Financial Analysis

NOTE 6: COMMITMENTS AND CONTINGENCIES LITIGATION We are, from time to time, involved in legal proceedings, claims, and litigation arising in the ordinary course of business. While the amounts claimed may be substantial, the ultimate liability cannot presently be determined because of considerable uncertainties that exist. Therefore, it is possible the outcome of such legal proceedings, claims, and litigation could have a material effect on quarterly or annual operating results or cash flows when resolved in a future period. However, based on facts currently available, management believes such matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. There were no material legal proceedings pending as of February 28, 2026.

CommitmentsAndContingenciesDisclosureTextBlock

The following is a breakdown of revenues according to markets to which the products are sold: SCHEDULE OF DISAGGREGATION REVENUE February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Three Months Ended Nine Months Ended February 28, 2026 February 28, 2025 February 28, 2026 February 28, 2025 Clinical lab $ 621,000 $ 627,000 $ 2,321,000 $ 2,683,000 Over-the-counter 197,000 170,000 719,000 952,000 Contract manufacturing 167,000 320,000 532,000 920,000 Physicians office 2,000 2,000 6,000 7,000 Total $ 987,000 $ 1,119,000 $ 3,578,000 $ 4,562,000 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 5: LEASES We lease facilities in Irvine, California and Mexicali, Mexico. As of February 28, 2026, we had approximately 22,000 square feet of floor space at the Companys corporate headquarters at 17571 Von Karman Avenue in Irvine, California. This facility includes administration, research and development, certain manufacturing, shipping and inventory storage. The lease for our headquarters expires in August 2026. As of the date of this filing, we are evaluating our options, including potential renewal or relocation, and no final decision has been made. We have the option to extend the lease for an additional five-year term. We made a security deposit of approximately $ 22,000 . In November 2016, Biomerica de Mexico, our Mexican subsidiary, entered into a 10 -year lease for approximately 8,100 square feet of manufacturing space. This lease includes one 10-year option to renew at the end of the initial lease term. Biomerica de Mexico also leases a smaller unit on a month-to-month basis for use in one manufacturing process. As of the date of this filing, we are evaluating our options, including potential renewal or relocation, and no final decision has been made. In addition, we lease a small office in Lindau, Germany on a month-to-month basis, which serves as the headquarters of BioEurope GmbH, our German subsidiary. For purposes of determining straight-line rent expense, the lease term is calculated from the date we first take possession of the facility, including any pe …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

RECENT ACCOUNTING PRONOUNCEMENTS Recent ASUs 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 our present or future consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU includes enhanced disclosure requirements, primarily related to the rate reconciliation and income taxes paid information. The amendments are to be applied prospectively in the financial statements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the effect of adopting this pronouncement on our financial statements and disclosures. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40). The ASU includes enhanced disclosure requirements, which mandates enhanced transparency in financial statements by requiring detailed disclosures of specific expenses like inventory purchases, employee compensation, depreciation, and intangible asset amortization. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. We are currently evaluating the effect of adopting this pronouncement on our financial statements and …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 4: GEOGRAPHIC INFORMATION We operate as one segment. Geographic information regarding net sales is approximately as follows: SCHEDULE OF GEOGRAPHIC INFORMATION 2026 2025 2026 2025 For the Three Month Ending February 28, For the Nine Month Ending February 28, 2026 2025 2026 2025 Revenues from sales to unaffiliated customers: Europe $ 287,000 $ 198,000 $ 854,000 $ 979,000 Asia 270,000 365,000 1,299,000 1,614,000 North America 259,000 404,000 1,020,000 1,381,000 Middle East 171,000 149,000 393,000 580,000 South America - 3,000 12,000 8,000 Total $ 987,000 $ 1,119,000 $ 3,578,000 $ 4,562,000 Revenues $ 987,000 $ 1,119,000 $ 3,578,000 $ 4,562,000 As of February 28, 2026, and May 31, 2025, approximately $ 484,000 and $ 483,000 of our gross inventory was located in Mexicali, Mexico, respectively. As of February 28, 2026, and May 31, 2025, approximately $ 8,000 and $ 10,000 of our property and equipment, net of accumulated depreciation and amortization, was located in Mexicali, Mexico, respectively.

SegmentReportingDisclosureTextBlock

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The condensed consolidated financial statements include the accounts of Biomerica, Inc. and its wholly owned subsidiaries, BioEurope GmbH and Biomerica de Mexico. All significant intercompany accounts and transactions have been eliminated in consolidation. ACCOUNTING ESTIMATES In order to prepare our consolidated financial statements in conformity with GAAP, we must 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. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Different assumptions or conditions may cause actual results to differ materially from these estimates. We monitor significant estimates made during the preparation of our financial statements on an ongoing basis. 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 accountin …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 3: SHAREHOLDERS EQUITY On September 28, 2023, we filed the Shelf Registration allowing us to issue up to $ 20,000,000 of equity value in shares of common stock. Under the Shelf Registration Statement, shares of our common stock may be sold from time to time for up to three years from the filing date. On May 10, 2024, we filed a prospectus supplement to the Shelf Registration Statement with the SEC. This prospectus supplement was intended to facilitate the sale of up to $ 5,500,000 in common stock through the 2024 ATM Offering. During the nine months ended February 28, 2026, we sold 414,633 shares of our common stock at prices ranging from $ 2.42 to $ 4.02 pursuant to the 2024 ATM Offering, which resulted in gross proceeds of approximately $ 1,495,000 and net proceeds to us of $ 1,455,000 after deducting commissions for each sale and legal, accounting, and other fees related to the offering in the amount of $ 32,000 , as well as $ 8,000 of previously capitalized deferred offering costs. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 7: SUBSEQUENT EVENTS Subsequent to February 28, 2026, the Company issued an aggregate of 60,825 shares of its common stock. As a result, the number of shares of the Companys common stock outstanding was 3,090,269 as of April 13, 2026. These issuances are reflected in the number of shares outstanding disclosed on the cover page of this Quarterly Report on Form 10-Q but are not reflected in the accompanying condensed consolidated financial statements. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing