IRVINE, CA--(Marketwired - August 30, 2016) - Biomerica, Inc. (NASDAQ: BMRA), a global provider of advanced diagnostic products, today reported net sales for the fiscal year 2016 were $5,139,816 versus net sales of $4,962,373 in fiscal 2015. Net loss before income taxes was $795,987 for the fiscal year 2016 compared to $646,434 for fiscal 2015. Net loss was $1,499,787 for fiscal 2016 compared to net loss of $331,410 for fiscal 2015 primarily due to the recording of a non-cash income tax expense for the recognition of a valuation allowance of $703,000 against the Company's deferred tax asset compared to a non-cash tax benefit of $315,024 in fiscal 2015. Research and Development spending was $780,333 for fiscal year 2016 compared to $733,640 the previous year, an increase of $46,693. The company ended the year with $1,888,925 in cash and cash equivalents, working capital of $4,329,041 and less than $507,000 in total liabilities. The common stock of Biomerica (BMRA) started trading on NASDAQ on August 26, 2016.
"We are excited about the progress made and commercialization prospects for our InFoods® IBS diagnostic guided therapy, a technology that we believe represents a significant breakthrough in how irritable bowel syndrome (IBS) could be treated by physicians," said Zackary Irani, Biomerica's Chief Executive Officer. "We believe that the fastest way for us to get global distribution is through licensing, a strategy initiated by our agreement with Celtis to distribute InFoods® IBS in South Korea.
"We have also placed an emphasis on adding to our team some of the most experienced and renowned IBS experts in the world. We recently added Dr. Mark Sirgo, an individual with extensive knowledge of companies within the IBS sector, to our Board of Directors. Dr. Sirgo served on the Board of Directors for Salix Pharmaceuticals and was instrumental in growing Salix into a major international gastrointestinal (GI) company that he then helped sell to Valeant Pharmaceuticals for $11.1 billion. To further strengthen our ability to license the product, we added Ned Barnholt to our Strategic Advisory Board to help guide our commercialization efforts. Mr. Barnholt is a widely-respected executive who currently serves as Chairman of the Board of KLA-Tencor, a company with a market cap of $12 billion, and also currently serves on the Board of Directors of eBay and Adobe. Prior to his current positions, Mr. Barnholt was CEO and Chairman of Agilent Technologies.
"With our licensing strategy and additions to executive leadership in place, we believe we are now well positioned to seek the right marketing partners for our product(s)," concluded Irani.
About Biomerica (NASDAQ: BMRA)
Biomerica, Inc. (www.biomerica.com) is a global biomedical company that develops, manufactures and markets advanced diagnostic products used at the point-of-care (in home and in physicians' offices) and in hospital/clinical laboratories for the early detection of medical conditions and diseases. The Company's products are designed to enhance health and well-being, while reducing total healthcare costs. Biomerica primarily focuses on products for Gastrointestinal Disease, Diabetes and esoteric testing.
The Biomerica InFoods® IBS product identifies patient specific foods that when removed may alleviate an individual's IBS symptoms. This patent pending diagnostic guided therapy is designed to allow for a patient specific guided dietary regimen to improve Irritable Bowel Syndrome (IBS) outcomes. The point-of-care product is being developed to allow physicians to perform the test in-office using a finger stick blood sample while a clinical lab version of the product will be the first for which we will seek regulatory approval. A billable CPT code that can be used by both clinical labs and physicians' offices is available for InFoods® diagnostic products. Since the InFoods® product is a diagnostic guided therapy and not a drug, it has no drug type side effects.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Biomerica) contains statements that are forward-looking; such as statements relating to intended launch dates, expected improvements in performance, new product introductions, possible FDA clearances, regulatory approvals, sales potential, market size, continued growth, favorable positions, expansion, expected approvals, leading market positions, expanded distribution, anticipated increases in sales or production volume of the Company, success of product and new product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. The potential risks and uncertainties include, among others, fluctuations in the Company's operating results due to its business model and expansion plans, downturns in international and or national economies, the Company's ability to raise additional capital, the competitive environment in which the Company will be competing, and the Company's dependence on strategic relationships. The Company is under no obligation to update any forward-looking statements after the date of this release.