InFoods® IBS Commercial Progress: Medicare-related test orders increased 120% in September 2026 compared to August, with growing physician participation and repeat ordering activity
InFoods® IBS update: 100% of all initial valid Medicare claims processed as of October 15, 2026 have been paid at the full CMS payment rate of $300
Engaged B. Riley Securities, Inc. to support the Board's ongoing evaluation of potential strategic opportunities, including partnerships and business combinations
Total operating expenses decreased approximately 14% year over year
Over-the-counter sales increased approximately 81% compared to the first quarter of fiscal 2026
Cash and cash equivalents more than doubled to approximately $2.7 million at August 31, 2026, from approximately $1.3 million at May 31, 2026

IRVINE, Calif., Oct. 16, 2026 (GLOBE NEWSWIRE) -- Biomerica, Inc. (NASDAQ:BMRA) ("Biomerica" or the "Company") today reported financial results for the first quarter of fiscal 2027, ended August 31, 2026.

Business Highlights

inFoods® IBS Commercialization and Medicare Reimbursement Progress: Biomerica continues to advance commercialization of inFoods® IBS, focusing on expanding physician adoption and increasing testing activity through the Medicare channel. As of October 15, 2026, 32 customer locations had been set up for Medicare ordering, up 28% from 25 at August 31. Of these, 13 had placed Medicare-related orders, including nine with multiple orders, reflecting encouraging progress in physician adoption and continued utilization.

Following the quarter-end, Medicare-related test orders increased 120% to 22 in September 2026, compared to 10 in August, reaching the highest monthly level recorded through September. Early ordering patterns illustrate how utilization can build over time: one practice placed two Medicare-related orders in July, three in August and seven in September, reflecting growing Medicare-related testing activity and continued physician engagement.

Biomerica's laboratory partner began submitting Medicare claims for inFoods® IBS under the applicable CPT® Proprietary Laboratory Analyses ("PLA") code after May 31, 2026. As of October 15, 2026, 100% of all initial valid claims processed have been paid at the full CMS payment rate of $300 under the Clinical Laboratory Fee Schedule. Claims are currently considered on an individual, claim-by-claim basis.

Biomerica continues to expand Medicare billing availability while engaging both existing and new physicians to support broader adoption of inFoods® IBS, including physicians who currently use or have previously offered the test on a cash-pay basis.

CDM Program Progressing: Biomerica continues to pursue contract development and manufacturing ("CDM") opportunities to expand its revenue base while leveraging its existing capabilities. Development work is progressing under Biomerica's Master Services Agreement ("MSA") with a confidential life sciences company for development of proprietary in vitro diagnostic ("IVD") assay. The MSA has initial target development fees exceeding $1.75 million, subject to the execution of additional Statements of Work under the MSA. Payments are tied to contractual milestones, while revenue is recognized over time as Biomerica performs the development services. The timing and amount of future revenue depend on the scope and progress under the applicable Statements of Work. The work is being performed at Biomerica's FDA-registered, ISO 13485-certified facility in Irvine, California, using existing personnel, equipment and infrastructure.

Hp+detect™ Reorders: Biomerica continues to receive reorders for hp+detect™, its FDA-cleared and U.K. Medicines and Healthcare products Regulatory Agency registered H. pylori test, from one of the largest clinical laboratory chains operating across Europe, for the United Kingdom market. Biomerica continues to market hp+detect™ to laboratories in the United States and Europe.

Over-the-Counter and Regional Growth: Over-the-counter sales increased approximately 81% to $291,000 in the first quarter of fiscal year 2027 compared to the first quarter of fiscal year 2026, driven primarily by sales to a new customer. Separately, total sales in the Middle East increased approximately 59% compared to the prior-year quarter.

Financing: In August 2026, Biomerica completed a private placement of approximately 1.39 million shares of common stock at $1.60 per share, generating gross proceeds of approximately $2.23 million, with no warrants or discounted securities. The financing included participation from B. Riley Principal Capital, LLC and all members of Biomerica's Board of Directors. Biomerica also engaged B. Riley Securities, Inc. as its exclusive financial advisor to support the Board's ongoing evaluation of potential strategic opportunities, including partnerships and business combinations. There can be no assurance that this evaluation will result in any transaction.

First Quarter Fiscal 2027 Financial Results

Net Sales

Net sales for the first quarter of fiscal 2027 were approximately $1.3 million, compared to approximately $1.4 million in the prior-year quarter. The decrease primarily reflected fluctuations in clinical laboratory customer orders and shipment timing, partially offset by an approximately 81% increase in over-the-counter sales and growth in contract manufacturing revenue. Biomerica continues to advance existing contract development and manufacturing projects while expanding commercialization efforts for inFoods® IBS and its other diagnostic products.

Gross Margin

Gross profit was approximately $103,000, or 8% of net sales, compared to approximately $424,000, or 31% of net sales, in the prior-year quarter. The decrease primarily reflected changes in product mix, lower sales volume, and differences in the timing of manufacturing costs included in cost of sales. Management remains focused on improving gross margins over time as sales of inFoods® IBS and hp+detect™ expand, while continuing to develop contract manufacturing opportunities that leverage Biomerica's existing capabilities.

Operating Expenses

Total operating expenses decreased approximately 14% to $1.3 million, compared to approximately $1.5 million in the prior-year quarter, reflecting Biomerica's continued focus on cost discipline. The reduction primarily reflected lower administrative and personnel-related expenses, including reduced professional service fees. Biomerica also increased utilization of existing personnel on contract development and manufacturing projects, supporting revenue-generating activities while leveraging existing resources.

Operating Results

Operating loss was approximately $1.2 million, compared to approximately $1.1 million in the prior-year quarter, as lower gross profit was partially offset by reduced operating expenses. Net loss was approximately $1.2 million, or $0.37 per share, compared to net income of approximately $2,000 in the prior-year quarter, which included approximately $1.1 million in Employee Retention Credit ("ERC") income.

Cash Flow and Liquidity

Net cash used in operating activities was approximately $802,000, compared to approximately $268,000 in the prior-year quarter, which included approximately $1.1 million in Employee Retention Credit ("ERC") cash receipts. Excluding the impact of these prior-year receipts, operating cash outflow was approximately 41% lower year over year.

As of August 31, 2026, Biomerica had approximately $2.7 million in cash and cash equivalents and $2.6 million in working capital, compared to approximately $1.3 million and $1.5 million, respectively, as of May 31, 2026. The increase in cash primarily reflected proceeds from Biomerica's August 2026 private placement.

Selected Financial Results

Three Months Ended

August 31, 2026

August 31, 2025

($ in millions, except percentages)

Revenue

$1.3

$1.4

Gross margin

31%

Operating expenses

$1.3

$1.5

Operating loss

($1.2)

($1.1)

Net (loss) income

($1.2)

$0.0

About Biomerica (NASDAQ: BMRA)

Biomerica, Inc. (www.biomerica.com) is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and in physicians' offices) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. Biomerica's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Biomerica primarily focuses on gastrointestinal and inflammatory diseases where Biomerica has multiple diagnostic and therapeutic products in development. Biomerica's Board of Directors continues to evaluate potential strategic opportunities with the goal of maximizing long-term shareholder value.

About inFoods® IBS

The inFoods® IBS test involves a simple blood collection procedure and is designed to assess a patient’s above normal immunoreactivity to specific foods. Instead of difficult-to-manage broad dietary restrictions, physicians can now use the inFoods® IBS information to make targeted, patient-specific recommendations about specific foods that, when removed from the diet, may alleviate IBS symptoms such as pain, bloating, diarrhea and constipation. Further information about Biomerica’s patented inFoods® Technology Platform can be found at: https://biomerica.com/inFoods/our-technology/. The inFoods® IBS clinical study was performed at several prominent centers including Mayo Clinic, Beth Israel Deaconess Medical Center Inc. - a Harvard Medical School Teaching Hospital, Houston Methodist Hospital, and the University of Michigan. The clinical results for the Abdominal Pain Intensity (API) responder endpoint of >30% showed a statistically significant improvement for IBS patients in the treatment diet arm compared with patients in the placebo diet arm (p-value of 0.0246). The improvement in the treatment arm compared with the placebo arm is considered clinically significant and is similar to, and in some cases better than, that reported for currently marketed drugs.

For more information about inFoods® IBS, visit www.inFoodsibs.com.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to Biomerica’s current and future cash position, balance sheet, cost savings, sales, revenues, overhead, expenses, cost of goods, operations, and earnings; Biomerica's need for raising additional capital; Biomerica's expected sales growth for Biomerica's inFoods® IBS product, hp+detect™ product, CDM offerings and other existing products; and diversification of Biomerica's revenue streams. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results. Such important risks and uncertainties include, among others: earnings and other financial results; results of studies testing the efficacy of Biomerica’s inFoods tests and other products; regulatory approvals necessary prior to commercialization of Biomerica’s products; availability of Biomerica’s test kits and other products; capacity, shipping logistics, resource and other constraints on our suppliers; dependence on our third party manufacturers; dependence on international shipping carriers; governmental import/export regulations; demand for our various tests and other products; competition from other similar products and from competitors that have significantly more financial and other resources available to them; governmental virus control regulations that make it difficult or impossible for Biomerica to maintain current operations; regulatory compliance and oversight, and Biomerica’s ability to obtain patent protection on any aspects of its diagnostic or therapeutic technologies; fluctuations in Biomerica's operating results due to its business model and expansion plans; downturns in international and/or national economies; Biomerica’s ability to raise additional capital; the competitive environment in which Biomerica will be competing; and Biomerica's dependence on strategic relationships. Additional factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the "Risk Factors" section of Biomerica's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the U.S. Securities and Exchange Commission (the "SEC"), and available on the SEC's website (www.sec.gov). In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica.

Biomerica is under no obligation to update any forward-looking statements after the date of this release.

Corporate Contact:

Zack Irani

949-645-2111

investors@biomerica.com

Source: Biomerica, Inc.