Modular Medical(MODD) - 2026 Q2 - Quarterly Report

Financial Performance - The company incurred a net loss of approximately $14.5 million for the six months ended September 30, 2025, compared to a net loss of $9.1 million for the same period in 2024[89]. - As of September 30, 2025, the company had a cash balance of $5.3 million and an accumulated deficit of approximately $99.2 million[89]. Research and Development - Research and development (R&D) expenses for the three months ended September 30, 2025, were $3.7 million, a 51.1% increase from $5.6 million in the same period of 2024[82]. - R&D expenses for the six months ended September 30, 2025, totaled $6.9 million, reflecting a 55.3% increase from $10.7 million in the prior year[82]. - The full-time R&D employee headcount increased to 56 as of September 30, 2025, from 42 a year earlier[85]. - The company submitted a 510(k) premarket notification for its next-generation patch pump, Pivot, on November 13, 2025, with expected regulatory approval in Q1 2026[75]. - The company is actively working to commercialize its Pivot product and expand its market presence in the diabetes device sector[75]. Operating Expenses - Selling, general and administrative (SG&A) expenses for the three months ended September 30, 2025, were $1.3 million, a 72.8% increase from $2.2 million in the same period of 2024[86]. - SG&A expenses for the six months ended September 30, 2025, amounted to $2.3 million, a 69.2% increase from $3.9 million in the prior year[86]. Cash Flow and Investments - For the six months ended September 30, 2025, cash used in investing activities was approximately $1.7 million, compared to $1.0 million for the same period in 2024[91]. - Cash provided by financing activities for the six months ended September 30, 2025 was approximately $4.7 million, an increase from $3.0 million in 2024[92]. - As of September 30, 2025, the company had outstanding purchase orders for machinery and equipment totaling approximately $1.7 million[93]. Fundraising - In September 2025, the company raised approximately $3.9 million through a warrant inducement offering[77].