Nemaura Medical Announces Fiscal Third Quarter 2022 Financial Results and Provides Business Update
February 14 2022 - 8:00AM
Nemaura Medical, Inc. (Nasdaq: NMRD) (“Nemaura” or the “Company”),
a medical technology company focused on developing and
commercializing wearable diagnostic devices and supporting
personalized lifestyle coaching programs, today provides a business
update and releases its financial results for the third quarter of
fiscal 2022 (for the three months ended December 31, 2021).
Recent Corporate
Highlights:
- Commenced
shipments of sugarBEAT® continuous glucose monitor (CGM) devices to
its UK licensee, MySugarWatch Limited, previously DB Ethitronix
Limited
- Appointed Dr.
Arash Ghadar as Chief Operating Officer
- Launched
Miboko, a new metabolic health program using a body-worn glucose
sensor along with an AI mobile application, intended for employers
and insurers as well as direct to consumer, as a form of wellness
and preventative medicine platform
- Tiger Partners
Trading LLC, an investment advisor to Julian Robertson’s Tiger
Management family office, acquired a 3.1% equity stake in Nemaura
Medical in February 2022
“The December quarter marked a milestone for
Nemaura, as we officially entered the commercialization phase of
our corporate development and recognized revenue for the first time
in our history,” commented Dr. Faz Chowdhury, CEO of Nemaura.
“Moreover, with the recent launch of Miboko, our new metabolic
health program, we now have a second product from our platform of
non-invasive microsystem technology which we believe will have
broad appeal. We are leveraging our sensor platform to enter mass
market, high-value applications to deliver long-term value to
shareholders”.
3Q22
Financial
Summary:
- $500,000 was
previously received as deposit payment towards a purchase order, of
which revenue of $183,628 was recognized during fiscal 3Q22 from
initial shipments made during the quarter of sugarBEAT® CGM devices
to MySugarWatch, the Company’s UK licensee. This marked the
Company’s first revenue in its history.
- Total operating
expenses for the quarter was approximately $1.8 million, which
includes additional headcount to support the operational scale up
process across both our UK and U.S. teams.
- Cash and cash
equivalents at December 31, 2021 were approximately $23.0 million,
as compared to $31.9 million at March 31, 2021.
About Nemaura Medical, Inc.
Nemaura Medical, Inc. is a medical technology
company developing and commercializing non-invasive wearable
diagnostic devices. The company is currently commercializing
sugarBEAT® and proBEAT™. sugarBEAT®, a CE mark approved Class IIb
medical device, is a non-invasive and flexible continuous glucose
monitor (CGM) providing actionable insights derived from real time
glucose measurements and daily glucose trend data, which may help
people with diabetes and pre-diabetes to better manage, reverse,
and prevent the onset of diabetes. Nemaura has submitted a PMA
(Premarket Approval Application) for sugarBEAT® to the U.S. FDA.
proBEAT™ combines non-invasive glucose data processed using
artificial intelligence and a digital healthcare subscription
service and has been launched in the U.S. as a general wellness
product as part of its BEAT®diabetes program that is currently
undergoing pilot studies.
Additionally, Nemaura has launched Miboko, a new
metabolic health and well-being program using a non-invasive
glucose sensor along with an AI mobile application that helps a
user understand how certain foods and lifestyle habits can impact
one’s overall metabolic health and well-being. Nemaura believes
that up to half the population could benefit from a sensor and
program that monitors metabolic health and well-being.
The Company sits at the intersection of the
global Type 2 diabetes market that is expected to reach nearly $59
billion by 2025, the $50+ billion pre-diabetic market, and the
wearable health-tech sector for weight loss and wellness
applications that is estimated to reach $60 billion by 2023.
For more information, please visit www.NemauraMedical.com.
Cautionary Statement Regarding Forward-Looking
Statements:
The statements in this press release that are
not historical facts may constitute forward-looking statements that
are based on current expectations and are subject to risks and
uncertainties that could cause actual future results to differ
materially from those expressed or implied by such statements.
Those risks and uncertainties include, but are not limited to, the
launch of proBEAT™ in the U.S., risks related to regulatory status
and the failure of future development and preliminary marketing
efforts, Nemaura Medical’s ability to secure additional commercial
partnering arrangements, risks and uncertainties relating to
Nemaura Medical and its partners’ ability to develop, market and
sell proBEAT™, the availability of substantial additional equity or
debt capital to support its research, development and product
commercialization activities, and the success of its research,
development, regulatory approval, marketing and distribution plans
and strategies, including those plans and strategies related to
both proBEAT™ digital health, and sugarBEAT®. There can be no
assurance that the company will be able to reach a part of or any
of the global market for CGM with its products/services. The U.S.
Food and Drug Administration (the “FDA”) reserves the right to
re-evaluate its decision that proBEAT™ qualifies as a general
wellness product should it become aware of any issues such as skin
irritation or other adverse events from the device, as well as any
misuse impacting patient safety, and any other reason as the FDA
may see fit at its discretion to determine the product does not fit
the definition of a general wellness product. These and other risks
and uncertainties are identified and described in more detail in
Nemaura Medical’s filings with the United States Securities and
Exchange Commission, including, without limitation, its Annual
Report on Form 10-K for the most recently completed fiscal year,
its Quarterly Reports on Form 10-Q, and its Current Reports on Form
8-K. Nemaura Medical undertakes no obligation to publicly update or
revise any forward-looking statements.
Contact:
Jules AbrahamCORE IR917-885-7378julesa@coreir.com
NEMAURA MEDICAL
INC. |
Condensed
Consolidated Balance Sheets |
|
|
|
|
As
of December
31,2021(Unaudited) |
|
|
|
As
of March 31, 2021 |
|
|
|
|
($) |
|
|
|
($) |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
|
23,046,278 |
|
|
|
31,865,371 |
|
Prepaid expenses and other receivables |
|
|
472,358 |
|
|
|
1,269,513 |
|
Accounts receivable - related party |
|
|
152,592 |
|
|
|
- |
|
Inventory |
|
|
1,384,278 |
|
|
|
850,622 |
|
Total current assets |
|
|
25,055,506 |
|
|
|
33,985,506 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Property and equipment, net of accumulated depreciation |
|
|
454,272 |
|
|
|
202,145 |
|
Intangible assets, net of accumulated amortization |
|
|
1,564,121 |
|
|
|
1,055,256 |
|
Total other assets |
|
|
2,018,393 |
|
|
|
1,257,401 |
|
Total assets |
|
|
27,073,899 |
|
|
|
35,242,907 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
176,619 |
|
|
|
253,694 |
|
Liability due to related parties |
|
|
- |
|
|
|
148,795 |
|
Other liabilities and accrued expenses |
|
|
644,860 |
|
|
|
180,552 |
|
Notes payable, current portion |
|
|
14,850,815 |
|
|
|
5,733,370 |
|
Deferred revenue |
|
|
463,167 |
|
|
|
103,470 |
|
Total current liabilities |
|
|
16,135,461 |
|
|
|
6,419,881 |
|
|
|
|
|
|
|
|
|
|
Non-current portion of notes payable |
|
|
8,712,979 |
|
|
|
19,188,724 |
|
Non-current portion of deferred revenue |
|
|
1,201,699 |
|
|
|
1,276,130 |
|
Total non-current liabilities |
|
|
9,914,678 |
|
|
|
20,464,854 |
|
Total liabilities |
|
|
26,050,139 |
|
|
|
26,884,735 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value, |
|
|
|
|
|
|
|
|
42,000,000 shares authorized and 23,330,573 and 22,941,157 |
|
|
|
|
|
|
|
|
shares issued and outstanding at December 31, 2021 and March 31,
2021, respectively |
|
|
23,331 |
|
|
|
22,941 |
|
Additional paid-in capital |
|
|
35,122,012 |
|
|
|
32,044,335 |
|
Accumulated deficit |
|
|
(34,114,228 |
) |
|
|
(23,844,671 |
) |
Accumulated other comprehensive (deficit) income |
|
|
(7,355 |
) |
|
|
135,567 |
|
Total stockholders’ equity |
|
|
1,023,760 |
|
|
|
8,358,172 |
|
Total liabilities and stockholders’ equity |
|
|
27,073,899 |
|
|
|
35,242,907 |
|
See notes to the unaudited condensed consolidated financial
statements.
NEMAURA MEDICAL
INC. |
Condensed
Consolidated Statements of Operations and Comprehensive
Loss |
(Unaudited)(in Dollars, except Share and
Per Share Amounts) |
|
|
|
Three Months
Ended December 31, |
|
|
Nine Months Ended
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
|
183,628 |
|
|
|
- |
|
|
|
183,628 |
|
|
|
- |
|
Cost of Sales |
|
|
172,393 |
|
|
|
|
|
|
|
172,393 |
|
|
|
|
|
Gross Profit |
|
|
11,235 |
|
|
|
- |
|
|
|
11,235 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
412,341 |
|
|
|
486,957 |
|
|
|
987,711 |
|
|
|
1,258,549 |
|
General and administrative |
|
|
1,391,278 |
|
|
|
581,520 |
|
|
|
4,151,380 |
|
|
|
1,948,773 |
|
Total operating expenses |
|
|
1,803,619 |
|
|
|
1,068,477 |
|
|
|
5,139,091 |
|
|
|
3,207,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(1,792,384 |
) |
|
|
(1,068,477 |
) |
|
|
(5,127,856 |
) |
|
|
(3,207,322 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(1,639,184 |
) |
|
|
(378,220 |
) |
|
|
(5,141,701 |
) |
|
|
(920,648 |
) |
Net loss |
|
|
(3,431,568 |
) |
|
|
(1,446,697 |
) |
|
|
(10,269,557 |
) |
|
|
(4,127,970 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
(25,065 |
) |
|
|
371,275 |
|
|
|
(142,922 |
) |
|
|
356,765 |
|
Comprehensive loss |
|
|
(3,456,633 |
) |
|
|
(1,075,422 |
) |
|
|
(10,412,479 |
) |
|
|
(3,771,205 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted |
|
|
(0.15 |
) |
|
|
(0.06 |
) |
|
|
(0.44 |
) |
|
|
(0.19 |
) |
Weighted average number of shares outstanding |
|
|
23,313,629 |
|
|
|
22,922,387 |
|
|
|
23,244,345 |
|
|
|
22,068,290 |
|
See notes to the unaudited condensed consolidated financial
statements.
NEMAURA MEDICAL
INC. |
Condensed
Consolidated Statements of Cash Flows |
(Unaudited) |
|
|
|
Nine Months Ended December 31, |
|
|
|
2021($) |
|
|
2020($) |
|
|
|
|
|
|
|
|
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
|
Net loss |
|
|
(10,269,557 |
) |
|
|
(4,127,970 |
) |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash used in
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
139,751 |
|
|
|
68,310 |
|
Accretion of debt discount |
|
|
5,141,701 |
|
|
|
920,648 |
|
Mark-to-market foreign exchange revaluation |
|
|
199,522 |
|
|
|
- |
|
Stock-based compensation |
|
|
- |
|
|
|
84,000 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Prepaid expenses and other receivables |
|
|
797,155 |
|
|
|
(397,926 |
) |
Inventory |
|
|
(533,656 |
) |
|
|
(531,927 |
) |
Accounts payable |
|
|
(77,075 |
) |
|
|
(126,910 |
) |
Liability due to related parties |
|
|
(301,387 |
) |
|
|
(434,170 |
) |
Other liabilities and accrued expenses |
|
|
264,786 |
|
|
|
(92,819 |
) |
Deferred revenue |
|
|
285,266 |
|
|
|
- |
|
Net cash used in operating activities |
|
|
(4,353,494 |
) |
|
|
(4,638,764 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
Capitalized patent costs |
|
|
(60,241 |
) |
|
|
(48,273 |
) |
Capitalized software development costs |
|
|
(460,466 |
) |
|
|
(446,455 |
) |
Purchase of property and equipment |
|
|
(359,301 |
) |
|
|
(70,547 |
) |
Net cash used in investing activities |
|
|
(880,008 |
) |
|
|
(565,275 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
Costs incurred in relation to equity financing |
|
|
(4,382 |
) |
|
|
(957,193 |
) |
Commission paid on note payable |
|
|
- |
|
|
|
(325,000 |
) |
Proceeds from issuance of notes |
|
|
- |
|
|
|
5,000,000 |
|
Proceeds from issuance of common stock in relation to equity
financing |
|
|
118,791 |
|
|
|
15,750,672 |
|
Proceeds from warrant exercise |
|
|
2,963,658 |
|
|
|
394,475 |
|
Repayments of note payable |
|
|
(6,500,000 |
) |
|
|
(300,000 |
) |
Repayment of insurance financing |
|
|
- |
|
|
|
(82,555 |
) |
Net cash (used in) provided by financing activities |
|
|
(3,421,933 |
) |
|
|
19,480,399 |
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash |
|
|
(8,655,435 |
) |
|
|
14,276,360 |
|
Effect of exchange rate changes on cash |
|
|
(163,658 |
) |
|
|
577,318 |
|
Cash at beginning of period |
|
|
31,865,371 |
|
|
|
106,107 |
|
Cash at end of period |
|
|
23,046,278 |
|
|
|
14,959,785 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash financing
activities: |
|
|
|
|
|
|
|
|
Release of prepayment for equity compensation |
|
|
50,000 |
|
|
|
25,000 |
|
Licenses acquired through issuance of common stock |
|
|
- |
|
|
|
100,000 |
|
|
|
|
|
|
|
|
|
|
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