10-K - Modular Medical, Inc. (0001074871) (Filer)

Fri, Jun 20, 10:08 AM (24 days ago)

### Summary of Modular Medical, Inc. (MODD) **Financial Performance:** - **Revenue:** Not reported, as the company is pre-revenue. - **Net Income:** Reported a net loss of $18.8 million for the fiscal year ended March 31, 2025, compared to a net loss of $17.5 million in 2024. - **Operating Expenses:** Total operating expenses were $19.0 million for 2025, up from $17.5 million in 2024. - **Earnings per Share:** Not applicable due to pre-revenue status. **Strategic Overview:** - **Product:** Modular Medical, Inc. focuses on the design, development, and commercialization of innovative insulin pumps using modernized technology to increase pump adoption in the diabetes marketplace. - **Market Position:** The company aims to expand the wearable insulin delivery device market beyond the highly motivated "super users" to the mass market. - **Competitive Landscape:** Competitors include Medtronic, Tandem, and Insulet, which hold significant market share in the insulin pump market. **Future Outlook:** - **Product Launch:** The company plans to launch its initial product, the MODD1, in the quarter ending September 30, 2025. - **Regulatory Approval:** The MODD1 received FDA clearance in September 2024. The Pivot product, an improved version, is expected to receive FDA clearance by March 31, 2026. - **Market Expansion:** The company aims to obtain regulatory clearance to market and sell its pump products in foreign jurisdictions, including obtaining CE mark clearance for both MODD1 and Pivot products. **Risk Factors:** - **Financial Risks:** The company has a history of significant operating losses and expects to continue incurring losses. Substantial additional funding is required to complete subsequent phases of product development and operations. - **Regulatory Risks:** The company faces significant hurdles in obtaining necessary regulatory clearances and approvals, which could harm operations and ability to commercialize products. - **Market Risks:** Competitors may develop more effective, safer, and less expensive products, which could limit market acceptance and adoption of Modular Medical's products. **Financial Condition:** - **Cash and Cash Equivalents:** As of March 31, 2025, the company had cash and cash equivalents of $13.1 million. - **Accumulated Deficit:** The accumulated deficit was $84.8 million as of March 31, 2025. - **Funding:** The company completed a private placement in March 2025 for net proceeds of approximately $11.4 million and a public offering in November 2024 for net proceeds of $7.3 million. **Market Position Changes:** - **Market Share:** The company aims to capture a significant portion of the insulin pump market, which is currently dominated by Medtronic, Tandem, and Insulet. - **Target Market:** The company targets both type 1 and type 2 diabetes markets, focusing on the "Almost Pumpers" segment, which includes individuals who are aware of pumps but have not adopted them due to past experiences, cost, complexity, and time required. **Ticker:** MODD **Full Name:** Modular Medical, Inc.