Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2023 or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-37863

BIOMERICA, INC.

(Exact name of registrant as specified in its charter)

Delaware

95-2645573

(State or other jurisdiction of

incorporation of organization)

(I.R.S. Employer
Identification No.)

17571 Von Karman Avenue, Irvine, CA		92614
(Address of principal executive offices)		(Zip Code)

REGISTRANT’S TELEPHONE NUMBER:

(949) 645-2111

Securities registered under Section 12(b) of the Exchange Act:

(Title of each class)

COMMON STOCK, PAR VALUE $0.08

(Name of each exchange on which registered)

NASDAQ Capital Market

(Trading symbol)

BMRA

Indicate by check whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (paragraph 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,”, “accelerated filer,”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large accelerated filer ☐	Accelerated filer ☐
	Non-accelerated filer ☒	Smaller reporting company ☒
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ☐ No ☒

The number of shares of the registrant’s common stock outstanding as of January 16, 2024 was 16,821,646.

BIOMERICA, INC.

INDEX

PART I	Financial Information

Item 1.	Financial Statements:

	Condensed Consolidated Balance Sheets (unaudited) –November 30, 2023 and May 31, 2023	1

	Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) – Three and Six Months Ended November 30, 2023 and 2022	2

	Condensed Consolidated Statements of Shareholders’ Equity (unaudited) – Three and Six Months Ended November 30, 2023 and 2022	3

	Condensed Consolidated Statements of Cash Flows (unaudited) – Six Months Ended November 30, 2023 and 2022	4

	Notes to Condensed Consolidated Financial Statements (unaudited)	5 - 13

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14 - 19

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	19

Item 4.	Controls and Procedures	19

PART II	Other Information	20

Item 1.	Legal Proceedings	20

Item 1A.	Risk Factors	20

Item 5.	Other Information	20

Item 6.	Exhibits	20

	Signatures	21

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BIOMERICA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	November 30, 2023			May 31, 2023
Assets

Current Assets:
Cash and cash equivalents	$	7,134,000		$	9,719,000
Accounts receivable, net		1,067,000			722,000
Inventories, net		1,841,000			2,056,000
Prepaid expenses and other		223,000			300,000
Total current assets		10,265,000			12,797,000
Property and equipment, net of accumulated depreciation and amortization		210,000			213,000
Right-of-use assets, net of accumulated amortization of $761,000 and $617,000 as of November 30, 2023 and May 31, 2023, respectively		891,000			1,035,000
Investments		165,000			165,000
Intangible assets, net of accumulated amortization		204,000			165,000
Other assets		96,000			79,000
Total Assets	$	11,831,000		$	14,454,000
Liabilities and Shareholders’ Equity

Current Liabilities:
Accounts payable and accrued expenses	$	783,000		$	892,000
Accrued compensation		668,000			696,000
Advance from customers		60,000			60,000
Lease liabilities, current portion		311,000			297,000
Total current liabilities		1,822,000			1,945,000
Lease liabilities, net of current portion		626,000			785,000
Total Liabilities		2,448,000			2,730,000

Commitments and contingencies (Note 6)		-			-

Shareholders’ Equity:

Preferred stock, Series A 5% convertible, $0.08 par value, 571,429 shares authorized, none issued and outstanding as of November 30, 2023 and May 31, 2023		-			-
Preferred stock, undesignated, no par value, 4,428,571 shares authorized, none issued and outstanding as of November 30, 2023 and May 31, 2023		-			-
Preferred stock, value		-			-
Common stock, $0.08 par value, 25,000,000 shares authorized, 16,821,646 issued and outstanding at November 30, 2023 and May 31, 2023, respectively		1,346,000			1,346,000
Additional paid-in-capital		52,997,000			52,705,000
Accumulated other comprehensive loss		(104,000	)		(110,000	)
Accumulated deficit		(44,856,000	)		(42,217,000	)
Total Shareholders’ Equity		9,383,000			11,724,000
Total Liabilities and Shareholders’ Equity	$	11,831,000		$	14,454,000

The accompanying notes are an integral part of these statements.

BIOMERICA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS (UNAUDITED)

	2023			2022			2023			2022
	For the Three Months Ended November 30,						For the Six Months Ended November 30,
	2023			2022			2023			2022
Net sales	$	1,567,000		$	1,482,000		$	3,281,000		$	3,119,000
Cost of sales		(1,242,000	)		(1,130,000	)		(2,541,000	)		(2,822,000	)
Gross profit		325,000			352,000			740,000			297,000

Operating expenses:
Selling, general and administrative		1,521,000			1,556,000			2,696,000			3,210,000
Research and development		412,000			462,000			883,000			823,000
Total operating expenses		1,933,000			2,018,000			3,579,000			4,033,000

Loss from operations		(1,608,000	)		(1,666,000	)		(2,839,000	)		(3,736,000	)

Other income:
Interest and dividend income		109,000			41,000			231,000			41,000
Total other income		109,000			41,000			231,000			41,000

Loss before income taxes		(1,499,000	)		(1,625,000	)		(2,608,000	)		(3,695,000	)

Provision for income taxes		(8,000	)		(1,000	)		(31,000	)		(3,000	)

Net loss	$	(1,507,000	)	$	(1,626,000	)	$	(2,639,000	)	$	(3,698,000	)

Basic net loss per common share	$	(0.09	)	$	(0.12	)	$	(0.16	)	$	(0.28	)

Diluted net loss per common share	$	(0.09	)	$	(0.12	)	$	(0.16	)	$	(0.28	)

Weighted average number of common and common equivalent shares:
Basic		16,821,646			13,455,166			16,821,646			13,271,845

Diluted		16,821,646			13,455,166			16,821,646			13,271,845

Net loss	$	(1,507,000	)	$	(1,626,000	)	$	(2,639,000	)	$	(3,698,000	)

Other comprehensive income (loss), net of tax:
Foreign currency translation		-			(9,000	)		6,000			(21,000	)

Comprehensive loss	$	(1,507,000	)	$	(1,635,000	)	$	(2,633,000	)	$	(3,719,000	)

The accompanying notes are an integral part of these statements.

BIOMERICA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

For the Six Months Ended November 30, 2023

	Shares		Amount		Capital		Loss			Deficit			Equity
	Common Stock				Additional Paid in		Accumulated Other Comprehensive			Accumulated			Total Stockholder’s
	Shares		Amount		Capital		Loss			Deficit			Equity
Balances at May 31, 2023		16,821,646	$	1,346,000	$	52,705,000	$	(110,000	)	$	(42,217,000	)	$	11,724,000
Exercise of stock options		-		-		-		-			-			-
Foreign currency translation		-		-		-		6,000			-			6,000
Share-based compensation		-		-		170,000		-			-			170,000
Net loss		-		-		-		-			(1,132,000	)		(1,132,000	)
Balances at August 31, 2023		16,821,646		1,346,000		52,875,000		(104,000	)		(43,349,000	)		10,768,000
Exercise of stock options		-		-		-		-			-			-
Foreign currency translation		-		-		-		-			-			-
Share-based compensation		-		-		122,000		-			-			122,000
Net loss		-		-		-		-			(1,507,000	)		(1,507,000	)
Balances at November 30, 2023		16,821,646	$	1,346,000	$	52,997,000	$	(104,000	)	$	(44,856,000	)	$	9,383,000

For the Six Months Ended November 30, 2022

	Common Stock				Additional Paid in		Accumulated Other Comprehensive			Accumulated			Total Stockholder’s
	Shares		Amount		Capital		Loss			Deficit			Equity
Balances at May 31, 2022		12,867,924	$	1,029,000	$	42,447,000	$	(74,000	)	$	(35,077,000	)	$	8,325,000
Exercise of stock options		15,000		1,000		13,000		-			-			14,000
Net proceeds from ATM		523,977		42,000		1,722,000		-			-			1,764,000
Foreign currency translation		-		-		-		(13,000	)		-			(13,000	)
Share-based compensation		-		-		304,000		-			-			304,000
Net loss		-		-		-		-			(2,072,000	)		(2,072,000	)
Balances at August 31, 2022		13,406,901		1,072,000		44,486,000		(87,000	)		(37,149,000	)		8,322,000
Balances		13,406,901		1,072,000		44,486,000		(87,000	)		(37,149,000	)		8,322,000
Exercise of stock options		31,500		3,000		63,000		-			-			66,000
Net proceeds from ATM		41,012		3,000		170,000		-			-			173,000
Foreign currency translation		-		-		-		(9,000	)		-			(9,000	)
Share-based compensation		-		-		318,000		-			-			318,000
Net loss		-		-		-		-		$	(1,626,000	)		(1,626,000	)
Balances at November 30, 2022		13,479,413	$	1,078,000	$	45,037,000	$	(96,000	)	$	(38,775,000	)	$	7,244,000
Balances		13,479,413	$	1,078,000	$	45,037,000	$	(96,000	)	$	(38,775,000	)	$	7,244,000

The accompanying notes are an integral part of these statements.

BIOMERICA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	2023			2022
	For the Six Months Ended November 30,
	2023			2022
Cash flows from operating activities:
Net loss	$	(2,639,000	)	$	(3,698,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		39,000			48,000
Provision (recovery) for allowance on accounts receivable		(7,000	)		369,000
Inventory reserve		(174,000	)		(72,000	)
Share-based compensation		292,000			622,000
Amortization of right-of-use asset		144,000			134,000
Changes in assets and liabilities:
Accounts receivable		(338,000	)		(445,000	)
Inventories		390,000			427,000
Prepaid expenses and other		77,000			200,000
Other assets		(17,000	)		16,000
Accounts payable and accrued expenses		(110,000	)		(302,000	)
Accrued compensation		(28,000	)		50,000
Advance from customers		-			(2,000	)
Reduction in lease liabilities		(145,000	)		(133,000	)
Net cash used in operating activities		(2,516,000	)		(2,786,000	)

Cash flows from investing activities:
Purchases of property and equipment		(27,000	)		(58,000	)
Expenditures related to intangibles		(48,000	)		-
Net cash used in investing activities		(75,000	)		(58,000	)

Cash flows from financing activities:
Gross proceeds from sale of common stock		-			1,988,000
Costs from sale of common stock		-			(52,000	)
Proceeds from exercise of stock options		-			79,000
Net cash provided by financing activities		-			2,015,000

Effect of exchange rate changes in cash		6,000			(21,000	)
Net decrease in cash and cash equivalents		(2,585,000	)		(850,000	)

Cash and cash equivalents at beginning of year		9,719,000			5,917,000

Cash and cash equivalents at end of period	$	7,134,000		$	5,067,000

Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Income taxes	$	30,000		$	3,000

Non-cash investing and financing activities:

Write off of intangible assets, cost	$	-		$	6,000
Write off of intangible assets, accumulated amortization	$	-		$	1,000

The accompanying notes are an integral part of these statements.

BIOMERICA, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1: BASIS OF PRESENTATION

Biomerica, Inc. and its subsidiaries (which includes wholly-owned subsidiaries, Biomerica de Mexico and BioEurope GmbH) is a biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (physicians’ offices and over-the-counter through drugstores and online) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. Our diagnostic test kits are used to analyze blood, urine, nasal or fecal material from patients in the diagnosis of various diseases, food intolerances and other medical complications, or to measure the level of specific hormones, antibodies, antigens or other substances, which may exist in the human body in extremely small concentrations. The Company’s products are designed to enhance the health and well-being of people, while reducing total healthcare costs.

Our primary focus is the research, development, commercialization and eventual regulatory approval, of patented, diagnostic-guided therapy (“DGT”) products based on our inFoods^® Technology platform that treat gastrointestinal diseases, such as irritable bowel syndrome (“IBS”), and other inflammatory diseases. These inFoods based products are directed at chronic inflammatory illnesses that are widespread and common, and as such address very large markets. The first product we are launching using this patented inFoods Technology is our inFoods IBS product which uses a simple blood sample to identify patient-specific foods that, when removed from their diet, may alleviate IBS symptoms such as pain, bloating, diarrhea, cramping and constipation. Instead of broad and difficult to manage dietary restrictions, the inFoods IBS product works by identifying a patient’s above normal immunoreactivity to a panel of specific foods that have been shown to often be problematic to IBS sufferers. A food identified as positive (causing an abnormally high immune response in the patient) is simply removed from the diet to help alleviate IBS symptoms. We have launched this product with certain large gastroenterology (“GI”) physician groups that are now offering this product to their patients. We have also recently hired an internal sales force to sign up additional GI physician groups who are interested in offering this product to their patients. As such, we are expecting growth in revenues from the launch of our inFoods IBS product in coming quarters.

Our other existing medical diagnostic products are sold worldwide primarily in two markets: 1) clinical laboratories and 2) point-of-care (physicians’ offices and over-the-counter at Walmart, CVS Pharmacy and Amazon). The diagnostic test kits are used to analyze blood, urine, nasal or fecal specimens from patients in the diagnosis of various diseases, food intolerances and other medical complications, by measuring or detecting the existence and/or level of specific bacteria, hormones, antibodies, antigens, or other substances, which may exist in a patient’s body, stools, or blood, often in extremely small concentrations.

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. We began selling these COVID-19 related diagnostic tests during fiscal 2021, and we experienced significant revenues from such sales during fiscal 2021 and 2022 with lesser sales in fiscal 2023. Due to falling demand, there were no sales of our COVID-19 related products in the six months ended November 30, 2023. As such, our COVID-19 product sales have caused significant swings in our revenues over the past nine quarters.

Our products that accounted for all of our revenues during the six months ended November 30, 2023, are primarily focused on gastrointestinal diseases, colorectal diseases, food intolerances, and certain esoteric tests. These diagnostic test products utilize immunoassay technology. Most of our products are CE marked and/or sold for diagnostic use where they are registered by each country’s regulatory agency. In addition, some products are cleared for sale in the United States by the FDA.

The unaudited condensed consolidated financial statements herein have been prepared by management pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The accompanying unaudited condensed consolidated financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited consolidated financial statements for the latest fiscal year ended May 31, 2023. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and six months ended November 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending May 31, 2024. For further information, refer to the audited consolidated financial statements and notes thereto for the fiscal year ended May 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on August 25, 2023. Management has evaluated all subsequent events and transactions through the date of filing this report.

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of Biomerica, Inc. as well as its German subsidiary (BioEurope GmbH) and Mexican subsidiary (Biomerica de Mexico). All significant intercompany accounts and transactions have been eliminated in consolidation.

ACCOUNTING ESTIMATES

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reported period. Estimates that are made include the allowance for doubtful accounts, which is estimated based on current as well as historical practices with a customer; stock option forfeiture rates, which are calculated based on historical data; inventory obsolescence, which is based on projected and historical usage of materials; and lease liability and right-of-use assets, which are calculated based on certain assumptions such as borrowing rate, the likelihood of lease extensions to occur, asset valuation, among other things; and other items that may be necessary to estimate using current, historical and judgment based information. Actual results could materially differ from those estimates.

MARKETS AND METHODS OF DISTRIBUTION

The majority of the Company’s revenues come from the sale of products that the company manufactures in the U.S. and in Mexico. Some of the raw materials used in manufacturing come from Asia and other regions of the world. Finally, most of the Company’s revenues are generated from the international sales of its products. Due to global and economic disruptions caused by the COVID-19 pandemic, the ongoing war in Ukraine and Israel, and tensions between the country of China and the United States, the Company’s operations have been negatively impacted. The Company has faced disruptions in the following areas, and may face further challenges from supply chain disruptions, cost inflation, loss of contracts and/or 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. The Company’s current sales and marketing focus is on the sale of the inFoods IBS product which is manufactured and sold within the U.S. and the launch of our new H. Pylori test that was recently cleared for sale in the US by the FDA, which is also manufactured and sold within the U.S.

LIQUIDITY

The Company has incurred net losses and negative cash flows from operations and has an accumulated deficit of approximately $44,856,000 million as of November 30, 2023. Management expects to continue to incur significant costs as it advances its clinical trials, product development, and commercial product launch activities. As of November 30, 2023, the Company had cash and cash equivalents of approximately $7,134,000 and working capital of approximately $8,443,000.

On July 20, 2020, the Company filed with the Securities and Exchange Commission (“SEC”) a Form S-3 shelf registration statement and base prospectus which was declared effective by the SEC on September 30, 2020. This shelf registration statement registered the sale of up to $90,000,000 of the Company’s equity securities during the three years ended September 30, 2023.

Under the Company’s outstanding Registration Statement, on March 7, 2023, the Company sold 3,333,333 shares of common stock in a firm commitment public offering at a gross sales price of $2.40 per share, with net total proceeds, after deducting issuance fees and expenses of $700,000, of approximately $7,300,000. Since the closing of the March 7, 2023 offering, a previously ATM facility has been withdrawn and is not active.

To replace the shelf registration statement that was set to expire on September 30, 2023, on September 27, 2023, the Company filed with the SEC a new Form S-3 shelf registration statement and base prospectus which was declared effective by the SEC on September 29, 2023. This new shelf registration statement registers the sale of up to $20,000,000 of the Company’s equity securities during the three years ending September 29, 2026.

The Company intends to use the net proceeds from past offerings and any future offerings for general corporate purposes, including, without limitation, sales and marketing activities, clinical studies, product development, making acquisitions of assets, businesses, companies or securities, capital expenditures, and for working capital needs.

Management has analyzed the cash requirements of the Company’s business through at least February 2025. As a result of cash and cash equivalents on hand on November 30, 2023, largely from the public offering, and the ability to raise additional funds if needed through the sale of shares of the Company’s common stock, management believes the Company has sufficient funds to operate through at least February 2025.

CONCENTRATION OF CREDIT RISK

The Company maintains cash balances at certain financial institutions in excess of amounts insured by federal agencies. From time to time, the Company has uninsured balances. The Company does not believe it is exposed to any significant credit risks.

Consolidated net sales were approximately $1,567,000 and $1,482,000 for the three months ended November 30, 2023 and 2022, respectively, and approximately $3,281,000 and $3,119,000 for the six months ended November 30, 2023 and 2022, respectively.

For the three months ended November 30, 2023, the Company had two key customers who are located in foreign countries which accounted for 52% of net consolidated sales. For the three months ended November 30, 2022, the Company had two key customers, one located in Asia and one located in United States which accounted for 48% of net consolidated sales. For the six months ended November 30, 2023 and 2022, the Company had one key customer who is located in Asia which accounted for 49% and 44% of net consolidated sales, respectively.

Total gross receivables on November 30, 2023 and May 31, 2023 were approximately $1,089,000 and $751,000, respectively. As of November 30, 2023, the Company had two key customers, who are located in foreign countries which accounted for a total of 64% of gross accounts receivable. As of May 31, 2023, the Company had one key customer, who is located in Asia which accounted for a total of 36% of gross accounts receivable.

For the three months ended November 30, 2023, the Company had five key vendors which accounted for 75% of the purchases of raw materials. For the three months ended November 30, 2022, the Company had one key vendor which accounted for 12% of the purchases of raw materials. For the six months ended November 30, 2023, the Company had five vendors which accounted for 76% of the purchases of raw materials. For the six months ended November 30, 2022, the Company had one key vendor which accounted for 8% of the purchases of raw materials.

As of November 30, 2023 and May 31, 2023, the Company had three and one key vendors which accounted for 55% and 23%, respectively, of accounts payable.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of demand deposits and money market accounts with original maturities of less than three months.

ACCOUNTS RECEIVABLE

The Company extends unsecured credit to its customers on a regular basis. International accounts are usually required to prepay until they establish a history with the Company and at that time, they are extended credit at levels based on a number of criteria. Based on various criteria, initial credit levels for individual distributors are approved by designated officers and managers of the Company. All increases in credit limits are also approved by designated upper-level management.

The Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (codified as Accounting Standards Codification (“ASC”) 326) on June 1, 2023. ASC 326 adds to U.S. GAAP the current expected credit loss (“CECL”) model, a measurement model based on expected losses rather than incurred losses. Prior to the adoption of ASC 326, the Company evaluated receivables on a quarterly basis and adjusted the allowance for doubtful accounts accordingly. Balances over ninety days old were usually reserved for unless collection was reasonably assured. Under the application of ASC 326, the Company’s historical credit loss experience provides the basis for the estimation of expected credit losses, as well as current economic and business conditions, and anticipated future economic events that may impact collectability. In developing its expected credit loss estimate, the Company evaluated the appropriate grouping of financial assets based upon its evaluation of risk characteristics, including consideration of the types of products and services sold. Account balances are written off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote.

Occasionally, certain long-standing customers who routinely place large orders will have unusually large receivable balances relative to the total gross receivables. Management monitors the payments for these large balances closely and very often requires payment of existing invoices before shipping new sales orders.

As of November 30, 2023 and May 31, 2023, the Company has established a reserve of approximately $22,000 and $29,000, 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, 2023 and May 31, 2023, the prepaids were approximately $223,000 and $300,000, respectively, composed of prepayments to insurance and various other suppliers.

INVENTORIES, NET

The Company values inventory at the lower of cost (determined using a combination of specific lot identification and the first-in, first-out methods) or net realizable value. Management periodically reviews inventory for excess quantities and obsolescence. Management evaluates quantities on hand, physical condition, and technical functionality as these characteristics may be impacted by anticipated customer demand for current products and new product introductions. The reserve is adjusted based on such evaluation, with a corresponding provision included in cost of sales. Abnormal amounts of idle facility expenses, freight, handling costs and wasted material are recognized as current period charges and the allocation of fixed production overhead is based on the normal capacity of the production facilities.

Net inventories are approximately the following:

SCHEDULE OF NET INVENTORIES

	November 30, 2023			May 31, 2023
Raw materials	$	1,377,000		$	1,677,000
Work in progress		781,000			869,000
Finished products		181,000			182,000
Total gross inventory		2,339,000			2,728,000
Inventory reserves		(498,000	)		(672,000	)
Net inventory	$	1,841,000		$	2,056,000

Reserves for inventory obsolescence are recorded as necessary to reduce obsolete inventory to estimated net realizable value or to specifically reserve for obsolete inventory. As of November 30, 2023, and May 31, 2023, inventory reserves were approximately $498,000 and $672,000, respectively.

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 $15,000 and $16,000 for the three months ended November 30, 2023 and 2022, respectively, and approximately $30,000 and $36,000 for the six months ended November 30, 2023 and 2022, respectively.

INTANGIBLE ASSETS, NET

Intangible assets include trademarks, product rights, technology rights and patents, and are accounted for based on 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 patents are based on their individual useful lives which average around 15 years. Amortization expense was approximately $4,000 and $3,000 for the three months ended November 30, 2023 and 2022, respectively, and approximately $9,000 and $12,000 for the six months ended November 30, 2023 and 2022, 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. The Company uses a qualitative assessment to determine whether there was any impairment. During the six months ended November 30, 2023, there was no impairment. During the six months ended November 30, 2022, an impairment adjustment was made of $6,000.

INVESTMENTS

The Company has made investments in a privately held Polish distributor, which is primarily engaged in distributing medical products and devices, including the distribution of the products sold by the Company. The Company invested approximately $165,000 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, 2023 and determined that the Company’s proportionate economic interest in the entity indicates that the equity holding was not impaired. There were no observable price changes in orderly transactions for identical or a similar holding or security of the Company’s Cost Method Holdings during the period ended November 30, 2023.

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 $292,000 and $622,000 of share-based compensation during the six months ended November 30, 2023 and 2022, respectively.

The following summary presents the options granted, exercised, expired, canceled and outstanding for the six months ended November 30, 2023:

SUMMARY OF OPTIONS ACTIVITY

	Option Shares			Weighted Average Exercise Price
Options Outstanding at May 31, 2023		2,342,616		$	3.52
Granted		86,000			1.09
Exercised		-			-
Cancelled or expired		(148,500	)		4.90
Options Outstanding at November 30, 2023		2,280,116		$	3.33

REVENUE RECOGNITION

The Company has various contracts with customers. All of the contracts specify that revenues from product sales are recognized at the time the product is shipped, customarily FOB shipping point, which is when the transfer of control of goods has occurred, and at which point title passes.

The Company does not typically allow for returns from customers except in the event of defective merchandise and therefore does not establish an allowance for returns. In addition, the Company has contracts with customers wherein customers receive purchase discounts for achieving specified sales volumes. The Company evaluated the status of these contracts during the six months ended November 30, 2023 and 2022 and does not believe that any additional discounts will be given through the end of the contract periods.

Services for contract work performed by the Company for others are invoiced and recognized as that work has been performed and as the project progresses. The Company sells clinical lab products to domestic and international distributors, including hospitals and clinical laboratories, medical research institutions, medical schools and pharmaceutical companies. OTC products are sold directly to drug stores and e-commerce customers as well as to distributors. Physician’s office products are sold to physicians and distributors, all of whom are categorized below according to the type of products sold to them. We also manufacture certain components on a contract basis for domestic and international manufacturers.

As of November 30, 2023, the Company had approximately $60,000 of advances from domestic customers, which are prepayments on orders for future shipments.

Disaggregation of revenue:

The following is a breakdown of revenues according to markets to which the products are sold:

SCHEDULE OF DISAGGREGATION REVENUE

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Clinical lab	$	992,000	$	902,000	$	2,283,000	$	2,048,000
Over-the-counter		443,000		466,000		745,000		679,000
Contract manufacturing		131,000		52,000		248,000		147,000
Physician’s office		1,000		62,000		5,000		245,000
Total	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000
Revenues	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000

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 $412,000 and $462,000 of research and development costs during the three months ended November 30, 2023 and 2022, respectively, and approximately $883,000 and $823,000 of research and development costs during the six months ended November 30, 2023 and 2022, respectively.

INCOME TAXES

For the three months ended November 30, 2023, the Company had an income tax expense of approximately $8,000. For the six months ended November 30, 2023, the Company had an income tax expense of approximately $31,000. These expenses consisted of state minimum taxes and miscellaneous foreign taxes. During the three and six months ended November 30, 2023, the Company had a net operating loss (“NOL”) that generated deferred tax assets for NOL carryforwards. Deferred income tax assets and liabilities are recognized for temporary differences between the financial statements and income tax carrying values using tax rates in effect for the years such differences are expected to reverse. Due to uncertainties surrounding our ability to generate future taxable income and consequently realize such deferred income tax assets, the Company has determined that it is more likely than not that these deferred tax assets will not be realized. Accordingly, the Company has established a full valuation allowance against its deferred tax assets as of November 30, 2023.

The Company’s policy is to recognize any interest and penalties related to unrecognized tax benefits as a component of income tax expense. For the three months ended November 30, 2023, the Company had no accrued interest or penalties related to uncertain tax positions.

ADVERTISING COSTS

The Company reports the cost of advertising as expense in the period in which those costs are incurred. Advertising costs were approximately $26,000 and $18,000 for the three months ended November 30, 2023 and 2022, respectively, and approximately $56,000 and $36,000 during the six months ended November 30, 2023 and 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, 2023 and 2022.

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, 2023 and 2022 was 2,280,116 and 2,338,616, respectively.

RECENT ACCOUNTING PRONOUNCEMENTS

Recent ASU’s issued by the FASB and guidance issued by the SEC did not, or are not believed by the management to, have a material effect on the Company’s present or future consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13. This ASU requires the measurement of all expected credit losses for financial assets, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance was initially effective for the Company for annual reporting periods beginning after December 15, 2019, and interim periods within those fiscal years. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,” which, among other things, defers the effective date of ASU 2016-13 for public filers that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted. The Company adopted ASU 2016-03 on June 1, 2023, and the adoption of this update did not have a material impact on the Company’s condensed consolidated financial statements.

NOTE 3: SHAREHOLDERS’ EQUITY

During the six months ended November 30, 2022, the Company sold 564,989 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 $1,937,000 after deducting commissions for each sale and legal, accounting, and other fees related to the ATM Offering. In March 2023, we terminated the ATM offering agreement and sold 3,333,333 shares of our common stock in a firm commitment public offering under the Company’s shelf registration statement. Shares sold in the underwritten public offering were sold at a gross sales price of $2.40 per share, resulting in net proceeds from the offering, after deducting issuance fees and expenses, of approximately $7,300,000. On November 30, 2023, the Company did not have an open ATM offering in place. No shares of common stock or other equity securities of the Company were sold under the shelf registration statement during the six months ended November 30, 2023.

NOTE 4: GEOGRAPHIC INFORMATION

The Company operates as one segment. Geographic information regarding net sales is approximately as follows:

SCHEDULE OF GEOGRAPHIC INFORMATION

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Revenues from sales to unaffiliated customers:
Asia	$	606,000	$	663,000	$	1,632,000	$	1,477,000
Europe		428,000		415,000		754,000		967,000
North America		320,000		401,000		676,000		669,000
Middle East		212,000		-		213,000		-
South America		1,000		3,000		6,000		6,000
Total	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000
Revenues	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000

As of November 30, 2023 and May 31, 2023, approximately $555,000 and $626,000 of the Company’s gross inventory was located in Mexicali, Mexico, respectively.

As of November 30, 2023 and May 31, 2023, approximately $16,000 and $17,000 of the Company’s property and equipment, net of accumulated depreciation and amortization, was located in Mexicali, Mexico, respectively.

NOTE 5: LEASES

The Company leases its facilities. On November 30, 2023, 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 Company made a security deposit of 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. 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.

For purposes of determining straight-line rent expense, the lease term is calculated from the date the Company first takes possession of the facility, including any periods of free rent and any renewal options periods that the Company is reasonably certain of exercising. The Company’s office and equipment leases generally have contractually specified minimum rent and annual rent increases are included in the measurement of the right-of-use asset and related lease liabilities. Additionally, under these lease arrangements, the Company may be required to pay directly, or reimburse the lessors, for some maintenance and operating costs. Such amounts are generally variable and therefore not included in the measurement of the right-of-use asset and related lease liabilities but are instead recognized as variable lease expense in the consolidated statements of operations and comprehensive loss when they are incurred.

The following table presents information on our operating leases for the three month and six month ended November 30, 2023 and 2022:

SCHEDULE OF OPERATING LEASES

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Operating lease cost	$	88,000	$	88,000	$	176,000		176,000
Variable lease cost		2,000		-		5,000		1,000
Short-term lease cost	$	1,000	$	1,000	$	2,000		2,000
Total lease cost	$	91,000	$	89,000	$	183,000	$	179,000

The approximate maturity of lease liabilities as of November 30, 2023 are as follows:

Year Ending November 30:
	Operating Leases
2024	$	361,000
2025		371,000
2026		290,000
2027		-
Total minimum future lease payments		1,022,000
Less: imputed interest		85,000
Total operating lease liabilities	$	937,000

The following table summarizes the Company’s other supplemental lease information for the six months ended November 30, 2023 and 2022:

	2023			2022
	Six Months Ended November 30,
	2023			2022

Cash paid for operating lease liabilities	$	177,000		$	174,000
Weighted-average remaining lease term (years)		2.77			3.77
Weighted-average discount rate		6.50	%		6.50	%

The Company also has various insignificant leases for office equipment.

NOTE 6: COMMITMENTS AND CONTINGENCIES

LITIGATION

The Company is, from time to time, involved in legal proceedings, claims, and litigation arising in the ordinary course of business.

There were no material legal proceedings pending as of November 30, 2023.

NOTE 7: SUBSEQUENT EVENTS

On December 18, 2023, the Company received FDA clearance for its new HP Detect Stool Antigen ELISA test, a new product that is designed to detect the presence of the H. Pylori bacteria. The Company is now marketing this product in the U.S. and intends to initiate marketing of the product in certain international markets in the near future.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis in conjunction with our unaudited condensed consolidated financial statements and the accompanying notes thereto included in Part I, Item 1 of this Report and the audited consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended May 31, 2023 (our 2023 Annual Report). This discussion and analysis contains forward-looking statements that are based on our management’s current beliefs and assumptions, which statements are subject to substantial risks and uncertainties. Our actual results may differ materially from those expressed or implied by these forward-looking statements as a result of many factors, including those discussed in “Risk Factors” included in Part I, Item 1A of our 2023 Annual Report.

OVERVIEW

Biomerica, Inc. and its subsidiaries (which includes wholly-owned subsidiaries, Biomerica de Mexico and BioEurope GmbH), is a biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (physicians’ offices and over-the-counter through drugstores and online) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. Our diagnostic test kits are used to analyze blood, urine, nasal, or fecal material from patients in the diagnosis of various diseases, food intolerances and other medical complications, or to measure the level of specific hormones, antibodies, antigens, or other substances, which may exist in the human body in extremely small concentrations. The Company’s products are designed to enhance the health and well-being of people, while reducing total healthcare costs.

Our primary focus is the research, development, commercialization and in certain cases regulatory approval, of patented, diagnostic-guided therapy (“DGT”) products to treat gastrointestinal diseases, such as irritable bowel syndrome (“IBS”), and other inflammatory diseases. These inFoods based products are directed at chronic inflammatory illnesses that are widespread and common, and as such address very large markets. Our inFoods IBS product uses a simple blood sample to identify patient-specific foods that, when removed from the patient’s diet, may alleviate IBS symptoms such as pain, bloating, diarrhea, and constipation. Instead of broad and difficult to manage dietary restrictions, the inFoods IBS product works by identifying a patient’s above normal immunoreactivity to a panel of specific foods that have been shown to often be problematic to IBS suffers. A food identified as positive, and causing an abnormally high immune response in the patient is simply removed from the diet to help alleviate IBS symptoms.

During fiscal 2022, we completed an endpoint determination clinical trial on our inFoods IBS product. This trial was conducted at Mayo Clinics in Florida and Arizona, Beth Israel Deaconess Medical Center Inc., a Harvard Medical School Teaching Hospital, University of Texas Health Science Center at Houston, Houston Methodist, the University of Michigan, and other institutions. This double blinded, placebo-controlled trial monitored IBS patients over an 8-week treatment period to determine the efficacy of our inFoods IBS product to improve the patients’ IBS symptoms or endpoints. The trial was designed to determine the difference in the improvement in IBS symptoms for patients in the treatment arm, versus patients in the placebo arm of the trial. The top-line trial results were reported in February 2022. Multiple endpoints demonstrated statistically significant improvements for participants in the treatment arm, indicating that the elimination of specific foods may meaningfully reduce the symptoms of IBS in each patient subtype (including patients with IBS-Constipation, IBS-Diarrhea & IBS-Mixed). The greatest clinical improvements, including but not limited to abdominal pain and bloating, were seen in patients diagnosed with IBS-Mixed and IBS Constipation, in the top line data. The purpose of the endpoint study was designed to provide efficacy data for the product, and to determine the primary symptom endpoint, or endpoints to be used in a possible final pivotal trial that would be conducted to attain the validation data needed to apply for U.S. Food and Drug Administration (“FDA”) product clearance. We are continuing to review and refine the complete dataset and have selected the final endpoint that we would intend to use in a possible final pivotal trial. No date has yet been set for commencing this final trial.

In fiscal 2023, we worked to set up the inFoods IBS test to be performed in a CLIA certified, and College of American Pathologists (“CAP”) accredited high-complexity laboratory facility and offered as a laboratory developed test (“LDT”). During the quarter ended February 28, 2023, the CLIA lab completed all validation testing necessary for the inFoods IBS product to be offered as an LDT, and patient samples are now being run at the lab. In late fiscal 2023, we trial launched this product with one large GI physician group that is now offering this product to their patients. During fiscal 2024, we are working to optimize the process for GI physicians to order the inFoods IBS test, send patient blood samples to the CLIA lab, and receive the test results for their patients. We believe ease of order and workflow for physicians, with easy to understand and actionable results for patients, is critical to our success. We have also recently hired an internal sales force to sign up additional GI physician groups who are interested in offering this product to their patients. As such, we are expecting growth in revenues from the launch of our inFoods IBS product in coming quarters.

We are also beginning the work of selecting and validating one new disease (such as ulcerative colitis or migraines), where there is evidence that certain foods can trigger or contribute to the symptoms found in these indications. We expect any new disease we target will follow a similar development pathway as inFoods IBS in simultaneously seeking FDA clearance of the product while also launching the product as an LDT.

We are also evaluating and pursuing partnership/licensing opportunities with U.S. and multinational companies that could help us commercialize, or accelerate revenue growth of, the inFoods products in the United States and overseas.

Our existing medical diagnostic products are sold worldwide primarily in two markets: 1) clinical laboratories and 2) point-of-care (physicians’ offices and OTC at Walmart, Walgreens, CVS Pharmacy, Amazon, etc.). 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. We began selling these COVID-19 related diagnostic tests during fiscal 2021, and we experienced significant revenues from such sales during fiscal 2021 and 2022 with lesser sales in fiscal 2023. Due to falling demand, there were no sales of our COVID-19 related products in the three months ended November 30, 2023. As such, our COVID-19 product sales have caused significant swings in our revenues over the past nine quarters.

Our H. Pylori diagnostic test that indicates if a patient is infected with the H. Pylori bacteria. H. Pylori infection is extremely common, and if left untreated, can lead to ulcers and possibly stomach cancers. On December 18, 2023, the Company received FDA clearance for the H. Pylori product to be sold in the US. Subsequently, we have now begun marketing the product in the U.S. market. We have also begun discussions with international distributors for this product and expect to see revenues both in the U.S. market and through these international channels during 2024.

The majority of our research and development efforts are focused on development and commercialization of products such as our H. Pylori product, improving and expanding the inFoods IBS product, developing other new products that utilize the inFoods platform, and developing new diagnostic products with outside medical diagnostic companies that we intend to manufacture for them.

Our existing products that contributed to our fiscal 2023 revenues are primarily focused on gastrointestinal diseases, food intolerances, and certain esoteric tests. These diagnostic test products utilize immunoassay technology. Most of our products are CE marked and/or sold for diagnostic use where they are registered by each country’s regulatory agency. In addition, some products are cleared for sale in the United States by the FDA.

RESULTS OF OPERATIONS

Three months ended November 30, 2023

Net Sales and Cost of Sales

The following is a breakdown of revenues according to markets to which the products are sold:

	Three Months Ended November 30,				Increase (Decrease)
	2023		2022		$			%
Clinical lab	$	992,000	$	902,000	$	90,000			10	%
Over-the-counter		443,000		466,000		(23,000	)		-5	%
Contract manufacturing		131,000		52,000		79,000			152	%
Physician’s office		1,000		62,000		(61,000	)		-98	%
Total	$	1,567,000	$	1,482,000	$	85,000			6	%

Consolidated net sales were approximately $1,567,000 for the three months ended November 30, 2023, as compared to $1,482,000 for the three months ended November 30, 2022, an increase of approximately $85,000, or 6%. This increase for the three months ended November 30, 2023, was driven primarily by larger sales in the food intolerance products and increased contract manufacturing billings. Periodic and infrequent orders may cause volatility in quarterly sales.

Consolidated cost of sales were approximately $1,242,000, or 79% of net sales, for the three months ended November 30, 2023, as compared to $1,130,000, or 76% of net sales, for the three months ended November 30, 2022, an increase of approximately $112,000, or 10%. The increase for the three months ended November 30, 2023, was driven primarily by correlated increased sales for the quarter.

Operating Expenses

The following is a summary of operating expenses:

	Three Months Ended November 30,
	2023					2022					Increase (Decrease)
	Operating Expense		As a % of Total Revenues			Operating Expense		As a % of Total Revenues			$			%
Selling, General and Administrative Expenses	$	1,521,000		97	%	$	1,556,000		105	%	$	(35,000	)		-2	%
Research and Development	$	412,000		26	%	$	462,000		31	%	$	(50,000	)		-11	%

Selling, General and Administrative Expenses

Consolidated selling, general and administrative expenses were approximately $1,521,000 for the three months ended November 30, 2023, as compared to $1,556,000 for the three months ended November 30, 2022, a decrease of approximately $35,000, or 2%. For the three months ended November 30, 2023, the decrease was primarily due to an approximate $209,000 reduction in bad debt expense related to a customer in Vietnam, a $158,000 decrease in share-based compensation expenses, and a $128,000 decrease in legal expenses. These decreases were partially offset by a $160,000 increase in marketing expenses for the recent CVS retail launch, a $124,000 increase in salaries and wages for the sales and marketing team, and a $92,000 increase in expenses for marketing outside services.

Research and Development

Consolidated research and development expenses were approximately $412,000 for the three months ended November 30, 2023, as compared to $462,000 for the three months ended November 30, 2022, a decrease of approximately $50,000, or 11%. The decrease in the three months ended November 30, 2023, was primarily due to an approximate decrease of $59,000 in inFoods research expenses.

Interest and Dividend Income

Interest and dividend income were approximately $109,000 for the three months ended November 30, 2023, as compared to $41,000 for the three months ended November 30, 2022, an increase of $68,000, or 166%. The increase was primarily driven by higher market interest rates on our cash and cash equivalents.

Six months ended November 30, 2023

Net Sales and Cost of Sales

The following is a breakdown of revenues according to markets to which the products are sold:

	Six Months Ended November 30,				Increase (Decrease)
	2023		2022		$			%
Clinical lab	$	2,283,000	$	2,048,000	$	235,000			11	%
Over-the-counter		745,000		679,000		66,000			10	%
Contract manufacturing		248,000		147,000		101,000			69	%
Physician’s office		5,000		245,000		(240,000	)		-98	%
Total	$	3,281,000	$	3,119,000	$	162,000			5	%

Consolidated net sales were approximately $3,281,000 for the six months ended November 30, 2023, as compared to $3,119,000 for the six months ended November 30, 2022, an increase of approximately $162,000, or 5%. This increase for the six months ended November 30, 2023, was primarily driven by an increase in demand for our food intolerance products and contract manufacturing billings, which was partially offset by a reduction in Physician’s office sales associated with COVID products. Periodic and infrequent orders may cause volatility in quarterly sales.

Consolidated cost of sales were approximately $2,541,000, or 77% of net sales, for the six months ended November 30, 2023, as compared to $2,822,000, or 90% of net sales, for the six months ended November 30, 2022, a decrease of approximately $281,000, or 10%. The decrease for the six months ended November 30, 2023, was primarily driven by a $90,000 increase in salary and wages for the production team, that was more than offset by a $332,000 decrease in costs associated with reduced sales of our COVID-19 products.

Operating Expenses

The following is a summary of operating expenses:

	Six Months Ended November 30,
	2023					2022					Increase (Decrease)
	Operating Expense		As a % of Total Revenues			Operating Expense		As a % of Total Revenues			$			%
Selling, General and Administrative Expenses	$	2,696,000		82	%	$	3,210,000		103	%	$	(514,000	)		-16	%
Research and Development	$	883,000		27	%	$	823,000		26	%	$	60,000			7	%

Selling, General and Administrative Expenses

Consolidated selling, general and administrative expenses were approximately $2,696,000 for the six months ended November 30, 2023, as compared to $3,210,000 for the six months ended November 30, 2022, a decrease of approximately $514,000, or 16%. For the six months ended November 30, 2023, the decrease was primarily due to an approximate $429,000 reduction in bad debt expense related to a customer in Vietnam, a $327,000 decrease in share-based compensation expenses, and a $297,000 decrease in legal expenses. These decreases were partially offset by a $160,000 increase in marketing expenses for the recent CVS retail launch, a $174,000 increase in salaries and wages for the sales and marketing team, and a $61,000 increase in expenses for marketing outside services.

Research and Development

Consolidated research and development expenses were approximately $883,000 for the six months ended November 30, 2023, as compared to $823,000 for the six months ended November 30, 2022, an increase of approximately $60,000, or 7%. The increase for the six months ended November 30, 2023, was primarily due to an increase in salaries and wages of $104,000, partially offset by a decrease in share-based compensation expenses of $21,000 and lab supplies expenses of $15,000.

Interest and Dividend Income

Interest and dividend income were approximately $231,000 for the six months ended November 30, 2023, as compared to $41,000 for the six months ended November 30, 2022, an increase of $190,000, or 463%. The increase was primarily driven by higher market interest rates on our cash and cash equivalents.

LIQUIDITY AND CAPITAL RESOURCES

The following are the principal sources of liquidity:

	November 30, 2023		May 31, 2023
Cash and cash equivalents	$	7,134,000	$	9,719,000
Working capital including cash and cash equivalents	$	8,443,000	$	10,852,000

As of November 30, 2023 and May 31, 2023, the Company had cash and cash equivalents of approximately $7,134,000 and $9,719,000, respectively. As of November 30, 2023 and May 31, 2023, the Company had working capital of approximately $8,443,000 and $10,852,000, respectively. We believe that the aggregate of our existing cash and cash equivalents is sufficient to meet our operating cash requirements and strategic objectives for growth for at least the next year. To satisfy our capital requirements, including ongoing future operations, beyond next year, we are working on increasing sales, reducing expenses and may seek to raise additional financing through debt and equity financing.

Operating Activities

During the six months ended November 30, 2023, cash used in operating activities was approximately $2,516,000. The primary factors that contributed to this was a loss of approximately $2,639,000, non-cash expenses of $294,000, primarily associated with depreciation and amortization, provision for allowance on accounts receivable, inventory reserves, share-based compensation, and amortization of right-of-use assets. This was partially offset by changes in asset and liability accounts of approximately $171,000.

During the six months ended November 30, 2022, cash used in operating activities was approximately $2,786,000. The primary factors that contributed to this was a loss of approximately $3,698,000, non-cash expenses of $1,101,000, primarily associated with share-based compensation and provision for allowance on accounts receivable. This was partially offset by changes in asset and liability accounts of approximately $189,000.

Investing Activities

During the six months ended November 30, 2023, cash used in investing activities was approximately $27,000 for purchases of property and equipment, and $48,000 in expenditures related to patents.

During the six months ended November 30, 2022, cash used in investing activities was approximately $58,000 for purchases of property and equipment.

Financing Activities

During the six months ended November 30, 2023, cash provided by financing activities was $0, with no net proceeds from the sale of common stock or from stock option exercises.

During the six months ended November 30, 2022, cash provided by financing activities was approximately $2,015,000 which was a result of net proceeds from the sale of common stock of $1,937,000, and stock option exercises of $79,000.

OFF BALANCE SHEET ARRANGEMENTS

There were no off-balance sheet arrangements as of November 30, 2023.

CRITICAL ACCOUNTING POLICIES

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions affect the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements. On an ongoing basis, we evaluate estimates and assumptions based upon historical experience and various other factors and circumstances. We believe our estimates and assumptions are reasonable under the current conditions; however, actual results may differ from these estimates under different future conditions.

We believe that the estimates and assumptions that are most important to the portrayal of our financial condition and results of operations, in that they require subjective or complex judgments, form the basis for the accounting policies deemed to be most critical to us. These relate to revenue recognition, bad debts, inventory overhead application, inventory reserves, lease liabilities and right-of-use assets. We believe estimates and assumptions related to these critical accounting policies are appropriate under the circumstances; however, should future events or occurrences result in unanticipated consequences, there could be a material impact on our future financial condition or results of operations. We suggest that our significant accounting policies be read in conjunction with this Management’s Discussion and Analysis of Financial Condition and Results of Operations. Please refer to Note 2 for information on Significant Accounting Policies. Our critical accounting policies are discussed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2023.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4. CONTROLS AND PROCEDURES

Our management evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, as of the end of the period covered by this report. Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. The disclosure controls and procedures have been designed to provide reasonable assurance of achieving their objectives and the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective at the “reasonable assurance” level. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports that we file and submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms; and (2) accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There have been no changes in our internal control over financial reporting identified in connection with the evaluation that occurred during our last fiscal quarter that has materially affected, or that is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is, from time to time, involved in legal proceedings, claims and litigation arising in the ordinary course of business.

There were no material legal proceedings pending as of November 30, 2023.

ITEM 1A. RISK FACTORS

An investment in our common stock involves risks. Before making an investment decision, you should carefully consider all the information within this Quarterly Report, including the information contained in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as well as in our condensed consolidated financial statements and the related notes contained in Part I, Item 1 within this Quarterly Report. In addition, you should carefully consider the risks and uncertainties described in Part I, Item 1A, “Risk Factors,” of our 2023 Annual Report on Form 10-K, as well as in our other public filings with the SEC. If any of the identified risks are realized, our business, results of operations, financial condition, liquidity, and prospects could be materially and adversely affected. In that case, the trading price of our common stock may decline, and you could lose all or part of your investment. In addition, other risks of which we are currently unaware, or which we do not currently view as material, could have a material adverse effect on our business, results of operations, financial condition, and prospects.

During the three and six months ended November 30, 2023, there were no material changes to the risks and uncertainties described in Part I, Item 1A, “Risk Factors,” of our 2023 Annual Report on Form 10-K.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS.

The following exhibits are filed or furnished as part of this quarterly report on Form 10-Q:

Exhibit No.		Description

31.1 **		Certification Pursuant to Section 302 of the Sarbanes-Oxley Act — Zackary S. Irani

31.2 **		Certification Pursuant to Section 302 of the Sarbanes-Oxley Act — Gary Lu

32.1 **		Certification Pursuant to Section 906 of the Sarbanes-Oxley Act — Zackary S. Irani

32.2 **		Certification Pursuant to Section 906 of the Sarbanes-Oxley Act — Gary Lu

101 Interactive data files pursuant to Rule 405 Regulation S-T, as follows:

101.INS-XBRL Instance Document

101.SCH-XBRL Taxonomy Extension Schema Document

101.CAL-XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF–XBRL Taxonomy Extension Definition Linkbase Document

101.LAB-XBRL Taxonomy Extension Label Linkbase Document

101.PRE-XBRL Taxonomy Extension Presentation Linkbase Document

104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibits 101)

* Filed herein.

** Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has fully caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BIOMERICA, INC.

Date: January 16, 2024
	By:	/S/ Zackary S. Irani
		Zackary S. Irani
		Chief Executive Officer
		(Principal Executive Officer)

Date: January 16, 2024
	By:	/S/ Gary Lu
		Gary Lu
		Chief Financial Officer
		(Principal Financial Officer)

Exhibit 31.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Zackary S. Irani, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Biomerica, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of our internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or other persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 16, 2024

/s/ Zackary S. Irani
Zackary S. Irani
Chief Executive Officer
(Principal Executive Officer)

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gary Lu, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Biomerica, Inc.;

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 16, 2024

/s/ Gary Lu
Gary Lu
Chief Financial Officer
(Principal Financial Officer)

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Biomerica, Inc. (the “Company”) on Form 10-Q for the period ended November 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Zackary Irani, Chief Executive Officer of the Company, certify, to the best of my knowledge, Pursuant to Exchange Act Rule 15d-14(b) and 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes Oxley Act of 2002,

i. The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, and

ii. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Zackary S. Irani
Zackary S. Irani
Chief Executive Officer

Date: January 16, 2024

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Biomerica, Inc. (the “Company”) on Form 10-Q for the period ended November 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gary Lu, Chief Financial Officer of the Company, certify, to the best of my knowledge, Pursuant to Exchange Act Rule 15d-14(b) and 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes Oxley Act of 2002,

i. The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, and

ii. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Gary Lu
Gary Lu
Chief Financial Officer

Date: January 16, 2024

Cover - shares	6 Months Ended
Cover - shares	Nov. 30, 2023	Jan. 15, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Nov. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--05-31
Entity File Number	001-37863
Entity Registrant Name	BIOMERICA, INC.
Entity Central Index Key	0000073290
Entity Tax Identification Number	95-2645573
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	17571 Von Karman Avenue
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92614
City Area Code	949
Local Phone Number	645-2111
Title of 12(b) Security	COMMON STOCK, PAR VALUE $0.08
Trading Symbol	BMRA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,821,646

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Nov. 30, 2023	May 31, 2023
Current Assets:
Cash and cash equivalents	$ 7,134,000	$ 9,719,000
Accounts receivable, net	1,067,000	722,000
Inventories, net	1,841,000	2,056,000
Prepaid expenses and other	223,000	300,000
Total current assets	10,265,000	12,797,000
Property and equipment, net of accumulated depreciation and amortization	210,000	213,000
Right-of-use assets, net of accumulated amortization of $761,000 and $617,000 as of November 30, 2023 and May 31, 2023, respectively	891,000	1,035,000
Investments	165,000	165,000
Intangible assets, net of accumulated amortization	204,000	165,000
Other assets	96,000	79,000
Total Assets	11,831,000	14,454,000
Current Liabilities:
Accounts payable and accrued expenses	783,000	892,000
Accrued compensation	668,000	696,000
Advance from customers	60,000	60,000
Lease liabilities, current portion	311,000	297,000
Total current liabilities	1,822,000	1,945,000
Lease liabilities, net of current portion	626,000	785,000
Total Liabilities	2,448,000	2,730,000
Commitments and contingencies (Note 6)
Shareholders’ Equity:
Preferred stock, value
Common stock, $0.08 par value, 25,000,000 shares authorized, 16,821,646 issued and outstanding at November 30, 2023 and May 31, 2023, respectively	1,346,000	1,346,000
Additional paid-in-capital	52,997,000	52,705,000
Accumulated other comprehensive loss	(104,000)	(110,000)
Accumulated deficit	(44,856,000)	(42,217,000)
Total Shareholders’ Equity	9,383,000	11,724,000
Total Liabilities and Shareholders’ Equity	11,831,000	14,454,000
Series A Preferred Stock [Member]
Shareholders’ Equity:
Preferred stock, value

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Nov. 30, 2023	May 31, 2023
Accumulated amortization	$ 761,000	$ 617,000
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	4,428,571	4,428,571
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.08	$ 0.08
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	16,821,646	16,821,646
Common stock, shares outstanding	16,821,646	16,821,646
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.08	$ 0.08
Preferred stock, shares authorized	571,429	571,429
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Income Statement [Abstract]
Net sales	$ 1,567,000	$ 1,482,000	$ 3,281,000	$ 3,119,000
Cost of sales	(1,242,000)	(1,130,000)	(2,541,000)	(2,822,000)
Gross profit	325,000	352,000	740,000	297,000
Operating expenses:
Selling, general and administrative	1,521,000	1,556,000	2,696,000	3,210,000
Research and development	412,000	462,000	883,000	823,000
Total operating expenses	1,933,000	2,018,000	3,579,000	4,033,000
Loss from operations	(1,608,000)	(1,666,000)	(2,839,000)	(3,736,000)
Other income:
Interest and dividend income	109,000	41,000	231,000	41,000
Total other income	109,000	41,000	231,000	41,000
Loss before income taxes	(1,499,000)	(1,625,000)	(2,608,000)	(3,695,000)
Provision for income taxes	(8,000)	(1,000)	(31,000)	(3,000)
Net loss	$ (1,507,000)	$ (1,626,000)	$ (2,639,000)	$ (3,698,000)
Basic net loss per common share	$ (0.09)	$ (0.12)	$ (0.16)	$ (0.28)
Diluted net loss per common share	$ (0.09)	$ (0.12)	$ (0.16)	$ (0.28)
Weighted average number of common and common equivalent shares:
Basic	16,821,646	13,455,166	16,821,646	13,271,845
Diluted	16,821,646	13,455,166	16,821,646	13,271,845
Other comprehensive income (loss), net of tax:
Foreign currency translation		$ (9,000)	$ 6,000	$ (21,000)
Comprehensive loss	$ (1,507,000)	$ (1,635,000)	$ (2,633,000)	$ (3,719,000)

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balances at May. 31, 2022	$ 1,029,000	$ 42,447,000	$ (74,000)	$ (35,077,000)	$ 8,325,000
Balance, shares at May. 31, 2022	12,867,924
Exercise of stock options	$ 1,000	13,000			14,000
Exercise of stock options, shares	15,000
Foreign currency translation			(13,000)		(13,000)
Share-based compensation		304,000			304,000
Net loss				(2,072,000)	(2,072,000)
Net proceeds from ATM	$ 42,000	1,722,000			1,764,000
Net proceeds from ATM, shares	523,977
Balances at Aug. 31, 2022	$ 1,072,000	44,486,000	(87,000)	(37,149,000)	8,322,000
Balance, shares at Aug. 31, 2022	13,406,901
Balances at May. 31, 2022	$ 1,029,000	42,447,000	(74,000)	(35,077,000)	8,325,000
Balance, shares at May. 31, 2022	12,867,924
Foreign currency translation					(21,000)
Net loss					(3,698,000)
Balances at Nov. 30, 2022	$ 1,078,000	45,037,000	(96,000)	(38,775,000)	7,244,000
Balance, shares at Nov. 30, 2022	13,479,413
Balances at Aug. 31, 2022	$ 1,072,000	44,486,000	(87,000)	(37,149,000)	8,322,000
Balance, shares at Aug. 31, 2022	13,406,901
Exercise of stock options	$ 3,000	63,000			66,000
Exercise of stock options, shares	31,500
Foreign currency translation			(9,000)		(9,000)
Share-based compensation		318,000			318,000
Net loss				(1,626,000)	(1,626,000)
Net proceeds from ATM	$ 3,000	170,000			173,000
Net proceeds from ATM, shares	41,012
Balances at Nov. 30, 2022	$ 1,078,000	45,037,000	(96,000)	(38,775,000)	7,244,000
Balance, shares at Nov. 30, 2022	13,479,413
Balances at May. 31, 2023	$ 1,346,000	52,705,000	(110,000)	(42,217,000)	11,724,000
Balance, shares at May. 31, 2023	16,821,646
Exercise of stock options
Exercise of stock options, shares
Foreign currency translation			6,000		6,000
Share-based compensation		170,000			170,000
Net loss				(1,132,000)	(1,132,000)
Balances at Aug. 31, 2023	$ 1,346,000	52,875,000	(104,000)	(43,349,000)	10,768,000
Balance, shares at Aug. 31, 2023	16,821,646
Balances at May. 31, 2023	$ 1,346,000	52,705,000	(110,000)	(42,217,000)	$ 11,724,000
Balance, shares at May. 31, 2023	16,821,646
Exercise of stock options, shares
Foreign currency translation					$ 6,000
Net loss					(2,639,000)
Balances at Nov. 30, 2023	$ 1,346,000	52,997,000	(104,000)	(44,856,000)	9,383,000
Balance, shares at Nov. 30, 2023	16,821,646
Balances at Aug. 31, 2023	$ 1,346,000	52,875,000	(104,000)	(43,349,000)	10,768,000
Balance, shares at Aug. 31, 2023	16,821,646
Exercise of stock options
Foreign currency translation
Share-based compensation		122,000			122,000
Net loss				(1,507,000)	(1,507,000)
Balances at Nov. 30, 2023	$ 1,346,000	$ 52,997,000	$ (104,000)	$ (44,856,000)	$ 9,383,000
Balance, shares at Nov. 30, 2023	16,821,646

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Cash flows from operating activities:
Net loss	$ (2,639,000)	$ (3,698,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	39,000	48,000
Provision (recovery) for allowance on accounts receivable	(7,000)	369,000
Inventory reserve	(174,000)	(72,000)
Share-based compensation	292,000	622,000
Amortization of right-of-use asset	144,000	134,000
Changes in assets and liabilities:
Accounts receivable	(338,000)	(445,000)
Inventories	390,000	427,000
Prepaid expenses and other	77,000	200,000
Other assets	(17,000)	16,000
Accounts payable and accrued expenses	(110,000)	(302,000)
Accrued compensation	(28,000)	50,000
Advance from customers		(2,000)
Reduction in lease liabilities	(145,000)	(133,000)
Net cash used in operating activities	(2,516,000)	(2,786,000)
Cash flows from investing activities:
Purchases of property and equipment	(27,000)	(58,000)
Expenditures related to intangibles	(48,000)
Net cash used in investing activities	(75,000)	(58,000)
Cash flows from financing activities:
Gross proceeds from sale of common stock		1,988,000
Costs from sale of common stock		(52,000)
Proceeds from exercise of stock options		79,000
Net cash provided by financing activities		2,015,000
Effect of exchange rate changes in cash	6,000	(21,000)
Net decrease in cash and cash equivalents	(2,585,000)	(850,000)
Cash and cash equivalents at beginning of year	9,719,000	5,917,000
Cash and cash equivalents at end of period	7,134,000	5,067,000
Cash paid during the period for:
Income taxes	30,000	3,000
Non-cash investing and financing activities:
Write off of intangible assets, cost		6,000
Write off of intangible assets, accumulated amortization		$ 1,000

BASIS OF PRESENTATION

6 Months Ended

Nov. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE 1: BASIS OF PRESENTATION

SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION

ACCOUNTING ESTIMATES

MARKETS AND METHODS OF DISTRIBUTION

LIQUIDITY

CONCENTRATION OF CREDIT RISK

As of November 30, 2023 and May 31, 2023, the Company had three and one key vendors which accounted for 55% and 23%, respectively, of accounts payable.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of demand deposits and money market accounts with original maturities of less than three months.

ACCOUNTS RECEIVABLE

As of November 30, 2023 and May 31, 2023, the Company has established a reserve of approximately $22,000 and $29,000, respectively, for doubtful accounts.

PREPAID EXPENSES AND OTHER

As of November 30, 2023 and May 31, 2023, the prepaids were approximately $223,000 and $300,000, respectively, composed of prepayments to insurance and various other suppliers.

INVENTORIES, NET

Net inventories are approximately the following:

SCHEDULE OF NET INVENTORIES

	November 30, 2023			May 31, 2023
Raw materials	$	1,377,000		$	1,677,000
Work in progress		781,000			869,000
Finished products		181,000			182,000
Total gross inventory		2,339,000			2,728,000
Inventory reserves		(498,000	)		(672,000	)
Net inventory	$	1,841,000		$	2,056,000

PROPERTY AND EQUIPMENT, NET

INTANGIBLE ASSETS, NET

INVESTMENTS

SHARE-BASED COMPENSATION

The Company expensed approximately $292,000 and $622,000 of share-based compensation during the six months ended November 30, 2023 and 2022, respectively.

The following summary presents the options granted, exercised, expired, canceled and outstanding for the six months ended November 30, 2023:

SUMMARY OF OPTIONS ACTIVITY

	Option Shares			Weighted Average Exercise Price
Options Outstanding at May 31, 2023		2,342,616		$	3.52
Granted		86,000			1.09
Exercised		-			-
Cancelled or expired		(148,500	)		4.90
Options Outstanding at November 30, 2023		2,280,116		$	3.33

REVENUE RECOGNITION

As of November 30, 2023, the Company had approximately $60,000 of advances from domestic customers, which are prepayments on orders for future shipments.

Disaggregation of revenue:

The following is a breakdown of revenues according to markets to which the products are sold:

SCHEDULE OF DISAGGREGATION REVENUE

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Clinical lab	$	992,000	$	902,000	$	2,283,000	$	2,048,000
Over-the-counter		443,000		466,000		745,000		679,000
Contract manufacturing		131,000		52,000		248,000		147,000
Physician’s office		1,000		62,000		5,000		245,000
Total	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000
Revenues	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000

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

INCOME TAXES

ADVERTISING COSTS

FOREIGN CURRENCY TRANSLATION

RIGHT-OF-USE ASSETS AND LEASE LIABILITY

NET LOSS PER SHARE

RECENT ACCOUNTING PRONOUNCEMENTS

SHAREHOLDERS’ EQUITY

6 Months Ended

Nov. 30, 2023

Equity [Abstract]

SHAREHOLDERS’ EQUITY

NOTE 3: SHAREHOLDERS’ EQUITY

GEOGRAPHIC INFORMATION

6 Months Ended

Nov. 30, 2023

Segment Reporting [Abstract]

GEOGRAPHIC INFORMATION

NOTE 4: GEOGRAPHIC INFORMATION

The Company operates as one segment. Geographic information regarding net sales is approximately as follows:

SCHEDULE OF GEOGRAPHIC INFORMATION

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Revenues from sales to unaffiliated customers:
Asia	$	606,000	$	663,000	$	1,632,000	$	1,477,000
Europe		428,000		415,000		754,000		967,000
North America		320,000		401,000		676,000		669,000
Middle East		212,000		-		213,000		-
South America		1,000		3,000		6,000		6,000
Total	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000
Revenues	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000

As of November 30, 2023 and May 31, 2023, approximately $555,000 and $626,000 of the Company’s gross inventory was located in Mexicali, Mexico, respectively.

LEASES

6 Months Ended

Nov. 30, 2023

Lessee Disclosure [Abstract]

LEASES

NOTE 5: LEASES

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.

The following table presents information on our operating leases for the three month and six month ended November 30, 2023 and 2022:

SCHEDULE OF OPERATING LEASES

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Operating lease cost	$	88,000	$	88,000	$	176,000		176,000
Variable lease cost		2,000		-		5,000		1,000
Short-term lease cost	$	1,000	$	1,000	$	2,000		2,000
Total lease cost	$	91,000	$	89,000	$	183,000	$	179,000

The approximate maturity of lease liabilities as of November 30, 2023 are as follows:

Year Ending November 30:
	Operating Leases
2024	$	361,000
2025		371,000
2026		290,000
2027		-
Total minimum future lease payments		1,022,000
Less: imputed interest		85,000
Total operating lease liabilities	$	937,000

The following table summarizes the Company’s other supplemental lease information for the six months ended November 30, 2023 and 2022:

	2023			2022
	Six Months Ended November 30,
	2023			2022

Cash paid for operating lease liabilities	$	177,000		$	174,000
Weighted-average remaining lease term (years)		2.77			3.77
Weighted-average discount rate		6.50	%		6.50	%

The Company also has various insignificant leases for office equipment.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Nov. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 6: COMMITMENTS AND CONTINGENCIES

LITIGATION

The Company is, from time to time, involved in legal proceedings, claims, and litigation arising in the ordinary course of business.

There were no material legal proceedings pending as of November 30, 2023.

SUBSEQUENT EVENTS

6 Months Ended

Nov. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 7: SUBSEQUENT EVENTS

SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

PRINCIPLES OF CONSOLIDATION

PRINCIPLES OF CONSOLIDATION

ACCOUNTING ESTIMATES

ACCOUNTING ESTIMATES

MARKETS AND METHODS OF DISTRIBUTION

MARKETS AND METHODS OF DISTRIBUTION

LIQUIDITY

LIQUIDITY

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK

As of November 30, 2023 and May 31, 2023, the Company had three and one key vendors which accounted for 55% and 23%, respectively, of accounts payable.

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of demand deposits and money market accounts with original maturities of less than three months.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

As of November 30, 2023 and May 31, 2023, the Company has established a reserve of approximately $22,000 and $29,000, respectively, for doubtful accounts.

PREPAID EXPENSES AND OTHER

PREPAID EXPENSES AND OTHER

As of November 30, 2023 and May 31, 2023, the prepaids were approximately $223,000 and $300,000, respectively, composed of prepayments to insurance and various other suppliers.

INVENTORIES, NET

INVENTORIES, NET

Net inventories are approximately the following:

SCHEDULE OF NET INVENTORIES

	November 30, 2023			May 31, 2023
Raw materials	$	1,377,000		$	1,677,000
Work in progress		781,000			869,000
Finished products		181,000			182,000
Total gross inventory		2,339,000			2,728,000
Inventory reserves		(498,000	)		(672,000	)
Net inventory	$	1,841,000		$	2,056,000

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

INVESTMENTS

INVESTMENTS

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

The Company expensed approximately $292,000 and $622,000 of share-based compensation during the six months ended November 30, 2023 and 2022, respectively.

The following summary presents the options granted, exercised, expired, canceled and outstanding for the six months ended November 30, 2023:

SUMMARY OF OPTIONS ACTIVITY

	Option Shares			Weighted Average Exercise Price
Options Outstanding at May 31, 2023		2,342,616		$	3.52
Granted		86,000			1.09
Exercised		-			-
Cancelled or expired		(148,500	)		4.90
Options Outstanding at November 30, 2023		2,280,116		$	3.33

REVENUE RECOGNITION

REVENUE RECOGNITION

As of November 30, 2023, the Company had approximately $60,000 of advances from domestic customers, which are prepayments on orders for future shipments.

Disaggregation of revenue:

The following is a breakdown of revenues according to markets to which the products are sold:

SCHEDULE OF DISAGGREGATION REVENUE

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Clinical lab	$	992,000	$	902,000	$	2,283,000	$	2,048,000
Over-the-counter		443,000		466,000		745,000		679,000
Contract manufacturing		131,000		52,000		248,000		147,000
Physician’s office		1,000		62,000		5,000		245,000
Total	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000
Revenues	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000

See Note 4 for additional information regarding geographic revenue concentrations.

SHIPPING AND HANDLING FEES

SHIPPING AND HANDLING FEES

The Company includes shipping and handling fees billed to customers in net sales.

RESEARCH AND DEVELOPMENT

RESEARCH AND DEVELOPMENT

INCOME TAXES

INCOME TAXES

ADVERTISING COSTS

ADVERTISING COSTS

FOREIGN CURRENCY TRANSLATION

FOREIGN CURRENCY TRANSLATION

RIGHT-OF-USE ASSETS AND LEASE LIABILITY

RIGHT-OF-USE ASSETS AND LEASE LIABILITY

NET LOSS PER SHARE

NET LOSS PER SHARE

RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

SCHEDULE OF NET INVENTORIES

Net inventories are approximately the following:

SCHEDULE OF NET INVENTORIES

	November 30, 2023			May 31, 2023
Raw materials	$	1,377,000		$	1,677,000
Work in progress		781,000			869,000
Finished products		181,000			182,000
Total gross inventory		2,339,000			2,728,000
Inventory reserves		(498,000	)		(672,000	)
Net inventory	$	1,841,000		$	2,056,000

SUMMARY OF OPTIONS ACTIVITY

The following summary presents the options granted, exercised, expired, canceled and outstanding for the six months ended November 30, 2023:

SUMMARY OF OPTIONS ACTIVITY

	Option Shares			Weighted Average Exercise Price
Options Outstanding at May 31, 2023		2,342,616		$	3.52
Granted		86,000			1.09
Exercised		-			-
Cancelled or expired		(148,500	)		4.90
Options Outstanding at November 30, 2023		2,280,116		$	3.33

SCHEDULE OF DISAGGREGATION REVENUE

The following is a breakdown of revenues according to markets to which the products are sold:

SCHEDULE OF DISAGGREGATION REVENUE

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Clinical lab	$	992,000	$	902,000	$	2,283,000	$	2,048,000
Over-the-counter		443,000		466,000		745,000		679,000
Contract manufacturing		131,000		52,000		248,000		147,000
Physician’s office		1,000		62,000		5,000		245,000
Total	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000
Revenues	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000

GEOGRAPHIC INFORMATION (Tables)

6 Months Ended

Nov. 30, 2023

Segment Reporting [Abstract]

SCHEDULE OF GEOGRAPHIC INFORMATION

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Revenues from sales to unaffiliated customers:
Asia	$	606,000	$	663,000	$	1,632,000	$	1,477,000
Europe		428,000		415,000		754,000		967,000
North America		320,000		401,000		676,000		669,000
Middle East		212,000		-		213,000		-
South America		1,000		3,000		6,000		6,000
Total	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000
Revenues	$	1,567,000	$	1,482,000	$	3,281,000	$	3,119,000

LEASES (Tables)

6 Months Ended

Nov. 30, 2023

Lessee Disclosure [Abstract]

SCHEDULE OF OPERATING LEASES

The following table presents information on our operating leases for the three month and six month ended November 30, 2023 and 2022:

SCHEDULE OF OPERATING LEASES

	2023		2022		2023		2022
	Three Months Ended November 30,				Six Months Ended November 30,
	2023		2022		2023		2022
Operating lease cost	$	88,000	$	88,000	$	176,000		176,000
Variable lease cost		2,000		-		5,000		1,000
Short-term lease cost	$	1,000	$	1,000	$	2,000		2,000
Total lease cost	$	91,000	$	89,000	$	183,000	$	179,000

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

The approximate maturity of lease liabilities as of November 30, 2023 are as follows:

Year Ending November 30:
	Operating Leases
2024	$	361,000
2025		371,000
2026		290,000
2027		-
Total minimum future lease payments		1,022,000
Less: imputed interest		85,000
Total operating lease liabilities	$	937,000

SCHEDULE OF OTHER SUPPLEMENTAL LEASE INFORMATION

The following table summarizes the Company’s other supplemental lease information for the six months ended November 30, 2023 and 2022:

	2023			2022
	Six Months Ended November 30,
	2023			2022

Cash paid for operating lease liabilities	$	177,000		$	174,000
Weighted-average remaining lease term (years)		2.77			3.77
Weighted-average discount rate		6.50	%		6.50	%

SCHEDULE OF NET INVENTORIES (Details) - USD ($)	Nov. 30, 2023	May 31, 2023
Accounting Policies [Abstract]
Raw materials	$ 1,377,000	$ 1,677,000
Work in progress	781,000	869,000
Finished products	181,000	182,000
Total gross inventory	2,339,000	2,728,000
Inventory reserves	(498,000)	(672,000)
Net inventory	$ 1,841,000	$ 2,056,000

SUMMARY OF OPTIONS ACTIVITY (Details)	6 Months Ended
SUMMARY OF OPTIONS ACTIVITY (Details)	Nov. 30, 2023 $ / shares shares
Accounting Policies [Abstract]
Option outstanding, begining balance \| shares	2,342,616
Weighted average exercise price, begining balance \| $ / shares	$ 3.52
Options granted \| shares	86,000
Weighted average exercise price, granted \| $ / shares	$ 1.09
Options exercised \| shares
Weighted average exercise price, exercised \| $ / shares
Options cancelled or expired \| shares	(148,500)
Weighted average exercise price, cancelled or expired \| $ / shares	$ 4.90
Option outstanding, ending balance \| shares	2,280,116
Weighted average exercise price, ending balance \| $ / shares	$ 3.33

SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($)	3 Months Ended		6 Months Ended
SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($)	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Product Information [Line Items]
Revenues	$ 1,567,000	$ 1,482,000	$ 3,281,000	$ 3,119,000
Clinical Lab [Member]
Product Information [Line Items]
Revenues	992,000	902,000	2,283,000	2,048,000
Over-the-counter [Member]
Product Information [Line Items]
Revenues	443,000	466,000	745,000	679,000
Contract Manufacturing [Member]
Product Information [Line Items]
Revenues	131,000	52,000	248,000	147,000
Physician's Office [Member]
Product Information [Line Items]
Revenues	$ 1,000	$ 62,000	$ 5,000	$ 245,000

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)				3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 27, 2023	Mar. 07, 2023	Jul. 20, 2020	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	May 31, 2023
Product Information [Line Items]
Accumulated deficit				$ 44,856,000		$ 44,856,000		$ 42,217,000
Cash and cash equivalents				7,134,000		7,134,000		9,719,000
Working capital				8,443,000		8,443,000
Shelf registration statement maximum authorized common stock issuance value	$ 20,000,000		$ 90,000,000
Proceeds from issuance of common stock							$ 1,988,000
Revenues				1,567,000	$ 1,482,000	3,281,000	3,119,000
Other receivables, gross, current				1,089,000		1,089,000		751,000
Accounts receivable, credit loss expense (Reversal)				22,000		22,000		29,000
Prepaid expense and other assets				223,000		223,000		300,000
Inventory reserves				498,000		498,000		672,000
Amortization of intangible assets				4,000	3,000	9,000	12,000
Asset impairment charges						0	6,000
Investments				165,000		165,000		$ 165,000
Share-based payment arrangement, expense						292,000	622,000
Proceeds from customers						60,000
Research and development expense				412,000	462,000	883,000	823,000
Income tax expense				8,000	1,000	31,000	3,000
Advertising expense				26,000	18,000	$ 56,000	$ 36,000
Share-Based Payment Arrangement, Option [Member]
Product Information [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)						2,280,116	2,338,616
Polish Distributor [Member]
Product Information [Line Items]
Investments				$ 165,000		$ 165,000
Equity method investment, ownership percentage				6.00%		6.00%
Marketing and Distribution Rights [Member]
Product Information [Line Items]
Finite-lived intangible asset, useful life				18 years		18 years
Purchased Technology Rights [Member]
Product Information [Line Items]
Finite-lived intangible asset, useful life				10 years		10 years
Patents [Member]
Product Information [Line Items]
Finite-lived intangible asset, useful life				15 years		15 years
Property, Plant and Equipment [Member]
Product Information [Line Items]
Depreciation, depletion and amortization				$ 15,000	$ 16,000	$ 30,000	$ 36,000
Minimum [Member]
Product Information [Line Items]
Property, plant and equipment, useful life				5 years		5 years
Maximum [Member]
Product Information [Line Items]
Property, plant and equipment, useful life				10 years		10 years
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Two Key Customers [Member]
Product Information [Line Items]
Concentration risk, percentage				52.00%	48.00%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| One Key Customer [Member]
Product Information [Line Items]
Concentration risk, percentage						49.00%	44.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Two Key Customers [Member]
Product Information [Line Items]
Concentration risk, percentage						64.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| One Key Customer [Member]
Product Information [Line Items]
Concentration risk, percentage								36.00%
Cost of Goods and Service, Product and Service Benchmark [Member] \| Supplier Concentration Risk [Member] \| Five Key Vendors [Member]
Product Information [Line Items]
Concentration risk, percentage				75.00%	12.00%	76.00%	8.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Three Key Vendors [Member]
Product Information [Line Items]
Concentration risk, percentage						55.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| One Key Vendors [Member]
Product Information [Line Items]
Concentration risk, percentage								23.00%
ATM Agreement [Member]
Product Information [Line Items]
Net proceeds from ATM in shares		3,333,333
Share price		$ 2.40
Sale of stock expenses		$ 700,000
Proceeds from issuance of common stock		$ 7,300,000

SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($)	Mar. 31, 2023	Nov. 30, 2023	Nov. 30, 2022
Subsidiary, Sale of Stock [Line Items]
Sale of stock, net proceeds			$ 1,988,000
Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of stock shares issued	3,333,333
Sale of stock, price per share	$ 2.40
Sale of stock, net proceeds	$ 7,300,000
Common Stock [Member] \| ATM Offering [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of stock shares issued			564,989
Sale of stock gross proceeds			$ 1,988,000
Sale of stock, net proceeds			$ 1,937,000
Common Stock [Member] \| ATM Offering [Member] \| Minimum [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of stock, price per share			$ 3.15
Common Stock [Member] \| ATM Offering [Member] \| Maximum [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of stock, price per share			$ 4.26

SCHEDULE OF GEOGRAPHIC INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
SCHEDULE OF GEOGRAPHIC INFORMATION (Details) - USD ($)	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,567,000	$ 1,482,000	$ 3,281,000	$ 3,119,000
Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	606,000	663,000	1,632,000	1,477,000
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	428,000	415,000	754,000	967,000
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	320,000	401,000	676,000	669,000
Middle East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	212,000		213,000
South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,000	$ 3,000	$ 6,000	$ 6,000

GEOGRAPHIC INFORMATION (Details Narrative)	6 Months Ended
GEOGRAPHIC INFORMATION (Details Narrative)	Nov. 30, 2023 USD ($) Segment	May 31, 2023 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments \| Segment	1
Inventory, gross	$ 2,339,000	$ 2,728,000
Property and equipment, net	210,000	213,000
MEXICO
Revenues from External Customers and Long-Lived Assets [Line Items]
Inventory, gross	555,000	626,000
Property and equipment, net	$ 16,000	$ 17,000

SCHEDULE OF OPERATING LEASES (Details) - USD ($)	3 Months Ended		6 Months Ended
SCHEDULE OF OPERATING LEASES (Details) - USD ($)	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Lessee Disclosure [Abstract]
Operating lease cost	$ 88,000	$ 88,000	$ 176,000	$ 176,000
Variable lease cost	2,000		5,000	1,000
Short-term lease cost	1,000	1,000	2,000	2,000
Total lease cost	$ 91,000	$ 89,000	$ 183,000	$ 179,000

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details)	Nov. 30, 2023 USD ($)
Lessee Disclosure [Abstract]
2024	$ 361,000
2025	371,000
2026	290,000
2027
Total minimum future lease payments	1,022,000
Less: imputed interest	85,000
Total operating lease liabilities	$ 937,000

SCHEDULE OF OTHER SUPPLEMENTAL LEASE INFORMATION (Details) - USD ($)	6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Lessee Disclosure [Abstract]
Cash paid for operating lease liabilities	$ 177,000	$ 174,000
Weighted average remaining lease term (years)	2 years 9 months 7 days	3 years 9 months 7 days
Weighted-average discount rate	6.50%	6.50%

LEASES (Details Narrative)	1 Months Ended	6 Months Ended
LEASES (Details Narrative)	Nov. 30, 2016 ft²	Nov. 30, 2023 USD ($) ft²
Lessee Disclosure [Abstract]
Area of land \| ft²	8,100	22,000
Lease term description	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. Biomerica de Mexico also leases a smaller unit on a month-to-month basis for use in one manufacturing process.	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.
Security deposit \| $		$ 22,000

Grafico Azioni Biomerica (NASDAQ:BMRA)
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Da Gen 2025 a Feb 2025

Grafico Azioni Biomerica (NASDAQ:BMRA)
Storico
Da Feb 2024 a Feb 2025

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