Nemaura Medical Reports Fiscal First Quarter 2023 Results and Provides Business Update
Loughborough, England, Aug. 15, 2022 (GLOBE NEWSWIRE) -- 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 IR917-885-7378[email protected]
| 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.
