estimated based on current as well as historical experience with a customer; stock option forfeiture rates, which are calculated based on historical data; inventory obsolescence, which is based on projected and historical usage of materials; and lease liability and right-of-use assets, which are calculated based on certain assumptions such as borrowing rate, the likelihood of lease extensions to occur, asset valuation, among other things; and other items that may be necessary to estimate using current, historical and judgment based information. Actual results could materially differ from those estimates. MARKETS AND METHODS OF DISTRIBUTION Due to global and economic disruptions caused by the Coronavirus global pandemic, and the ongoing war in Ukraine, the Company’s operations have been negatively impacted. The Company has faced disruptions in certain of the following areas, and may face further challenges from supply chain disruptions, cost inflation, loss of contracts and/or customers, closure 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 and war related disruptions have materially negatively impacted 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 $38.8 million as of November 30, 2022. Management expects to continue to incur significant costs as it advances its clinical trials, product launches, and product development activities. As of November 30, 2022, the Company had cash and cash equivalents of On July 21, 2020, the Company filed with the SEC a “shelf” registration statement on Form S-3. The registration statement registers common shares that may be issued by the Company in a maximum aggregate amount of up to $90,000,000. Shares of the Company’s common stock may be sold from time to time under this registration statement for up to three years from the filing date. On January 22, 2021, the Company filed a prospectus supplement for the sale of up to $15,000,000 of shares of our common stock in an at-the-market offering (“ATM Offering”) under the shelf registration statement, of which approximately $9,400,000, remains available for sale under the prospectus supplement. 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. The sales agent under the ATM Offering agrees to use commercially reasonable efforts to sell on the Company’s behalf all of the 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 sales agent and the Company. The Company has no obligation to sell any of the shares under the ATM Offering, and may at any time suspend offers under, or terminate the ATM Offering. During the six months ended November 30, 2022, the Company sold 565,664 shares of its common stock at prices ranging from $3.15 to $4.26 under its ATM Offering which resulted in gross proceeds of approximately $1,988,000 and net proceeds to the Company approximately of $1,936,000 after deducting commissions for each sale and legal, accounting, and other fees related to the ATM Offering. As a result of cash and cash equivalents on hand at November 30, 2022, management CONCENTRATION OF CREDIT RISK The Company maintains cash balances at certain financial institutions in excess of amounts insured by federal agencies. As of November 30, 2022, The Company does not believe it is exposed to any significant credit risks. Consolidated net sales were approximately $1,482,000 and $4,647,000 for the three months ended November 30, 2022 and 2021, respectively, and the six months ended November 30, 2022 and 2021, respectively. For the three months ended November 30, 2022 and 2021, two and one for 48% the six months ended November 30, 2022 and 2021, two for 44% Total gross receivables on November 30, 2022 and May 31, 2022 were approximately $1,372,000 and $927,000, respectively. On November 30, 2022 May 31, 2022, one For the three months ended November 30, 2022 and 2021, the Company had one key vendor which accounted for 12% and 83% of the purchases of raw materials, respectively. For the six months ended November 30, 2022 and 2021, the As of November 30, 2022 and May 31, 2022, respectively CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of demand deposits and money market accounts with original maturities of less than months ACCOUNTS RECEIVABLE The Company extends unsecured credit to its customers on a regular basis. International accounts are usually required to prepay until they establish a history with the Company and at that time, they are extended credit at levels based on a number of criteria. Based on various criteria, initial credit levels for individual distributors are approved by designated officers and managers of the Company. All increases in credit limits are also approved by designated upper-level management. 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 November 30, 2022 and May 31, 2022, the Company has established a reserve of approximately $522,000 and $153,000, respectively, for doubtful accounts. PREPAID EXPENSES AND OTHER The Company occasionally prepays for items such as inventory, insurance, and other items. These items are reported as prepaid expenses and other, until either the inventory is physically received, or the insurance and other items are expensed. As of November 30, 2022 and May 31, 2022, the prepaid expenses and other were approximately $121,000 and $320,000, respectively 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. As of November 30, 2022, and May 31, 2022, inventory reserves were approximately $774,000 and $846,000 , respectively. Net inventories are approximately the following: November 30, 2022 May 31, 2022 Raw materials $ 1,685,000 $ 1,717,000 Work in progress 811,000 763,000 Finished products 339,000 782,000 Total gross inventory $ 2,835,000 $ 3,262,000 Inventory reserves (774,000) (846,000) Net inventory $ 2,061,000 $ 2,416,000 Reserves for inventory obsolescence and/or inventory that management believes is in excess of an amount that can be sold in the near future, are recorded as necessary to reduce obsolete and excess inventory to estimated net realizable value or to specifically reserve for obsolete inventory. 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 were approximately $16,000 and $26,000 for the three months ended November 30, 2022 and 2021, respectively, November 30, 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 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 expense was approximately $3,000 and $7,000 for the three months ended November 30, 2022 and 2021, respectively, and the six months ended November 30, 2022 and 2021, respectively. Amortizing intangible assets are tested for impairment if management determines that events or changes in circumstances indicate that the asset might be impaired. 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. As of November 30, 2022 and 2021, an impairment adjustment was made of $6,000 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, including the distribution of the products sold by the Company. The Company invested approximately $165,000 into the Polish distributor and owns approximately 6% of the investee. 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 November 30, 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 period ended November 30, 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 option-pricing model that uses assumptions for expected volatility, expected dividends, expected forfeiture rate, expected term, and the risk-free interest rate. The Company has not paid dividends historically and does not expect to pay them in the foreseeable future. Expected volatilities are based on weighted averages of the historical volatility of the Company’s common stock estimated over the expected term of the options. The expected forfeiture rate is based on historical forfeitures experienced. The expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term as historically the Company had limited exercise activity surrounding its options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term. The grant date fair value of the award is recognized under the straight-line attribution method. The Company expensed approximately $622,000 and $634,000 of stock-based compensation during the six months ended November 30, 2022 and 2021, respectively. The following summary presents the options granted, exercised, expired, canceled and outstanding for the six months ended November 30, 2022: Option Shares Exercise Price Weighted Average Outstanding May 31, 2022 2,321,616 $ 3.72 Granted 146,000 3.37 Exercised (46,500) 1.73 Cancelled or expired (82,500) 5.07 Outstanding November 30, 2022 2,338,616 $ 3.69 During the six months ended November 30, 2022, options to purchase 46,500 shares of common stock were exercised at prices ranging from $0.82 to $2.68. Total net proceeds to the Company were During the six months ended November 30, 2022, the Company granted 146,000 options to purchase common stock at an average purchase price the majority of those options issued to the Company’s new Chief Commercial Officer, who is managing the commercialization and roll-out of the InFoods IBS test. REVENUE RECOGNITION The Company has various contracts with customers. All of the contracts specify that revenues from product sales are recognized at the time the product is shipped, customarily FOB shipping point, which is when the transfer of control of goods has occurred and at which point title passes. The Company does not typically allow for returns from international customers except in the event of defective merchandise and therefore does not establish an allowance for returns. The Company does allow for a return merchandise allowance of approximately one percent of sales to certain domestic retailers. This allowance reduces revenue recognition by approximately one percent and is included in sales discounts. In addition, the Company has contracts with customers wherein customers receive purchase discounts for achieving specified sales volumes. The Company evaluated the status of these contracts during the six months ended November 30, 2022 and 2021, and does not believe that any additional discounts will be given through the end of the contract periods. Services for contract work performed by the Company for others are invoiced and recognized as that work has been performed and as the project progresses. The Company sells clinical lab products to domestic and international distributors, including hospitals and clinical laboratories, medical research institutions, medical schools and pharmaceutical companies. OTC products are sold directly to drug stores and e-commerce customers as well as to distributors. 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. As of November 30, 2022, the Company had approximately $49,000 of advances from certain foreign customers. The majority of these advances are prepayments on orders that are expected to ship during Disaggregation of revenue: The following is a breakdown of revenues according to markets to which the products are sold: Three Months Ended November 30, Six Months Ended November 30, 2022 2021 2022 2021 Clinical lab $ 902,000 $ 642,000 $ 2,048,000 $ 1,528,000 Over-the-counter 466,000 534,000 679,000 613,000 Physician's office 62,000 3,359,000 245,000 3,616,000 Contract manufacturing 52,000 112,000 147,000 152,000 Total $ 1,482,000 $ 4,647,000 $ 3,119,000 $ 5,909,000 See Note 4 for additional information regarding geographic revenue concentrations. SHIPPING AND HANDLING FEES The Company includes shipping and handling fees billed to customers in net sales. RESEARCH AND DEVELOPMENT Research and development costs are expensed as incurred. The Company expensed approximately $462,000 and $548,000 of research and development costs during the three months ended November 30, 2022 and 2021, respectively, and six months ended November 30, 2022 and 2021, respectively. INCOME TAXES The Company has provided a full valuation allowance on deferred income tax assets of approximately $7,748,000 and $6,967,000 as of November 30, 2022 and May 31, 2022, respectively. FOREIGN CURRENCY TRANSLATION The subsidiary located in Mexico operates primarily using the Mexican peso. The subsidiary located in Germany operates primarily using the U.S. dollar, with an immaterial amount of transactions occurring using the Euro. Accordingly, assets and liabilities of these subsidiaries are translated using exchange rates in effect at the end of the period, and revenues and costs are translated using average exchange rates for the period. The resulting translation adjustments to assets and liabilities are presented as a separate component of accumulated other comprehensive loss. There are no foreign currency transactions that are included in the condensed consolidated statements of operations for the three and six months ended November 30, 2022 and 2021. RIGHT-OF-USE ASSETS AND LEASE LIABILITY Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. Leases are classified as financing or operating which will drive the expense recognition pattern. The Company has elected to exclude short-term leases. The Company leases office space and copy machines, all of which are operating leases. Most leases include the option to renew and the exercise of the renewal options is at the Company’s sole discretion. Options to extend or terminate a lease are considered in the lease term to the extent that the option is reasonably certain of exercise. The leases do not include the options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. NET LOSS PER SHARE Basic loss per share is computed as net loss divided by the weighted average number of common shares outstanding for the period. Diluted loss per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants and other convertible securities using the treasury stock method. The total amount of anti-dilutive stock options not included in the loss per share calculation on November 30, 2022 and respectively. 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 2019-10, "Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates," which, among other things, defers the effective date of ASU 2016-13 for public filers that are considered smaller reporting companies as defined by the 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 November 30, 2021 condensed consolidated statement of operations have been reclassified to conform to the current period presentation. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Nov. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 3: SHAREHOLDERS’ EQUITY Stock option expense during the six months ended November 30, 2022 and 2021 was approximately $622,000 and $634,000, respectively. During the six months ended November 30, 2022, the Company sold 565,664 shares of its common stock at prices ranging from $3.15 to $4.26 under its Form S-3 Registration Statement and ATM Offering which resulted in gross proceeds of approximately $1,988,000 and net proceeds to the Company of approximately $1,936,000 after deducting commissions for each sale and legal, accounting, and other fees related to the ATM Offering. |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 6 Months Ended |
Nov. 30, 2022 | |
Geographic Information Disclosure Abstract | |
Geographic Information Disclosure [Text Block] | NOTE 4: GEOGRAPHIC INFORMATION The Company operates as one segment. Geographic information regarding net sales is approximately as follows: Three Months Ended November 30, Six Months Ended November 30, 2022 2021 2022 2021 Revenues from sales to unaffiliated customers: Asia $ 663,000 $ 3,373,000 $ 1,477,000 $ 4,048,000 Europe 415,000 796,000 967,000 1,267,000 North America 401,000 429,000 669,000 534,000 South America 3,000 3,000 6,000 6,000 Middle East - 46,000 - 54,000 $ 1,482,000 $ 4,647,000 $ 3,119,000 $ 5,909,000 As of November 30, 2022, and May 31, 2022, a pproximately $685,000 and $621,000 of Biomerica’s gross inventory was located in Mexicali, Mexico, respectively. As of November 30, 2022, and May 31, 2022, approximately $19,000 and $17,000 of Biomerica’s property and equipment, net of accumulated depreciation and amortization, was located in Mexicali, Mexico, respectively. |
LEASES
LEASES | 6 Months Ended |
Nov. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Leases [Text Block] | NOTE 5: LEASES The Company leases its facilities. On November 30, 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 $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 $3,600 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 the six months ended November 30, 2022 and 2021 was approximately $154,000 and $155,000, respectively . Rent expense for the Mexico facility for the six months ended November 30, 2022 and 2021 was approximately $21,000 and $21,000, 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 when they are incurred. Supplemental cash flow information related to leases for the six months ended November 30, 2022: Operating cash flows from operating leases $ 174,322 Right-of-use assets obtained in exchange for $ - Weighted average remaining lease term (in years) 3.77 Weighted average discount rate 6.50% The approximate maturity of lease liabilities as of November 30, 2022 are as Less than 1 year $ 357,000 1 to 2 years 368,000 2 to 3 years 379,000 3 to 4 years 298,000 4 to 5 years 0 Total undiscounted lease payments 1,402,000 Less imputed interest 154,000 Total operating lease liabilities $ 1,248,000 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 6: COMMITMENTS AND CONTINGENCIES LITIGATION The Company is, from time to time, involved in legal proceedings, claims and litigation arising in the ordinary course of business. There were no legal proceedings pending as of November 30, 2022. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | PRINCIPLES OF CONSOLIDATION The condensed consolidated financial statements include the accounts of Biomerica, Inc. as well as its German subsidiary (BioEurope GmbH) and Mexican subsidiary (Biomerica de Mexico). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | ACCOUNTING ESTIMATES The preparation of the condensed 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 condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reported period. Estimates that are made include the allowance for doubtful accounts, which is estimated based on current as well as historical experience with a customer; stock option forfeiture rates, which are calculated based on historical data; inventory obsolescence, which is based on projected and historical usage of materials; and lease liability and right-of-use assets, which are calculated based on certain assumptions such as borrowing rate, the likelihood of lease extensions to occur, asset valuation, among other things; and other items that may be necessary to estimate using current, historical and judgment based information. Actual results could materially differ from those estimates. |
Markets And Methods of Distribution Policy [Text Block] | MARKETS AND METHODS OF DISTRIBUTION Due to global and economic disruptions caused by the Coronavirus global pandemic, and the ongoing war in Ukraine, the Company’s operations have been negatively impacted. The Company has faced disruptions in certain of the following areas, and may face further challenges from supply chain disruptions, cost inflation, loss of contracts and/or customers, closure 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 and war related disruptions have materially negatively impacted 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 $38.8 million as of November 30, 2022. Management expects to continue to incur significant costs as it advances its clinical trials, product launches, and product development activities. As of November 30, 2022, the Company had cash and cash equivalents of On July 21, 2020, the Company filed with the SEC a “shelf” registration statement on Form S-3. The registration statement registers common shares that may be issued by the Company in a maximum aggregate amount of up to $90,000,000. Shares of the Company’s common stock may be sold from time to time under this registration statement for up to three years from the filing date. On January 22, 2021, the Company filed a prospectus supplement for the sale of up to $15,000,000 of shares of our common stock in an at-the-market offering (“ATM Offering”) under the shelf registration statement, of which approximately $9,400,000, remains available for sale under the prospectus supplement. 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. The sales agent under the ATM Offering agrees to use commercially reasonable efforts to sell on the Company’s behalf all of the 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 sales agent and the Company. The Company has no obligation to sell any of the shares under the ATM Offering, and may at any time suspend offers under, or terminate the ATM Offering. During the six months ended November 30, 2022, the Company sold 565,664 shares of its common stock at prices ranging from $3.15 to $4.26 under its ATM Offering which resulted in gross proceeds of approximately $1,988,000 and net proceeds to the Company approximately of $1,936,000 after deducting commissions for each sale and legal, accounting, and other fees related to the ATM Offering. As a result of cash and cash equivalents on hand at November 30, 2022, management |
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 November 30, 2022, The Company does not believe it is exposed to any significant credit risks. Consolidated net sales were approximately $1,482,000 and $4,647,000 for the three months ended November 30, 2022 and 2021, respectively, and the six months ended November 30, 2022 and 2021, respectively. For the three months ended November 30, 2022 and 2021, two and one for 48% the six months ended November 30, 2022 and 2021, two for 44% Total gross receivables on November 30, 2022 and May 31, 2022 were approximately $1,372,000 and $927,000, respectively. On November 30, 2022 May 31, 2022, one For the three months ended November 30, 2022 and 2021, the Company had one key vendor which accounted for 12% and 83% of the purchases of raw materials, respectively. For the six months ended November 30, 2022 and 2021, the As of November 30, 2022 and May 31, 2022, 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 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. Based on various criteria, initial credit levels for individual distributors are approved by designated officers and managers of the Company. All increases in credit limits are also approved by designated upper-level management. 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 November 30, 2022 and May 31, 2022, the Company has established a reserve of approximately $522,000 and $153,000, respectively, for doubtful accounts. |
Prepaids Policy [Policy Text Block] | PREPAID EXPENSES AND OTHER The Company occasionally prepays for items such as inventory, insurance, and other items. These items are reported as prepaid expenses and other, until either the inventory is physically received, or the insurance and other items are expensed. As of November 30, 2022 and May 31, 2022, the prepaid expenses and other were approximately $121,000 and $320,000, respectively |
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. As of November 30, 2022, and May 31, 2022, inventory reserves were approximately $774,000 and $846,000 , respectively. Net inventories are approximately the following: November 30, 2022 May 31, 2022 Raw materials $ 1,685,000 $ 1,717,000 Work in progress 811,000 763,000 Finished products 339,000 782,000 Total gross inventory $ 2,835,000 $ 3,262,000 Inventory reserves (774,000) (846,000) Net inventory $ 2,061,000 $ 2,416,000 Reserves for inventory obsolescence and/or inventory that management believes is in excess of an amount that can be sold in the near future, are recorded as necessary to reduce obsolete and excess inventory to estimated net realizable value or to specifically reserve for obsolete inventory. |
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 were approximately $16,000 and $26,000 for the three months ended November 30, 2022 and 2021, respectively, November 30, 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 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 expense was approximately $3,000 and $7,000 for the three months ended November 30, 2022 and 2021, respectively, and the six months ended November 30, 2022 and 2021, respectively. Amortizing intangible assets are tested for impairment if management determines that events or changes in circumstances indicate that the asset might be impaired. 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. As of November 30, 2022 and 2021, an impairment adjustment was made of $6,000 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, including the distribution of the products sold by the Company. The Company invested approximately $165,000 into the Polish distributor and owns approximately 6% of the investee. 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 November 30, 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 period ended November 30, 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 option-pricing model that uses assumptions for expected volatility, expected dividends, expected forfeiture rate, expected term, and the risk-free interest rate. The Company has not paid dividends historically and does not expect to pay them in the foreseeable future. Expected volatilities are based on weighted averages of the historical volatility of the Company’s common stock estimated over the expected term of the options. The expected forfeiture rate is based on historical forfeitures experienced. The expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term as historically the Company had limited exercise activity surrounding its options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term. The grant date fair value of the award is recognized under the straight-line attribution method. The Company expensed approximately $622,000 and $634,000 of stock-based compensation during the six months ended November 30, 2022 and 2021, respectively. The following summary presents the options granted, exercised, expired, canceled and outstanding for the six months ended November 30, 2022: Option Shares Exercise Price Weighted Average Outstanding May 31, 2022 2,321,616 $ 3.72 Granted 146,000 3.37 Exercised (46,500) 1.73 Cancelled or expired (82,500) 5.07 Outstanding November 30, 2022 2,338,616 $ 3.69 During the six months ended November 30, 2022, options to purchase 46,500 shares of common stock were exercised at prices ranging from $0.82 to $2.68. Total net proceeds to the Company were During the six months ended November 30, 2022, the Company granted 146,000 options to purchase common stock at an average purchase price the majority of those options issued to the Company’s new Chief Commercial Officer, who is managing the commercialization and roll-out of the InFoods IBS test. |
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 typically allow for returns from international customers except in the event of defective merchandise and therefore does not establish an allowance for returns. The Company does allow for a return merchandise allowance of approximately one percent of sales to certain domestic retailers. This allowance reduces revenue recognition by approximately one percent and is included in sales discounts. In addition, the Company has contracts with customers wherein customers receive purchase discounts for achieving specified sales volumes. The Company evaluated the status of these contracts during the six months ended November 30, 2022 and 2021, and does not believe that any additional discounts will be given through the end of the contract periods. Services for contract work performed by the Company for others are invoiced and recognized as that work has been performed and as the project progresses. The Company sells clinical lab products to domestic and international distributors, including hospitals and clinical laboratories, medical research institutions, medical schools and pharmaceutical companies. OTC products are sold directly to drug stores and e-commerce customers as well as to distributors. 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. As of November 30, 2022, the Company had approximately $49,000 of advances from certain foreign customers. The majority of these advances are prepayments on orders that are expected to ship during Disaggregation of revenue: The following is a breakdown of revenues according to markets to which the products are sold: Three Months Ended November 30, Six Months Ended November 30, 2022 2021 2022 2021 Clinical lab $ 902,000 $ 642,000 $ 2,048,000 $ 1,528,000 Over-the-counter 466,000 534,000 679,000 613,000 Physician's office 62,000 3,359,000 245,000 3,616,000 Contract manufacturing 52,000 112,000 147,000 152,000 Total $ 1,482,000 $ 4,647,000 $ 3,119,000 $ 5,909,000 See Note 4 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 $462,000 and $548,000 of research and development costs during the three months ended November 30, 2022 and 2021, respectively, and six months ended November 30, 2022 and 2021, respectively. |
Income Tax, Policy [Policy Text Block] | INCOME TAXES The Company has provided a full valuation allowance on deferred income tax assets of approximately $7,748,000 and $6,967,000 as of November 30, 2022 and May 31, 2022, respectively. |
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 period, and revenues and costs are translated using average exchange rates for the period. The resulting translation adjustments to assets and liabilities are presented as a separate component of accumulated other comprehensive loss. There are no foreign currency transactions that are included in the condensed consolidated statements of operations for the three and six months ended November 30, 2022 and 2021. |
Lessee, Leases [Policy Text Block] | RIGHT-OF-USE ASSETS AND LEASE LIABILITY Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. Leases are classified as financing or operating which will drive the expense recognition pattern. The Company has elected to exclude short-term leases. The Company leases office space and copy machines, all of which are operating leases. Most leases include the option to renew and the exercise of the renewal options is at the Company’s sole discretion. Options to extend or terminate a lease are considered in the lease term to the extent that the option is reasonably certain of exercise. The leases do not include the options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. |
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 amount of anti-dilutive stock options not included in the loss per share calculation on November 30, 2022 and respectively. |
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 2019-10, "Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates," which, among other things, defers the effective date of ASU 2016-13 for public filers that are considered smaller reporting companies as defined by the 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 November 30, 2021 condensed consolidated statement of operations have been reclassified to conform to the current period presentation. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | November 30, 2022 May 31, 2022 Raw materials $ 1,685,000 $ 1,717,000 Work in progress 811,000 763,000 Finished products 339,000 782,000 Total gross inventory $ 2,835,000 $ 3,262,000 Inventory reserves (774,000) (846,000) Net inventory $ 2,061,000 $ 2,416,000 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Option Shares Exercise Price Weighted Average Outstanding May 31, 2022 2,321,616 $ 3.72 Granted 146,000 3.37 Exercised (46,500) 1.73 Cancelled or expired (82,500) 5.07 Outstanding November 30, 2022 2,338,616 $ 3.69 |
Disaggregation of Revenue [Table Text Block] | Three Months Ended November 30, Six Months Ended November 30, 2022 2021 2022 2021 Clinical lab $ 902,000 $ 642,000 $ 2,048,000 $ 1,528,000 Over-the-counter 466,000 534,000 679,000 613,000 Physician's office 62,000 3,359,000 245,000 3,616,000 Contract manufacturing 52,000 112,000 147,000 152,000 Total $ 1,482,000 $ 4,647,000 $ 3,119,000 $ 5,909,000 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 6 Months Ended |
Nov. 30, 2022 | |
Geographic Information Disclosure Abstract | |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three Months Ended November 30, Six Months Ended November 30, 2022 2021 2022 2021 Revenues from sales to unaffiliated customers: Asia $ 663,000 $ 3,373,000 $ 1,477,000 $ 4,048,000 Europe 415,000 796,000 967,000 1,267,000 North America 401,000 429,000 669,000 534,000 South America 3,000 3,000 6,000 6,000 Middle East - 46,000 - 54,000 $ 1,482,000 $ 4,647,000 $ 3,119,000 $ 5,909,000 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Nov. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Schedule Of Cash Flow Supplemental Disclosures Related To Lease [Table Text Block] | Operating cash flows from operating leases $ 174,322 Right-of-use assets obtained in exchange for $ - Weighted average remaining lease term (in years) 3.77 Weighted average discount rate 6.50% |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Less than 1 year $ 357,000 1 to 2 years 368,000 2 to 3 years 379,000 3 to 4 years 298,000 4 to 5 years 0 Total undiscounted lease payments 1,402,000 Less imputed interest 154,000 Total operating lease liabilities $ 1,248,000 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - Revenue Benchmark [Member] - Product Concentration Risk [Member] | 6 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
COVID-19 Related Product [Member] | ||
BASIS OF PRESENTATION (Details) [Line Items] | ||
Concentration Risk, Percentage | 13% | 57% |
Non COVID-19 Product [Member] | ||
BASIS OF PRESENTATION (Details) [Line Items] | ||
Concentration Risk, Percentage | 87% | 43% |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2022 | Aug. 31, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | May 31, 2022 | Jan. 22, 2021 | Jul. 21, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Retained Earnings (Accumulated Deficit) | $ (38,775,343) | $ (38,775,343) | $ (35,077,379) | ||||||
Cash and Cash Equivalents, at Carrying Value | 5,066,521 | 5,066,521 | 5,916,983 | ||||||
Working Capital | 6,335,000 | ||||||||
Shelf Registration Statement Maximum Authorized Common Stock Issuance Value | $ 15,000,000 | $ 90,000,000 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 9,400,000 | ||||||||
Proceeds from Issuance of Common Stock | 1,988,422 | $ 1,751,222 | |||||||
Cash, Uninsured Amount | 4,825,000 | 4,825,000 | |||||||
Revenues | 1,481,915 | $ 4,646,900 | 3,119,350 | 5,908,687 | |||||
Accounts Receivable, before Allowance for Credit Loss | 1,372,000 | 1,372,000 | 927,000 | ||||||
Accounts Receivable, Allowance for Credit Loss, Current | 522,234 | 522,234 | 153,231 | ||||||
Prepaid Expense and Other Assets | 121,000 | 121,000 | 320,000 | ||||||
Inventory Valuation Reserves | 773,916 | 773,916 | 845,549 | ||||||
Depreciation, Depletion and Amortization | 16,000 | 26,000 | 36,000 | 54,000 | |||||
Amortization of Intangible Assets | 3,000 | 7,000 | 12,000 | 14,000 | |||||
Asset Impairment Charges | 6,000 | 0 | |||||||
Investments | 165,324 | $ 165,324 | 165,324 | ||||||
Share-Based Payment Arrangement, Expense | 318,230 | $ 303,755 | 314,397 | $ 319,622 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in Shares) | 46,500 | ||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 1.73 | ||||||||
Proceeds from Stock Options Exercised | $ 79,155 | 34,480 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in Shares) | 146,000 | ||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ 3.37 | ||||||||
Proceeds from Customers | $ 49,000 | ||||||||
Research and Development Expense | 461,941 | 547,933 | 823,112 | $ 929,477 | |||||
Deferred Tax Assets, Gross | 7,748,000 | $ 7,748,000 | $ 6,967,000 | ||||||
Share-Based Payment Arrangement, Option [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 2,338,616 | 2,059,116 | |||||||
Minimum [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Property, Plant and Equipment, Estimated Useful Lives | 5 | ||||||||
Maximum [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Property, Plant and Equipment, Estimated Useful Lives | 10 years | ||||||||
Distribution Rights [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Finite-Lived Intangible Asset, Useful Life | 18 years | ||||||||
Purchased Technology Rights [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||||||
Patents [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||||||
Asia [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Revenues | $ 663,000 | $ 3,373,000 | $ 1,477,000 | $ 4,048,000 | |||||
Asia [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Concentration Risk, Percentage | 48% | ||||||||
UNITED STATES | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Concentration Risk, Percentage | 59% | ||||||||
Foreign [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Concentration Risk, Percentage | 75% | 50% | |||||||
Polish Distributor [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Investments | $ 165,000 | $ 165,000 | |||||||
Equity Method Investment, Ownership Percentage | 6% | 6% | |||||||
Share-Based Payment Arrangement, Option [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Share-Based Payment Arrangement, Expense | $ 622,000 | $ 634,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in Shares) | 46,500 | ||||||||
Proceeds from Stock Options Exercised | $ 79,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in Shares) | 146,000 | ||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ 3.37 | ||||||||
Share-Based Payment Arrangement, Option [Member] | Minimum [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | 0.82 | ||||||||
Share-Based Payment Arrangement, Option [Member] | Maximum [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 2.68 | ||||||||
One Cutomer [Member] | Asia [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Concentration Risk, Percentage | 44% | ||||||||
Two Customer [Member] | Asia [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Concentration Risk, Percentage | 66% | ||||||||
One Vendor [Member] | Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Concentration Risk, Percentage | 12% | 83% | 8% | 77% | |||||
One Vendor [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Concentration Risk, Percentage | 27% | ||||||||
Two Vendors [Member] | Accounts Payable [Member] | Supplier Concentration Risk [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Concentration Risk, Percentage | 69% | ||||||||
ATM Agreement [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues (in Shares) | 565,664 | ||||||||
Proceeds from Issuance of Common Stock | $ 1,988,000 | ||||||||
Sale of Stock, Consideration Received on Transaction | $ 1,936,000 | ||||||||
ATM Agreement [Member] | Minimum [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Share Price (in Dollars per share) | $ 3.15 | $ 3.15 | |||||||
ATM Agreement [Member] | Maximum [Member] | |||||||||
SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||||||||
Share Price (in Dollars per share) | $ 4.26 | $ 4.26 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - Inventories - USD ($) | Nov. 30, 2022 | May 31, 2022 |
Inventories Abstract | ||
Raw materials | $ 1,685,000 | $ 1,717,000 |
Work in progress | 811,000 | 763,000 |
Finished products | 339,000 | 782,000 |
Total gross inventory | 2,835,000 | 3,262,000 |
Inventory reserves | (773,916) | (845,549) |
Net inventory | $ 2,061,444 | $ 2,416,447 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details) - Options Activity | 6 Months Ended |
Nov. 30, 2022 $ / shares shares | |
Options Activity Abstract | |
Options Outstanding, Shares | shares | 2,321,616 |
Option Outstanding, Exercise Price Weighted Average | $ / shares | $ 3.72 |
Option Granted, Shares | shares | 146,000 |
Option Granted, Exercise Price Weighted Average | $ / shares | $ 3.37 |
Option Exercised, Shares | shares | (46,500) |
Option Exercised, Exercise Price Weighted Average | $ / shares | $ 1.73 |
Option Cancelled or expired, Shares | shares | (82,500) |
Option Cancelled or expired, Exercise Price Weighted Average | $ / shares | $ 5.07 |
Options Outstanding, Shares | shares | 2,338,616 |
Option Outstanding, Exercise Price Weighted Average | $ / shares | $ 3.69 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details) - Revenue from contracts with customers - USD ($) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue From Customers | $ 1,482,000 | $ 4,647,000 | $ 3,119,000 | $ 5,909,000 |
Clinical Lab [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Customers | 902,000 | 642,000 | 2,048,000 | 1,528,000 |
Over-the-counter [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Customers | 466,000 | 534,000 | 679,000 | 613,000 |
Physicians Office [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Customers | 62,000 | 3,359,000 | 245,000 | 3,616,000 |
Contract Manufacturing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue From Customers | $ 52,000 | $ 112,000 | $ 147,000 | $ 152,000 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) | 6 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
SHAREHOLDERS' EQUITY (Details) [Line Items] | ||
Stock or Unit Option Plan Expense | $ 621,985 | $ 634,019 |
Sale of Stock, Number of Shares Issued in Transaction (in Shares) | 565,664 | |
Proceeds from Sale of Stock, Gross | 1,988,000 | |
Proceeds from Sale of Stock, Net | $ 1,936,000 | |
Minimum [Member] | ||
SHAREHOLDERS' EQUITY (Details) [Line Items] | ||
Sale of Stock, Price Per Share (in Dollars per share) | $ 3.15 | |
Maximum [Member] | ||
SHAREHOLDERS' EQUITY (Details) [Line Items] | ||
Sale of Stock, Price Per Share (in Dollars per share) | $ 4.26 |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details) | 6 Months Ended | |
Nov. 30, 2022 USD ($) | May 31, 2022 USD ($) | |
GEOGRAPHIC INFORMATION (Details) [Line Items] | ||
Number of Operating Segments | 1 | |
Inventory, Gross | $ 2,835,000 | $ 3,262,000 |
Property, Plant and Equipment, Net | 236,719 | 214,487 |
MEXICO | ||
GEOGRAPHIC INFORMATION (Details) [Line Items] | ||
Inventory, Gross | 685,000 | 621,000 |
Property, Plant and Equipment, Net | $ 19,000 | $ 17,000 |
GEOGRAPHIC INFORMATION (Detai_2
GEOGRAPHIC INFORMATION (Details) - Geographic information regarding net sales - USD ($) | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Revenues from sales to unaffiliated customers: | ||||
Net Sales | $ 1,481,915 | $ 4,646,900 | $ 3,119,350 | $ 5,908,687 |
Asia [Member] | ||||
Revenues from sales to unaffiliated customers: | ||||
Net Sales | 663,000 | 3,373,000 | 1,477,000 | 4,048,000 |
Europe [Member] | ||||
Revenues from sales to unaffiliated customers: | ||||
Net Sales | 415,000 | 796,000 | 967,000 | 1,267,000 |
North America [Member] | ||||
Revenues from sales to unaffiliated customers: | ||||
Net Sales | 401,000 | 429,000 | 669,000 | 534,000 |
South America [Member] | ||||
Revenues from sales to unaffiliated customers: | ||||
Net Sales | 3,000 | 3,000 | 6,000 | 6,000 |
Middle East [Member] | ||||
Revenues from sales to unaffiliated customers: | ||||
Net Sales | $ 46,000 | $ 54,000 |
LEASES (Details)
LEASES (Details) - USD ($) | 6 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Building In Irvine California [Member] | ||
LEASES (Details) [Line Items] | ||
Payments for Rent | $ 26,000 | |
Security Deposit | 22,000 | |
Lease by Mexican Subsidiary [Member] | ||
LEASES (Details) [Line Items] | ||
Payments for Rent | 3,600 | |
United States Facility [Member] | ||
LEASES (Details) [Line Items] | ||
Payments for Rent | 154,000 | $ 155,000 |
Mexico Facility [Member] | ||
LEASES (Details) [Line Items] | ||
Payments for Rent | $ 21,000 | $ 21,000 |
LEASES (Details) - Supplemental
LEASES (Details) - Supplemental cash flow information related to leases | 6 Months Ended |
Nov. 30, 2022 USD ($) | |
Supplemental Cash Flow Information Related To Leases Abstract | |
Operating cash flows from operating leases | $ 174,322 |
Right-of-use assets obtained in exchange for new operating lease liabilities | |
Weighted average remaining lease term (in years) | 3 years 9 months 7 days |
Weighted average discount rate | 6.50% |
LEASES (Details) - The maturity
LEASES (Details) - The maturity of lease liabilities | Nov. 30, 2022 USD ($) |
The Maturity Of Lease Liabilities Abstract | |
Less than 1 year | $ 357,000 |
1 to 2 years | 368,000 |
2 to 3 years | 379,000 |
3 to 4 years | 298,000 |
4 to 5 years | 0 |
Total undiscounted lease payments | 1,402,000 |
Less imputed interest | 154,000 |
Total operating lease liabilities | $ 1,248,000 |