Executive Summary

Revenue surged to $4.65M in Q2 FY2022, up 238% year over year, driven primarily by international demand for COVID-19 antigen tests; the quarter posted a net loss of $1.13M and diluted EPS of -$0.09 .
Gross margin was pressured by logistics constraints and significantly higher shipping costs, with cost of sales at 83% of net sales vs 78% a year ago; management flagged supply chain impacts as a material headwind to margins and profits .
Entering Q3, the company reported >$4.0M unfilled customer orders (backlog) and ended Q2 with ~$7.2M cash, supported by customer prepayments and ATM proceeds—providing operational runway and funding flexibility .
InFoods IBS endpoint trial topline results announced post-quarter were positive across multiple endpoints, positioning the company to meet the FDA on pivotal trial design—an emerging non-COVID catalyst for medium-term value creation .
No earnings call transcript was available for Q2; Wall Street consensus (S&P Global) data was unavailable at time of request, so estimate comparisons could not be made. This limits immediate assessment of beats/misses vs the Street (estimates unavailable via S&P Global).

What Went Well and What Went Wrong

What Went Well

Revenue growth was exceptional: Q2 net sales rose 238% YoY to $4.65M, largely from international COVID-19 antigen test demand; Asia contributed ~$3.37M of Q2 revenue, with Europe ~$0.80M .
Commercial momentum and visibility improved: the company entered Q3 with >$4.0M backlog and received customer prepayments, supporting cash growth to ~$7.2M in Q2 .
R&D progress: Biomerica announced statistically significant topline results in multiple endpoints for InFoods IBS post-quarter and plans FDA engagement to finalize pivotal trial design—broadening the pipeline beyond COVID .

What Went Wrong

Margin pressure: Logistics constraints and elevated shipping costs had a material negative impact on margins and profits; cost of sales rose to 83% of net sales in Q2 vs 78% a year ago .
Profitability: Q2 posted an operating loss of ~$1.13M and net loss of ~$1.13M; diluted EPS was -$0.09, reflecting continued investment and cost pressure despite top-line growth .
Prior-quarter margin headwinds persisted: Q1 cost of sales was 107% of net sales, including a ~$179K NRV adjustment on COVID-19 antigen tests; while Q2 improved, structural logistics/inflationary costs remain a risk .

Financial Results

Income Statement (Quarterly progression: oldest → newest)

Metric	Q1 2022	Q2 2022
Net Sales ($USD)	$1,261,787	$4,646,900
Cost of Sales ($USD)	$1,350,757	$3,875,141
Gross Profit ($USD)	$(88,970)	$771,759
SG&A ($USD)	$1,011,535	$1,282,998
R&D ($USD)	$439,864	$618,522
Operating Loss ($USD)	$(1,540,369)	$(1,129,761)
Net Loss ($USD)	$(1,542,581)	$(1,125,274)
Diluted EPS ($USD)	$(0.12)	$(0.09)
Cost of Sales (% Net Sales)	107%	83%

Year-over-Year Comparison (Q2 FY2021 → Q2 FY2022)

Metric	Q2 2021	Q2 2022
Net Sales ($USD)	$1,372,526	$4,646,900
Cost of Sales ($USD)	$1,063,807	$3,875,141
Gross Profit ($USD)	$308,719	$771,759
Net Loss ($USD)	$(1,718,098)	$(1,125,274)
Diluted EPS ($USD)	$(0.15)	$(0.09)
Cost of Sales (% Net Sales)	78%	83%

Revenue Disaggregation by Market (oldest → newest)

Market	Q1 2022 ($USD)	Q2 2022 ($USD)
Physician’s Office	$257,000	$3,359,000
Clinical Lab	$886,000	$642,000
Over-the-Counter	$79,000	$534,000
Contract Manufacturing	$40,000	$112,000
Total	$1,262,000	$4,647,000

Geographic Revenue Mix (oldest → newest)

Region	Q1 2022 ($USD)	Q2 2022 ($USD)
Asia	$675,000	$3,373,000
Europe	$471,000	$796,000
North America	$105,000	$429,000
Middle East	$8,000	$46,000
South America	$3,000	$3,000
Total	$1,262,000	$4,647,000

KPIs and Balance Highlights (oldest → newest)

KPI	Q1 2022	Q2 2022
Backlog (Unfilled Orders)	—	>$4.0M
Advance from Customers ($USD)	—	$2,150,466
Cash & Equivalents ($USD)	$4,996,623	$7,199,172

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal revenue/EPS guidance	FY/Q3	None provided	None provided	Maintained (no formal guidance)
Operating loss (Q2 indicative)	Q2 FY2022	—	$(0.9)M to $(1.3)M (prelim)	Not formal guidance; preliminary actuals range
Margin outlook commentary	Near-term	—	Logistics constraints and shipping costs materially impacting margins	Qualitative headwind reiterated

Earnings Call Themes & Trends

No Q2 FY2022 earnings call transcript was available; themes below reflect MD&A and press releases.

Topic	Previous Mentions (Q1 FY2022)	Current Period (Q2 FY2022)	Trend
Supply chain/logistics	NRV write-down (~$179K) impacting Q1 margins; cost of sales 107% of net sales	Logistics constraints and higher shipping costs materially impacted margins and profits; cost of sales 83% of net sales	Improving sequentially but still pressured
COVID-19 product performance	~$226K COVID antigen sales; mixed demand	Primary driver of revenue growth; strong international demand	Strengthening volumes
Regional trends	Mixed—Europe strongest; Asia moderate	Asia dominates ($3.37M); Europe ~$0.80M	Shift toward Asia
R&D execution (InFoods IBS)	Endpoint trial nearing completion; top-line expected Dec/Jan	Positive topline results across multiple endpoints; FDA meeting planned	Positive inflection/catalyst
Regulatory/legal	Ongoing SEC investigation (per prior disclosures)	SEC concluded investigations with no enforcement action (Dec 2, 2021)	Risk reduced

Management Commentary

“We are very encouraged by the heightened demand...particularly for our COVID-related testing products… Like most companies, we are contending with supply chain constraints that are negatively impacting our margins. However, the revenue growth we are seeing positions us well for higher operating margins as the worldwide supply chain issues subside.” — Zack Irani, CEO .
“Data analysis is underway for our InFoods IBS clinical trial… on track to receive and announce top line results by the end of January, 2022.” — Zack Irani, CEO (pre-quarter update) .
“We are extremely excited about these [InFoods IBS] results… statistically significant improvement in symptoms… We are now excited to embark on the final trial before submitting for FDA clearance.” — Zack Irani, CEO (post-quarter results) .
Key opinion leaders (Rome Foundation, Mayo Clinic) highlighted potential significance for IBS-Mixed and broader IBS patient populations, reinforcing clinical relevance and commercialization pathway .

Q&A Highlights

No earnings call transcript was available for Q2 FY2022; no Q&A or guidance clarifications were published in our document set [ListDocuments earnings-call-transcript: 0].

Estimates Context

S&P Global consensus estimates for Q2 FY2022 (EPS, Revenue) were unavailable at time of request due to data access limits; therefore, we cannot assess beats/misses vs Wall Street consensus for this quarter. Values would be retrieved from S&P Global if accessible.
Implication: With no consensus reference, market reaction assessment hinges on absolute growth (238% YoY revenue) vs sustained margin pressure and pipeline progress (InFoods IBS) .

Key Takeaways for Investors

Demand acceleration: COVID-19 antigen tests drove a step-change in revenue, particularly in Asia, supporting near-term topline strength; watch order flow and backlog conversion in Q3 .
Margin watch: Elevated logistics/shipping costs materially compressed margins; further improvement depends on freight normalization and mix—monitor cost-of-sales ratio and gross profit trajectory .
Liquidity: Cash rose to ~$7.2M with customer advances and ATM proceeds; runway extends beyond twelve months, enabling sustained R&D and commercialization efforts .
Pipeline catalyst: Positive InFoods IBS endpoint data opens an FDA dialogue on pivotal trial design; if successful, non-drug diagnostic-guided therapy could be a differentiated asset with large addressable market .
Concentration risk: Revenue concentration in a few customers and vendors remains high; continue to monitor credit risk and supply dependencies .
No formal guidance or consensus comparisons: With estimates unavailable and no formal guidance, trading may react to operational datapoints (backlog, regional shipments, margin commentary) and clinical milestones .
Actionable focus areas: Track Q3 revenue realization from backlog, sequential cost-of-sales %, geography mix, and timing of FDA interactions for InFoods IBS.

References:

Q2 FY2022 10-Q (period ended Nov 30, 2021): .
Q1 FY2022 10-Q (period ended Aug 31, 2021): .
Q2 FY2022 8-K Item 2.02 and Exhibit 99.1 (preliminary results and commentary): .
8-K (Feb 10, 2022) InFoods IBS endpoint topline results: .

BIOMERICA INC (BMRA)·Q2 2022 Earnings Summary