Modular Medical(US:MODD)2026-02-17 21:00Financial Performance - For the nine months ended December 31, 2025, the company incurred a net loss of approximately $21.9 million and for the year ended March 31, 2025, the net loss was approximately $18.8 million[106]. - As of December 31, 2025, the company had a cash balance of $2.9 million and an accumulated deficit of $106.6 million, raising substantial doubt about its ability to continue as a going concern for at least one year[106]. - Cash used in operating activities for the nine months ended December 31, 2025, was approximately $17.9 million, compared to $11.4 million for the same period in 2024[102]. Research and Development - Research and development (R&D) expenses for the three months ended December 31, 2025, were $3.853 million, a 40.3% increase from $2.300 million in the same period of 2024[93]. - R&D expenses for the nine months ended December 31, 2025, were $10.760 million, a 49.9% increase from $5.388 million in the same period of 2024[93]. - The company aims to continue seeking regulatory approvals for its Pivot insulin delivery system and to commercialize this product[110]. - The company plans to develop or enhance its products and expand its product development and sales and marketing organizations[110]. Selling, General and Administrative Expenses - Selling, general and administrative (SG&A) expenses for the three months ended December 31, 2025, were $1.001 million, an 83.7% decrease from $1.839 million in the same period of 2024[98]. - SG&A expenses for the nine months ended December 31, 2025, were $3.310 million, a 73.5% decrease from $5.745 million in the same period of 2024[98]. Financing Activities - Cash provided by financing activities for the nine months ended December 31, 2025, was approximately $10.7 million, attributed to a public offering and warrant inducement offering[104]. - During the nine months ended December 31, 2025, the company received net proceeds of approximately $1.9 million from sales of common stock under the ATM Agreement and approximately $4.8 million from a public offering completed in December 2025[107]. - The company is currently seeking additional financing to meet its cash requirements for the foreseeable future, with no assurance that such capital will be available on acceptable terms[106]. - The company may face dilution of equity ownership if it raises additional capital through equity securities sales, and debt financing may impose restrictions that could harm its business[108]. Regulatory and Compliance - The company submitted a 510(k) premarket notification for its next-generation patch pump, Pivot, on November 13, 2025, and expects to launch commercially by March 31, 2026[86]. - The company received FDA clearance for its MODD1 pump in September 2024 and announced its first human use in August 2025[86]. - The company has until June 29, 2026, to regain compliance with Nasdaq's minimum bid price requirement after receiving a 180-day extension[90]. Other Financial Information - The company has outstanding purchase orders for machinery and equipment totaling approximately $2.0 million as of December 31, 2025[105]. - The company has no off-balance sheet arrangements or obligations that could materially affect its financial condition[111]. - No material amounts related to indemnifications are reflected in the company's condensed consolidated financial statements for the three and nine months ended December 31, 2025[112]. - Recently issued accounting pronouncements are detailed in the Notes to the Condensed Consolidated Financial Statements included in the report[113].