Nemaura Medical Reports Fiscal First Quarter 2023 Results and Provides Business Update

New York, New York, UNITED STATES

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.

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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

Condensed Consolidated Balance Sheet

  As of June 30,
  As of March 31, 2022

  ($)  ($) 
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 
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.

Condensed Consolidated Statement of Operations and Comprehensive Loss
(Unaudited) (in Dollars, except Share Amounts)

  Three Months Ended June 30, 
  2022  2021 
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.

Condensed Consolidated Statement of Cash Flows

  Three Months Ended
June 30,
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.