Modular Medical Reports $4.8 Million Net Loss for Quarter, Highlights FDA Clearance for MODD1 Insulin Pump

Modular Medical, Inc. reported its financial results for the three and nine months ended December 31, 2024, revealing a net loss of $4.8 million for the quarter and $13.9 million for the nine-month period. This represents a decrease in losses compared to the same periods in 2023, where the company recorded a net loss of $5.3 million and $13.2 million, respectively. The company’s total operating expenses for the quarter were $4.9 million, down from $5.3 million a year earlier, primarily due to reduced general and administrative costs. The company’s cash and cash equivalents stood at $7.0 million as of December 31, 2024, a decrease from $9.2 million at the end of the previous quarter.

In terms of operational developments, Modular Medical has made significant strides in its product offerings. The company received FDA clearance in September 2024 for its MODD1 insulin pump, which is designed to enhance the user experience in diabetes management. The company aims to commence initial shipments of the MODD1 product in the first half of fiscal 2026. The headcount in the research and development department increased to 44 employees, up from 36 a year prior, reflecting the company's commitment to advancing its product development.

The company has also engaged in strategic financing activities, raising approximately $7.3 million in a public offering that closed in November 2024. This offering involved the sale of 5,450,573 shares at a price of $1.50 per share. Additionally, Modular Medical generated $2.1 million from its at-the-market offering program during the quarter. These capital-raising efforts are crucial as the company continues to face substantial doubt regarding its ability to sustain operations without additional funding, given its ongoing operating losses.

Looking ahead, Modular Medical anticipates continued increases in both research and development and general administrative expenses as it prepares for the commercialization of the MODD1 product. The company expects to incur additional costs related to testing and regulatory compliance. However, it remains focused on securing further capital to support its operations and product development initiatives. The management has indicated that the ability to raise additional funds will be critical to the company's future, as it seeks to navigate the challenges of the medical device market and achieve profitability.