Nemaura Medical Reports Fiscal Second Quarter 2023 Results and Provides Business Update
November 15 2022 - 8:00AM
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 September 30, 2022 and
provides a business update.
Recent Corporate
Highlights:
- Entered into a
term sheet with Eversana to begin strategy development and
subsequent launch of the BEATdiabetes program and the Company’s
unique daily wear proBEAT sensors in the U.S. The launch is
expected in the first calendar quarter of 2023 and will target
insurers and corporate clients. Eversana is a pioneer of
next-generation commercial services to the global life sciences
industry with its 6,500-person sales force.
- Received a provisional purchase
order from TPMENA, the Company’s Middle East/North Africa licensee
for the Company’s sugarBEAT® system, for 1.7 million sensors and
17,500 devices. The purchase order is contingent on the regulatory
approval in the Kingdom of Saudi Arabia, which is expected in the
coming months.
- Entered into an amendment of an
existing $20 million note purchase agreement whereby the maturity
date was extended from February 2023 to July 2024, increasing the
Company’s cash runway without requiring additional immediate
capital raises.
“Our commercial and manufacturing scale-up
activities accelerated in the fiscal second quarter, as we continue
to scale operations to support commercialization of our
non-invasive glucose monitoring devices and sensors” said Nemaura
CEO Dr. Faz Chowdhury. “We are looking forward to a product launch
in the coming months in the Middle East through our licensee
TPMENA, whilst we continue to support our UK licensee with their
operations.
“Meanwhile, our relationship with Eversana
should allow us to penetrate the U.S. market on a large scale with
our BEATdiabetes program in an efficient manner. Eversana is widely
regarded as the leader in digital therapeutic commercialization and
has deep experience with product launches. We are eager to enter
this next chapter of our corporate development,” concluded Dr.
Chowdhury.
2Q23
Financial
Summary:
- Reported
revenue based on delivery of product from the purchase order from
its UK licensee in 2021 with an anticipated gradual ramp of revenue
expected in coming quarters.
- Total
cash-operating expenses for the quarter were approximately $1.5
million. Additional headcount was added to support the operational
scale-up process, to continue building product inventory to fulfil
existing purchase orders, and to support ongoing and future
commercial sales activities.
- Cash and cash equivalents at
September 30, 2022 were approximately $10.1 million.
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.
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:
Investors
Bret ShapiroCORE IR561-479-8566brets@coreir.com
Media
Jules AbrahamCORE IR917-885-7378julesa@coreir.com
NEMAURA MEDICAL
INC.Condensed Consolidated Balance
Sheets
|
|
As of September
30,2022(Unaudited) |
|
|
As of March 31, 2022 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
10,109,650 |
|
|
$ |
17,749,233 |
|
Prepaid expenses and other receivables |
|
|
1,934,164 |
|
|
|
750,167 |
|
Accounts receivable - related party |
|
|
— |
|
|
|
101,297 |
|
Inventory |
|
|
1,909,967 |
|
|
|
1,487,771 |
|
Total current assets |
|
|
13,953,781 |
|
|
|
20,088,468 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net of accumulated depreciation |
|
|
521,817 |
|
|
|
532,508 |
|
Intangible assets, net of accumulated amortization |
|
|
1,427,150 |
|
|
|
1,480,980 |
|
Total other assets |
|
|
1,948,967 |
|
|
|
2,013,488 |
|
Total assets |
|
$ |
15,902,748 |
|
|
$ |
22,101,956 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ (DEFICIT)
EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
301,104 |
|
|
$ |
136,310 |
|
Other liabilities and accrued expenses |
|
|
397,764 |
|
|
|
998,622 |
|
Foreign currency contract |
|
|
2,177,458 |
|
|
|
440,196 |
|
Due to related party |
|
|
122,381 |
|
|
|
— |
|
Notes payable, current portion |
|
|
17,398,654 |
|
|
|
19,188,724 |
|
Deferred revenue |
|
|
70,980 |
|
|
|
259,256 |
|
Total current liabilities |
|
|
20,468,341 |
|
|
|
20,582,912 |
|
|
|
|
|
|
|
|
|
|
Notes payable, net of current portion |
|
|
3,490,589 |
|
|
|
— |
|
Deferred revenue, net of current portion |
|
|
955,916 |
|
|
|
1,052,960 |
|
Total liabilities |
|
|
24,914,846 |
|
|
|
21,635,872 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ (deficit) equity: |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value, 42,000,000 shares authorized and
24,102,866 |
|
|
|
|
|
|
|
|
shares issued and outstanding at September 30, 2022 and March 31,
2022 |
|
|
24,103 |
|
|
|
24,103 |
|
Additional paid-in capital |
|
|
38,295,775 |
|
|
|
38,295,775 |
|
Accumulated deficit |
|
|
(45,789,250 |
) |
|
|
(37,731,476 |
) |
Accumulated other comprehensive loss |
|
|
(1,542,726 |
) |
|
|
(122,318 |
) |
Total stockholders’ (deficit) equity |
|
|
(9,012,098 |
) |
|
|
466,084 |
|
Total liabilities and stockholders’ (deficit)
equity |
|
$ |
15,902,748 |
|
|
$ |
22,101,956 |
|
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 Amounts)
|
|
Three Months Ended September 30, |
|
|
Six Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
74,027 |
|
|
$ |
- |
|
|
$ |
74,027 |
|
|
$ |
- |
|
Cost of Sales |
|
|
(72,357 |
) |
|
|
- |
|
|
|
(72,357 |
) |
|
|
- |
|
Gross Profit |
|
|
1,670 |
|
|
|
- |
|
|
|
1,670 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
257,061 |
|
|
|
286,886 |
|
|
|
587,116 |
|
|
|
575,370 |
|
General and
administrative |
|
|
2,319,972 |
|
|
|
1,427,916 |
|
|
|
4,200,910 |
|
|
|
2,760,102 |
|
Total operating expenses |
|
|
2,577,033 |
|
|
|
1,714,802 |
|
|
|
4,788,026 |
|
|
|
3,335,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(2,575,363 |
) |
|
|
(1,714,802 |
) |
|
|
(4,786,356 |
) |
|
|
(3,335,472 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(1,503,114 |
) |
|
|
(1,779,462 |
) |
|
|
(3,271,418 |
) |
|
|
(3,502,517 |
) |
Net loss |
|
|
(4,078,477 |
) |
|
|
(3,494,264 |
) |
|
|
(8,057,774 |
) |
|
|
(6,837,989 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
|
(957,471 |
) |
|
|
(107,151 |
) |
|
|
(1,420,408 |
) |
|
|
(117,857 |
) |
Comprehensive loss |
|
$ |
(5,053,948 |
) |
|
$ |
(3,601,415 |
) |
|
$ |
(9,478,182 |
) |
|
$ |
(6,955,846 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.29 |
) |
Weighted average number of
shares outstanding, basic and diluted |
|
|
24,102,866 |
|
|
|
23,308,049 |
|
|
|
24,102,866 |
|
|
|
23,209,514 |
|
See notes to the unaudited condensed consolidated
financial statements.
NEMAURA MEDICAL
INC.Condensed Consolidated Statements of Cash
Flows(Unaudited)
|
|
Six Months EndedSeptember
30, |
|
|
|
2022 |
|
|
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows
From Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(8,057,774 |
) |
|
|
$ |
|
|
|
(6,837,989 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
172,680 |
|
|
|
|
|
|
|
81,691 |
|
Amortization of debt
discount |
|
|
3,271,419 |
|
|
|
|
|
|
|
3,502,517 |
|
Change in fair value of
foreign currency contract |
|
|
1,737,263 |
|
|
|
|
|
|
|
270,400 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Prepaid expenses and other
receivables |
|
|
(1,183,997 |
) |
|
|
|
|
|
|
(94,945 |
) |
Inventory |
|
|
(422,197 |
) |
|
|
|
|
|
|
(264,604 |
) |
Accounts payable |
|
|
164,794 |
|
|
|
|
|
|
|
(102,302 |
) |
Due (from) related
parties |
|
|
223,678 |
|
|
|
|
|
|
|
(652,349 |
) |
Other liabilities and accrued
expenses |
|
|
(160,662 |
) |
|
|
|
|
|
|
151,717 |
|
Deferred revenue |
|
|
(294,288 |
) |
|
|
|
|
|
|
469,785 |
|
Net cash used in
operating activities |
|
|
(4,549,084 |
) |
|
|
|
|
|
|
(3,476,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows
From Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized patent costs |
|
|
(144,343 |
) |
|
|
|
|
|
|
(47,426 |
) |
Capitalized software
development costs |
|
|
(27,879 |
) |
|
|
|
|
|
|
(418,794 |
) |
Purchase of property and
equipment |
|
|
(208,945 |
) |
|
|
|
|
|
|
(220,035 |
) |
Net cash used in
investing activities |
|
|
(381,167 |
) |
|
|
|
|
|
|
(686,255 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows
From Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of
notes payable |
|
|
4,700,000 |
|
|
|
|
|
|
|
— |
|
Proceeds from warrant
exercise |
|
|
— |
|
|
|
|
|
|
|
2,963,658 |
|
Repayments of note
payable |
|
|
(6,274,282 |
) |
|
|
|
|
|
|
(3,800,000 |
) |
Net cash used in
financing activities |
|
|
(1,574,282 |
) |
|
|
|
|
|
|
(836,342 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash |
|
|
(1,135,050 |
) |
|
|
|
|
|
|
(98,499 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash |
|
|
(7,639,583 |
) |
|
|
|
|
|
|
(5,097,175 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at beginning of
period |
|
|
17,749,233 |
|
|
|
|
|
|
|
31,865,371 |
|
Cash at end of period |
|
|
10,109,650 |
|
|
|
|
|
|
|
26,768,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Release of prepayment from
equity compensation |
|
|
— |
|
|
|
|
|
|
|
50,000 |
|
Monitoring fees added to notes
payable |
|
|
1,108,896 |
|
|
|
|
|
|
|
— |
|
See notes to the unaudited condensed consolidated
financial statements.
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