Nemaura Medical Reports Financial Results and Provides Business Update for the Fiscal Year Ended March 31, 2022

New York, New York, UNITED STATES

Loughborough, England, June 30, 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 provides a business update and releases its financial results for the fiscal year ended March 31, 2022.

Corporate Highlights for FY2022:

  • Commenced shipments of sugarBEAT® continuous glucose monitor (CGM) devices to its UK licensee, MySugarWatch Limited (“MSWL”), previously DB Ethitronix Limited. MSWL commenced mass educational and awareness campaigns to physicians in the UK via a leading professional publication and direct to consumer via national papers with daily circulation exceeding 1.2 million
  • Recognized $503,906 in revenue for the fiscal year ending March 31, 2022
  • Signed a global commercial contract with MySugarWatch DuoPack Limited. Under terms of the deal, the Nemaura’s CGMs and sensors will be provided as Duo-Packs with prescription-only medicines that are widely prescribed for people with Type 2 diabetes. The initial Duo-Pack presentation will be launched as the first of these medicines loses its patent protection in the UK in the calendar fourth quarter of 2022. Over 2 million prescriptions are written for these medicines in the top 3 EU countries (by GDP) alone, representing a significant opportunity
  • Launched beta trials of a 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 the Company in February 2022
  • Appointed Dr. Arash Ghadar as Chief Operating Officer. Dr. Ghadar has taken the lead in supporting the commercial supply of product to our current and future licensees and global distributors
  • Completed two FDA audits in relation to the Company’s previous PMA submission and is continuing the dialogue with the FDA in relation to the PMA submission

“On the heels of successfully commercializing sugarBEAT® in fiscal 2022 and recognizing our first revenue from our UK licensee MySugarWatch Limited, our primary goal in fiscal 2023 is to expand our revenue by supporting the launch effort of MySugarWatch Limited in the UK. We expect additional purchase orders to support the UK launch, as well as the anticipated Duo-Pack launch later in calendar 2022. MySugarWatch Limited has already begun mass advertising through education and awareness campaigns to healthcare professionals and direct to consumers through the national press,” commented Dr. Faz Chowdhury, CEO of Nemaura.

“Furthermore, we are exploring additional new channels in other territories with our technology platform. We have also started to engage with large scale manufacturers to enable us to meet the strong worldwide diabetic monitoring demand, and any appreciable scale we can build in our business should be meaningful to shareholder value. We look forward to updating investors with additional corporate highlights as they unfold,” concluded Dr. Chowdhury.

FY2022 Financial Summary:

  • The fiscal year ended March 31, 2022 marked a pivotal milestone for the Company, as it commenced deliveries of sugarBEAT® to MSWL pursuant to the initial order placed in April 2021
  • Research and development expenses were consistent with the prior year at approximately $1.5 million. The Company’s historically more significant research and development expenses relating to clinical trials and improvements made to the sugarBEAT® device began to flatten out over the 2022 fiscal year
  • General and administrative expenses were $6,173,049 and $3,032,138 for the fiscal years ended March 31, 2022 and 2021, respectively. These expenses consisted of fees for legal, professional, consultancy, audit services, investor relations, insurance, advertising, and general and operational wages. The year-over-year increase in expenses were driven predominantly by increased wages, as the Company has increased headcount to support the operational scale-up process across both its UK and U.S. teams

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. proBEATcombines 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.

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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.


Jules Abraham

Consolidated Balance Sheet

  As of March 31,  As of March 31, 
Current assets:        
Cash  17,749,233   31,865,371 
Prepaid expenses and other receivables  750,167   1,269,513 
Accounts receivable – related party  101,297   - 
Inventory  1,487,771   850,622 
Total current assets  20,088,468   33,985,506 
Other assets:        
Property and equipment, net of accumulated depreciation  532,508   202,145 
Intangible assets, net of accumulated amortization  1,480,980   1,055,256 
Total other assets  2,013,488   1,257,401 
Total assets  22,101,956   35,242,907 
Current liabilities:        
Accounts payable  136,310   253,694 
Liability due to related parties  -   148,795 
Other liabilities and accrued expenses  998,622   180,522 
Notes payable, current portion  19,188,724   5,733,370 
Deferred revenue  259,256   103,470 
Total current liabilities  20,582,912   6,419,881 
Non-current portion of notes payable  -   19,188,724 
Non-current portion of deferred revenue  1,052,960   1,276,130 
Total liabilities  21,635,872   26,884,735 
Commitments and contingencies        
Stockholders’ equity:        
Common stock, par value $0.001 - authorized: 42,000,000 shares; issued and outstanding: 24,102,866 and 22,941,157 as of March 31, 2022 and 2021, respectively  24,103   22,941 
Additional paid-in capital  38,295,775   32,044,335 
Accumulated deficit  (37,731,476)  (23,844,671)
Accumulated other comprehensive (loss) income  (122,318)  135,567 
Total stockholders’ equity  466,084   8,358,172 
Total liabilities and stockholders’ equity  22,101,956   35,242,907 

See notes to the consolidated financial statements.

Consolidated Statement of Operations and Comprehensive Loss

  Years Ended March 31, 
Sales  503,906   - 
Cost of Sales  (344,300)  - 
Gross Profit  159,606   - 
Operating expenses:        
Research and development  1,556,988   1,554,603 
General and administrative  6,173,049   3,032,138 
Total operating expenses  7,730,037   4,586,741 
Loss from operations  (7,570,431)  (4,586,741)
Interest expense  (6,666,630)  (2,007,687)
Loss before income tax benefit  (14,237,061)  (6,594,428)
Provision for income tax benefit  350,256   335,832 
Net loss  (13,886,805)  (6,258,596)
Other comprehensive income:        
Foreign currency translation adjustment  (257,885)  472,559 
Comprehensive loss  (14,144,690)  (5,786,037)
Net loss per share, basic and diluted $(0.59) $(0.28)
Weighted average number of shares outstanding  23,383,758   22,283,377 

See notes to the consolidated financial statements.

Consolidated Statement of Cash Flows

  Year Ended March 31, 
Cash Flows from Operating Activities:        
Net loss  (13,886,805)  (6,258,596)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  229,810   98,075 
Accretion of debt discount  6,666,630   2,007,687 
Mark-to-market foreign exchange revaluation  440,196   - 
Stock-based compensation  220,917   113,171 
Changes in assets and liabilities:        
Prepaid expenses and other receivables  519,346   (767,050)
Inventory  (637,149)  (564,313)
Accounts payable  (117,384)  (39,914)
Accounts receivable – related party  (250,092)  (681,298)
Other liabilities and accrued expenses  310,490   94,141 
Net cash used in operating activities  (6,504,041)  (5,998,097)
Cash Flows from Investing Activities:        
Capitalized patent costs  (83,691)  (81,952)
Purchase of property and equipment  (481,718)  (90,730)
Capitalized software development costs  (391,073)  (663,758)
Net cash used in investing activities  (956,482)  (836,440)
Cash Flows from Financing Activities:        
Proceeds from issuance of common stock  3,118,792   15,750,672 
Costs incurred in relation to equity financing  (50,765)  (957,193)
Proceeds from warrant exercise  2,963,658   400,503 
Proceeds from issuance of notes payable  -   25,000,000 
Debt issuance costs paid  -   (1,525,035)
Repayments of notes payable  (12,400,000)  (600,000)
Repayments of insurance financing  -   (82,555)
Net cash (used in) provided by financing activities  (6,368,315)  37,986,392 
Net (decrease) increase in cash  (13,828,838)  31,151,855 
Effect of exchange rate changes on cash  (287,300)  607,409 
Cash at beginning of year  31,865,371   106,107 
Cash at end of year  17,749,233   31,865,371 
Supplemental disclosure of non-cash financing activities:

Prepayment of equity compensation  -  $50,000 
Licenses acquired through stock issuance  -  $100,000 
Monitoring fees added to notes payable $2,764,775  $718,661 

See notes to the consolidated financial statements.