Nemaura Medical Reports Financial Results for Second Quarter of Fiscal Year 2020/21 and Provides Corporate Update
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 ResultsNet 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 sugarBEATTM 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 firstname.lastname@example.org NEMAURA MEDICAL INC. Condensed Consolidated Balance Sheets As of September 30, 2020 ($)As of March 31, 2020 ($) (Unaudited) ASSETS Current assets: Cash16,948,939 106,107 Prepaid expenses and other receivables358,404 452,463 Inventory (raw materials)411,620 286,309 Total current assets17,718,963 844,879 Other assets: Property and equipment, net of accumulated depreciation152,893 162,064 Intangible assets, net of accumulated amortization237,150 213,080 Total other assets390,043 375,144 Total assets18,109,006 1,220,023 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Accounts payable155,609 293,608 Liability due to related parties153,533 830,093 Other liabilities and accrued expenses47,609 168,966 Notes payable, net of unamortized discount2,431,913 - Deferred revenue96,930 93,022 Total current liabilities2,885,594 1,385,689 Non-current portion of notes payable, net of unamortized discount2,785,515 - Non-current portion of deferred revenue1,195,470 1,147,278 Total non-current liabilities3,980,985 1,147,278 Total liabilities6,866,579 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, $0.001 par value, 42,000,000 shares authorized and 22,893,705 and 20,850,848 shares issued and outstanding at September 30, 2020 and March 31, 2020, respectively22,894 20,851 Additional paid-in capital31,838,383 16,589,272 Accumulated deficit(20,267,348)(17,586,075) Accumulated other comprehensive loss(351,502)(336,992) Total stockholders’ equity/ (deficit)11,242,427 (1,312,944) Total liabilities and stockholders’ equity18,109,006 1,220,023 See notes to the unaudited condensed consolidated financial statements. NEMAURA MEDICAL INC. Condensed Consolidated Statements of Comprehensive Loss (Unaudited) Three Months Ended September 30,Six Months Ended September 30, 2020 ($)2019 ($)2020 ($)2019 ($) Revenue:- - - - Total revenue- - - - Operating expenses: Research and development456,280 462,517 771,592 1,018,699 General and administrative771,533 654,523 1,367,253 1,353,532 Total operating expenses1,227,813 1,117,040 2,138,845 2,372,231 Loss from operations(1,227,813)(1,117,040)(2,138,845)(2,372,231) Interest (expense) income(353,404)- (542,428)3,926 Net loss(1,581,217)(1,117,040)(2,681,273)(2,368,305) Other comprehensive loss: Foreign currency translation adjustment(19,334)(7,401)(14,510)(23,152) Comprehensive loss(1,600,551)(1,124,441)(2,695,784)(2,391,457) Loss per share: Basic and diluted(0.07)(0.05)(0.12)(0.11) Weighted average number of shares outstanding22,384,986 20,802,197 21,636,330 20,792,967 See notes to the unaudited condensed consolidated financial statements. NEMAURA MEDICAL INC. Condensed Consolidated Statements of Changes in Stockholders’ Equity Three Months Ended September 30, 2020 and 2019 (Unaudited) Common Stock Shares Amount Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholders’ Equity ($) ($) ($) ($) ($) Balance at June 30, 202021,282,133 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 $845,0301,611,572 1,612 10,880,897 - - 10,882,509 Foreign currency translation adjustment - - - - (19,334) (19,334) Net loss- - - (1,581,217) - (1.581,217) Balance at September 30, 202022,893,705 22,894 31,838,383 (20,267,348) (351,502) 11,242,427 Balance at June 30, 201920,801,680 20,802 16,320,359 (14,677,144) (355,639) 1,308,378 Restricted shares issued as stock-based compensation to consultants and investor relations1,250 1 12,375 - - 12,376 Foreign currency translation adjustment- - - - (7,401) (7,401) Net loss- - - (1,117,040) - (1,117,040) Balance at September 30, 201920,802,930 20,803 16,332,734 (15,794,184) (363,040) 196,313 See notes to the unaudited condensed consolidated financial statements. NEMAURA MEDICAL INC. Condensed Consolidated Statements of Changes in Stockholders’ Equity Six Months Ended September 30, 2020 and 2019 (Unaudited) Common Stock Shares Amount Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholders’ Equity ($) ($) ($) ($) ($) Balance at March 31 202020,850,848 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 $967,9432,004,924 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, 202022,893,705 22,894 31,838,383 (20,267,348) (351,502) 11,242,427 Balance at March 31, 201920,765,592 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 $9,57514,338 14 142,903 - - 142,917 Restricted shares issued as stock- based compensation to consultants and investor relations20,500 21 191,928 - - 191,949 Foreign currency translation adjustment- - - - (23,152) (23,152) Net loss- - - (2,368,305) - (2,368,305) Balance at September 30, 201920,802,930 20,803 16,332,734 (15,794,184) (363,040) 196,313 See notes to the unaudited condensed consolidated financial statements. NEMAURA MEDICAL INC. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended September 30, 2020 ($)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 amortization40,746 28,338 Accretion of debt discount542,428 - Stock-based compensation59,000 277,664 Changes in assets and liabilities: Prepaid expenses and other receivables94,059 263,022 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 notes5,000,000 - Proceeds from issuance of common stock in relation to ATM financing15,750,672 152,492 Proceeds from warrant exercise394,475 26,000 Repayments of note payable(82,555)- Net cash provided by financing activities19,780,399 168,917 Net increase (decrease) in cash16,732,500 (1,855,826) Effect of exchange rate changes on cash110,332 (113,723) Cash at beginning of period106,107 3,740,664 Cash at end of period16,948,939 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.
GlobeNewswire · 11/16 13:00