Modular Medical(US:MODD)2025-06-20 10:07Financial Performance - The company reported a net loss of approximately $18.8 million for the fiscal year ended March 31, 2025, compared to a net loss of approximately $17.5 million for the previous fiscal year, representing a year-over-year increase in losses of about 7.4%[248]. - Cash used in operating activities for fiscal 2025 was approximately $15.7 million, primarily driven by the net loss of $18.8 million[251]. - The company had a cash balance of $13.1 million and an accumulated deficit of approximately $84.8 million as of March 31, 2025[248]. Research and Development - Research and development (R&D) expenses increased to $14.7 million in fiscal 2025 from $12.9 million in fiscal 2024, marking a year-over-year change of $1.8 million or 14.1%[243]. - The R&D employee headcount rose to 48 as of March 31, 2025, up from 36 a year earlier, reflecting a significant increase in personnel costs[244]. - The company expects R&D expenses to increase in fiscal 2026 as it continues to hire additional personnel and develop new products[245]. General and Administrative Expenses - General and administrative (G&A) expenses decreased to $4.4 million in fiscal 2025 from $4.6 million in fiscal 2024, a reduction of $0.3 million or 6.4%[246]. Financing Activities - The company completed a private placement in March 2025, raising approximately $12 million in gross proceeds[239]. - Cash provided by financing activities for fiscal 2025 totaled approximately $22.1 million, mainly from net proceeds of $11.4 million from a private placement and $7.3 million from a public offering[254]. Tax and Accounting - The company has recorded a full valuation allowance for federal and state net deferred tax assets, indicating they are unlikely to be fully realized[260]. - The company accounts for uncertain tax positions under ASC Topic 740, recognizing tax benefits only when it is more likely than not that the position will be sustained upon examination[261]. - Recent accounting pronouncements are detailed in Note 1 of the consolidated financial statements[266]. - There are no quantitative and qualitative disclosures about market risk applicable to the company[267]. Lease and Off-Balance Sheet Arrangements - Operating lease right-of-use (ROU) assets and lease liabilities are recognized at lease commencement under ASC 842, with lease expense recognized on a straight-line basis over the lease term[262][263]. - The company does not maintain any off-balance sheet arrangements that could materially affect its financial condition or results of operations[264]. - As a "smaller reporting company," the company is not required to disclose certain contractual obligations[265]. Purchase Orders - The company has outstanding purchase orders for machinery and equipment totaling approximately $1.5 million as of March 31, 2025[250].