Modular Medical Reports $6.7 Million Net Loss and Increased R&D Spending in Q2 2025

Modular Medical, Inc. reported a net loss of $6.7 million for the three months ended June 30, 2025, compared to a net loss of $4.1 million for the same period in 2024. The company's total operating expenses increased to $6.8 million from $4.2 million year-over-year, driven primarily by a 60% rise in research and development (R&D) expenses, which reached $5.1 million. The increase in R&D spending reflects higher personnel costs, material costs, and stock-based compensation as the company continues to develop its insulin pump products. The loss per share remained consistent at $(0.12) for both periods, with the weighted average shares outstanding increasing from 33,884,000 to 54,288,000.

In terms of financial position, Modular Medical's total assets decreased to $14.2 million as of June 30, 2025, down from $18.7 million at the end of the previous fiscal quarter. The decline in assets was primarily due to a reduction in cash and cash equivalents, which fell to $7.5 million from $13.1 million. The company's accumulated deficit also widened to approximately $91.5 million, up from $84.8 million. Current liabilities increased to $2.1 million, compared to $1.3 million in the prior quarter, largely due to higher accounts payable and accrued expenses.

Strategically, Modular Medical is focused on the commercialization of its MODD1 insulin pump, which received FDA clearance in September 2024. The company plans to begin initial shipments of the MODD1 by October 2025. Additionally, Modular Medical is preparing a 510(k) premarket notification for an updated version of the pump, called the Pivot, which is expected to enhance usability and manufacturability. The company has also expanded its workforce, increasing its R&D employee count to 55 from 36 year-over-year, and its selling, general, and administrative (SG&A) headcount to 12 from 4.

From a financing perspective, Modular Medical raised approximately $727,500 through the sale of 1 million shares of common stock under its at-the-market sales program during the quarter. In March 2025, the company completed private placements of common stock and warrants, generating net proceeds of approximately $11.4 million. However, the company continues to face substantial doubt regarding its ability to continue as a going concern, as it has not yet generated revenue and expects to incur operating losses for the foreseeable future. The company is actively seeking additional capital to support its operations and product development initiatives.