2023 Q2 Form 10-Q Financial Statement

#000151316223000067 Filed on April 14, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q1
Revenue $1.108M $1.111M $7.661M
YoY Change -79.1% -85.49% 111.03%
Cost Of Revenue $1.079M $991.2K $5.987M
YoY Change -76.94% -83.45% 63.14%
Gross Profit $28.81K $120.3K $1.673M
YoY Change -95.36% -92.81% -4283.05%
Gross Profit Margin 2.6% 10.82% 21.84%
Selling, General & Admin $1.496M $1.379M $1.324M
YoY Change -28.11% 4.21% 3.42%
% of Gross Profit 5191.77% 1146.9% 79.11%
Research & Development $368.9K $392.0K $457.0K
YoY Change 24.18% -14.22% -18.39%
% of Gross Profit 1280.32% 325.93% 27.31%
Depreciation & Amortization $18.36K $15.00K $33.60K
YoY Change -92.25% -55.36% 12.0%
% of Gross Profit 63.73% 12.47% 2.01%
Operating Expenses $1.865M $1.771M $1.781M
YoY Change -21.58% -0.52% -3.22%
Operating Profit -$1.836M -$1.651M -$107.5K
YoY Change 4.52% 1435.97% -94.28%
Interest Expense $55.63K $36.09K $6.020K
YoY Change 706.23% 499.5% -84.95%
% of Operating Profit
Other Income/Expense, Net $1.000K $36.09K
YoY Change
Pretax Income -$1.779M -$1.615M -$101.5K
YoY Change 1.7% 1491.53% -94.48%
Income Tax $13.01K $34.78K $2.690K
% Of Pretax Income
Net Earnings -$1.792M -$1.650M -$104.2K
YoY Change 1.89% 1483.81% -94.34%
Net Earnings / Revenue -161.72% -148.44% -1.36%
Basic Earnings Per Share -$0.12 -$0.01
Diluted Earnings Per Share -$0.11 -$0.12 -$8.125K
COMMON SHARES
Basic Shares Outstanding 16.82M shares 13.48M shares 12.82M shares
Diluted Shares Outstanding 13.48M shares 12.82M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $9.719M $3.345M $10.17M
YoY Change 64.26% -67.12% 93.05%
Cash & Equivalents $9.719M $3.345M $10.17M
Short-Term Investments
Other Short-Term Assets $300.0K $318.5K $667.1K
YoY Change -6.33% -52.27% -13.36%
Inventory $2.056M $2.064M $3.231M
Prepaid Expenses
Receivables $722.0K $754.6K $1.159M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $12.80M $6.482M $15.23M
YoY Change 35.74% -57.44% 41.29%
LONG-TERM ASSETS
Property, Plant & Equipment $213.0K $227.6K $1.631M
YoY Change -0.47% -86.05% -11.84%
Goodwill
YoY Change
Intangibles $165.0K $154.6K
YoY Change -2.94%
Long-Term Investments $165.0K $165.3K $165.3K
YoY Change -0.19% 0.0% -2.75%
Other Assets $79.00K $78.60K $147.0K
YoY Change -17.35% -46.52% -47.51%
Total Long-Term Assets $1.657M $1.728M $2.329M
YoY Change -14.88% -25.82% -9.37%
TOTAL ASSETS
Total Short-Term Assets $12.80M $6.482M $15.23M
Total Long-Term Assets $1.657M $1.728M $2.329M
Total Assets $14.45M $8.210M $17.56M
YoY Change 27.08% -53.25% 31.54%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $344.0K $387.2K $2.609M
YoY Change -53.26% -85.16% 243.27%
Accrued Expenses $548.0K $869.9K $876.0K
YoY Change 132.2% -0.7% 46.01%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $1.945M $1.395M $6.698M
YoY Change -3.3% -79.17% 396.14%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $785.0K $828.9K $1.105M
YoY Change -24.39% -24.96% -21.1%
Total Long-Term Liabilities $785.0K $828.9K $1.105M
YoY Change -24.39% -24.96% -21.1%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.945M $1.395M $6.698M
Total Long-Term Liabilities $785.0K $828.9K $1.105M
Total Liabilities $2.730M $2.224M $7.803M
YoY Change -10.48% -71.5% 183.73%
SHAREHOLDERS EQUITY
Retained Earnings -$42.00M -$40.40M
YoY Change 19.74%
Common Stock $1.346M $1.079M
YoY Change 30.75%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $11.72M $5.986M $9.758M
YoY Change
Total Liabilities & Shareholders Equity $14.45M $8.210M $17.56M
YoY Change 27.08% -53.25% 31.54%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income -$1.792M -$1.650M -$104.2K
YoY Change 1.89% 1483.81% -94.34%
Depreciation, Depletion And Amortization $18.36K $15.00K $33.60K
YoY Change -92.25% -55.36% 12.0%
Cash From Operating Activities -$962.7K -$1.725M $2.358M
YoY Change -77.39% -173.14% -273.4%
INVESTING ACTIVITIES
Capital Expenditures $14.14K $5.760K -$18.85K
YoY Change -158.05% -130.56% -81.15%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$14.14K -$5.760K -$18.85K
YoY Change -41.95% -69.44% -81.15%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $637.7K
YoY Change -39.84%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 7.350M 24.75K 637.7K
YoY Change 19149.9% -96.12% -39.84%
NET CHANGE
Cash From Operating Activities -962.7K -1.725M 2.358M
Cash From Investing Activities -14.14K -5.760K -18.85K
Cash From Financing Activities 7.350M 24.75K 637.7K
Net Change In Cash 6.373M -1.706M 2.977M
YoY Change -250.17% -157.3% -844.3%
FREE CASH FLOW
Cash From Operating Activities -$962.7K -$1.725M $2.358M
Capital Expenditures $14.14K $5.760K -$18.85K
Free Cash Flow -$976.8K -$1.731M $2.377M
YoY Change -76.92% -172.8% -288.66%

Facts In Submission

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CY2022Q1 us-gaap Stock Issued During Period Value New Issues
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CY2022Q1 us-gaap Stockholders Equity
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us-gaap Increase Decrease In Inventories
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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-16986 usd
us-gaap Increase Decrease In Other Operating Assets
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Employee Related Liabilities
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us-gaap Increase Decrease In Employee Related Liabilities
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us-gaap Increase Decrease In Contract With Customer Liability
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Payments Of Stock Issuance Costs
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us-gaap Proceeds From Stock Options Exercised
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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5974497 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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IncomeTaxesPaid
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us-gaap Income Taxes Paid
IncomeTaxesPaid
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us-gaap Basis Of Accounting
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<p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><b><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">NOTE 1:  BASIS OF PRESENTATION</span></b></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p><p style="font-size: 11pt; font-family: 'Times New Roman',sans-serif; text-align: justify; margin: 0in; line-height: normal;"><span style="font-size: 10pt; font-family: 'Times New Roman',serif; color: black;">Biomerica, Inc. and its subsidiaries (which includes wholly owned subsidiaries, Biomerica de Mexico and BioEurope GmbH) is </span><span style="font-size: 10pt; font-family: 'Times New Roman',serif;">a biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care </span><span style="font-size: 10pt; font-family: 'Times New Roman',serif; color: black;">(physicians' offices and over-the-counter (“OTC”) through drugstores and online) </span><span style="font-size: 10pt; font-family: 'Times New Roman',serif;">and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases</span><span style="font-size: 10pt; font-family: 'Times New Roman',serif; color: black;">. 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 </span><span style="font-size: 10pt; font-family: 'Times New Roman',serif;">Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. </span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif; COLOR:black">Our primary focus is the research, development, commercialization, and in certain cases regulatory approval, of patented, diagnostic-guided therapy (“DGT”) products based on our InFoods® Technology platform that are designed 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. The first product we are launching using the patented InFoods Technology is our InFoods® IBS product which uses a simple blood sample and is designed to identify patient-specific foods that, when removed from the 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 specific foods.  A food identified as causing an abnormal immune response in the patient is simply removed from the diet to help alleviate IBS symptoms. Following the successful completion and positive statistical results from the Company’s InFoods IBS clinical trial (run at several prominent centers including Mayo Clinic, Beth Israel Deaconess Medical Center Inc. - a Harvard Medical School Teaching Hospital, Houston Methodist Hospital, and the University of Michigan) which was completed in early calendar 2022, Biomerica received interest from Gastroenterology (“GI”) physicians who would like to order the InFoods IBS test for their patients even prior to the product receiving FDA clearance. As such, we are currently working with key GI physician groups who are interested in offering this product to their patients. Given this, during the third quarter ended February 28, 2023, we worked to set up the InFoods® IBS test to be performed in a Clinical Laboratory Improvement Amendments (“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, as of quarter end, is now accepting patient samples. We also worked 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. During the quarter, we also set up customer service and payment systems, along with a dedicated website for patients to receive answers to questions they may have about the test and attain information about how to eliminate a specific food from their diet. This is especially important for foods that are ingredients in common processed foods like milk, eggs and wheat.  As of the end of the fiscal third quarter, the product is now available to physicians and their patients.</span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif; COLOR:black">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, Amazon, and Walgreens). 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.</span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">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. In fiscal 2022, we generated revenues from the international sale of our COVID-19 antigen tests that use a patient’s nasal fluid sample to detect if the patient is currently infected with the virus. Due to falling demand for such tests, the Company generated 0.4% of our sales  during the three months ended February 28, 2023, as compared to 79% of our revenue during the three months ended February 28, 2022..  Further, during the nine months ended February 28, 2023 6% of our sales were generated from our COVID-19 related products, as compared to 80% of our revenue during the nine months ended February 28, 2022.   </span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">Our non-COVID-19 products that accounted for approximately 94% and 20% of our revenues during the nine months ended February 28, 2023 and 2022, respectively, 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.</span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif; COLOR:black">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 interim 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, 2022. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“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 nine months ended February 28, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending May 31, 2023. For further information, refer to the audited consolidated financial statements and notes thereto for the fiscal year ended May 31, 2022 included in the Company's Annual Report on Form 10-K filed with the SEC on August 29, 2022. Management has evaluated all subsequent events and transactions through the date of filing this report.</span></p>
us-gaap Use Of Estimates
UseOfEstimates
<p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><b><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">ACCOUNTING ESTIMATES</span></b></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif; COLOR:black">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 experience 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. </span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p>
CY2023Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-40400000 usd
CY2023Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
3345000 usd
bmra Working Capital
WorkingCapital
5087000 usd
CY2020Q3 bmra Shelf Registration Statement Maximum Authorized Common Stock Issuance Value
ShelfRegistrationStatementMaximumAuthorizedCommonStockIssuanceValue
90000000 usd
CY2021Q1 bmra Shelf Registration Statement Maximum Authorized Common Stock Issuance Value
ShelfRegistrationStatementMaximumAuthorizedCommonStockIssuanceValue
15000000 usd
CY2023Q1 us-gaap Common Stock Capital Shares Reserved For Future Issuance
CommonStockCapitalSharesReservedForFutureIssuance
9400000 shares
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><b><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">CONCENTRATION OF CREDIT RISK</span></b></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">The Company’s primary banking partners are Bank of America and Merrill Lynch. The Company maintains cash balances in accounts at financial institutions in excess of amounts insured by federal agencies, as well as substantial cash reserves in investment grade money market accounts and in U.S. treasury bills. <span style="COLOR:black">As of February 28, 2023,</span> the Company had approximately $3,095,000 of uninsured cash. <span style="COLOR:black">The Company does not believe it is exposed to any significant credit risks.</span></span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">For <span style="COLOR:black">the </span>three m<span style="COLOR:black">onths ended February 28, 2023,</span> the Company had one key customer who is located in Asia which accounted <span style="COLOR:black">for 22%</span>. For <span style="COLOR:black">the </span>three m<span style="COLOR:black">onths ended February 28, 2022,</span> the Company had three key customers who are located in Asia and the United States which accounted <span style="COLOR:black">for 79% of net consolidated sales</span>. For <span style="COLOR:black">the </span>nine m<span style="COLOR:black">onths ended February 28, 2023,</span> the Company had one key customer who is located in Asia which accounted <span style="COLOR:black">for 38%</span>. For <span style="COLOR:black">the </span>nine m<span style="COLOR:black">onths ended February 28, 2022,</span> the Company had three key customers who are located in Asia and the United States which accounted <span style="COLOR:black">for 75% of net consolidated sales</span>. </span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p><p style="font-size: 11pt; font-family: 'Times New Roman',sans-serif; text-align: justify; margin: 0in 2.7pt 0in 0in; line-height: normal;"><span style="font-size: 10pt; font-family: 'Times New Roman',serif; color: black;">Total gross receivables on February 28, 2023 and May 31, 2022 were approximately </span><span style="font-size: 10pt; font-family: 'Times New Roman',serif;">$772,000 and $927,000, <span style="color: black;">respectively. On February 28, 2023, the Company had two customers which accounted for a total of 44% of gross receivables. On May 31, 2022 the Company had one key customer </span>which accounted for a total of 50% of gross receivables.</span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif; COLOR:black">For the </span><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">three <span style="COLOR:black">months ended February 28, 2023, the</span> Company had two key vendors which accounted for 31% of the purchase of raw materials. <span style="COLOR:black">For the </span>three <span style="COLOR:black">months ended February 28, 2022, the</span> Company had one key vendor which accounted for 92% of the purchase of raw materials.</span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif; COLOR:black">For the </span><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">nine months ended <span style="COLOR:black">February 28, 2023, there was no individual vendor that comprised more than 10% of the Company’s purchases.. For the </span>nine months ended <span style="COLOR:black">February 28, 2022, the </span>Company had one key vendor which accounted for 85% of the purchase of raw materials.</span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif; COLOR:black">As of February 28, 2023, </span><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">the Company had one key vendor which accounted for 18% of accounts payable. As of May 31, 2022, the Company had two key vendors which accounted for 69%.</span></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in 2.7pt 0in 0in; LINE-HEIGHT:normal"> </p>
CY2023Q1 us-gaap Cash Uninsured Amount
CashUninsuredAmount
3095000 usd
CY2023Q1 us-gaap Accounts Receivable Gross
AccountsReceivableGross
772000 usd
CY2022Q2 us-gaap Accounts Receivable Gross
AccountsReceivableGross
927000 usd
CY2022Q2 us-gaap Inventory Finished Goods
InventoryFinishedGoods
782000 usd
CY2023Q1 us-gaap Inventory Gross
InventoryGross
2872000 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
17000 usd
CY2022 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
153000 usd
CY2023Q1 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
465000 usd
CY2023Q1 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
318000 usd
CY2022Q2 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
320000 usd
CY2023Q1 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
808000 usd
CY2022Q2 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
846000 usd
CY2023Q1 us-gaap Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
1714000 usd
CY2022Q2 us-gaap Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
1717000 usd
CY2023Q1 us-gaap Inventory Work In Process
InventoryWorkInProcess
924000 usd
CY2022Q2 us-gaap Inventory Work In Process
InventoryWorkInProcess
763000 usd
CY2023Q1 us-gaap Inventory Finished Goods
InventoryFinishedGoods
234000 usd
CY2022Q2 us-gaap Inventory Gross
InventoryGross
3262000 usd
CY2023Q1 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
808000 usd
CY2022Q2 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
846000 usd
CY2023Q1 us-gaap Inventory Net
InventoryNet
2064000 usd
CY2022Q2 us-gaap Inventory Net
InventoryNet
2416000 usd
CY2023Q1 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
15000 usd
CY2022Q1 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
26000 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
51000 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
80000 usd
CY2023Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
3000 usd
CY2022Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
8000 usd
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
15000 usd
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
22000 usd
us-gaap Asset Impairment Charges
AssetImpairmentCharges
6000 usd
us-gaap Asset Impairment Charges
AssetImpairmentCharges
0 usd
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
2321616 shares
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
3.72
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
146000 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
3.37
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
46500 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
1.73
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
107750 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
4.76
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
2313366 shares
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
3.69
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
46500 shares
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
79000 usd
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
146000 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
3.37
us-gaap Proceeds From Customers
ProceedsFromCustomers
138000 usd
CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1112000 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
7660000 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
4231000 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
13569000 usd
CY2023Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
392000 usd
CY2022Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
387000 usd
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1215000 usd
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1317000 usd
CY2023Q1 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
8088000 usd
CY2022Q2 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
6967000 usd
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"><b><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif; COLOR:black">RECLASSIFICATIONS</span></b></p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"> </p><p style="FONT-SIZE:11pt; FONT-FAMILY:&quot;Times New Roman&quot;,sans-serif; TEXT-ALIGN:justify; MARGIN:0in; LINE-HEIGHT:normal"><span style="FONT-SIZE:10pt; FONT-FAMILY:&quot;Times New Roman&quot;,serif">Certain comparative figures in the February 28, 2022 condensed consolidated statement of operations have been reclassified to conform to the current period presentation. </span></p>
us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 pure
CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1112000 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
7660000 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
4231000 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
13569000 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
263000 usd
CY2023Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P3Y6M10D
CY2023Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.065 pure
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
360000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
370000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
382000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
201000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
0 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
1313000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
135000 usd
CY2023Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
1178000 usd
CY2023Q1 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
usd
CY2022Q2 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
usd
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
usd
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
usd
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--05-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2023
dei Entity Central Index Key
EntityCentralIndexKey
0000073290

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