Biomerica Reports Strong Q1 Fiscal 2027 Results with Medicare Reimbursement Milestone
News related to:Biomerica, Inc · 2 min read
Biomerica, Inc., based in Irvine, Calif., reported financial results for the first quarter of fiscal 2027, ending August 31, 2026. The company saw a significant boost in its inFoods® IBS commercialization efforts, with Medicare-related test orders increasing by 120% in September 2026 compared to August. As of October 15, 2026, 32 customer locations had been set up for Medicare ordering, up 28% from 25 at the end of August. Of these, 13 had placed Medicare-related orders, including nine with multiple orders, reflecting growing physician adoption and continued utilization.
InFoods® IBS, Biomerica’s test for irritable bowel syndrome (IBS), has seen 100% of all initial valid Medicare claims processed as of October 15, 2026, being paid at the full CMS payment rate of $300. This marks a significant milestone in the company’s efforts to secure reimbursement for its diagnostic test.
Operating expenses for the quarter decreased by approximately 14% year over year, reflecting the company’s continued focus on cost discipline. Over-the-counter sales increased by approximately 81% to $291,000 in the first quarter of fiscal year 2027, compared to the first quarter of fiscal year 2026, driven primarily by sales to a new customer. Sales in the Middle East also saw a significant increase of approximately 59% compared to the prior-year quarter.
The company’s cash position improved significantly, with cash and cash equivalents more than doubling to approximately $2.7 million at August 31, 2026, from approximately $1.3 million at May 31, 2026. This improvement was largely due to the completion of a private placement of approximately 1.39 million shares of common stock in August 2026, generating gross proceeds of approximately $2.23 million.
Biomerica also engaged B. Riley Securities, Inc. to support the Board’s ongoing evaluation of potential strategic opportunities, including partnerships and business combinations. The company continues to pursue contract development and manufacturing (CDM) opportunities, with a Master Services Agreement in place for development of proprietary in vitro diagnostic (IVD) assays. The initial target development fees under this agreement exceed $1.75 million, subject to the execution of additional Statements of Work.
In the first quarter of fiscal 2027, net sales were approximately $1.3 million, compared to approximately $1.4 million in the prior-year quarter. The decrease primarily reflected fluctuations in clinical laboratory customer orders and shipment timing, partially offset by an approximately 81% increase in over-the-counter sales and growth in contract manufacturing revenue. Gross profit was approximately $103,000, or 8% of net sales, compared to approximately $424,000, or 31% of net sales, in the prior-year quarter.
Operating loss was approximately $1.2 million, compared to approximately $1.1 million in the prior-year quarter, as lower gross profit was partially offset by reduced operating expenses. Net loss was approximately $1.2 million, or $0.37 per share, compared to net income of approximately $2,000 in the prior-year quarter, which included approximately $1.1 million in Employee Retention Credit (ERC) income.
As of August 31, 2026, Biomerica had approximately $2.7 million in cash and cash equivalents and $2.6 million in working capital, compared to approximately $1.3 million and $1.5 million, respectively, as of May 31, 2026. The increase in cash primarily reflected proceeds from Biomerica’s August 2026 private placement.