BMRA

• Approval of Fortel Kidney Test: The UAE Ministry of Health has approved Biomerica's Fortel® Kidney Test for home use, enabling early detection of kidney damage in diabetic and hypertensive patients through a rapid 10-minute test.

• Prevalence of Diabetes and Hypertension: With diabetes affecting one in four UAE nationals and hypertension impacting about one-third of adults, the test addresses a critical need for preventative healthcare in a region with high rates of chronic kidney disease (CKD).

Financial Performance Overview

• Operating Expense Reductions: Biomerica achieved a reduction in operating expenses by over $1.3 million, with total operating expenses decreasing to $5.6 million from $7.0 million in the previous year.
• Improved Operating Loss: The operating loss improved by 19% year-over-year, decreasing to $5.1 million from $6.4 million, despite facing revenue challenges.

Revenue and Sales Insights

• Net Sales Figures: The company reported net sales of $5.3 million for the fiscal year ending May 31, 2025, slightly down from $5.4 million the previous year, primarily due to global tariff uncertainties and a shift in product mix.
• Gross Profit Decline: Gross profit fell to $498,000 from $611,000, reflecting the impact of macroeconomic factors on revenue.

Cash Flow and Operating Activities

• Cash Utilization: Cash used in operating activities significantly improved to $3.8 million from $5.3 million in the prior year, indicating stronger operational discipline and efficiency.

Strategic Growth Initiatives

• inFoods® IBS Opportunities: The company is focusing on expanding its inFoods® IBS product line, with a new Proprietary Laboratory Analyses (PLA) code issued to facilitate insurance reimbursement.
• Expansion in MENA Region: Biomerica is pursuing regulatory clearances and distribution partnerships for its at-home tests in the Middle East and North Africa, alongside efforts for insurance reimbursement.

Key Milestones Achieved

• PLA Code Submission: A PLA code for the inFoods® IBS test was submitted, enhancing access to Medicare and Medicaid reimbursement.
• Clinical Validation: Results from a clinical study on inFoods® IBS were published, showing significant improvements in symptoms for patients.
• IVDR Certification: The company received EU IVDR certification for its food-intolerance diagnostic tests, supporting future commercialization in Europe.
• Direct-to-Consumer Launch: Biomerica introduced a direct-to-consumer model for inFoods® IBS, expanding patient access through telehealth.

Intellectual Property Developments

• Patent Growth: Three new international patents were issued for applications of the inFoods® technology platform, targeting various gastrointestinal diseases.

Commitment to Growth

• Long-term Strategy: Biomerica remains dedicated to enhancing its financial position and driving growth through innovative medical products and strategic partnerships, focusing on gastrointestinal and inflammatory diseases.

• Home Test Approval: Biomerica's Fortel® Ulcer Test, a 10-minute home diagnostic for detecting Helicobacter pylori (H. pylori), has been approved for use in the UAE, allowing individuals to test for this bacterium linked to peptic ulcers and gastric cancer from home.

• Health Impact: H. pylori affects around 41% of the UAE population and is responsible for approximately 80% of gastric cancer cases, prompting Biomerica to enhance access to early detection tools to improve health outcomes in the region.