NMRD Nemaura Medical Inc (CE)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

(Mark One)

 

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: December 31, 2023

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to               

 

Commission File Number: 001-38355

 

Nemaura Medical Inc.

(Exact name of registrant as specified in its charter)

 

	nevada		46-5027260
	(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
57 West 57th Street Manhattan, NY 10019
(Address of Principal Executive Offices) (Zip Code)
646-416-8000
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	NMRD	OTC Markets

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No o

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer o		Accelerated filer o
Non-accelerated Filer ☒		Smaller reporting company☒ Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No ☒

 

The number of shares of common stock, par value $0.001 per share, outstanding as of February 12, 2024, was 28,899,402.

 

 

 

 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical fact, included in this Quarterly Report on Form 10-Q regarding development of our strategy, future operations, future financial position, projected costs, prospects, plans and objectives of management are forward-looking statements. Forward-looking statements may include, but are not limited to, statements about:

 

• any statements of the plans, strategies and objectives of management for future operations;
• any statements concerning proposed new products, services or developments;
• any statements regarding future economic conditions or performance;
• our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others;
• our estimates regarding the sufficiency of our cash resources and our need for additional funding;
• any statement that our business, financial condition and results of operations may be materially adversely affected by global health epidemics, including the recent COVID-19 pandemic; and
• any statement regarding the effectiveness of our continuous temperature monitoring system to assist with the diagnosis and monitoring of symptoms of COVID-19 or the effectiveness of our continuous lactate monitoring system (CLM) to monitor disease progression in COVID -19 patients.

The words "believe," "anticipate," "design," "estimate," "plan," "predict," "seek," "expect," "intend," "may," "could," "should," "potential," "likely," "projects," "continue," "will," and "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements reflect our current views with respect to future events, are based on assumptions and are subject to risks and uncertainties. We cannot guarantee that we actually will achieve the plans, intentions or expectations expressed in our forward-looking statements and you should not place undue reliance on these statements. There are a number of important factors that could cause our actual results to differ materially from those indicated or implied by forward-looking statements. These factors and the other cautionary statements made in this Quarterly Report on Form 10-Q should be read as being applicable to all related forward-looking statements whenever they appear herein. Except as required by law, we do not assume any obligation to update any forward-looking statement. We disclaim any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

 

 

 

NEMAURA MEDICAL INC.

TABLE OF CONTENTS

 

			Page
PART I: FINANCIAL INFORMATION
ITEM 1		FINANCIAL STATEMENTS
		Condensed Consolidated Balance Sheets as of December 31, 2023 (unaudited) and March 31, 2023	3
		Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine months Ended December 31, 2023 and 2022 (unaudited)	4
		Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the Three and Nine Months Ended December 31, 2023 and 2022 (unaudited)	5
		Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2023 and 2022 (unaudited)	6
		Notes to Condensed Consolidated Financial Statements for the Nine Months Ended December 31, 2023 and 2022 (unaudited)	7-13
ITEM 2		MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	14-18
ITEM 3		QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	18
ITEM 4		CONTROLS AND PROCEDURES	18
PART II:		OTHER INFORMATION
ITEM 1		LEGAL PROCEEDINGS	19
ITEM 1A		RISK FACTORS	19
ITEM 2		UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	19
ITEM 3		DEFAULTS UPON SENIOR SECURITIES	19
ITEM 4		MINE SAFETY DISCLOSURES	19
ITEM 5		OTHER INFORMATION	19
ITEM 6		EXHIBITS	20
		SIGNATURES	21

 

 

 

 

 

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

NEMAURA MEDICAL INC.

Condensed Consolidated Balance Sheets

 

		December 31, (Unaudited)				March 31,
		2023				2023
ASSETS
Current assets:
Cash and cash equivalents		$	137,416			$	10,105,135
Inventory			3,671,533				1,754,852
Prepaid expenses and other receivables			169,174				357,934
VAT receivable			247,788				409,648
Deposit on foreign exchange contract			146,434				909,666
Total current assets			4,372,345				13,537,235
Property and equipment, net of accumulated depreciation			558,697				641,906
Intangible assets, net of accumulated amortization			238,033				384,092
Total assets		$	5,169,075			$	14,563,233
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable		$	352,483			$	326,641
Other liabilities and accrued expenses			281,055				130,678
Notes payable, current portion			19,643,038				16,942,500
Payable to related parties			800,403				920,780
Deferred revenue, current portion			1,184,412				123,640
Foreign exchange contract derivative liability			242,295				731,730
Warrant liability			492,000				3,092,000
Total current liabilities			22,995,686				22,267,969
Notes payable, non-current portion			—				3,087,651
Deferred revenue, non-current portion			—				1,021,811
Total liabilities			22,995,686				26,377,431
Commitments and contingencies			—				—
Stockholders’ deficit:
Common stock, $0.001 par value, 42,000,000 shares authorized and 28,899,402 shares issued and outstanding at December 31, 2023 and March 31, 2023			28,899				28,899
Additional paid-in capital			40,991,377				40,991,377
Accumulated deficit			(57,843,297	)			(51,875,211	)
Accumulated other comprehensive loss			(1,003,590	)			(959,263	)
Total stockholders’ deficit			(17,826,611	)			(11,814,198	)
Total liabilities and stockholders’ deficit		$	5,169,075			$	14,563,233

 

 

See notes to the unaudited condensed consolidated financial statements.

 

 

 

 

NEMAURA MEDICAL INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

 

 

		Three Months Ended December 31,								Nine Months Ended December 2023,
		2023				2022				2023				2022
Sales		$	—			$	3,017			$	—			$	77,044
Cost of Sales			—				(2,971	)			—				(75,327	)
Gross Profit			—				46				—				1,717
Operating expenses:
Research and development			291,104				393,747				1,332,664				980,862
General and administrative			1,250,149				1,230,160				4,317,358				1,509,095
Total operating expenses			1,541,253				1,623,907				5,650,022				2,489,957
Loss from operations			(1,541,253	)			(1,623,907	)			(5,650,022	)			(2,488,240	)
Other income (expense)
Interest expense			(1,925,678	)			(1,082,949	)			(3,407,499	)			(4,152,437	)
Change in fair value of warrant liability			1,003,000				—				2,600,000				—
Change in fair value of foreign exchange contract derivative liability			302,453				990,532				489,435				(2,820,211	)
Net loss			(2,161,478	)			(1,716,278	)			(5,968,086	)			(9,460,888	)
Other comprehensive loss:
Foreign currency translation adjustment			204,828				(556,080	)			(44,327	)			(864,328	)
Comprehensive loss		$	(1,956,650	)		$	(4,831,171	)		$	(6,012,413	)		$	(10,325,216	)
Net loss per share, basic and diluted		$	(0.07	)		$	(0.07	)		$	(0.21	)		$	(0.39	)
Weighted average number of shares outstanding, basic and diluted			28,899,402				24,103,196				28,899,402				24,103,196

 

 

 

See notes to the unaudited condensed consolidated financial statements.

 

 

 

  

NEMAURA MEDICAL INC.

Condensed Consolidated Statements of Changes in Stockholders’ Deficit

Three and Nine Months Ended December 31, 2023 and 2022 (Unaudited) 

 

		Common Stock								Additional Paid-in				Accumulated				Accumulated Other Comprehensive				Total Stockholders’
		Shares				Amount				Capital				Deficit				(Loss) Income				(Deficit)
Balance at September 30, 2023			28,899,402			$	28,899			$	40,991,377			$	(55,681,819	)		$	(1,208,418	)		$	(15,869,961	)
Foreign currency translation adjustment			—				—				—				—				204,828				204,828
Net loss			—				—				—				(2,161,478	)			—				(2,161,478	)
Balance at December 31, 2023			28,899,402			$	28,899			$	40,991,377			$	(57,843,297	)		$	(1,003,590	)		$	(17,826,611	)
Balance at March 31, 2023			28,899,402			$	28,899			$	40,991,377			$	(51,875,211	)		$	(959,263	)		$	(11,814,198	)
Foreign currency translation adjustment			—				—				—				—				(44,327	)			(44,327	)
Net loss			—				—				—				(5,968,086	)			—				(5,968,086	)
Balance at December 31, 2023			28,899,402			$	28,899			$	40,991,377			$	(57,843,297	)		$	(1,003,590	)		$	(17,826,611	)

 

		Common Stock								Additional Paid-in				Accumulated				Accumulated Other Comprehensive				Total Stockholders’
		Shares				Amount				Capital				Deficit				(Loss) Income				(Deficit)
Balance at September 30, 2022			24,102,866			$	24,103			$	38,295,775			$	(45,476,086	)		$	(1,542,726	)		$	(8,698,934	)
Shares issued under ATM facility			330								423												423
Foreign currency translation adjustment			—				—				—				—				556,080				556,080
Net loss			—				—				—				(1,716,278	)			—				(1,716,278	)
Balance at December 31, 2022			24,103,196			$	24,103			$	38,296,198			$	(47,192,364	)		$	(986,646	)		$	(9,858,709	)
Balance at March 31, 2022			24,102,866			$	24,103			$	38,295,775			$	(37,731,476	)		$	(122,318	)		$	466,084
Shares issued under ATM facility			330								423												423
Foreign currency translation adjustment			—				—				—				—				(864,328	)			(864,328	)
Net loss			—				—				—				(9,460,888	)			—				(9,460,888	)
Balance at December 31, 2022			24,103,196			$	24,103			$	38,296,198			$	(47,192,364	)		$	(986,646	)		$	(9,858,709	)

 

 

See notes to the unaudited condensed consolidated financial statements.

 

 

 

NEMAURA MEDICAL INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

		Nine Months Ended December 31,
		2023				2022
Cash Flows From Operating Activities:
Net loss		$	(5,968,086	)		$	(9,460,888	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			309,684				268,595
Inventory write down			104,449				—
Amortization of debt discount			1,803,126				4,152,437
Addition of PIK monitoring fee to note payable			488,022				—
Change in fair value of foreign exchange contract derivative liability.			(489,435	)			635,494
Change in fair value of warrant liability			(2,600,000	)			—
Changes in operating assets and liabilities:
Prepaid expenses and other receivables, VAT receivable and deposit on foreign exchange deposit			1,113,853				(467,070	)
Inventory			(2,021,130	)			(864,636	)
Accounts payable			25,842				34,897
Receivable/payable to related parties			(120,378	)			75,977
Accrued expense and other liabilities			150,377				(167,568	)
Deferred revenue			—				(297,419	)
Net cash used in operating activities			(7,203,676	)			(6,090,181	)
Cash Flows From Investing Activities:
Capitalized patent costs			—				(135,168	)
Capitalized software development costs			—				(27,879	)
Purchase of property and equipment			(76,807	)			(275,758	)
Net cash used in investing activities			(76,807	)			(438,805	)
Cash Flows From Financing Activities:
Proceeds from issuance of common stock			—				696
Equity issuance cost paid			—				(273	)
Proceeds from issuance of note payable			6,500,000				4,700,000
Principal payments on notes payable			(9,178,261	)			(7,974,282	)
Net cash used in financing activities			(2,678,261	)			(3,273,859	)
Net decrease in cash and restricted cash			(9,958,745	)			(9,802,845	)
Effect of exchange rate changes on cash and cash equivalents			(8,975	)			(605,548	)
Cash and cash equivalent at beginning of period			10,105,135				17,749,233
Cash, cash equivalent at end of period		$	137,416			$	7,340,840
Cash paid for:
Interest		$	921,000			$	1,522,372
Supplemental schedule of non-cash transactions:
Debt discount recognized upon issuance of notes payable		$	1,310,000			$	—

 

 

See notes to the unaudited condensed consolidated financial statements.

 

 

 

 

 NEMAURA MEDICAL INC.
Notes to Condensed Consolidated Financial Statements

For the Nine Months Ended December 31, 2023 and 2022
(Unaudited)

 

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nemaura Medical Inc. (“Nemaura” or the “Company”), through its operating subsidiaries, performs medical device research and manufacturing of a continuous glucose monitoring system (“CGM”), named sugarBEAT®. The sugarBEAT® device is a non-invasive, wireless device for use by persons with Type I and Type II diabetes and may also be used to screen pre-diabetic patients and support obesity and weight-loss programs. The sugarBEAT® device extracts analytes, such as glucose, to the surface of the skin in a non-invasive manner where it is measured using unique sensors and interpreted using a unique algorithm.

Going Concern

The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying unaudited financial statements, for the nine months ended December 31, 2023, the Company recorded a net loss of $5,968,086 and used cash in operations of $7,203,676. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm in its report on the Company’s March 31, 2023 financial statements, raised substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

In evaluating the going concern position of the company, management has considered potential funding providers and believes that financing to fund future operations could be provided by equity and/or debt financing. There can be no assurance that funding would be available, or that the terms of such funding would be on favorable terms if available. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in the case of equity financing.

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. However, such information reflects all adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for a fair presentation of the financial condition and results of operations for the interim periods. The results for the three and nine months ended December 31, 2023 are not indicative of annual results. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2023.

 

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Company’s subsidiaries. References to “we”, “us”, “our”, or the “Company” refer to Nemaura Medical Inc. and its consolidated subsidiaries. The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP, and all significant intercompany balances and transactions have been eliminated in consolidation.

 

The functional currency for the majority of the Company’s operations is the Great Britain Pound Sterling (“GBP”), and the reporting currency is the U.S. Dollar (“USD”). Financial statements for foreign subsidiaries are translated into USD using period end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses.

Use of Estimates

 

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant estimates include the assumptions used in the accrual for potential liabilities, the net realizable value of inventory, the valuation of debt and equity instruments, the fair value of derivative liabilities, valuation of stock options issued for services, and deferred tax valuation allowances. Actual results may differ from those estimates. 

 

7

 

 

Revenue Recognition

 

The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which include (1) identifying the contract or agreement with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied.

Deferred Revenues

 

In March 2014, the Company executed an Exclusive Marketing Rights agreement with Dallas Burston Pharma (“DB Pharma”)(now known as MySugarWatch Limited “MSW”), a Jersey (Channel Island) based company for the exclusive right to sell the Company’s SugarBEAT® device in the UK and Republic of Ireland, both direct to consumer and through prescriptions by general practitioners. The agreement has a term of five years and automatically renewed for another five years unless terminated by either party. As part of the agreement, the Company received a non-refundable upfront fee of £1 million ($1.6 million). Pursuant to current accounting guidelines, the Company recorded the upfront fee of £1 million as a deferred revenue (i.e. liability) and is being amortized to revenues based upon the corresponding sale of the Company’s SugarBEAT devices. As of December 31, 2023 and March 31, 2023, the outstanding deferred revenues amounted to $1,184,412 and $1,145,451, respectively or approximately £875,000GBP.

The agreement is scheduled to expire in March 2024, however, the Company expects that it will be renewed for another five years based upon the ongoing relationship with MSW.

Cash and cash equivalents

 

Cash and cash equivalents consists primarily of cash deposits maintained in the United Kingdom (“UK”). We maintain cash balances in U.S. Dollar (“USD”), Great Britain Pound Sterling (“GBP”), and the Euro. The following table, reported in USD, disaggregates our cash balances by currency denomination:

Schedule of cash and cash equivalents
		December 31, 2023				March 31, 2023 (audited)
Cash denominated in:
USD		$	13,169			$	5,606,972
GBP			65,925				4,446,720
Euro			58,322				51,443
Total		$	137,416			$	10,105,135

  

Inventory

 

As of December 31, 2023 and March 31, 2023, inventory consisted of the following:

Schedule of inventory
		December 31, 2023				March 31, 2023, (audited)
Raw materials		$	3,553,811			$	1,586,777
Finished goods			117,722				168,075
Total Inventories		$	3,671,533			$	1,754,852

 

Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (“FIFO”) basis. For the nine months ended December 31, 2023, there were additional general write-downs of inventory of approximately $104,000.

 

8

 

 

 

Research and development expenses

 

The Company charges research and development expenses to operations as incurred. Research and development expenses primarily consist of salaries and related expenses for personnel and outside contractor and consulting services. Other research and development expenses include the costs of materials and supplies used in research and development, prototype manufacturing, clinical studies, related information technology and an allocation of facilities costs.

 

Loss per share

Basic loss per share is computed by dividing the loss available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted loss per common share reflects the potential dilution that could occur if convertible debentures, options and warrants were to be exercised or converted or otherwise resulted in the issuance of common stock that then shared in the earnings of the entity.

Since the effects of outstanding options and warrants are anti-dilutive for the nine months ended December 31, 2023 and 2022, shares of common stock underlying these instruments have been excluded from the computation of loss per common share.

The following sets forth the number of shares of common stock underlying outstanding options and warrants as of December 31, 2023 and 2022:

Schedule of common stock underlying outstanding options
		December 31,				December 31,
		2023				2022
Stock Warrants			5,233,551				1,573,098
Stock options			40,000				40,000
			5,273,551				1,613,098

 

  

9

 

 

Stock-Based Compensation

 

The Company periodically issues share-based awards to employees and non-employees and consultants for services rendered. Stock options vest and expire according to terms established at the issuance date of each grant. Stock grants are measured at the grant date fair value. Stock-based compensation cost is measured at fair value on the grant date and is generally recognized as a charge to operations ratably over the requisite service, or vesting, period. Recognition of compensation expense for non-employees is in the same period and manner as if the Company had paid cash for the services.

 

The Company values its equity awards using the Black-Scholes option-pricing model, and accounts for forfeitures when they occur. Use of the Black-Scholes option pricing model requires the input of subjective assumptions, including expected volatility, expected term, and a risk-free interest rate. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. The expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The risk-free interest rate is estimated using comparable published federal funds rates.

 

Fair Value of Financial Instruments

 

The authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required. Fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties.

 

The three levels of the fair value hierarchy are as follows:

 

Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

 

Level 2 - Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

 

Level 3 - Valuations based on inputs that are unobservable, supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

The Foreign exchange contract derivative liability is valued using Level 2 fair values while the warrant liability is valued using Level 3 fair values.

 

The following table sets forth by level, within the fair value hierarchy, the Company’s financial assets and liabilities at fair value as of December 31, 2023 and March 31, 2023:

Schedule of assets and liabilities at fair value
		December 31, 2023
		Level 1				Level 2				Level 3				Total
Assets
Total assets		$	—			$	—			$	—			$	—
Liabilities
Foreign exchange contract derivative liability		$	—			$	242,295			$	—			$	242,295
Warrant derivative liability			—				—				492,000				492,000
Total liabilities		$	—			$	242,295			$	492,000			$	734,295

		March 31, 2023 (audited)
		Level 1				Level 2				Level 3				Total
Assets
Total assets		$	—			$	—			$	—			$	—
Liabilities
Foreign exchange contract derivative liability		$	—			$	731,730			$	—			$	731,730
Warrant derivative liability			—				—				3,092,000				3,092,000
Total liabilities		$	—			$	731,730			$	3,092,000			$	3,823,730

 

 

10

 

 

The following table provides a roll-forward of the warrant derivative liability measured at fair value on a recurring basis using unobservable level 3 inputs for the nine months ended December 31, 2023:

Schedule of warrant derivative liability measured at fair value on a recurring basis
Warrant derivative liability
Balance as of beginning of period – March 31, 2023		$	3,092,000
Change in fair value of warrant derivative liability			(2,600,000	)
Balance as of end of period – December 31, 2023		$	492,000

 

As of December 31, 2023 and March 31, 2023, the Company’s outstanding warrants were treated as derivative liabilities and changes in the fair value were recognized in earnings (see Note 3).

 

The Company believes the carrying amounts of certain financial instruments, including cash, accounts receivable, and accounts payable and accrued liabilities, approximate fair value due to the short-term nature of such instruments and are excluded from the fair value tables above.

 

Inflation

 

The Company does not believe that inflation has had a material effect on its operations to date, other than its impact on the general economy. However, there is a risk that the Company’s operating costs could become subject to inflationary and interest rate pressures in the future, which would have the effect of increasing the Company’s operating costs (including, specifically, clinical trial costs in countries where the Company is applying to sell its products), and which would put additional stress on the Company’s working capital resources.

 

Recent accounting pronouncements

Management believes that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would not have a material effect on the Company’s unaudited condensed consolidated financial statements. 

 

NOTE 2 – RELATED PARTY TRANSACTIONS

 

DDL has a service agreement with Nemaura Pharma Limited (“Pharma”), an entity controlled by the Company’s President and Chief Executive officer, to provide development, manufacture, and regulatory approval process under Pharma’s ISO13485 accreditation. Pharma invoices DDL for these services on a cost-plus basis.

 

The table below provides a summary of activity between the Company and Pharma for the nine months ended December 31, 2023 and 2022.

Schedule of related party transactions
		Nine Months Ended December 31, 2023 (unaudited)				Nine Months Ended December 31, 2022 (unaudited)
Due to (from) related parties at beginning of period		$	920,782			$	(101,297	)
Amounts invoiced by Pharma to DDL, NM and TCL, primarily relating to research and development expenses			4,211,705				2,833,546
Amounts invoiced by DDL to Pharma			—				(3,159	)
Amounts received from Pharma			—				4,452
Amounts paid by DDL to Pharma			(4,311,770	)			(2,789,939	)
Foreign exchange differences			(20,314	)			31,077
Due to (from) related parties at end of period		$	800,403			$	(25,320	)

 

 

11

 

 

NOTE 3 – DERIVATIVE LIABILITIES

Warrant liability  

 

In January 2023, the Company completed an equity offering, which included the issuance of 4,796,206 warrants. Upon the occurrence of certain transactions (“Fundamental Transactions,” as defined), the warrants provide for a value determined using a Black Scholes model with inputs calculated as described in the warrant agreement which includes a 100% floor on the volatility input to be utilized. The Company has determined that this provision introduces leverage to the holders of the warrants that could result in a value that would be greater than the settlement amount of a fixed-for-fixed option on the Company’s own equity shares. Accordingly, pursuant to ASC 815, the Company has classified the fair value of the warrants as a liability to be re-measured at the end of every reporting period with the change in value reported in the statement of operations.

The warrant liability was valued at the following dates using a Black-Scholes model with the following assumptions:

Schedule of warrant liability
		December 31, 2023 (unaudited)				March 31, 2023
Warrant liability:
Stock price		$	0.22			$	0.90
Risk-free interest rate			3.84	%			3.60	%
Expected volatility			110	%			108	%
Expected life (in years)			4.59				5.34
Expected dividend yield			—				—
Fair value of Warrant liability		$	492,000			$	3,092,000

 

The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of measurement commensurate with expected life of the warrants. Expected volatility was determined based on the historical volatility data of the Company, and the expected term of the warrants granted are determined based on the duration of time the warrants are expected to be outstanding. The dividend yield on the Company’s warrants is assumed to be zero as the Company has not historically paid dividends.

 

Foreign exchange contract liability

 

The Company is exposed to the impact of foreign currency exchange fluctuations as a significant proportion of its expenses are denominated in GBP, and the Company’s cash is in USD and GBP. In February 2021, the Company entered into a forward contract to sell USD and buy GBP. The contract meets the definition of a derivative subject to the guidance of ASC 815, does not qualify for hedge accounting, and accordingly is recognized at fair value, with changes in fair value recognized in earnings.

 

The term of the contract is 25 months, beginning July, 2022, and ending August, 2024. The contract initially had a maximum notional amount of $6,250,000 (and a maximum leveraged amount equal to two times the notional amount, or $12,500,000). $250,000 of the contractual notional amount is settled (expires) each month through August 2024. On each monthly settlement date, if the USD/GBP spot rate is above $1.359, the Company has the right to convert $250,000 USD into GBP at a fixed rate of $1.359. If the spot rate is between $1.359 and $1.319 on the settlement date, the Company has no obligations, but can convert $250,000 USD into GBP at the spot rate. Finally, if the spot rate is below $1.319 on the monthly settlement date, the Company is obligated to convert $500,000 USD (the settlement date leveraged amount) into GBP at the fixed rate of $1.359. Alternatively, instead of selling $500,000 USD, the Company can pay the difference in the spot rate and the $1.359 exchange rate for $500,000 USD (net settle) to the counterparty. 

 

At December 31, 2023 and March 31, 2023, the fair value of the foreign currency contract liability was valued as follows:

Schedule of fair value of the foreign currency contract liability
		December 31, 2023				March 31, 2023
Notional Amount		$	2,000,000			$	4,250,000
Leveraged amount (used to determine fair value of contract liability)		$	4,000,000			$	8,500,000
Expected remaining term (in months)			8				17
Fair Value:
Foreign currency contract liability		$	242,295			$	731,730

 

The Company’s foreign currency forward contracts are measured at fair value on a recurring basis and are classified as Level 2 fair value measurement. As of December 31, 2023, and March 31, 2023, the Company has deposited $146,434, and $909,666, respectively, as collateral with the counterparty related to the foreign currency forward contract and recorded as part of prepaid expenses and other receivables in the accompanying balance sheet. 

 

 

12

 

 

 

NOTE 4 – NOTES PAYABLE

Schedule of notes payable
		December 31, 2023  (unaudited)				March 31, 2023
Note Payable Agreement 2		$	13,551,346			$	14,772,293
Note Payable Agreement 3			6,365,649				6,024,941
Note Payable Agreements 4 and 5			—				—
Total notes payable			19,916,995				20,797,234
Unamortized debt discount			(273,957	)			(767,083	)
Notes payable, net of note discounts			19,643,038				20,030,151
Current portion			(19,643,038	)			(16,942,500	)
Non-current portion		$	—			$	3,087,651

 

At October 5, 2023, the Company had four note payable agreements (Notes #2, #3, #4, and #5) outstanding. Effective October 5, 2023, the Company entered into standstill agreements for Notes #2 and #3, pursuant to which the investors would not seek repayment of any portion of the notes during the period from October 5, 2023 to October 31, 2023. In consideration, the Company agreed to pay a standstill fee of $1,300,000, that was added to the note principal of Notes #2 and #3.

 

On October 5, 2023, the Company entered into termination agreements to terminate and cancel Notes #4 and #5, which had an aggregate balance of principal and accrued interest of $7,940,657. In consideration, a principal payment of $3,000,000 was made, and $4,940,657 was added to the principal of Notes #2 and #3.

 

NOTE PAYABLE AGREEMENT 2

On February 8, 2021, the Company issued a note payable (“Note 2”) to a third-party investor.  The note was for $24,015,000, originally matured on February 9, 2023 (see below), and is secured by all the assets of the Company. Beginning in March 2023, the monthly principal payments are $1,000,000 per month. In addition, the Company is required to accrue a monthly PIK fee equal to 0.833% of the outstanding balance, which is in substance interest at an annual rate of approximately 10%, that is added to the note principal each month. In October 2022 Note 2 was amended to extend the maturity from February 9, 2023 to July 1, 2024. In consideration, the Company agreed to pay aggregate fees of $2,304,539 to the investor which were added to the principal balance of Note 2.

As of March 31, 2023, outstanding balance of note payable amounted to $14,772,293. On October 5, 2023, $3,143,134 was added to the principal of Note 2 related to the termination of Notes 4 and 5 and addition of the standstill fee (see above). During the nine months ended December 31, 2023, principal payments of $4,364,081 were made. As of December 31, 2023, outstanding balance of note payable amounted to $13,551,346.

NOTE PAYABLE AGREEMENT 3 

On May 20, 2022, the Company issued a note payable (“Note 3) to a third-party investor. The note was for $6,015,000, matures on May 20, 2024, and is secured by all the assets of the Company. The Company received cash proceeds of $4,700,000, resulting in a discount of $1,315,000 made up of an original issue discount (“OID”) of $1,000,000, commission of $300,000 that was paid from proceeds, and $15,000 to cover transaction expenses. In addition, the Company is required to accrue a monthly PIK fee equal to 0.833% of the outstanding balance, which is in substance interest at an annual rate of approximately 10%, that is added to the note principal each month. The debt less discount and transaction expenses will be accreted over the term of the note using the effective interest rate method. 

At March 31, 2023, the outstanding balance of Note 3 was $6,015,000. On October 5, 2023, $2,164,829 was added to the principal of Note 3 related to the termination of Notes 4 and 5 and addition of the standstill fee (see above). During the nine months ended December 31, 2023, principal payments of $1,814,180 were made. As of December 31, 2023, the outstanding balance of Note 3 was $6,365,649.

During the nine month period ended December 31, 2023, debt discount amortization of $493,125 was recorded. At December 31, 2023, the unamortized debt discount was $273,958.

NOTE PAYABLE AGREEMENTS 4 and 5

In August 2023, the Company issued two notes payable to two third party investors (“Notes 4 and 5”) , with a face value of $7,810,000 in exchange for cash of $6,500,000 or an original issue discount of $1,310,000. The notes were secured by all tangible and intangible assets of the Company and will mature in 24 months or in August 2025. The notes did not bear any interest; however, the implied annual interest rate is 9.5% based upon the OID rate of 19% and annual monitoring fee of 9.9%. As a result, the Company recorded a debt discount of $1,310,000 to account the note's original issue discount, commission and direct costs computed which is being amortized over interest expense over the term of the note payable.

On October 2023, the Company and the noteholders amended the two notes payable. As part of the amendment, the Company paid the noteholder $3 million in principal and the remaining balance of $4,810,000 and accrued interest of $130,657, was transferred and added to the outstanding principal balance of Note 2 for $2,775,828 and Note 3 for $2,164,829, issued in May 2022 and October 2022, respectively. In addition, the Company also incurred additional fees of $367,306 as part of the amendment of notes payable 4 and 5, which was added to Note 2. In addition, the Company also expensed the entire debt discount of $1,310,000. As of result of these amendments, notes payable 4 and 5 were extinguished and cancelled by the noteholder.

LINE OF CREDIT

In November 2023, the Company executed a line of credit (LOC) with a third party financing company, Streeterville Capital LLC. Pursuant to the LOC agreement, the Company can loan up to $10 million at a rate of 10% per annum and a 20% original issue discount for a period of one year. The LOC is secured by all tangible and intangible assets of the Company. The Company has not yet made advances or drawdowns against the LOC.

 

 

 

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

You should read the following discussion in conjunction with the Unaudited Condensed Consolidated Financial Statements and accompanying notes included elsewhere in this Quarterly Report on Form 10-Q. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those made, projected, or implied in the forward-looking statements. See "Cautionary Statement Concerning Forward-Looking Statements" below, and "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023, as filed with the Securities and Exchange Commission, as the same may be updated from time to time, for a discussion of the uncertainties, risks and assumptions associated with these statements.

 

Overview

Business Review and Outlook

It is management’s view that the Company made good progress during the nine month period ended December 31, 2023, and some of the key developments are listed as follows:

1.

The Company continued to support its UK licensee with its endeavours to obtain reimbursement for the sensors in the UK.

 

2.

Advanced development of the Company’s BEATdiabetes offering in readiness for a commercial launch in due course.

  

3.

Continued development of its consumer metabolic health platform and potential deployment as a bolt-on service into existing metabolic and wellness programs.

 

4.

Received approval from the Saudi Arabia Food and Drug Agency for marketing of sugarBEAT in the Kingdom of Saudi Arabia (KSA), with support from the Company’s licensee in the region, TP MENA.

 

5.

Used feedback from the Company’s pre-diabetes and consumer metabolic health program with the UK National Health Service, to commence plans for a commercial launch of the program in various territories with partners, in due course.

 

Management is working towards fulfilling the remainder of the UK licensees’ initial orders and supporting MSW’s UK launch plans, and for potential supplies to fulfill the provisional purchase order for the KSA from TPMENA. The company continues to also develop capabilities to develop and service new channels of business across other geographic markets via the use of our BEAT platform. To this end the company is now actively planning product launch in other territories that accept the CE mark registration. In addition, the company is seeking to exploit its product platform in the consumer space.

In line with this view, the Company has taken the following actions during and after the nine month period ended December 31, 2023:

•

Increased headcount of production operatives; this will be phased in line with the volume forecasts currently available, however the Company has also factored in an ability to scale further and faster should this be required.

 

•

Moved forward with placing phased orders for raw materials to ensure future product availability to support both our UK Licensee while also providing for capacity to flex up further as other routes to market materialize in line with management’s commercialization program.

 

•

Engaged with external third-party manufacturers with the ability to provide significant scale up services for product manufacture moving forward. Specifically, this quarter the company has engaged with a company in Germany that specialize in Automation of manufacturing processes to further scale-up sensor production capabilities, with anticipated concurrent reduction in unit cost of goods.

 

Recent Developments

On October 3rd 2023 the Company allowed its FDA PMA application to lapse in favor of submitting a revised application based on a 24-hour sensor life in place of the current 14-hour sensor life, in particular in light of improvements that had been made to sensor performance and manufacture which out-date the original application. The Company has selected the Modular route for this submission.

In a traditional PMA, the applicant submits all PMA data, as outlined in 21 CFR 814.20, at the same time, regardless of when testing is completed. FDA begins its review only upon receipt of all the required information. In 1998, however, as part of CDRH’s reengineering effort, FDA issued the above mentioned guidance. In these documents, FDA described a new policy whereby applicants could submit “Modular PMAs.” The goal of FDA’s 1998 guidance was to increase the efficiency of the PMA review process by allowing applicants to submit discrete sections (modules) of the PMA to FDA for review soon after completing the testing and analysis.

Guidance notes were revised on November 3, 2023 (https://www.fda.gov/files/medical%20devices/published/Premarket-Approval-Application-Modular-Review---Guidance-for-Industry-and-FDA-Staff.pdf).

In accordance with the guidelines Nemaura submitted its Proposal on October 30, 2023 and has now commenced the process of compiling the dossier for staged submission over the coming months.

Furthermore, the Company reported that it completed a 100 patient study, collecting over 30,000 glucose measurements from the sugarBEAT device paired with venous blood samples over an extended duration of 24 hours and reported interim data suggesting that 24 hour in-use sensor life was viable.

 

 

 

Affiliated Company Relationships

Nemaura Pharma was incorporated in November 2005. Through October 2013, all technology development and related transactions were incurred by Pharma. As new technology platforms were invented and developed, additional companies were set up to contain these new technology platforms, and to aid in the process of raising further investments to progress the development of these subsequent technologies. However, due to the small size of the operations, low number of employees and laboratory and office space required, initially, certain costs were borne by Pharma and charged to DDL as required. On April 4, 2018, a service agreement was put into place between Pharma and DDL which covered the development of sugarBEAT® under Pharma’s ISO13485 Accreditation. In lieu of these services, Pharma invoices DDL on a periodic basis for said services. Services are provided at cost plus a service surcharge amounting to less than 10% of the total costs incurred. This agreement includes all aspects of the development, registration and manufacture of sugarBEAT®.

Full legal title and beneficial ownership of the CE mark and all related intellectual property remains with Nemaura Medical under the terms of the service contract. 

Dr. D.F.H. Chowdhury, the Company’s Chief Executive Officer, President and Chairman of the Board, and Mr. Bashir Timol, a member of the Company’s Board of Directors, are officers of Pharma. The current management at DDL, including Dr. D. F. H. Chowdhury allocate 15% - 20% of their time to oversee the current operations at Pharma and will in due course implement a new management team in Pharma, and provide ongoing support in an advisory role. Pharma is a drug delivery company, which means that its activities are entirely related to the administration of drugs to the body of a human or animal subject. DDL is a diagnostic company, which means it is entirely focused on extracting molecules from the human or animal subject and analyzing it to make a diagnosis or to monitor the level of a particular molecule such as glucose. These are two independent businesses engaged in different activities, therefore there is no conflict of interest between the two and management does not see any conflicts arising from the allocations of some of DDL management time to overseeing the operations of Pharma.

Payments made solely for work that Dr. D. F. H. Chowdhury performs for Pharma in his capacity as manager are not charged to Nemaura Medical Inc. and are not included in our consolidated financial statements.

Inflation

 

The Company does not believe that inflation has had a material effect on its operations to date, other than its impact on the general economy. However, there is a risk that the Company’s operating costs could become subject to inflationary and interest rate pressures in the future, which would have the effect of increasing the Company’s operating costs (including, specifically, clinical trial costs in countries where the Company is applying to sell its products), and which would put additional stress on the Company’s working capital resources.

 

Nasdaq Compliance Deficiencies

 

As previously disclosed, on April 3, 2023, the Company received a written notice from the Nasdaq Listing Qualification Department (the “Nasdaq Staff”) indicating that the Company was not in compliance with the $35 million minimum market value of listed securities (“MVLS”) requirement set forth in Nasdaq Listing Rule 5550(b)(2) for continued listing on The Nasdaq Capital Market. Accordingly, the Company was granted a grace period that expired on October 2, 2023. In addition, on April 6, 2023, the Company received a written notice that the Company was not in compliance with the $1 bid price (“Bid Price”) requirement for continued listing set forth in Listing Rule 5550(a)(2) and was granted a grace period that expired on October 3, 2023.

 

On October 3 and 4, 2023, respectively, the Company received written notices from the Nasdaq Staff indicating that the Company had not regained compliance with the MVLS and Bid Price requirements, and that the Company’s common stock would be subject to delisting from The Nasdaq Capital Market unless the Company timely requests a hearing before a Nasdaq Hearings Panel (the “Panel”).

 

Accordingly, the Company timely requested a hearing before the Panel. The hearing request automatically stayed any suspension or delisting action pending the hearing and the expiration of any additional extension period granted by the Panel following the hearing. In that regard, pursuant to the Nasdaq Listing Rules, the Panel granted an extension not to exceed April 1, 2024. However following further attrition to its share price, and the need for substantial dilution to existing shareholders as part of the companies plan to regain compliance with Nasdaq rules, management did not see it in the best interest of shareholders to effect such dilution and chose to de-list the company from the Nasdaq to the Over The Counter market, with a view to strengthening the commercialization roadmap and partnering as a means of growing the company and generating revenues.

 

COVID-19 Pandemic

 

The outbreak of COVID-19 in December 2019 has since rapidly increased its exposure globally. On March 11, 2020, the World Health Organization declared the outbreak a pandemic. We continue to monitor the impact of COVID-19 on our own operations and are working with our employees, suppliers, and other stakeholders to mitigate the risks posed by its spread, but COVID-19 is not expected to have any long-term detrimental effect on the Company’s success. While key suppliers have not always been accessible throughout the whole period of the outbreak, we have been able to be flexible in our priorities and respond favorably to the challenges faced during this period. We also recognize that one of the consequences of this pandemic has been a surge in the uptake of technologies for remote monitoring of patients and patient self-monitoring, which potentially enhances the prospects for the Company, its CGM product and its planned digital healthcare offering.

 

 Results of Operations

 

Comparative Results for the Three Months Ended December 31, 2023 and 2022

 

Revenue

 

There was no revenue generated in the three month period ended December 31,2023.

 

The Company generated revenue of $3,017 in the three month period ended December 31, 2022, relating to deliveries of sugarBEAT® to MSW pursuant to the initial order placed in April 2021. A portion also related to the recognition of the GBP 1 million (approximately $1.12 million), that was previously received and held within deferred revenue relating to the exclusive Marketing Rights Agreement that was signed with MSW.

 

Research and Development Expenses

 

Research and development (“R&D”) expenses were $291,104 and $393,747 for the three months ended December 31, 2023 and 2022, respectively. This amount consisted primarily of expenditures on wages and sub-contractor activities incurred for improvements made to the sugarBEAT® device.

 

 

 

 

General and Administrative Expenses

 

General and administrative expenses were $1,250,149 and $1,230,160 for the three months ended December 31, 2023 and 2022, respectively. These expenses consisted of fees for legal, professional, consultancy, audit services, investor relations, insurance, advertising and general and operational wages.

 

As the Company continues to scale up to service its existing order book, it is expected that general and administrative expenses will continue to increase in a similar way moving forward, as the business transitions to a more operational focused base that will encompass an increase in functional expenses relating to production, sales, marketing, customer service, as well as enhancements to other existing functions.

 

Other Income (Expense)

 

Other income (expense) was $302,161 and $92,417 for the three months ended December 31, 2023 and 2022, respectively. These expenses consist of interest expense, change in fair value of foreign exchange and change in fair value of warrant liability. There was a significant decrease in the fair value of the Company’s warrant liability which resulted in a gain of approximately $1 million as a result of the decrease in the stock price of the Company, which is an input in the fair value computation every reporting period.

 

Other Comprehensive Loss

 

For the three month periods ended December 31, 2023 and 2022 other comprehensive income saw gains of $204,829 and $556,080, respectively, arising from foreign currency translation adjustments.

 

Comparative Results for the Nine Months Ended December 31, 2023 and 2022

 

Revenue

 

There was no revenue generated in the nine month period ended December 31, 2023.

 

The Company generated revenue of $77,044 in the nine month period ended December 31, 2022, relating to deliveries of sugarBEAT® to MSW pursuant to the initial order placed in April 2021. A portion also related to the recognition of the GBP 1 million (approximately $1.12 million), that was previously received and held within deferred revenue relating to the exclusive Marketing Rights Agreement that was signed with MSW.

 

Research and Development Expenses

 

R&D expenses were $1,332,664 and $980,862 for the nine months ended December 31, 2023 and 2022, respectively. This amount consisted primarily of expenditures on wages and sub-contractor activities incurred for improvements made to the sugarBEAT® device, and costs associated with the 24-hour sensor study performed on 100 subjects in the Middle East.

General and Administrative Expenses

 

General and administrative expenses were $4,317,358 and $1,509,095 for the nine months ended December 31, 2023 and 2022, respectively. These expenses consisted of fees for legal, professional, consultancy, audit services, investor relations, insurance, advertising and general and operational wages.

 

As the Company continues to scale up to service its existing order book, it is expected that general and administrative expenses will continue to increase in a similar way moving forward, as the business transitions to a more operational focused base that will encompass an increase in functional expenses relating to production, sales, marketing, customer service, as well as enhancements to other existing functions.

 

Other Income (Expense)

 

Other Expense was ($318,064) and ($6,972,648) for the nine months ended December 31, 2023 and 2022, respectively. These expenses consist of interest expense, change in fair value of foreign exchange and change in fair value of warrant liability. There was a significant decrease in the fair value of the Company’s warrant liability which resulted in a gain of approximately $2.6 million as a result of the decrease in the stock price of the Company, which is an input in the fair value computation every reporting period.

 

Other Comprehensive Loss

 

For the nine month periods ended December 31, 2023 and 2022 other comprehensive losses of $44,326 and losses of $864,328, respectively, arising from foreign currency translation adjustments.

 

 

 

 

 

Liquidity and Capital Resources

 

As reflected in the accompanying unaudited financial statements, for the nine months ended December 31, 2023, the Company recorded a net loss of $5,968,086 and used cash in operations of $7,203,676. In addition, we have sustained cumulative losses of $57,843,297 as of December 31, 2023. We have historically financed our operations through a combination of debt and equity funding.

 

As of December 31, 2023, the Company had a working capital deficiency of $18,623,341, which included total cash balances of $137,416 and current notes payable of $19,643,038.

 

Going Concern

The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the nine months ended December 31, 2023, the Company recorded a net loss of $5,968,086 and used cash in operations of $7,203,676. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm in its report on the Company’s March 31, 2023 financial statements, raised substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

In evaluating the going concern position of the company, management has considered potential funding providers and believes that financing to fund future operations could be provided by equity and/or debt financing. There can be no assurance that funding would be available, or that the terms of such funding would be on favorable terms if available. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in the case of equity financing.

Cash Flows

 

Net cash used in operating activities for the nine months ended December 31, 2023 was $7,203,676, reflecting a net loss of $5,968,086, and includes accretion of debt discount expense and accrued interest totaling $2,291,148, change in fair value of warrant liability of $2,600,000, the mark-to-market charge booked in relation to the revaluation of the foreign currency forward contracts of $489,435 and the depreciation and amortization charge of $309,684.

 

Cash was also impacted by increases in inventory of $2,021,130, which was directly driven as a result of commercial scale up.  

 

Prepayments dropped by $1,113,851, which was a result of the decrease in deposit to Hamilton Court, our forward contract provider, plus by reduction on other prepayments.

 

There was a $25,842 increase in accounts payable during the nine months ended December 31, 2023 as well as an increase in other liabilities and accrued expenses of $150,377. The related party payable balance increased to $120,378 as of December 31, 2023.

 

Net cash used in investing activities for the nine months ended December 31, 2023, was $76,807, which was from the purchase of property and equipment driven by the procurement to support the transition to operational production.

 

Net cash used in operating activities for the nine months ended December 31, 2022 was $6,090,181, reflecting a net loss of $9,460,888, which includes accretion of debt discount expense and accrued interest totaling $4,152,437, the mark-to-market charge booked in relation to the revaluation of the foreign currency forward contracts of $635,494 and the depreciation and amortization charge of $268,595.

 

Cash was also impacted by increases in inventory of $864,636 as of December 31, 2022, which was directly driven as a result of commercial scale up.  

 

Prepayments decreased by $467,070, which was a result of the amounts paid to Hamilton Court, our forward contract provider plus movements on other prepayments.

 

 

There was a $34,897 increase in accounts payable during the nine months ended December 31, 2022 but decreases in other liabilities and accrued expenses of $167,568 and deferred revenue of $297,419. The related party payable balance increased by $75,977 in the nine months ended December 31, 2023.

 

Net cash used in investing activities for the nine months ended December 31, 2022, was $438,805, which included the purchase of property and equipment ($208,945) driven by the procurement to support the transition to operational production, and patent filing costs of $144,343.

 

Net cash used in financing activities for the nine months ended December 31, 2023 was $2,918,086, for the scheduled re-payment of notes payable of $9,418,086 offset by $6,500,000 proceeds from notes payable issued in August 2023.

 

Net cash used in financing activities for the nine months ended December 31, 2022 was $3,273,859, comprising $4,700,000 from proceeds of long term debt offset by $7,974,282 for the scheduled repayments of notes payable, also including proceeds of $696 from issuance of common stock offset by $273 for equity issuance cost paid.

 

 

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements, including unrecorded derivative instruments that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

Critical Accounting Policies and Estimates

 

When we prepare our unaudited condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), we must make estimates and assumptions about future events that affect the amounts we report. Certain of these estimates result from judgements that can be subjective and complex. As a result of that subjectivity and complexity, and because we continuously evaluate these estimates and assumptions based on a variety of factors, actual results could materially differ from our estimates and assumptions if changes in one or more factors require us to make accounting adjustments. We believe our critical accounting policies affect our more significant judgments and estimates used in the preparation of the unaudited condensed consolidated financial statements. For further discussion of our critical accounting policies, see Note 2.

 

During the nine month period ended December 31, 2023, we have made no material changes or additions with regard to such policies and estimates.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

We have established disclosure controls and procedures to ensure that the information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to the officers who certify the Company's financial reports and to other members of senior management and the Board of Directors as appropriate to allow timely decisions regarding required disclosure.

The Company’s Chief Executive Officer / Chief Financial Officer has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2023. Based on his evaluation, the Chief Executive Officer / Chief Financial Officer have concluded that as of December 31, 2023 our disclosure controls and procedures were not effective as of December 31, 2023. As of December 31, 2023, management’s assessment identified the following material weaknesses in the Company’s internal control over financial reporting:

 

We continue to have a material weakness in our internal control over financial reporting as disclosed in the March 31, 2023 Form 10-K, in that the Company did not design and maintain effective controls over (i) accounting for the foreign currency balance for a mark-to-market contract; and (ii) accounting for certain debt issuance costs in the computation of the effective interest rate for a loan note mainly due to lack of adequate technical expertise. Management is developing and implementing remediation plans to address the material weaknesses.

 

Changes in Internal Control Over Financial Reporting

 

There have been no changes in our internal control over financial reporting during our most recent nine months ended December 31, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Limitations on Effectiveness of Controls and Procedures

 

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

 

 

 

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None.

 

ITEM 1A. RISK FACTORS

 

There have been no material changes to the risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2023, as amended.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

(a)

None

 

(b)

There have been no material changes to the procedures by which security holders may recommend nominees to the Company’s Board of Directors since the Company last provided disclosure in response to the requirements of Item 407(c)(3) of Regulation S-K.

 

(c)

During the quarter ended December 31, 2023, no director or officer of the Company adopted or terminated a contract, instruction or written plan for the purchase or sale of securities of the Company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or a non-Rule 10b5-1 trading arrangement .

 

 

 

 

 

ITEM 6. EXHIBITS

 

The exhibits listed on the Exhibit Index below are filed as part of this report.

 

Exhibit No.	Document Description
31.1*	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	Inline XBRL Taxonomy Extension Schema
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	Inline XBRL Taxonomy Extension Definition Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase
104*	Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

 

* Filed herewith.

** Furnished herewith. 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

		NEMAURA MEDICAL INC.
Date: February 12, 2024	By:	/s/ Dewan F.H. Chowdhury
		Dewan F.H. Chowdhury Chief Executive Officer, Interim Chief Financial Officer, and President (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

 

Exhibit 31.1

Certifications

 

I, Dewan F.H. Chowdhury, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 of Nemaura Medical Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.

Evaluated the effectiveness of registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Date: February 12, 2024	By:	/s/ Dewan F.H. Chowdhury
		Chief Executive Officer, Interim Chief Financial Officer, and President (Principal Executive Officer)

Exhibit 31.2

Certifications

I, Dewan F.H. Chowdhury, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 of Nemaura Medical Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c.

Evaluated the effectiveness of registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Date: February 12, 2024
	By:	/s/ Dewan F.H. Chowdhury
		Dewan F.H. Chowdhury Chief Executive Officer, Interim Chief Financial Officer, and President (Principal Financial Officer)

Exhibit 32.1

CERTIFICATION

Pursuant to 18 U.S.C. 1350 as adopted by Section 906 of the Sarbanes-Oxley Act of 2002

 

The undersigned, Dewan F.H. Chowdhury, Chief Executive Officer, President and Interim Chief Financial Officer of Nemaura Medical Inc. (the “Company”), has executed this certification in connection with the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2023 (the “Report”).

The undersigned hereby certifies that:

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operation of the Company

 

Date: February 12, 2024	/s/ Dewan F.H. Chowdhury
	Dewan F.H. Chowdhury Chief Executive Officer, Interim Chief Financial Officer, and President (Principal Executive Officer and Principal Financial Officer)

v3.24.0.1

Cover - shares	9 Months Ended
	Dec. 31, 2023	Feb. 12, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--03-31
Entity File Number	001-38355
Entity Registrant Name	Nemaura Medical Inc.
Entity Central Index Key	0001602078
Entity Tax Identification Number	46-5027260
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	57 West 57th Street
Entity Address, City or Town	Manhattan
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10019
City Area Code	646
Local Phone Number	416-8000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,899,402

v3.24.0.1

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 137,416	$ 10,105,135
Inventory	3,671,533	1,754,852
Prepaid expenses and other receivables	169,174	357,934
VAT receivable	247,788	409,648
Deposit on foreign exchange contract	146,434	909,666
Total current assets	4,372,345	13,537,235
Property and equipment, net of accumulated depreciation	558,697	641,906
Intangible assets, net of accumulated amortization	238,033	384,092
Total assets	5,169,075	14,563,233
Current liabilities:
Accounts payable	352,483	326,641
Other liabilities and accrued expenses	281,055	130,678
Notes payable, current portion	19,643,038	16,942,500
Payable to related parties	800,403	920,780
Deferred revenue, current portion	1,184,412	123,640
Foreign exchange contract derivative liability	242,295	731,730
Warrant liability	492,000	3,092,000
Total current liabilities	22,995,686	22,267,969
Notes payable, non-current portion		3,087,651
Deferred revenue, non-current portion		1,021,811
Total liabilities	22,995,686	26,377,431
Commitments and contingencies
Stockholders’ deficit:
Common stock, $0.001 par value, 42,000,000 shares authorized and 28,899,402 shares issued and outstanding at December 31, 2023 and March 31, 2023	28,899	28,899
Additional paid-in capital	40,991,377	40,991,377
Accumulated deficit	(57,843,297)	(51,875,211)
Accumulated other comprehensive loss	(1,003,590)	(959,263)
Total stockholders’ deficit	(17,826,611)	(11,814,198)
Total liabilities and stockholders’ deficit	$ 5,169,075	$ 14,563,233

v3.24.0.1

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Mar. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	42,000,000	42,000,000
Common stock, shares issued	28,899,402	28,899,402
Common stock, shares outstanding	28,899,402	28,899,402

v3.24.0.1

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Sales		$ 3,017		$ 77,044
Cost of Sales		(2,971)		(75,327)
Gross Profit		46		1,717
Operating expenses:
Research and development	291,104	393,747	1,332,664	980,862
General and administrative	1,250,149	1,230,160	4,317,358	1,509,095
Total operating expenses	1,541,253	1,623,907	5,650,022	2,489,957
Loss from operations	(1,541,253)	(1,623,907)	(5,650,022)	(2,488,240)
Other income (expense)
Interest expense	(1,925,678)	(1,082,949)	(3,407,499)	(4,152,437)
Change in fair value of warrant liability	1,003,000		2,600,000
Change in fair value of foreign exchange contract derivative liability	302,453	990,532	489,435	(2,820,211)
Net loss	(2,161,478)	(1,716,278)	(5,968,086)	(9,460,888)
Other comprehensive loss:
Foreign currency translation adjustment	204,828	(556,080)	(44,327)	(864,328)
Comprehensive loss	$ (1,956,650)	$ (4,831,171)	$ (6,012,413)	$ (10,325,216)

v3.24.0.1

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net loss per share, basic	$ (0.07)	$ (0.07)	$ (0.21)	$ (0.39)
Net loss per share, diluted	$ (0.07)	$ (0.07)	$ (0.21)	$ (0.39)
Weighted average number of shares outstanding, basic	28,899,402	24,103,196	28,899,402	24,103,196
Weighted average number of shares outstanding, diluted	28,899,402	24,103,196	28,899,402	24,103,196

v3.24.0.1

Condensed Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Beginning balance, value at Mar. 31, 2022	$ 24,103	$ 38,295,775	$ (37,731,476)	$ (122,318)	$ 466,084
Beginning balance, shares at Mar. 31, 2022	24,102,866
Shares issued under ATM facility		423			423
Shares issued under ATM facility, shares	330
Foreign currency translation adjustment				(864,328)	(864,328)
Net loss			(9,460,888)		(9,460,888)
Ending balance, value at Dec. 31, 2022	$ 24,103	38,296,198	(47,192,364)	(986,646)	(9,858,709)
Ending balance, shares at Dec. 31, 2022	24,103,196
Beginning balance, value at Sep. 30, 2022	$ 24,103	38,295,775	(45,476,086)	(1,542,726)	(8,698,934)
Beginning balance, shares at Sep. 30, 2022	24,102,866
Shares issued under ATM facility		423			423
Shares issued under ATM facility, shares	330
Foreign currency translation adjustment				556,080	556,080
Net loss			(1,716,278)		(1,716,278)
Ending balance, value at Dec. 31, 2022	$ 24,103	38,296,198	(47,192,364)	(986,646)	(9,858,709)
Ending balance, shares at Dec. 31, 2022	24,103,196
Beginning balance, value at Mar. 31, 2023	$ 28,899	40,991,377	(51,875,211)	(959,263)	(11,814,198)
Beginning balance, shares at Mar. 31, 2023	28,899,402
Foreign currency translation adjustment				(44,327)	(44,327)
Net loss			(5,968,086)		(5,968,086)
Ending balance, value at Dec. 31, 2023	$ 28,899	40,991,377	(57,843,297)	(1,003,590)	(17,826,611)
Ending balance, shares at Dec. 31, 2023	28,899,402
Beginning balance, value at Sep. 30, 2023	$ 28,899	40,991,377	(55,681,819)	(1,208,418)	(15,869,961)
Beginning balance, shares at Sep. 30, 2023	28,899,402
Foreign currency translation adjustment				204,828	204,828
Net loss			(2,161,478)		(2,161,478)
Ending balance, value at Dec. 31, 2023	$ 28,899	$ 40,991,377	$ (57,843,297)	$ (1,003,590)	$ (17,826,611)
Ending balance, shares at Dec. 31, 2023	28,899,402

v3.24.0.1

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash Flows From Operating Activities:
Net loss	$ (5,968,086)	$ (9,460,888)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	309,684	268,595
Inventory write down	104,449
Amortization of debt discount	1,803,126	4,152,437
Addition of PIK monitoring fee to note payable	488,022
Change in fair value of foreign exchange contract derivative liability.	(489,435)	635,494
Change in fair value of warrant liability	(2,600,000)
Changes in operating assets and liabilities:
Prepaid expenses and other receivables, VAT receivable and deposit on foreign exchange deposit	1,113,853	(467,070)
Inventory	(2,021,130)	(864,636)
Accounts payable	25,842	34,897
Receivable/payable to related parties	(120,378)	75,977
Accrued expense and other liabilities	150,377	(167,568)
Deferred revenue		(297,419)
Net cash used in operating activities	(7,203,676)	(6,090,181)
Cash Flows From Investing Activities:
Capitalized patent costs		(135,168)
Capitalized software development costs		(27,879)
Purchase of property and equipment	(76,807)	(275,758)
Net cash used in investing activities	(76,807)	(438,805)
Cash Flows From Financing Activities:
Proceeds from issuance of common stock		696
Equity issuance cost paid		(273)
Proceeds from issuance of note payable	6,500,000	4,700,000
Principal payments on notes payable	(9,178,261)	(7,974,282)
Net cash used in financing activities	(2,678,261)	(3,273,859)
Net decrease in cash and restricted cash	(9,958,745)	(9,802,845)
Effect of exchange rate changes on cash and cash equivalents	(8,975)	(605,548)
Cash and cash equivalent at beginning of period	10,105,135	17,749,233
Cash, cash equivalent at end of period	137,416	7,340,840
Cash paid for:
Interest	921,000	1,522,372
Supplemental schedule of non-cash transactions:
Debt discount recognized upon issuance of notes payable	$ 1,310,000

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Nemaura Medical Inc. (“Nemaura” or the “Company”), through its operating subsidiaries, performs medical device research and manufacturing of a continuous glucose monitoring system (“CGM”), named sugarBEAT®. The sugarBEAT® device is a non-invasive, wireless device for use by persons with Type I and Type II diabetes and may also be used to screen pre-diabetic patients and support obesity and weight-loss programs. The sugarBEAT® device extracts analytes, such as glucose, to the surface of the skin in a non-invasive manner where it is measured using unique sensors and interpreted using a unique algorithm. Going Concern The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying unaudited financial statements, for the nine months ended December 31, 2023, the Company recorded a net loss of $5,968,086 and used cash in operations of $7,203,676. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm in its report on the Company’s March 31, 2023 financial statements, raised substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.   In evaluating the going concern position of the company, management has considered potential funding providers and believes that financing to fund future operations could be provided by equity and/or debt financing. There can be no assurance that funding would be available, or that the terms of such funding would be on favorable terms if available. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in the case of equity financing. Basis of Presentation   The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. However, such information reflects all adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for a fair presentation of the financial condition and results of operations for the interim periods. The results for the three and nine months ended December 31, 2023 are not indicative of annual results. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2023.   The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Company’s subsidiaries. References to “we”, “us”, “our”, or the “Company” refer to Nemaura Medical Inc. and its consolidated subsidiaries. The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP, and all significant intercompany balances and transactions have been eliminated in consolidation.   The functional currency for the majority of the Company’s operations is the Great Britain Pound Sterling (“GBP”), and the reporting currency is the U.S. Dollar (“USD”). Financial statements for foreign subsidiaries are translated into USD using period end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses. Use of Estimates   The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant estimates include the assumptions used in the accrual for potential liabilities, the net realizable value of inventory, the valuation of debt and equity instruments, the fair value of derivative liabilities, valuation of stock options issued for services, and deferred tax valuation allowances. Actual results may differ from those estimates.  Revenue Recognition   The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which include (1) identifying the contract or agreement with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. Deferred Revenues   In March 2014, the Company executed an Exclusive Marketing Rights agreement with Dallas Burston Pharma (“DB Pharma”)(now known as MySugarWatch Limited “MSW”), a Jersey (Channel Island) based company for the exclusive right to sell the Company’s SugarBEAT® device in the UK and Republic of Ireland, both direct to consumer and through prescriptions by general practitioners. The agreement has a term of five years and automatically renewed for another five years unless terminated by either party. As part of the agreement, the Company received a non-refundable upfront fee of £1 million ($1.6 million). Pursuant to current accounting guidelines, the Company recorded the upfront fee of £1 million as a deferred revenue (i.e. liability) and is being amortized to revenues based upon the corresponding sale of the Company’s SugarBEAT devices. As of December 31, 2023 and March 31, 2023, the outstanding deferred revenues amounted to $1,184,412 and $1,145,451, respectively or approximately £875,000GBP. The agreement is scheduled to expire in March 2024, however, the Company expects that it will be renewed for another five years based upon the ongoing relationship with MSW. Cash and cash equivalents   Cash and cash equivalents consists primarily of cash deposits maintained in the United Kingdom (“UK”). We maintain cash balances in U.S. Dollar (“USD”), Great Britain Pound Sterling (“GBP”), and the Euro. The following table, reported in USD, disaggregates our cash balances by currency denomination: Schedule of cash and cash equivalents                 December 31, 2023     March 31, 2023 (audited)   Cash denominated in:                 USD   $ 13,169     $ 5,606,972   GBP     65,925       4,446,720   Euro     58,322       51,443   Total   $ 137,416     $ 10,105,135      Inventory   As of December 31, 2023 and March 31, 2023, inventory consisted of the following: Schedule of inventory                 December 31, 2023     March 31, 2023, (audited)                 Raw materials   $ 3,553,811     $ 1,586,777   Finished goods     117,722       168,075   Total Inventories   $ 3,671,533     $ 1,754,852     Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (“FIFO”) basis. For the nine months ended December 31, 2023, there were additional general write-downs of inventory of approximately $104,000.   Research and development expenses   The Company charges research and development expenses to operations as incurred. Research and development expenses primarily consist of salaries and related expenses for personnel and outside contractor and consulting services. Other research and development expenses include the costs of materials and supplies used in research and development, prototype manufacturing, clinical studies, related information technology and an allocation of facilities costs.   Loss per share Basic loss per share is computed by dividing the loss available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted loss per common share reflects the potential dilution that could occur if convertible debentures, options and warrants were to be exercised or converted or otherwise resulted in the issuance of common stock that then shared in the earnings of the entity. Since the effects of outstanding options and warrants are anti-dilutive for the nine months ended December 31, 2023 and 2022, shares of common stock underlying these instruments have been excluded from the computation of loss per common share. The following sets forth the number of shares of common stock underlying outstanding options and warrants as of December 31, 2023 and 2022: Schedule of common stock underlying outstanding options                 December 31,     December 31,       2023     2022                 Stock Warrants     5,233,551       1,573,098   Stock options     40,000       40,000         5,273,551       1,613,098     Stock-Based Compensation   The Company periodically issues share-based awards to employees and non-employees and consultants for services rendered. Stock options vest and expire according to terms established at the issuance date of each grant. Stock grants are measured at the grant date fair value. Stock-based compensation cost is measured at fair value on the grant date and is generally recognized as a charge to operations ratably over the requisite service, or vesting, period. Recognition of compensation expense for non-employees is in the same period and manner as if the Company had paid cash for the services.   The Company values its equity awards using the Black-Scholes option-pricing model, and accounts for forfeitures when they occur. Use of the Black-Scholes option pricing model requires the input of subjective assumptions, including expected volatility, expected term, and a risk-free interest rate. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. The expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The risk-free interest rate is estimated using comparable published federal funds rates.   Fair Value of Financial Instruments   The authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required. Fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties.   The three levels of the fair value hierarchy are as follows:   Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.   Level 2 - Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.   Level 3 - Valuations based on inputs that are unobservable, supported by little or no market activity and that are significant to the fair value of the assets or liabilities.   The Foreign exchange contract derivative liability is valued using Level 2 fair values while the warrant liability is valued using Level 3 fair values.   The following table sets forth by level, within the fair value hierarchy, the Company’s financial assets and liabilities at fair value as of December 31, 2023 and March 31, 2023: Schedule of assets and liabilities at fair value                             December 31, 2023       Level 1     Level 2     Level 3     Total   Assets                               Total assets   $ —       $ —       $ —       $ —                                       Liabilities                                 Foreign exchange contract derivative liability   $ —       $ 242,295     $ —       $ 242,295   Warrant derivative liability     —         —         492,000       492,000   Total liabilities   $ —       $ 242,295     $ 492,000     $ 734,295                                 March 31, 2023 (audited)       Level 1     Level 2     Level 3     Total   Assets                               Total assets   $ —       $ —       $ —       $ —                                       Liabilities                                 Foreign exchange contract derivative liability   $ —       $ 731,730     $ —       $ 731,730   Warrant derivative liability     —         —         3,092,000       3,092,000   Total liabilities   $ —       $ 731,730     $ 3,092,000     $ 3,823,730     The following table provides a roll-forward of the warrant derivative liability measured at fair value on a recurring basis using unobservable level 3 inputs for the nine months ended December 31, 2023: Schedule of warrant derivative liability measured at fair value on a recurring basis       Warrant derivative liability       Balance as of beginning of period – March 31, 2023   $ 3,092,000   Change in fair value of warrant derivative liability   (2,600,000 ) Balance as of end of period – December 31, 2023   $ 492,000     As of December 31, 2023 and March 31, 2023, the Company’s outstanding warrants were treated as derivative liabilities and changes in the fair value were recognized in earnings (see Note 3).   The Company believes the carrying amounts of certain financial instruments, including cash, accounts receivable, and accounts payable and accrued liabilities, approximate fair value due to the short-term nature of such instruments and are excluded from the fair value tables above.   Inflation   The Company does not believe that inflation has had a material effect on its operations to date, other than its impact on the general economy. However, there is a risk that the Company’s operating costs could become subject to inflationary and interest rate pressures in the future, which would have the effect of increasing the Company’s operating costs (including, specifically, clinical trial costs in countries where the Company is applying to sell its products), and which would put additional stress on the Company’s working capital resources.   Recent accounting pronouncements Management believes that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would not have a material effect on the Company’s unaudited condensed consolidated financial statements.

v3.24.0.1

RELATED PARTY TRANSACTIONS	9 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 2 – RELATED PARTY TRANSACTIONS   DDL has a service agreement with Nemaura Pharma Limited (“Pharma”), an entity controlled by the Company’s President and Chief Executive officer, to provide development, manufacture, and regulatory approval process under Pharma’s ISO13485 accreditation. Pharma invoices DDL for these services on a cost-plus basis.   The table below provides a summary of activity between the Company and Pharma for the nine months ended December 31, 2023 and 2022. Schedule of related party transactions                 Nine Months Ended December 31, 2023 (unaudited)     Nine Months Ended December 31, 2022 (unaudited)    Due to (from) related parties at beginning of period   $ 920,782     $ (101,297 ) Amounts invoiced by Pharma to DDL, NM and TCL, primarily relating to research and development expenses     4,211,705       2,833,546   Amounts invoiced by DDL to Pharma     —         (3,159 ) Amounts received from Pharma     —         4,452   Amounts paid by DDL to Pharma     (4,311,770 )     (2,789,939 ) Foreign exchange differences     (20,314 )     31,077   Due to (from) related parties at end of period   $ 800,403     $ (25,320 )

v3.24.0.1

DERIVATIVE LIABILITIES	9 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE LIABILITIES	NOTE 3 – DERIVATIVE LIABILITIES Warrant liability     In January 2023, the Company completed an equity offering, which included the issuance of 4,796,206 warrants. Upon the occurrence of certain transactions (“Fundamental Transactions,” as defined), the warrants provide for a value determined using a Black Scholes model with inputs calculated as described in the warrant agreement which includes a 100% floor on the volatility input to be utilized. The Company has determined that this provision introduces leverage to the holders of the warrants that could result in a value that would be greater than the settlement amount of a fixed-for-fixed option on the Company’s own equity shares. Accordingly, pursuant to ASC 815, the Company has classified the fair value of the warrants as a liability to be re-measured at the end of every reporting period with the change in value reported in the statement of operations. The warrant liability was valued at the following dates using a Black-Scholes model with the following assumptions: Schedule of warrant liability                 December 31, 2023 (unaudited)     March 31, 2023   Warrant liability:                 Stock price   $ 0.22     $ 0.90   Risk-free interest rate     3.84 %     3.60 % Expected volatility     110 %     108 % Expected life (in years)     4.59       5.34   Expected dividend yield     —         —     Fair value of Warrant liability   $ 492,000     $ 3,092,000     The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of measurement commensurate with expected life of the warrants. Expected volatility was determined based on the historical volatility data of the Company, and the expected term of the warrants granted are determined based on the duration of time the warrants are expected to be outstanding. The dividend yield on the Company’s warrants is assumed to be zero as the Company has not historically paid dividends.   Foreign exchange contract liability   The Company is exposed to the impact of foreign currency exchange fluctuations as a significant proportion of its expenses are denominated in GBP, and the Company’s cash is in USD and GBP. In February 2021, the Company entered into a forward contract to sell USD and buy GBP. The contract meets the definition of a derivative subject to the guidance of ASC 815, does not qualify for hedge accounting, and accordingly is recognized at fair value, with changes in fair value recognized in earnings.   The term of the contract is 25 months, beginning July, 2022, and ending August, 2024. The contract initially had a maximum notional amount of $6,250,000 (and a maximum leveraged amount equal to two times the notional amount, or $12,500,000). $250,000 of the contractual notional amount is settled (expires) each month through August 2024. On each monthly settlement date, if the USD/GBP spot rate is above $1.359, the Company has the right to convert $250,000 USD into GBP at a fixed rate of $1.359. If the spot rate is between $1.359 and $1.319 on the settlement date, the Company has no obligations, but can convert $250,000 USD into GBP at the spot rate. Finally, if the spot rate is below $1.319 on the monthly settlement date, the Company is obligated to convert $500,000 USD (the settlement date leveraged amount) into GBP at the fixed rate of $1.359. Alternatively, instead of selling $500,000 USD, the Company can pay the difference in the spot rate and the $1.359 exchange rate for $500,000 USD (net settle) to the counterparty.    At December 31, 2023 and March 31, 2023, the fair value of the foreign currency contract liability was valued as follows: Schedule of fair value of the foreign currency contract liability                 December 31, 2023     March 31, 2023   Notional Amount   $ 2,000,000     $ 4,250,000   Leveraged amount (used to determine fair value of contract liability)   $ 4,000,000     $ 8,500,000   Expected remaining term (in months)     8       17                     Fair Value:                 Foreign currency contract liability   $ 242,295     $ 731,730     The Company’s foreign currency forward contracts are measured at fair value on a recurring basis and are classified as Level 2 fair value measurement. As of December 31, 2023, and March 31, 2023, the Company has deposited $146,434, and $909,666, respectively, as collateral with the counterparty related to the foreign currency forward contract and recorded as part of prepaid expenses and other receivables in the accompanying balance sheet.

v3.24.0.1

NOTES PAYABLE	9 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 4 – NOTES PAYABLE Schedule of notes payable                 December 31, 2023  (unaudited)     March 31, 2023                  Note Payable Agreement 2   $ 13,551,346     $ 14,772,293   Note Payable Agreement 3     6,365,649       6,024,941   Note Payable Agreements 4 and 5     —         —        Total notes payable     19,916,995       20,797,234   Unamortized debt discount     (273,957 )     (767,083 ) Notes payable, net of note discounts     19,643,038       20,030,151   Current portion     (19,643,038 )     (16,942,500 ) Non-current portion   $ —       $ 3,087,651     At October 5, 2023, the Company had four note payable agreements (Notes #2, #3, #4, and #5) outstanding. Effective October 5, 2023, the Company entered into standstill agreements for Notes #2 and #3, pursuant to which the investors would not seek repayment of any portion of the notes during the period from October 5, 2023 to October 31, 2023. In consideration, the Company agreed to pay a standstill fee of $1,300,000, that was added to the note principal of Notes #2 and #3.   On October 5, 2023, the Company entered into termination agreements to terminate and cancel Notes #4 and #5, which had an aggregate balance of principal and accrued interest of $7,940,657. In consideration, a principal payment of $3,000,000 was made, and $4,940,657 was added to the principal of Notes #2 and #3.   NOTE PAYABLE AGREEMENT 2 On February 8, 2021, the Company issued a note payable (“Note 2”) to a third-party investor.  The note was for $24,015,000, originally matured on February 9, 2023 (see below), and is secured by all the assets of the Company. Beginning in March 2023, the monthly principal payments are $1,000,000 per month. In addition, the Company is required to accrue a monthly PIK fee equal to 0.833% of the outstanding balance, which is in substance interest at an annual rate of approximately 10%, that is added to the note principal each month. In October 2022 Note 2 was amended to extend the maturity from February 9, 2023 to July 1, 2024. In consideration, the Company agreed to pay aggregate fees of $2,304,539 to the investor which were added to the principal balance of Note 2. As of March 31, 2023, outstanding balance of note payable amounted to $14,772,293. On October 5, 2023, $3,143,134 was added to the principal of Note 2 related to the termination of Notes 4 and 5 and addition of the standstill fee (see above). During the nine months ended December 31, 2023, principal payments of $4,364,081 were made. As of December 31, 2023, outstanding balance of note payable amounted to $13,551,346. NOTE PAYABLE AGREEMENT 3  On May 20, 2022, the Company issued a note payable (“Note 3) to a third-party investor. The note was for $6,015,000, matures on May 20, 2024, and is secured by all the assets of the Company. The Company received cash proceeds of $4,700,000, resulting in a discount of $1,315,000 made up of an original issue discount (“OID”) of $1,000,000, commission of $300,000 that was paid from proceeds, and $15,000 to cover transaction expenses. In addition, the Company is required to accrue a monthly PIK fee equal to 0.833% of the outstanding balance, which is in substance interest at an annual rate of approximately 10%, that is added to the note principal each month. The debt less discount and transaction expenses will be accreted over the term of the note using the effective interest rate method.  At March 31, 2023, the outstanding balance of Note 3 was $6,015,000. On October 5, 2023, $2,164,829 was added to the principal of Note 3 related to the termination of Notes 4 and 5 and addition of the standstill fee (see above). During the nine months ended December 31, 2023, principal payments of $1,814,180 were made. As of December 31, 2023, the outstanding balance of Note 3 was $6,365,649. During the nine month period ended December 31, 2023, debt discount amortization of $493,125 was recorded. At December 31, 2023, the unamortized debt discount was $273,958. NOTE PAYABLE AGREEMENTS 4 and 5 In August 2023, the Company issued two notes payable to two third party investors (“Notes 4 and 5”) , with a face value of $7,810,000 in exchange for cash of $6,500,000 or an original issue discount of $1,310,000. The notes were secured by all tangible and intangible assets of the Company and will mature in 24 months or in August 2025. The notes did not bear any interest; however, the implied annual interest rate is 9.5% based upon the OID rate of 19% and annual monitoring fee of 9.9%. As a result, the Company recorded a debt discount of $1,310,000 to account the note's original issue discount, commission and direct costs computed which is being amortized over interest expense over the term of the note payable. On October 2023, the Company and the noteholders amended the two notes payable. As part of the amendment, the Company paid the noteholder $3 million in principal and the remaining balance of $4,810,000 and accrued interest of $130,657, was transferred and added to the outstanding principal balance of Note 2 for $2,775,828 and Note 3 for $2,164,829, issued in May 2022 and October 2022, respectively. In addition, the Company also incurred additional fees of $367,306 as part of the amendment of notes payable 4 and 5, which was added to Note 2. In addition, the Company also expensed the entire debt discount of $1,310,000. As of result of these amendments, notes payable 4 and 5 were extinguished and cancelled by the noteholder. LINE OF CREDIT In November 2023, the Company executed a line of credit (LOC) with a third party financing company, Streeterville Capital LLC. Pursuant to the LOC agreement, the Company can loan up to $10 million at a rate of 10% per annum and a 20% original issue discount for a period of one year. The LOC is secured by all tangible and intangible assets of the Company. The Company has not yet made advances or drawdowns against the LOC.

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Going Concern	Going Concern The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying unaudited financial statements, for the nine months ended December 31, 2023, the Company recorded a net loss of $5,968,086 and used cash in operations of $7,203,676. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm in its report on the Company’s March 31, 2023 financial statements, raised substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.   In evaluating the going concern position of the company, management has considered potential funding providers and believes that financing to fund future operations could be provided by equity and/or debt financing. There can be no assurance that funding would be available, or that the terms of such funding would be on favorable terms if available. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in the case of equity financing.
Basis of Presentation	Basis of Presentation   The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. However, such information reflects all adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for a fair presentation of the financial condition and results of operations for the interim periods. The results for the three and nine months ended December 31, 2023 are not indicative of annual results. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2023.   The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Company’s subsidiaries. References to “we”, “us”, “our”, or the “Company” refer to Nemaura Medical Inc. and its consolidated subsidiaries. The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP, and all significant intercompany balances and transactions have been eliminated in consolidation.   The functional currency for the majority of the Company’s operations is the Great Britain Pound Sterling (“GBP”), and the reporting currency is the U.S. Dollar (“USD”). Financial statements for foreign subsidiaries are translated into USD using period end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses.
Use of Estimates	Use of Estimates   The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant estimates include the assumptions used in the accrual for potential liabilities, the net realizable value of inventory, the valuation of debt and equity instruments, the fair value of derivative liabilities, valuation of stock options issued for services, and deferred tax valuation allowances. Actual results may differ from those estimates.
Revenue Recognition	Revenue Recognition   The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which include (1) identifying the contract or agreement with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied.
Deferred Revenues	Deferred Revenues   In March 2014, the Company executed an Exclusive Marketing Rights agreement with Dallas Burston Pharma (“DB Pharma”)(now known as MySugarWatch Limited “MSW”), a Jersey (Channel Island) based company for the exclusive right to sell the Company’s SugarBEAT® device in the UK and Republic of Ireland, both direct to consumer and through prescriptions by general practitioners. The agreement has a term of five years and automatically renewed for another five years unless terminated by either party. As part of the agreement, the Company received a non-refundable upfront fee of £1 million ($1.6 million). Pursuant to current accounting guidelines, the Company recorded the upfront fee of £1 million as a deferred revenue (i.e. liability) and is being amortized to revenues based upon the corresponding sale of the Company’s SugarBEAT devices. As of December 31, 2023 and March 31, 2023, the outstanding deferred revenues amounted to $1,184,412 and $1,145,451, respectively or approximately £875,000GBP. The agreement is scheduled to expire in March 2024, however, the Company expects that it will be renewed for another five years based upon the ongoing relationship with MSW.
Cash and cash equivalents	Cash and cash equivalents   Cash and cash equivalents consists primarily of cash deposits maintained in the United Kingdom (“UK”). We maintain cash balances in U.S. Dollar (“USD”), Great Britain Pound Sterling (“GBP”), and the Euro. The following table, reported in USD, disaggregates our cash balances by currency denomination: Schedule of cash and cash equivalents                 December 31, 2023     March 31, 2023 (audited)   Cash denominated in:                 USD   $ 13,169     $ 5,606,972   GBP     65,925       4,446,720   Euro     58,322       51,443   Total   $ 137,416     $ 10,105,135
Inventory	Inventory   As of December 31, 2023 and March 31, 2023, inventory consisted of the following: Schedule of inventory                 December 31, 2023     March 31, 2023, (audited)                 Raw materials   $ 3,553,811     $ 1,586,777   Finished goods     117,722       168,075   Total Inventories   $ 3,671,533     $ 1,754,852     Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (“FIFO”) basis. For the nine months ended December 31, 2023, there were additional general write-downs of inventory of approximately $104,000.
Research and development expenses	Research and development expenses   The Company charges research and development expenses to operations as incurred. Research and development expenses primarily consist of salaries and related expenses for personnel and outside contractor and consulting services. Other research and development expenses include the costs of materials and supplies used in research and development, prototype manufacturing, clinical studies, related information technology and an allocation of facilities costs.
Loss per share	Loss per share Basic loss per share is computed by dividing the loss available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted loss per common share reflects the potential dilution that could occur if convertible debentures, options and warrants were to be exercised or converted or otherwise resulted in the issuance of common stock that then shared in the earnings of the entity. Since the effects of outstanding options and warrants are anti-dilutive for the nine months ended December 31, 2023 and 2022, shares of common stock underlying these instruments have been excluded from the computation of loss per common share. The following sets forth the number of shares of common stock underlying outstanding options and warrants as of December 31, 2023 and 2022: Schedule of common stock underlying outstanding options                 December 31,     December 31,       2023     2022                 Stock Warrants     5,233,551       1,573,098   Stock options     40,000       40,000         5,273,551       1,613,098
Stock-Based Compensation	Stock-Based Compensation   The Company periodically issues share-based awards to employees and non-employees and consultants for services rendered. Stock options vest and expire according to terms established at the issuance date of each grant. Stock grants are measured at the grant date fair value. Stock-based compensation cost is measured at fair value on the grant date and is generally recognized as a charge to operations ratably over the requisite service, or vesting, period. Recognition of compensation expense for non-employees is in the same period and manner as if the Company had paid cash for the services.   The Company values its equity awards using the Black-Scholes option-pricing model, and accounts for forfeitures when they occur. Use of the Black-Scholes option pricing model requires the input of subjective assumptions, including expected volatility, expected term, and a risk-free interest rate. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. The expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The risk-free interest rate is estimated using comparable published federal funds rates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments   The authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required. Fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties.   The three levels of the fair value hierarchy are as follows:   Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.   Level 2 - Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.   Level 3 - Valuations based on inputs that are unobservable, supported by little or no market activity and that are significant to the fair value of the assets or liabilities.   The Foreign exchange contract derivative liability is valued using Level 2 fair values while the warrant liability is valued using Level 3 fair values.   The following table sets forth by level, within the fair value hierarchy, the Company’s financial assets and liabilities at fair value as of December 31, 2023 and March 31, 2023: Schedule of assets and liabilities at fair value                             December 31, 2023       Level 1     Level 2     Level 3     Total   Assets                               Total assets   $ —       $ —       $ —       $ —                                       Liabilities                                 Foreign exchange contract derivative liability   $ —       $ 242,295     $ —       $ 242,295   Warrant derivative liability     —         —         492,000       492,000   Total liabilities   $ —       $ 242,295     $ 492,000     $ 734,295                                 March 31, 2023 (audited)       Level 1     Level 2     Level 3     Total   Assets                               Total assets   $ —       $ —       $ —       $ —                                       Liabilities                                 Foreign exchange contract derivative liability   $ —       $ 731,730     $ —       $ 731,730   Warrant derivative liability     —         —         3,092,000       3,092,000   Total liabilities   $ —       $ 731,730     $ 3,092,000     $ 3,823,730     The following table provides a roll-forward of the warrant derivative liability measured at fair value on a recurring basis using unobservable level 3 inputs for the nine months ended December 31, 2023: Schedule of warrant derivative liability measured at fair value on a recurring basis       Warrant derivative liability       Balance as of beginning of period – March 31, 2023   $ 3,092,000   Change in fair value of warrant derivative liability   (2,600,000 ) Balance as of end of period – December 31, 2023   $ 492,000     As of December 31, 2023 and March 31, 2023, the Company’s outstanding warrants were treated as derivative liabilities and changes in the fair value were recognized in earnings (see Note 3).   The Company believes the carrying amounts of certain financial instruments, including cash, accounts receivable, and accounts payable and accrued liabilities, approximate fair value due to the short-term nature of such instruments and are excluded from the fair value tables above.
Inflation	Inflation   The Company does not believe that inflation has had a material effect on its operations to date, other than its impact on the general economy. However, there is a risk that the Company’s operating costs could become subject to inflationary and interest rate pressures in the future, which would have the effect of increasing the Company’s operating costs (including, specifically, clinical trial costs in countries where the Company is applying to sell its products), and which would put additional stress on the Company’s working capital resources.
Recent accounting pronouncements	Recent accounting pronouncements Management believes that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would not have a material effect on the Company’s unaudited condensed consolidated financial statements.

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Schedule of cash and cash equivalents	Schedule of cash and cash equivalents                 December 31, 2023     March 31, 2023 (audited)   Cash denominated in:                 USD   $ 13,169     $ 5,606,972   GBP     65,925       4,446,720   Euro     58,322       51,443   Total   $ 137,416     $ 10,105,135
Schedule of inventory	Schedule of inventory                 December 31, 2023     March 31, 2023, (audited)                 Raw materials   $ 3,553,811     $ 1,586,777   Finished goods     117,722       168,075   Total Inventories   $ 3,671,533     $ 1,754,852
Schedule of common stock underlying outstanding options	Schedule of common stock underlying outstanding options                 December 31,     December 31,       2023     2022                 Stock Warrants     5,233,551       1,573,098   Stock options     40,000       40,000         5,273,551       1,613,098
Schedule of assets and liabilities at fair value	Schedule of assets and liabilities at fair value                             December 31, 2023       Level 1     Level 2     Level 3     Total   Assets                               Total assets   $ —       $ —       $ —       $ —                                       Liabilities                                 Foreign exchange contract derivative liability   $ —       $ 242,295     $ —       $ 242,295   Warrant derivative liability     —         —         492,000       492,000   Total liabilities   $ —       $ 242,295     $ 492,000     $ 734,295                                 March 31, 2023 (audited)       Level 1     Level 2     Level 3     Total   Assets                               Total assets   $ —       $ —       $ —       $ —                                       Liabilities                                 Foreign exchange contract derivative liability   $ —       $ 731,730     $ —       $ 731,730   Warrant derivative liability     —         —         3,092,000       3,092,000   Total liabilities   $ —       $ 731,730     $ 3,092,000     $ 3,823,730
Schedule of warrant derivative liability measured at fair value on a recurring basis	Schedule of warrant derivative liability measured at fair value on a recurring basis       Warrant derivative liability       Balance as of beginning of period – March 31, 2023   $ 3,092,000   Change in fair value of warrant derivative liability   (2,600,000 ) Balance as of end of period – December 31, 2023   $ 492,000

v3.24.0.1

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
Schedule of related party transactions	Schedule of related party transactions                 Nine Months Ended December 31, 2023 (unaudited)     Nine Months Ended December 31, 2022 (unaudited)    Due to (from) related parties at beginning of period   $ 920,782     $ (101,297 ) Amounts invoiced by Pharma to DDL, NM and TCL, primarily relating to research and development expenses     4,211,705       2,833,546   Amounts invoiced by DDL to Pharma     —         (3,159 ) Amounts received from Pharma     —         4,452   Amounts paid by DDL to Pharma     (4,311,770 )     (2,789,939 ) Foreign exchange differences     (20,314 )     31,077   Due to (from) related parties at end of period   $ 800,403     $ (25,320 )

v3.24.0.1

DERIVATIVE LIABILITIES (Tables)	9 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of warrant liability	Schedule of warrant liability                 December 31, 2023 (unaudited)     March 31, 2023   Warrant liability:                 Stock price   $ 0.22     $ 0.90   Risk-free interest rate     3.84 %     3.60 % Expected volatility     110 %     108 % Expected life (in years)     4.59       5.34   Expected dividend yield     —         —     Fair value of Warrant liability   $ 492,000     $ 3,092,000
Schedule of fair value of the foreign currency contract liability	Schedule of fair value of the foreign currency contract liability                 December 31, 2023     March 31, 2023   Notional Amount   $ 2,000,000     $ 4,250,000   Leveraged amount (used to determine fair value of contract liability)   $ 4,000,000     $ 8,500,000   Expected remaining term (in months)     8       17                     Fair Value:                 Foreign currency contract liability   $ 242,295     $ 731,730

v3.24.0.1

NOTES PAYABLE (Tables)	9 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Schedule of notes payable	Schedule of notes payable                 December 31, 2023  (unaudited)     March 31, 2023                  Note Payable Agreement 2   $ 13,551,346     $ 14,772,293   Note Payable Agreement 3     6,365,649       6,024,941   Note Payable Agreements 4 and 5     —         —        Total notes payable     19,916,995       20,797,234   Unamortized debt discount     (273,957 )     (767,083 ) Notes payable, net of note discounts     19,643,038       20,030,151   Current portion     (19,643,038 )     (16,942,500 ) Non-current portion   $ —       $ 3,087,651

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Total cash and cash equivalents	$ 137,416	$ 10,105,135
United States of America, Dollars
Total cash and cash equivalents	13,169	5,606,972
United Kingdom, Pounds
Total cash and cash equivalents	65,925	4,446,720
Euro Member Countries, Euro
Total cash and cash equivalents	$ 58,322	$ 51,443

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Accounting Policies [Abstract]
Raw materials	$ 3,553,811	$ 1,586,777
Finished goods	117,722	168,075
Total Inventories	$ 3,671,533	$ 1,754,852

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - shares	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Warrant outstanding	5,273,551	1,613,098
Stock Warrants [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Warrant outstanding	5,233,551	1,573,098
Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Warrant outstanding	40,000	40,000

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS (Details 3) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Platform Operator, Crypto-Asset [Line Items]
Total assets	$ 0	$ 0
Foreign exchange contract derivative liability	242,295	731,730
Warrant derivative liability	492,000	3,092,000
Total liabilities	734,295	3,823,730
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto-Asset [Line Items]
Total assets	0	0
Foreign exchange contract derivative liability	0	0
Warrant derivative liability	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto-Asset [Line Items]
Total assets	0	0
Foreign exchange contract derivative liability	242,295	731,730
Warrant derivative liability	0	0
Total liabilities	242,295	731,730
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto-Asset [Line Items]
Total assets	0	0
Foreign exchange contract derivative liability	0	0
Warrant derivative liability	492,000	3,092,000
Total liabilities	$ 492,000	$ 3,092,000

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS (Details 4) - Fair Value, Inputs, Level 3 [Member]	9 Months Ended
	Dec. 31, 2023 USD ($)
Platform Operator, Crypto-Asset [Line Items]
Warrant derivative liability, beginning balance	$ 3,092,000
Change in fair value of warrant derivative liability	(2,600,000)
Warrant derivative liability, ending balance	$ 492,000

v3.24.0.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	9 Months Ended
	Dec. 31, 2023 USD ($)
Accounting Policies [Abstract]
Net loss	$ 5,968,086
Net cash in operations	7,203,676
Additional inventory write down	$ 104,000

v3.24.0.1

RELATED PARTY TRANSACTIONS (Details) - USD ($)	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Related Party Transactions [Abstract]
Due to (from) related parties at beginning of period	$ 920,782	$ (101,297)
Amounts invoiced by Pharma to DDL, NM and TCL primarily relating to research and development expenses	4,211,705	2,833,546
Amounts invoiced by DDL to Pharma	0	(3,159)
Amounts received from Pharma	0	4,452
Amounts paid by DDL to Pharma	(4,311,770)	(2,789,939)
Foreign exchange differences	(20,314)	31,077
Due to (from) related parties at end of period	$ 800,403	$ (25,320)

v3.24.0.1

DERIVATIVE LIABILITIES (Details) - Warrant [Member] - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2023	Mar. 31, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Stock price	$ 0.22	$ 0.90
Risk-free interest rate	3.84%	3.60%
Expected volatility	110.00%	108.00%
Expected life (in years)	4 years 7 months 2 days	5 years 4 months 2 days
Expected dividend yield	0.00%	0.00%
Fair value of Warrant liability	$ 492,000	$ 3,092,000

v3.24.0.1

DERIVATIVE LIABILITIES (Details 1) - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2023	Mar. 31, 2023	Jul. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Notional amount	$ 2,000,000	$ 4,250,000	$ 6,250,000
Leveraged amount (used to determine fair value of contract liability)	$ 4,000,000	$ 8,500,000	$ 12,500,000
Expected remaining term (in months)	8 months	17 months
Foreign currency contract liability	$ 242,295	$ 731,730

v3.24.0.1

DERIVATIVE LIABILITIES (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Jan. 31, 2023	Dec. 31, 2023	Mar. 31, 2023	Jul. 31, 2022
Derivatives, Fair Value [Line Items]
Warrants issued	4,796,206
Volatility interest rate	100.00%
Notional amount		$ 2,000,000	$ 4,250,000	$ 6,250,000
Leveraged amount		$ 4,000,000	8,500,000	$ 12,500,000
Description of conversion terms for debt instrument		On each monthly settlement date, if the USD/GBP spot rate is above $1.359, the Company has the right to convert $250,000 USD into GBP at a fixed rate of $1.359. If the spot rate is between $1.359 and $1.319 on the settlement date, the Company has no obligations, but can convert $250,000 USD into GBP at the spot rate. Finally, if the spot rate is below $1.319 on the monthly settlement date, the Company is obligated to convert $500,000 USD (the settlement date leveraged amount) into GBP at the fixed rate of $1.359. Alternatively, instead of selling $500,000 USD, the Company can pay the difference in the spot rate and the $1.359 exchange rate for $500,000 USD (net settle) to the counterparty
Prepaid Expenses and Other Receivables [Member]
Derivatives, Fair Value [Line Items]
Deposit on foreign exchange contract		$ 146,434	$ 909,666

v3.24.0.1

NOTES PAYABLE (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Short-Term Debt [Line Items]
Total notes payable	$ 19,916,995	$ 20,797,234
Unamortized debt discount	(273,957)	(767,083)
Notes payable, net of note discounts	19,643,038	20,030,151
Current portion	(19,643,038)	(16,942,500)
Non-current portion	0	3,087,651
Note Payable Agreement 2 [Member]
Short-Term Debt [Line Items]
Total notes payable	13,551,346	14,772,293
Note Payable Agreement 3 [Member]
Short-Term Debt [Line Items]
Total notes payable	6,365,649	6,024,941
Note Payable Agreements 4 and 5 [Member]
Short-Term Debt [Line Items]
Total notes payable	$ 0	$ 0

v3.24.0.1

NOTES PAYABLE (Details Narrative) - USD ($)							9 Months Ended
	Nov. 30, 2023	Oct. 31, 2023	Oct. 05, 2023	Aug. 31, 2023	May 20, 2022	Feb. 08, 2021	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023	Oct. 31, 2022
Debt Instrument [Line Items]
Original issue discount							$ 19,916,995		$ 20,797,234
Amortization of debt discount							1,803,126	$ 4,152,437
Unamortized debt discount							273,957		767,083
Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit description	the Company can loan up to $10 million at a rate of 10% per annum and a 20% original issue discount for a period of one year
Secured Note [Member] | Investor [Member] | Note Payable Agreement 2and 3 [Member]
Debt Instrument [Line Items]
Standstill fee			$ 1,300,000
Debt instrument periodic payment principal			3,000,000
Notes Payable, Increase in Principal Payments			4,940,657
Secured Note [Member] | Investor [Member] | Note Payable Agreements 4 and 5 [Member]
Debt Instrument [Line Items]
Standstill fee		$ 367,306
Notes payable		4,810,000	7,940,657
Debt instrument face value				$ 7,810,000
Original issue discount				1,310,000
Amortization of debt discount		1,310,000
Unamortized debt discount				1,310,000
Cash received from issue of notes payable				$ 6,500,000
Interest rate				9.50%
OID rate				19.00%
Monetary fee rate				9.90%
Repayment of notes payable		3,000,000
Accrued interest		130,657
Secured Note [Member] | Investor [Member] | Note Payable Agreement 2 [Member]
Debt Instrument [Line Items]
Notes payable							13,551,346		14,772,293
Debt instrument periodic payment principal							4,364,081
Notes Payable, Increase in Principal Payments		2,775,828	3,143,134
Debt instrument face value						$ 24,015,000
Maturity date						Feb. 09, 2023
Debt instrument periodic payment						$ 1,000,000
Interest rate						10.00%
Aggregate fees										$ 2,304,539
Secured Note [Member] | Investor [Member] | Note Payable Agreement 3 [Member]
Debt Instrument [Line Items]
Notes payable							6,365,649		$ 6,015,000
Debt instrument periodic payment principal							1,814,180
Notes Payable, Increase in Principal Payments		$ 2,164,829	$ 2,164,829
Debt instrument face value					$ 6,015,000
Interest rate					10.00%
Cash proceeds					$ 4,700,000
Debt discount					1,315,000
Original issue discount					1,000,000
Commissions paid					300,000
Transaction expenses					$ 15,000
Amortization of debt discount							493,125
Unamortized debt discount							$ 273,958

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