Loughborough, England, Feb. 14, 2022 (GLOBE NEWSWIRE) -- Nemaura Medical, Inc. 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 Abraham
CORE IR
917-885-7378
julesa@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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