Sign in

You're signed outSign in or to get full access.

NM

Nemaura Medical Inc. (NMRD)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 FY2024 delivered no revenue due to manufacturing lead times, with net loss of $2.60M and diluted EPS of $-0.09; operating expenses increased as the company prepared for commercialization .
  • Liquidity was bolstered post-quarter via $6.5M in non‑dilutive debt financing, a near-term catalyst to fund scale-up and regulatory/commercial initiatives .
  • Management reiterated progress on UK NHS Miboko pilots (100% weight loss in participants to-date) and continued work on UK reimbursement and KSA registration, framing potential demand ramp once approvals and supply scale align .
  • Balance sheet shows a working capital deficit driven by current notes payable ($16.97M) and derivative/warrant liabilities, underpinning going concern risk; financing and execution on licensing/commercial routes remain critical .

What Went Well and What Went Wrong

What Went Well

  • Miboko pilot momentum: initial UK NHS study demonstrated weight loss in 100% of participants, supporting reimbursement applications and marketing narratives. “The data is expected to support reimbursement applications and product marketing in various territories” .
  • U.S. commercialization pathway: preliminary agreement with EVERSANA to support BEATdiabetes/proBEAT launch strategy targeting insurers and corporate clients, positioning for scaled market entry .
  • Manufacturing scale-up: engagement with Benchmark Electronics (Thailand FDA-approved facility) for transmitter scale-up; increased orders for raw materials and operatives in anticipation of demand .

What Went Wrong

  • No Q1 revenue: “Given lead times on manufacture, no goods were dispatched during the quarter,” resulting in zero sales and no gross margin contribution .
  • Elevated opex and financing burden: G&A rose year-over-year to support scale-up and commercialization; interest expense remained significant due to notes payable structures (PIK fees and OID), pressuring bottom line .
  • Going concern and controls: substantial doubt about going concern persisted; material weaknesses in internal controls over complex transactions remained unremediated as of Q1 FY2024 .

Financial Results

MetricQ2 2023 (Sep 30, 2022)Q3 2023 (Dec 31, 2022)Q1 2024 (Jun 30, 2023)
Revenue ($USD)$74,027 $3,017 $0
R&D Expense ($USD)$257,061 $393,747 $549,757
G&A Expense ($USD)$2,319,972 $239,628 $1,508,467
Total Operating Expenses ($USD)$2,577,033 $633,375 $2,058,224
Loss from Operations ($USD)$(2,575,363) $(633,329) $(1,834,142)
Interest Expense ($USD)$(1,503,114) $(1,082,949) $(657,012)
Net Loss ($USD)$(4,078,477) $(1,716,278) $(2,603,154)
Diluted EPS ($USD)$(0.17) $(0.07) $(0.09)
Weighted Avg. Shares (Basic/Diluted)24,102,866 24,103,196 28,899,402

KPIs and Balance Sheet Highlights

KPI / Balance ItemQ2 2023Q3 2023Q1 2024
Cash And Equivalents ($USD)$10,109,650 $7,340,840 $4,009,691
Inventory ($USD)$1,909,967 $2,352,407 $2,351,286
Deferred Revenue – Current ($USD)$70,980 $69,681 $127,140
Deferred Revenue – Non‑Current ($USD)$955,916 $1,042,710 $1,053,915
Notes Payable – Current ($USD)$17,398,654 $11,512,711 $16,967,686
Warrant Liability ($USD)N/AN/A$3,204,000
FX Derivative Liability ($USD)$2,177,458 $1,075,692 $507,648

Notes:

  • Sequential cash decline reflects operating losses, scheduled debt repayments, and inventory build for commercialization .
  • Subsequent event: $6.5M non-dilutive debt facility closed August 2023 (Q1 FY2024 post-period) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2024/Q2 onwardNone providedNone providedMaintained: No formal guidance
Gross/EBITDA/Operating MarginsFY2024None providedNone providedMaintained: No formal guidance
OpExFY2024Directional: expected to increase with scale-upContinues to increase with scale-upMaintained: directional only
OI&E / Interest ExpenseFY2024None providedSignificant due to notes payable structureInformational update
Tax RateFY2024None providedNone providedMaintained: No guidance
Segment-specific metricsFY2024None providedNone providedMaintained
DividendsFY2024NoneNoneMaintained

Earnings Call Themes & Trends

Note: No earnings call transcript was filed for Q1 FY2024; themes derived from 8-Ks and 10-Q/MD&A.

TopicPrevious Mentions (Q3 2023 and Q4 2023)Current Period (Q1 2024)Trend
AI/technology initiativesproBEAT combines non-invasive glucose data processed using AI in a digital subscription service; ongoing pilot studies .Continued focus on consumer metabolic platform and potential bolt-on services; proBEAT in BEATdiabetes .Stable emphasis on AI-enabled wellness.
Supply chain/manufacturingPhased orders for raw materials; increased production operatives; external CMO engagement to scale .Working with Benchmark Electronics (Thailand) for transmitter scale-up; inventory increased to support scale-up .Improving readiness for scale.
Regulatory/legalFDA PMA resubmission ongoing; UK reimbursement pursuits; KSA registration via TPMENA; single 483 observations addressed .Supporting UK licensee reimbursement; KSA provisional PO contingent on approval; continued FDA PMA status .Stable; awaiting approvals.
Product performanceUK NHS Miboko pilots: positive weight loss results supporting commercial potential .Miboko pilot continued; 100% participant weight loss to date; expansion to additional centers .Positive validation building.
Regional trendsUK launch support, EU/UK MSW-DP agreement for bundled CGM, KSA opportunity (1.7M sensors PO) .Continued UK support; KSA PO remains contingent on registration .Execution pending approvals.
R&D executionR&D focused on device improvements; lactate and other analyte possibilities .R&D increased to enhance sugarBEAT; continued platform development .Elevated investment.
Financing/liquidityDebt amendments (maturity extended); Registered Direct & warrants providing ~$7.66M net .Secured $6.5M clean debt post-quarter; ongoing going concern disclosures .Liquidity improved post-period, risk remains.

Management Commentary

  • “Our commercial and manufacturing scale-up activities accelerated... we are looking forward to a product launch in the coming months in the Middle East through our licensee TPMENA, whilst we continue to support our UK licensee with their operations.” — CEO Dr. Faz Chowdhury .
  • “We continue to build momentum on both manufacturing activities and consumer feedback through pilot trials, in preparation for scaling up commercial sales activities... focus is on global partnerships and revenue ramp-up.” — CEO Dr. Faz Chowdhury .
  • Corporate highlights emphasize UK NHS Miboko data, consumer metabolic platform progress, Benchmark CMO engagement, and supportive UK reimbursement efforts .

Q&A Highlights

  • No earnings call transcript was filed for Q1 FY2024; no Q&A available [List: earnings-call-transcript returned 0].

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 FY2024 EPS and revenue was unavailable due to missing SPGI/Capital IQ mapping coverage for NMRD; results cannot be benchmarked against Street for this quarter.

Key Takeaways for Investors

  • Near-term commercialization remains tied to resolving manufacturing lead times and regulatory milestones; zero revenue in Q1 underscores the timing sensitivity of dispatch/approvals .
  • Post-period $6.5M non‑dilutive financing alleviates immediate liquidity constraints, supporting scale-up and regulatory processes; monitor additional debt service and covenant implications .
  • Miboko/BEATdiabetes pilots and EVERSANA partnership provide credible commercialization pathways in wellness/insurer channels; successful UK reimbursement and KSA registration would be catalysts for sensor volumes .
  • Balance sheet risk is non‑trivial: large current notes payable and derivative/warrant liabilities, plus going concern disclosure; further equity/debt or licensing proceeds may be required absent rapid revenue ramp .
  • Opex growth is intentional to support scale; watch the transition to operational productivity (dispatches, recognized revenue) and any guidance on margin structure as volumes begin .
  • No formal guidance provided; lack of Street estimates reduces near-term “beat/miss” trading setups—focus on regulatory/partnership news flow and evidence of shipments/invoicing .

Appendix: Additional Relevant Press Releases (Q1 FY2024)

  • Secured $6.5M clean debt facility (no warrants/converts), with ongoing NHS studies and KSA reimbursement support highlighted .