Nemaura Medical Reports Financial Results for Second Quarter of Fiscal Year 2020/21 and Provides Corporate Update

Rhea-AI Summary

Nemaura Medical, Inc. (NASDAQ: NMRD) announced its financial results for Q2 2020, reporting a net loss of $1.58 million, an increase from $1.12 million in Q2 2019. The company has submitted a PMA application for its sugarBEAT® device to the FDA and plans to launch proBEAT™, a non-invasive glucose monitor, in the U.S. in December 2020. Nemaura recently in-licensed rights to a digital weight management program and completed an $11.5 million public offering. The company aims to address the needs of 113 million diabetic and pre-diabetic patients in the U.S. alone.

Positive

• In-licensed global rights to Healthimation's weight management program.
• Submitted PMA application for sugarBEAT® to the FDA.
• Completed $11.5 million public offering, strengthening financial position.
• Plans to launch proBEAT™ in the U.S. in December 2020.

Negative

• Net loss increased from $1.12 million in Q2 2019 to $1.58 million in Q2 2020.
• General and administrative expenses rose from $654,523 in Q2 2019 to $771,533 in Q2 2020.

LOUGHBOROUGH, England, Nov. 16, 2020 (GLOBE NEWSWIRE) -- Nemaura Medical, Inc. (NASDAQ: NMRD)(“Nemaura” or the “Company”), a medical technology company focused on developing and commercializing non-invasive wearable diagnostic devices and supporting personalized  lifestyle coaching programs, today announces financial results for the second quarter ended September 30, 2020 and provides a corporate update.

Recent and Second Quarter Highlights include:

• In-licensed global rights to Healthimation, LLC’s mobile application based digital program, a well-validated and award-winning 12-week program to help patients manage their weight as part of a diabetes prevention or management program. The program is intended to be combined with the Company’s proBEAT™ non-invasive Glucose monitoring patch, with the aim of empowering users with knowledge of factors that could affect their blood glucose levels.
• Appointed Justin McLarney as the Company’s Chief Financial Officer
• Commissioned the integration of data from third-party wearable devices into the proBEAT™ app. 
• Submitted the PMA application for sugarBEAT® to the United States Food and Drug Administration (FDA)
• Completed $11.5M public offering ($10.7M after associated costs)
• Terminated ATM with Maxim

“The second quarter has been pivotal to our Company, as we have laid the groundwork for product launch of sugarBEAT® in the UK and Europe, and a diabetes management and reversal program in the USA,” commented Faz Chowdhury, Nemaura’s CEO.  “We continue to carefully manage our finances as we plan for a multinational launch and believe that we are at the forefront of changing the way consumers approach managing and preventing diabetes.”

In December 2020 in the U.S., Nemaura plans to launch proBEAT™, a non-invasive, wearable glucose monitor that will gather data on factors affecting blood glucose profiles, combined with a behavioral change and weight management digital app that was developed by Healthimation Inc. that may help diabetic and pre-diabetic patients better manage, reverse, or prevent the onset of diabetes.  In the U.S., there are currently 88 million patients considered to be pre-diabetic and 25 million patients with Type 2 diabetes.  Worldwide, there are 420 million patients with diabetes and over 1 billion people considered pre-diabetic.

Second Quarter 2020 Financial Results

Net loss for the second quarter of 2020 was $1,581,217 as compared to $1,117,040 during the same period of 2019. 

Research and development expenses were $456,280 and $462,517 for the three-month periods ended September 30, 2020 and 2019, respectively.  This continues to be largely composed of expenditure on wages and sub-contractor activities incurred in finalizing the product design for the sugarBEAT^TM device in order to enable scaling of production capacity. 

General and administrative expenses were $771,533 and $654,523 for the three-month periods ended September 30, 2020 and 2019, respectively.  Given the nature of the Company’s activities has remained unchanged, the cost drivers in this area have also remained consistent and are largely representative of fees for legal, professional, consultancy, audit services, investor relations, insurance, and wages.

The Company also incurred a charge of $353,404 for the three-month period ended September 30, 2020 on account of the accretion of debt discount in relation to the Secured Loan Note that the Company entered into in April 2020. 

Cash as of September 30, 2020 was $16,948,939.

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 is expected to be launched in the U.S. as a general wellness product. 

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 US, risks related to regulatory status and the failure of future development and preliminary marketing efforts, Nemaura’s ability to secure additional commercial partnering arrangements, risks and uncertainties relating to Nemaura 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 FDA reserves the right to re-evaluate their 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’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 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 September 30, 2020 ($)		As of March 31, 2020 ($)
	(Unaudited)
ASSETS
Current assets:
Cash	16,948,939		106,107
Prepaid expenses and other receivables	358,404		452,463
Inventory (raw materials)	411,620		286,309
Total current assets	17,718,963		844,879
Other assets:
Property and equipment, net of accumulated depreciation	152,893		162,064
Intangible assets, net of accumulated amortization	237,150		213,080
Total other assets	390,043		375,144
Total assets	18,109,006		1,220,023
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	155,609		293,608
Liability due to related parties	153,533		830,093
Other liabilities and accrued expenses	47,609		168,966
Notes payable, net of unamortized discount	2,431,913		-
Deferred revenue	96,930		93,022
Total current liabilities	2,885,594		1,385,689
Non-current portion of notes payable, net of unamortized discount	2,785,515		-
Non-current portion of deferred revenue	1,195,470		1,147,278
Total non-current liabilities	3,980,985		1,147,278
Total liabilities	6,866,579		2,532,967
Commitments and contingencies:
Stockholders’ equity (deficit):
Series A convertible preferred stock, $0.001 par value, 200,000 shares authorized; 0 shares issued and outstanding at September 30, 2020 and March 31, 2020	-		-
Common stock, $0.001 par value,
42,000,000 shares authorized and 22,893,705 and 20,850,848
shares issued and outstanding at September 30, 2020 and March 31, 2020, respectively	22,894		20,851
Additional paid-in capital	31,838,383		16,589,272
Accumulated deficit	(20,267,348	)	(17,586,075	)
Accumulated other comprehensive loss	(351,502	)	(336,992	)
Total stockholders’ equity/ (deficit)	11,242,427		(1,312,944	)
Total liabilities and stockholders’ equity	18,109,006		1,220,023

See notes to the unaudited condensed consolidated financial statements.

 

NEMAURA MEDICAL INC.
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited)

	Three Months Ended September 30,				Six Months Ended September 30,
	2020 ($)		2019 ($)		2020 ($)		2019 ($)
Revenue:	-		-		-		-
Total revenue	-		-		-		-
Operating expenses:
Research and development	456,280		462,517		771,592		1,018,699
General and administrative	771,533		654,523		1,367,253		1,353,532
Total operating expenses	1,227,813		1,117,040		2,138,845		2,372,231
Loss from operations	(1,227,813	)	(1,117,040	)	(2,138,845	)	(2,372,231	)
Interest (expense) income	(353,404	)	-		(542,428	)	3,926
Net loss	(1,581,217	)	(1,117,040	)	(2,681,273	)	(2,368,305	)
Other comprehensive loss:
Foreign currency translation adjustment	(19,334	)	(7,401	)	(14,510	)	(23,152	)
Comprehensive loss	(1,600,551	)	(1,124,441	)	(2,695,784	)	(2,391,457	)
Loss per share:
Basic and diluted	(0.07	)	(0.05	)	(0.12	)	(0.11	)
Weighted average number of shares outstanding	22,384,986		20,802,197		21,636,330		20,792,967

See notes to the unaudited condensed consolidated financial statements.

NEMAURA MEDICAL INC.
Condensed Consolidated Statements of Changes in Stockholders’ Equity
Three Months Ended September 30, 2020 and 2019 (Unaudited)

	Common Stock
	Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
			($)		($)		($)			($)			($)
Balance at June 30, 2020	21,282,133		21,282		20,957,486		(18,686,131	)		(332,169	)		1,960,468
Issuance of common shares under ATM financing, net of offering costs of $845,030	1,611,572		1,612		10,880,897		-			-			10,882,509
Foreign currency translation adjustment	-		-		-		-			(19,334	)		(19,334	)
Net loss	-		-		-		(1,581,217	)		-			(1.581,217	)
Balance at September 30, 2020	22,893,705		22,894		31,838,383		(20,267,348	)		(351,502	)		11,242,427
Balance at June 30, 2019	20,801,680		20,802		16,320,359		(14,677,144	)		(355,639	)		1,308,378
Restricted shares issued as stock-based compensation to consultants and investor relations	1,250		1		12,375		-			-			12,376
Foreign currency translation adjustment	-		-		-		-			(7,401	)		(7,401	)
Net loss	-		-		-		(1,117,040	)		-			(1,117,040	)
Balance at September 30, 2019	20,802,930		20,803		16,332,734		(15,794,184	)		(363,040	)		196,313

See notes to the unaudited condensed consolidated financial statements.

NEMAURA MEDICAL INC.
Condensed Consolidated Statements of Changes in Stockholders’ Equity
Six Months Ended September 30, 2020 and 2019 (Unaudited)

	Common Stock
	Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
			($)		($)		($)			($)			($)
Balance at March 31 2020	20,850,848		20,851		16,589,272		(17,586,075	)		(336,992	)		(1,312,944	)
Issuance of common shares under ATM financing, net of offering costs of $967,943	2,004,924		2,005		14,854,674		-			-			14,856,679
Exercise of warrants	37,933		38		394,437		-			-			394,475
Foreign currency translation adjustment	-		-		-		-			(14,510	)		(14,510	)
Net loss	-		-		-		(2,681,273	)		-			(2,681,273	)
Balance at September 30, 2020	22,893,705		22,894		31,838,383		(20,267,348	)		(351,502	)		11,242,427
Balance at March 31, 2019	20,765,592		20,766		15,971,905		(13,425,879	)		(339,888	)		2,226,904
Exercise of warrants	2,500		2		25,998		-			-			26,000
Issuance of common shares under ATM financing, net of offering costs of $9,575	14,338		14		142,903		-			-			142,917
Restricted shares issued as stock- based compensation to consultants and investor relations	20,500		21		191,928		-			-			191,949
Foreign currency translation adjustment	-		-		-		-			(23,152	)		(23,152	)
Net loss	-		-		-		(2,368,305	)		-			(2,368,305	)
Balance at September 30, 2019	20,802,930		20,803		16,332,734		(15,794,184	)		(363,040	)		196,313

See notes to the unaudited condensed consolidated financial statements.

 

NEMAURA MEDICAL INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

	Six Months Ended September 30,
	2020 ($)		2019 ($)
Cash Flows From Operating Activities:
Net loss	(2,681,273	)	(2,368,305	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	40,746		28,338
Accretion of debt discount	542,428		-
Stock-based compensation	59,000		277,664
Changes in assets and liabilities:
Prepaid expenses and other receivables	94,059		263,022
Inventory	(125,311	)	(170,371	)
Accounts payable	(137,999	)	59,010
Liability due to related parties	(676,560	)	100,533
Other liabilities and accrued expenses	(121,357	)	(52,608	)
Net cash used in operating activities	(3,006,267	)	(1,862,717	)
Cash Flows from Investing Activities:
Capitalized patent costs	(27,600	)	(28,310	)
Purchase of property and equipment	(14,032	)	(133,716	)
Net cash used in investing activities	(41,632	)	(162,026	)
Cash Flows from Financing Activities:
Costs incurred in relation to ATM equity financing	(957,193	)	(9,575	)
Commission paid on note payable	(325,000	)	-
Proceeds from issuance of notes	5,000,000		-
Proceeds from issuance of common stock in relation to ATM financing	15,750,672		152,492
Proceeds from warrant exercise	394,475		26,000
Repayments of note payable	(82,555	)	-
Net cash provided by financing activities	19,780,399		168,917
Net increase (decrease) in cash	16,732,500		(1,855,826	)
Effect of exchange rate changes on cash	110,332		(113,723	)
Cash at beginning of period	106,107		3,740,664
Cash at end of period	16,948,939		1,771,115
Supplemental disclosure of non-cash financing activities:
Prepayment of equity compensation	-		85,715

See notes to the unaudited condensed consolidated financial statements.

 

FAQ

What are Nemaura Medical's Q2 2020 financial results?

Nemaura reported a net loss of $1.58 million for Q2 2020, compared to $1.12 million in Q2 2019.

What is the significance of the sugarBEAT® PMA application?

The PMA application is crucial for gaining FDA approval for Nemaura's glucose monitoring device, expanding its market access.

When is Nemaura planning to launch proBEAT™?

Nemaura is set to launch proBEAT™, a non-invasive glucose monitor, in the U.S. in December 2020.

How much funding did Nemaura raise recently?

Nemaura completed a public offering raising $11.5 million, which enhances its financial position for future developments.

What digital program has Nemaura in-licensed?

Nemaura in-licensed the rights to Healthimation's digital weight management program aimed at diabetes prevention and management.