Nemaura Medical Reports Fiscal Third Quarter 2023 Results and Provides Business Update
February 24 2023 - 9:00AM
Nemaura Medical, Inc. (Nasdaq: NMRD) (“Nemaura” or the “Company”),
a medical technology company focused on developing and
commercializing non-invasive wearable sensors and supporting
personalized lifestyle and weight reduction programs, today
releases its financial results for the quarter ending December 31,
2022 and provides a business update.
Recent Corporate Highlights:
- Announced
initial patient data from UK NHS Miboko Study that demonstrates
weight loss in 100% of participants – study to continue for 12
months.
- Received first
U.S.-based purchase order for 5,000 proBEAT™ subscriptions from
HealthFleet Inc., a leading telehealth provider focusing on care,
coaching, and health recommendations. The purchase order consists
of 75,000 proBEAT glucose sensors over an initial five month period
and is valued at $500,000 in revenue.
- Entered into a Registered
Direct Offering and concurrent Private Placement for gross proceeds
of approximately $8.4 million (before expenses) in January
2023.
“We continue to build momentum with our UK
programs, while initiating our foothold in the U.S. The recent
purchase order from HealthFleet marks the beginning of our
commercialization efforts in the U.S., integrating our proBEAT
technology into HealthFleet’s RestoreHealth program to potentially
improve diabetes management and weight loss. This is a significant
step forward towards the integration of our sensor technology into
existing diabetes management programs in the U.S.,” commented
Nemaura CEO Dr. Faz Chowdhury. “With Miboko, the encouraging early
patient data from our UK NHS Miboko study that demonstrated weight
loss in 100% of participants is very encouraging and bodes well for
the future of that program. There are obviously many weight loss
programs on the market, but this early Miboko data exceeds the
results seen in some of these other programs. With our balance
sheet strengthened by the recent capital raise, we are better
positioned to execute on our commercialization efforts and
strategic goals in 2023.”
3Q23 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.
- Net loss for the
quarter was approximately $1.7million. 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 December 31, 2022 were approximately $7.3
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:
Jules AbrahamCORE IR917-885-7378julesa@coreir.com
NEMAURA MEDICAL
INC.Condensed Consolidated Balance
Sheets
|
|
December
31,2022(Unaudited) |
|
|
March 31, 2022 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
7,340,840 |
|
|
$ |
17,749,233 |
|
Prepaid expenses and other receivables |
|
|
1,217,237 |
|
|
|
750,167 |
|
Accounts receivable - related party |
|
|
25,320 |
|
|
|
101,297 |
|
Inventory |
|
|
2,352,407 |
|
|
|
1,487,771 |
|
Total current assets |
|
|
10,935,804 |
|
|
|
20,088,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net of accumulated depreciation |
|
|
581,903 |
|
|
|
532,508 |
|
Intangible assets, net of accumulated amortization |
|
|
1,443,991 |
|
|
|
1,480,980 |
|
Total other assets |
|
|
2,025,894 |
|
|
|
2,013,488 |
|
Total assets |
|
$ |
12,961,698 |
|
|
$ |
22,101,956 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ (DEFICIT)
EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
171,207 |
|
|
$ |
136,310 |
|
Other liabilities and accrued expenses |
|
|
390,858 |
|
|
|
558,426 |
|
Foreign currency contract |
|
|
1,075,692 |
|
|
|
440,196 |
|
Notes payable, current portion |
|
|
11,512,711 |
|
|
|
19,188,724 |
|
Deferred revenue |
|
|
69,681 |
|
|
|
259,256 |
|
Total current liabilities |
|
|
13,220,149 |
|
|
|
20,582,912 |
|
|
|
|
|
|
|
|
|
|
Notes payable, net of current portion |
|
|
8,557,548 |
|
|
|
— |
|
Deferred revenue, net of current portion |
|
|
1,042,710 |
|
|
|
1,052,960 |
|
Total liabilities |
|
|
22,820,407 |
|
|
|
21,635,872 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ (deficit) equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value, 42,000,000 shares authorized and
24,103,196 and 24,102,866 shares issued and outstanding at December
31, 2022 and March 31, 2022 |
|
|
24,103 |
|
|
|
24,103 |
|
Additional paid-in capital |
|
|
38,296,198 |
|
|
|
38,295,775 |
|
Accumulated deficit |
|
|
(47,192,364 |
) |
|
|
(37,731,476 |
) |
Accumulated other comprehensive loss |
|
|
(986,646 |
) |
|
|
(122,318 |
) |
Total stockholders’ (deficit) equity |
|
|
(9,858,709 |
) |
|
|
466,084 |
|
Total liabilities and stockholders’ (deficit)
equity |
|
$ |
12,961,698 |
|
|
$ |
22,101,956 |
|
NEMAURA MEDICAL
INC.Condensed Consolidated Statements of
Operations and Comprehensive
Loss(Unaudited)(in Dollars,
except Share Amounts)
|
|
Three Months EndedDecember
31, |
|
|
Nine Months EndedDecember
31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
3,017 |
|
|
$ |
183,628 |
|
|
$ |
77,044 |
|
|
$ |
183,628 |
|
Cost of Sales |
|
|
(2,971 |
) |
|
|
(172,393 |
) |
|
|
(75,327 |
) |
|
|
(172,393 |
) |
Gross Profit |
|
|
46 |
|
|
|
11,235 |
|
|
|
1,717 |
|
|
|
11,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
393,747 |
|
|
|
412,341 |
|
|
|
980,862 |
|
|
|
987,711 |
|
General and
administrative |
|
|
239,628 |
|
|
|
1,391,278 |
|
|
|
4,329,306 |
|
|
|
4,151,380 |
|
Total operating expenses |
|
|
633,375 |
|
|
|
1,803,619 |
|
|
|
5,310,168 |
|
|
|
5,139,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(633,329 |
) |
|
|
(1,792,384 |
) |
|
|
(5,308,451 |
) |
|
|
(5,127,856 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(1,082,949 |
) |
|
|
(1,639,184 |
) |
|
|
(4,152,437 |
) |
|
|
(5,141,701 |
) |
Net loss |
|
|
(1,716,278 |
) |
|
|
(3,431,568 |
) |
|
|
(9,460,888 |
) |
|
|
(10,269,557 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
|
556,080 |
|
|
|
(25,065 |
) |
|
|
(864,328 |
) |
|
|
(142,922 |
) |
Comprehensive loss |
|
$ |
(1,160,198 |
) |
|
$ |
(3,456,633 |
) |
|
$ |
(10,325,216 |
) |
|
$ |
(10,412,479 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.44 |
) |
Weighted average number of
shares outstanding, basic and diluted |
|
|
24,103,196 |
|
|
|
23,313,629 |
|
|
|
24,102,976 |
|
|
|
23,244,345 |
|
NEMAURA MEDICAL
INC.Condensed Consolidated Statements of Cash
Flows(Unaudited)
|
|
Nine Months EndedDecember
31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Cash Flows
From Operating Activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(9,460,888 |
) |
|
$ |
(10,269,557 |
) |
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
268,595 |
|
|
|
139,751 |
|
Amortization of debt
discount |
|
|
4,152,437 |
|
|
|
5,141,701 |
|
Change in fair value of
foreign currency contract |
|
|
635,494 |
|
|
|
199,522 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
Prepaid expenses and other
receivables |
|
|
(467,070 |
) |
|
|
797,155 |
|
Inventory |
|
|
(864,636 |
) |
|
|
(533,656 |
) |
Accounts payable |
|
|
34,897 |
|
|
|
(77,075 |
) |
Due to (from) related
parties |
|
|
75,977 |
|
|
|
(301,387 |
) |
Other liabilities and accrued
expenses |
|
|
(167,568 |
) |
|
|
264,786 |
|
Deferred revenue |
|
|
(297,419 |
) |
|
|
285,266 |
|
Net cash used in
operating activities |
|
|
(6,090,181 |
) |
|
|
(4,353,494 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows
From Investing Activities: |
|
|
|
|
|
|
|
|
Capitalized patent costs |
|
|
(135,168 |
) |
|
|
(60,241 |
) |
Capitalized software
development costs |
|
|
(27,879 |
) |
|
|
(460,466 |
) |
Purchase of property and
equipment |
|
|
(275,758 |
) |
|
|
(359,301 |
) |
Net cash used in
investing activities |
|
|
(438,805 |
) |
|
|
(880,008 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows
From Financing Activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of
common stock |
|
|
696 |
|
|
|
118,791 |
|
Equity issuance cost paid |
|
|
(273 |
) |
|
|
(4,382 |
) |
Proceeds from issuance of
notes payable |
|
|
4,700,000 |
|
|
|
— |
|
Proceeds from warrant
exercise |
|
|
— |
|
|
|
2,963,658 |
|
Repayments of note
payable |
|
|
(7,974,282 |
) |
|
|
(6,500,000 |
) |
Net cash used in
financing activities |
|
|
(3,273,859 |
) |
|
|
(3,421,933 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash |
|
|
(605,548 |
) |
|
|
(163,658 |
) |
|
|
|
|
|
|
|
|
|
Net decrease in cash |
|
|
(10,408,393 |
) |
|
|
(8,819,093 |
) |
|
|
|
|
|
|
|
|
|
Cash at beginning of
period |
|
|
17,749,233 |
|
|
|
31,865,371 |
|
Cash at end of period |
|
|
7,340,840 |
|
|
|
23,046,278 |
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of non-cash financing activities: |
|
|
|
|
|
|
|
|
Release of prepayment from
equity compensation |
|
|
— |
|
|
|
50,000 |
|
Monitoring fees related to
notes payable |
|
|
1,522,372 |
|
|
|
— |
|
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