Nemaura Medical Reports Fiscal First Quarter 2023 Results and Provides Business Update
August 15 2022 - 8:30AM
Nemaura Medical, Inc. (Nasdaq: NMRD) (“Nemaura” or the “Company”),
a medical technology company focused on developing and
commercializing a daily disposable, wearable glucose sensor and
supporting personalized lifestyle coaching programs, today releases
its financial results for the quarter ending June 30, 2022 and
provides a business update.
Recent Corporate
Highlights:
- Company entered
into a new note purchase agreement in May 2022 and received $5
million in proceeds
“We are very pleased with the progress we are
steadily making with our manufacturing and commercialization
support activities. Our daily wearable continuous glucose sensor is
unique and innovative, offers lifestyle advantages over competing
continuous glucose sensors, and has potential applications for
people with diabetes and for the consumer wearable sensor market in
general,” commented Nemaura CEO Dr. Faz Chowdhury. “We continue to
build an outstanding team of scientists, manufacturing personnel,
engineers, and commercial managers to help advance the Company to
the next phase of maturity and development. Importantly, given the
current market climate, we are extremely pleased to have recently
raised additional non-dilutive funding without any attached
warrants or options, further strengthening our balance sheet as we
anticipate growing our revenues in the coming quarters.”
1Q23
Financial
Summary:
- Total
cash-operating expenses for the quarter was approximately $1.6
million. Additional headcount has been added to support the
operational scale-up process and to continue building product
inventory to fulfill existing purchase orders and support ongoing
and future commercial sales activities.
- Cash and cash
equivalents at June 30, 2022 were approximately $14.8 million, as
compared to $17.7 million at March 31, 2022.
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 a beta trial
of Miboko, a 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
Sheet |
|
|
As of June
30,2022(Unaudited) |
|
|
As of March
31, 2022 |
|
|
|
($) |
|
|
($) |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash |
|
|
14,751,833 |
|
|
|
17,749,233 |
|
Prepaid
expenses and other receivables |
|
|
1,105,496 |
|
|
|
750,167 |
|
Accounts
receivable - related party |
|
|
217,510 |
|
|
|
101,297 |
|
Inventory |
|
|
1,625,156 |
|
|
|
1,487,771 |
|
Total
current assets |
|
|
17,699,995 |
|
|
|
20,088,468 |
|
|
|
|
|
|
|
|
|
|
Other
assets: |
|
|
|
|
|
|
|
|
Property and
equipment, net of accumulated depreciation |
|
|
603,130 |
|
|
|
532,508 |
|
Intangible
assets, net of accumulated amortization |
|
|
1,411,919 |
|
|
|
1,480,980 |
|
Total other
assets |
|
|
2,015,049 |
|
|
|
2,013,488 |
|
Total
assets |
|
|
19,715,044 |
|
|
|
22,101,956 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
|
92,701 |
|
|
|
136,310 |
|
Other
liabilities and accrued expenses |
|
|
1,491,498 |
|
|
|
998,622 |
|
Notes
payable, current portion |
|
|
16,186,387 |
|
|
|
19,188,724 |
|
Deferred
revenue |
|
|
177,772 |
|
|
|
259,256 |
|
Total
current liabilities |
|
|
17,948,358 |
|
|
|
20,582,912 |
|
|
|
|
|
|
|
|
|
|
Non-current
portion of notes payable |
|
|
4,699,660 |
|
|
|
— |
|
Non-current
portion of deferred revenue |
|
|
1,025,176 |
|
|
|
1,052,960 |
|
Total
non-current liabilities |
|
|
5,724,836 |
|
|
|
1,052,960 |
|
Total
liabilities |
|
|
23,673,194 |
|
|
|
21,635,872 |
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value, 42,000,000 shares authorized
and 24,102,866 |
|
|
|
|
|
|
|
|
shares
issued and outstanding at June 30, 2022 and March 31, 2022,
respectively |
|
|
24,103 |
|
|
|
24,103 |
|
Additional
paid-in capital |
|
|
38,295,775 |
|
|
|
38,295,775 |
|
Accumulated
deficit |
|
|
(41,710,773 |
) |
|
|
(37,731,476 |
|
Accumulated
other comprehensive loss |
|
|
(567,255 |
) |
|
|
(122,318 |
|
Total
stockholders’ (deficit) equity |
|
|
(3,958,150 |
) |
|
|
466,084 |
|
Total
liabilities and stockholders’ (deficit) equity |
|
|
19,715,044 |
|
|
|
22,101,956 |
|
See notes to the unaudited condensed consolidated
financial statements.
NEMAURA MEDICAL INC. |
Condensed Consolidated Statement
of Operations and Comprehensive
Loss |
(Unaudited) (in Dollars, except Share
Amounts) |
|
|
Three Months
Ended June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Sales |
|
|
— |
|
|
|
— |
|
Cost of Sales |
|
|
— |
|
|
|
— |
|
Gross
Profit |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
330,055 |
|
|
|
288,484 |
|
General and
administrative |
|
|
1,880,938 |
|
|
|
1,332,185 |
|
Total
operating expenses |
|
|
2,210,993 |
|
|
|
1,620,669 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(2,210,993 |
) |
|
|
(1,620,669 |
) |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(1,768,304 |
) |
|
|
(1,723,056 |
) |
Net
loss |
|
|
(3,979,297 |
) |
|
|
(3,343,725 |
) |
|
|
|
|
|
|
|
|
|
Other
comprehensive loss: |
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment |
|
|
(444,937 |
) |
|
|
(10,706 |
) |
Comprehensive loss |
|
|
(4,424,234 |
) |
|
|
(3,354,431 |
) |
|
|
|
|
|
|
|
|
|
Net loss per
share, basic and diluted |
|
|
(0.17 |
) |
|
|
(0.14 |
) |
Weighted average number of shares outstanding |
|
|
24,102,866 |
|
|
|
23,109,897 |
|
See notes to the unaudited condensed consolidated
financial statements.
NEMAURA MEDICAL INC. |
Condensed Consolidated Statement of Cash
Flows |
(Unaudited) |
|
|
Three Months Ended June 30, |
|
|
|
2022($) |
|
|
2021($) |
|
|
|
|
|
|
|
|
Cash
Flows Used in Operating Activities: |
|
|
|
|
|
|
|
|
Net loss |
|
|
(3,979,297 |
) |
|
|
(3,343,725 |
) |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation
and amortization |
|
|
98,792 |
|
|
|
36,133 |
|
Accretion of
debt discount |
|
|
1,768,304 |
|
|
|
1,723,056 |
|
Mark-to-market foreign exchange revaluation |
|
|
613,687 |
|
|
|
— |
|
Changes
in assets and liabilities: |
|
|
|
|
|
|
|
|
Prepaid
expenses and other receivables |
|
|
(355,329 |
) |
|
|
(550,211 |
) |
Inventory |
|
|
(137,386 |
) |
|
|
(31,583 |
) |
Accounts
payable |
|
|
(43,609 |
) |
|
|
(145,898 |
) |
Liability
due to related parties |
|
|
(116,214 |
) |
|
|
(256,583 |
) |
Other
liabilities and accrued expenses |
|
|
(120,812 |
) |
|
|
363,052 |
|
Deferred
revenue |
|
|
(112,279 |
) |
|
|
515,731 |
|
Net cash
used in operating activities |
|
|
(2,384,143 |
) |
|
|
(1,690,028 |
) |
|
|
|
|
|
|
|
|
|
Cash
Flows Used in Investing Activities: |
|
|
|
|
|
|
|
|
Capitalized
patent costs |
|
|
(192,114 |
) |
|
|
(22,714 |
) |
Capitalized
software development costs |
|
|
— |
|
|
|
(293,285 |
) |
Purchase of
property and equipment |
|
|
(25,598 |
) |
|
|
(82,222 |
) |
Net cash
used in investing activities |
|
|
(217,712 |
) |
|
|
(398,221 |
) |
|
|
|
|
|
|
|
|
|
Cash
Flows Used in (provided by) Financing Activities: |
|
|
|
|
|
|
|
|
Commission
paid on note payable |
|
|
4,700,000 |
|
|
|
— |
|
Proceeds
from warrant exercise |
|
|
— |
|
|
|
2,963,658 |
|
Repayments
of note payable |
|
|
(4,774,282 |
) |
|
|
(1,500,000 |
) |
Net cash
(used in) provided by financing activities |
|
|
(74,282 |
) |
|
|
1,463,658 |
|
|
|
|
|
|
|
|
|
|
Net decrease
in cash |
|
|
(2,676,137 |
) |
|
|
(624,591 |
) |
Effect of
exchange rate changes on cash |
|
|
(321,263 |
) |
|
|
18,973 |
|
Cash at beginning of period |
|
|
17,749,233 |
|
|
|
31,865,371 |
|
Cash at end of period |
|
|
14,751,833 |
|
|
|
31,259,753 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash financing
activities: |
|
|
|
|
|
|
|
|
Prepayment
of equity compensation |
|
|
— |
|
|
|
25,000 |
|
Monitoring
fees added to notes payable |
|
|
522,462 |
|
|
|
— |
|
See notes to the unaudited condensed consolidated
financial statements.
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