LEASES

6 Months Ended

Nov. 30, 2025

Leases

LEASES

NOTE 5: LEASES

We lease facilities in Irvine, California and Mexicali, Mexico.

As of November 30, 2025, we had approximately 22,000 square feet of floor space at our 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. 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. It has one 10-year option to renew at the end of the initial lease period. Biomerica de Mexico also leases a smaller unit on a month-to-month basis for use in one manufacturing process.

In addition, we lease a small office in Lindau, Germany on a month-to-month basis, as headquarters for BioEurope GmbH, our Germany 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 periods of free rent and any renewal options periods that we are reasonably certain of exercising. Our office and equipment leases generally have contractually specified minimum rent and annual rent increases are included in the measurement of the right-of-use asset and related lease liabilities. Additionally, under these lease arrangements, we may be required to pay directly, or reimburse the lessors, for some maintenance and operating costs. Such amounts are generally variable and therefore not included in the measurement of the right-of-use asset and related lease liabilities but are instead recognized as variable lease expense in the consolidated statements of operations and comprehensive loss when they are incurred.

The following table presents information on our operating leases for the three and six months ended November 30, 2025 and 2024:

	Three Months Ended November 30,				Six Months Ended November 30,
	2025		2024		2025		2024
Operating lease cost	$	88,000	$	88,000	$	176,000		176,000
Variable lease cost		2,000		2,000		5,000		5,000
Short-term lease cost		3,000		3,000		4,000		4,000
Total lease cost	$	93,000	$	93,000	$	185,000	$	185,000

The approximate maturity of lease liabilities as of November 30, 2025 are as follows:

Year Ending November 30:
	Operating Leases
2026 (excluding the six months ended November 30, 2025)	$	290,000
Total minimum future lease payments		290,000
Less: imputed interest		6,000
Total operating lease liabilities	$	284,000

The following table summarizes our other supplemental lease information for the six months ended November 30, 2025 and 2024:

	Six Months Ended November 30,
	2025			2024
Cash paid for operating lease liabilities	$	187,000		$	182,000
Weighted-average remaining lease term (years)		0.77			1.07
Weighted-average discount rate		6.50	%		6.50	%

We also have various insignificant leases for office equipment.