Executive Summary

Q1 FY2023 revenue was $0 as no goods were dispatched due to manufacturing lead times; diluted EPS was $(0.17) with operating loss of $(2.21)M and net loss of $(3.98)M .
Cash was $14.75M; current notes payable were $16.19M with a going-concern uncertainty tied to debt maturities beginning February 2023 and the need to restructure debt or raise capital .
Management reiterated commercialization priorities (UK/EU launch of sugarBEAT, U.S. wellness proBEAT, regulatory progress) and invested in capacity and inventory to support scale-up .
Near-term catalysts: UK MySugarWatch launch execution, FDA PMA review progress, debt extension/restructuring and potential Middle East regulatory approvals signaled by subsequent-quarter developments .

What Went Well and What Went Wrong

What Went Well

Phased commercialization and scale-up actions: new leased facility, increased production headcount, raw material orders, and initial shipments to UK licensee began in December 2021, enabling revenue start (although none in Q1) .
Strategic focus areas: advancing FDA PMA review, expanding wellness platform (proBEAT) in the U.S., and exploring licensing in other territories to diversify revenue opportunities .
Management quote on fiscal 2023 focus: “our primary goal in fiscal 2023 is to expand our revenue by supporting the launch effort of MySugarWatch Limited in the UK” .

What Went Wrong

No Q1 revenue: “Given lead times on manufacture, no goods were dispatched during the quarter ended June 30, 2022. This resulted in no revenue recognized this quarter.” .
Expense pressure and FX: G&A rose to $1.88M; non-cash mark-to-market FX forward revaluation charge was $613,687, contributing to net loss .
Financing risk: Going-concern disclosure due to substantial debt maturities beginning February 2023, necessitating restructuring or new funding .

Financial Results

Metric	Q1 2022 (Jun 30, 2021)	Q3 2022 (Dec 31, 2021)	Q1 2023 (Jun 30, 2022)
Revenue ($USD)	$0	$183,628	$0
Loss from Operations ($USD)	$(1,620,669)	$(1,792,384)	$(2,210,993)
Net Loss ($USD)	$(3,343,725)	$(3,431,568)	$(3,979,297)
Diluted EPS ($USD)	$(0.14)	$(0.15)	$(0.17)
Interest Expense ($USD)	$(1,723,056)	$(1,639,184)	$(1,768,304)
R&D ($USD)	$288,484	$412,341	$330,055
G&A ($USD)	$1,332,185	$1,391,278	$1,880,938

KPIs and balance sheet highlights:

KPI	Q1 2022 (Jun 30, 2021)	Q3 2022 (Dec 31, 2021)	Q1 2023 (Jun 30, 2022)
Cash ($USD)	$31,259,753	$23,046,278	$14,751,833
Inventory ($USD)	$1,487,771	$1,384,278	$1,625,156
Deferred Revenue – Current ($USD)	$259,256	$463,167	$177,772
Notes Payable – Current ($USD)	$5,733,370	$14,850,815	$16,186,387
Total Liabilities ($USD)	$26,884,735	$26,050,139	$23,673,194

Segment breakdown: Not applicable; NMRD reports as a single operating entity .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/Margins/OpEx	FY2023	N/A	No formal quantitative guidance; management outlined priorities (UK/EU launch, FDA progress, U.S. wellness, licensing)	Maintained qualitative priorities

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q3 2022)	Previous Mentions (Q-1: FY2022)	Current Period (Q1 2023)	Trend
UK/EU commercialization	Initial deliveries to UK licensee; revenue commencement in Dec-2021	FY2022 deliveries; outlined JV/licensing in Europe and MSW-DP DuoPack plans	Continued focus on supporting UK launch; scaling manufacturing and inventory	Ongoing/Scaling
FDA PMA review	Audit completed; single 483; pre-market inspection planned; review ongoing	PMA submission under review; ongoing FDA dialogue	Continued engagement; priority to progress PMA	Ongoing
U.S. wellness (proBEAT)	proBEAT commercialized under wellness; BEATdiabetes program development	proBEAT launched; building digital health platform	U.S. wellness channel a strategic priority	Ongoing
Supply chain/inventory build	Prepayments and inventory increases to support scale-up	Capacity expansion and supply chain actions (cleanroom, tooling, orders)	Inventory increased; prepayments to forward FX provider	Building capacity
FX hedging & impacts	TARF FX contract; MTM expense	FX sensitivity; forward contract structure and risk	$613,687 MTM FX charge; continued FX management	Volatile FX headwind
Capital structure/debt	Significant notes payable; maturities schedule	Debt-heavy capital structure; going-concern risk absent bridge funding	Going-concern disclosure; maturities beginning Feb-2023; funding options considered	Elevated risk pending restructuring

Management Commentary

“our primary goal in fiscal 2023 is to expand our revenue by supporting the launch effort of MySugarWatch Limited in the UK” .
On commercialization actions: “Entered into a new leased facility… Increased headcount… Placing phased orders for raw materials… Commenced phased deliveries in December 2021” .
On FDA pathway: “FDA… recommence their review of the PMA application… audit… single 483… dialogue with the FDA continues” .
On going concern and funding: “terms of the existing debt… fall due… February 2023… requirement to either restructure the debt or obtain additional, new, funding… options include equity (ATM), debt restructuring, and sale of licenses” .

Q&A Highlights

Not applicable; no earnings call transcript was filed for Q1 FY2023 in available company documents.

Estimates Context

Wall Street consensus (S&P Global) for NMRD Q1 FY2023 and the prior two quarters was unavailable due to missing CIQ mapping; as a result, comparisons versus estimates could not be made.*

Key Takeaways for Investors

Revenue timing remains execution-dependent; zero revenue in Q1 due to manufacturing lead times underscores operational ramp risk despite prior deliveries .
Expense run-rate and FX volatility increased losses; watch G&A discipline and FX hedging effectiveness to improve operating leverage .
Balance sheet risk is the dominant near-term overhang: current notes payable exceed cash, with maturities starting Feb-2023; debt extension/restructuring or fresh capital will be a key stock-moving event .
Regulatory progress and UK commercialization milestones are the core medium-term drivers; updates on FDA PMA review and UK customer uptake will shape the thesis .
U.S. wellness (proBEAT) and international licensing provide optionality but require commercial execution to translate into revenue .
Monitor inventory/prepayments trends for signal on upcoming shipments and revenue conversion .
Subsequent-quarter developments (e.g., term sheet with EVERSANA; Middle East provisional order contingent on approval) highlight potential pipeline of demand; confirmation of regulatory approvals and order conversion would be constructive .

*No SPGI/Capital IQ consensus estimates available for NMRD during the periods requested due to missing CIQ mapping.

Nemaura Medical Inc. (NMRD)·Q1 2023 Earnings Summary