Biomerica, Inc. (BMRA) reported a difficult QQ3 2024 quarter characterized by a sharp QoQ revenue decline and a negative gross margin, resulting in an operating and net loss. Revenue came in at $1.017 million, down 35.1% QoQ from $1.568 million in QQ2 2024, and down 8.5% year over year to $1.018 million versus $1.111 million in QQ3 2023. The quarter produced a gross loss of $149,000 (gross margin of -14.65%), driven by cost of revenue exceeding sales, and an operating loss of approximately $2.0 million as R&D and SG&A investments continued to weigh on profitability. EBITDA stood at approximately -$1.907 million, with net income of -$1.918 million and basic/diluted EPS of -$0.11.
From a liquidity and balance-sheet perspective, the company held $5.32 million in cash at period-end, with total debt reported at $0.862 million and net debt of approximately -$4.458 million, implying a net cash position that supports near-term liquidity despite a negative earnings trajectory. The current ratio was robust at 4.44, with a quick ratio of 3.37 and a cash ratio of 2.67, underscoring balance-sheet resilience relative to current obligations. However, working capital metrics point to a protracted operating cycle: DSO around 100 days, DIO around 164 days, and a cash conversion cycle near 196–264 days depending on the measure, reflecting inventory and collection dynamics typical of a small-cap diagnostic player.
Management commentary (where available) did not accompany the provided data set with explicit forward-looking guidance. The results, however, suggest continued emphasis on product development (notably InFoods IBS therapies, Helicobacter pylori diagnostics/therapeutics) and potential strategic partnerships to monetize early-stage pipelines. Investors should monitor progress in the InFoods/H. pylori initiatives, cost optimization, and any meaningful margin improvement as the company scales its core diagnostic offerings. Overall, BMRA presents a high-uncertainty, high-burn scenario in the near term but with a defined path to optionality if the pipeline can be monetized and maintained within a tighter cost structure.