Modular Medical (MODD) POS AM 22 Jul 20 2020 FY Prospectus update (post-effective amendment) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Mar. 31, 2020
Document And Entity Information
Entity Registrant Name	Modular Medical, Inc.
Entity Central Index Key	0001074871
Document Type	POS AM
Document Period End Date	Mar. 31, 2020
Amendment Flag	true
Amendment Description	This Post-Effective Amendment No. 1 to Form S-1 (this “Post-Effective Amendment”) is being filed pursuant to our registration statement on Form S-1 (Registration No. 333-237615) (the “Registration Statement”), which was previously declared effective by the Securities and Exchange Commission (the “SEC” or the “Commission”) on May 11, 2020, to (i) include the consolidated financial statements, the notes thereto and certain other information included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020, as filed with the SEC on June 29, 2020, and (ii) update certain other information in the Registration Statement. No additional securities are being registered under this Post-Effective Amendment. All applicable registration fees were paid at the time of the original filing of the Registration Statement.
Entity Filer Category	Non-accelerated Filer
Entity Incorporation State Country Code	NV
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2020	Mar. 31, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 3,122,134	$ 6,553,768
Prepaid expenses and other	64,159	15,590
TOTAL CURRENT ASSETS	3,186,293	6,569,358
Intangible assets, net	0	180
Property and equipment, net	301,308	75,948
Security deposit	100,000	7,500
Right of use asset, net	270,950	0
TOTAL NON-CURRENT ASSETS	672,258	83,628
TOTAL ASSETS	3,858,551	6,652,986
CURRENT LIABILITIES
Accounts payable	367,019	138,314
Accrued expenses	202,160	40,615
Short-term lease liability	92,214	0
TOTAL CURRENT LIABILITIES	661,393	178,929
Commitments and Contingencies
Long-term lease liability	178,736	0
Other liability	140,000	0
TOTAL LIABILITIES	980,129	178,729
STOCKHOLDERS' EQUITY
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding	0	0
Common Stock, $0.001 par value, 50,000,000 shares authorized, 17,870,261 shares and 17,840,261 shares issued and outstanding as of March 31, 2020 and 2019, respectively	17,870	17,840
Additional paid-in capital	10,505,592	9,684,578
Common stock issuable	923,994	19,800
Accumulated deficit	(8,569,034)	(3,248,161)
TOTAL STOCKHOLDERS' EQUITY	2,878,422	6,474,057
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 3,858,551	$ 6,652,986

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Mar. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	17,870,261	17,840,261
Common stock, shares outstanding	17,870,261	17,840,261

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating Expenses:
Research and development	$ 3,034,152	$ 1,882,345
General and administration expenses	2,313,870	694,954
Total Operating Expenses	5,348,022	2,577,299
Loss From Operations	(5,348,022)	(2,577,299)
Other Income (Expenses):
Interest income	28,749	39,390
Loss Before Income Taxes	(5,319,273)	(2,537,909)
Provision for Income Taxes	1,600	1,589
Net Loss	$ (5,320,873)	$ (2,539,498)
Net Loss Per Share:
Basic and Diluted	$ (0.3)	$ (0.15)
Weighted average number of shares used in computing basic and diluted net loss per share:
Basic and Diluted	17,864,769	16,589,633

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders' Equity - USD ($)	Preferred Stock	Common Stock	Additional Paid In Capital	Common Stock Issuable	Accumulated Deficit	Total
Beginning balance, shares at Mar. 31, 2018	0	15,983,273
Beginning balance, amount at Mar. 31, 2018	$ 0	$ 15,983	$ 5,011,661	$ 0	$ (708,663)	$ 4,318,981
Shares issued for services, amount				19,800		19,800
Shares issued for cash, shares		1,856,988
Shares issued for cash, amount		$ 1,857	4,140,809			4,142,666
Stock based compensation			532,108			532,108
Net loss					(2,539,498)	(2,539,498)
Ending balance, shares at Mar. 31, 2019	0	17,840,261
Ending balance, amount at Mar. 31, 2019	$ 0	$ 17,840	9,684,578	$ 19,800	(3,248,161)	$ 6,474,057
Placement of common stock				19,800		6,474,057
Shares issued for services, shares		30,000
Shares issued for services, amount		$ 30	19,770	$ (19,800)		$ 0
Stock based compensation			801,244			801,244
Net loss					(5,320,873)	(5,320,873)
Ending balance, shares at Mar. 31, 2020	0	17,870,261
Ending balance, amount at Mar. 31, 2020	$ 0	$ 17,870	$ 10,505,592	$ 923,994	$ (8,569,034)	$ 2,878,422

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (5,320,873)	$ (2,539,498)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	801,244	532,108
Depreciation and amortization	35,431	14,468
Shares for services	0	19,800
Increase/Decrease in Current Assets/Liabilities:
Prepaid expenses and other assets	(48,391)	1,214
Security deposits	(92,500)	0
Accounts payable and accrued expenses	530,250	163,974
Net cash used in operating activities	(4,094,839)	(1,807,934)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(260,789)	(77,124)
Net cash used in investing activities	(260,789)	(77,124)
Cash Flows from Financing Activities
Proceeds from private placement	923,994	4,142,666
Repayment to related party	0	(516)
Net cash provided by financing activities	923,994	4,142,150
Net increase in cash and cash equivalents	(3,431,634)	2,257,092
Cash and cash equivalents, at the beginning of the period	6,553,768	4,296,676
Cash and cash equivalents, at the end of the period	3,122,134	6,553,768
SUPPLEMENTAL DISCLOSURES:
Cash paid during the year for income tax	$ 1,600	$ 1,589

THE COMPANY AND SUMMARY OF SIGN

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Modular Medical, Inc. (the Company) was incorporated in Nevada in October 1998 under the name Bear Lake Recreation, Inc. The Company had no material business operations from 2002 until approximately 2017 when it acquired all of the issued and outstanding shares of Quasuras, Inc., a Delaware corporation (Quasuras). As the major shareholder of Quasuras retained control of both the Company and Quasuras, the share exchange was accounted for as a reverse merger. As such, the Company recognized the assets and liabilities of Quasuras, acquired in the merger, at their historical carrying amounts. Prior to the acquisition of Quasuras and, since at least 2002, the Company was a shell company, as defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In June 2017, the Company changed its name from Bear Lake Recreation, Inc. to Modular Medical, Inc. The Company is a development-stage medical device company focused on the design, development and eventual commercialization of an innovative insulin pump to address shortcomings and problems represented by the relatively limited adoption of currently available pumps for insulin-dependent people with diabetes. The Company has developed a hardware technology allowing people with insulin-dependent diabetes to receive their daily insulin in two ways, through a continuous “basal” delivery allowing a small amount of insulin to be in the blood at all times and a “bolus” delivery to address meal time glucose input and to address when the blood glucose level becomes excessively high. By addressing the time and effort required to effectively treat their condition, the Company believes it can address the less technically savvy, less motivated part of the market. The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America. The following summarizes the more significant of such policies: Liquidity Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) No. 2014-15 (ASU 2014-15), Going The Company expects to continue to incur operating losses for the foreseeable future and incur cash outflows from operations as it continues to invest in the development and subsequent commercialization of its product. The Company expects that its research and development and general and administrative expenses will continue to increase, and, as a result, it will eventually need to generate significant product revenues to achieve profitability. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. Implementation of the Company’s plans and its ability to continue as a going concern will depend upon the Company’s ability to raise additional capital, through the sale of additional equity or debt securities, to support its future operations. There can be no assurance that such additional capital, whether in the form of debt or equity financing, will be sufficient or available and, if available, that such capital will be offered on terms and conditions acceptable to the Company. As discussed in Notes 6 and 11, the Company is currently pursuing additional equity financing through a private placement of its common stock and a public offering of its preferred units. In addition, the Company obtained a loan from Silicon Valley Bank in April 2020. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its product, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product offering. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. These consolidated financial statements do not include any adjustments that might result from this uncertainty. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Quasuras, Inc. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on March 31 of each calendar year. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. generally accepted accounting principles (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 amount of revenues and expenses during the reporting period. Estimates may include those pertaining to accruals, stock-based compensation and income taxes. Actual results could differ from those estimates. Reportable Segment The Company operates in one business segment and uses one measurement of profitability for its business. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are deposited with high credit-quality institutions within the United States, which are insured by the Federal Deposit Insurance Corporation (FDIC) up to limits of approximately $250,000. Risks and Uncertainties The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history and the volatility of public markets. COVID-19 The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020. This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in-place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of the Company’s control, and cannot be predicted. Cash and Cash Equivalents Cash and cash equivalents include cash in hand and cash in demand deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less. Property & Equipment Property and equipment are originally recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in operating expenses in the consolidated statements of operations. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and amortization is recorded in operating expenses in the consolidated statements of operations. Fair Value of Financial Instruments The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: · Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Due to their short-term nature, the carrying values of cash equivalents, accounts payable and accrued expenses, approximate fair value. Research and Development The Company expenses research and development expenditures as incurred. General and Administrative General and administrative expense consists primarily of payroll and benefit related costs, rent, office expenses, equipment supplies and meetings and travel. Stock-Based Compensation The Company recognizes stock-based compensation for stock options granted to employees and non-employees on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The Company estimates the value of stock options on the date of grant using the Black-Scholes pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the option price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and projected stock option exercise behaviors. Per-Share Amounts Basic net loss per share is computed by dividing net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. For the years ended March 31, 2020 and 2019, 3,177,945 and 1,529,908 outstanding options to purchase common stock were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Income Taxes The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases of the Company’s assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. Based on the available information and other factors, management believes it is more likely than not that its federal and state net deferred tax assets will not be fully realized, and the Company has recorded a full valuation allowance. The Company accounts for uncertain tax positions in accordance with FASB Accounting Standards Codification (ASC) Topic 740, Income Taxes The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. All tax returns from 2016 to 2019 may be subject to examination by the U.S. federal and state tax authorities. As of March 31, 2020, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions. Comprehensive Loss Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the years ended March 31, 2020 and 2019, the Company’s comprehensive loss was the same as its net loss. Recently Adopted Accounting Pronouncements In 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842 Leases (Topic 842): Targeted Improvements Leases (Topic 842): Codification Improvements, In 2018, the FASB issued ASU No. 2018-07 , Improvements to Nonemployee Share-Based Payment Accounting

CONSOLIDATED BALANCE SHEET DETA

CONSOLIDATED BALANCE SHEET DETAIL	12 Months Ended
	Mar. 31, 2020
Consolidated Balance Sheet Detail
CONSOLIDATED BALANCE SHEET DETAIL	March 31, Property and equipment, net: 2020 2019 Leasehold improvements $ 139,197 $ — Office equipment 112,198 49,724 Computer equipment and software 51,882 20,565 Machinery and equipment 49,723 21,937 Less: accumulated depreciation (51,692) (16,278) $ 301,308 $ 75,948 March 31, Accrued expenses 2020 2019 Accrued bonuses $ 172,500 $ 25,000 Wages and employee benefits 25,660 4,915 Professional fees and consulting 4,000 3,800 Other — 6,900 $ 202,160 $ 40,615

LEASES

LEASES	12 Months Ended
	Mar. 31, 2020
Leases [Abstract]
LEASES	As discussed in Note 1, effective April 1, 2019, the Company adopted ASC 842, as amended, using the alternative transition method, which allowed the Company to initially apply the new lease standard at the adoption date (the “effective date method”). In January 2020, the Company executed a lease for a new, larger corporate facility in San Diego, California and paid a $100,000 security deposit. with annual rent increases of approximately 3%. The Company obtained a right-of-use asset of $270,950 in exchange for is obligations under the operating lease. The landlord also provided a lease incentive of approximately $139,000, which was paid in June 2020, for the Company to make improvements to the leased space. Future minimum payments under the facility operating lease, net of the lease incentive, as of March 31, 2020 are listed in the table below. Operating Annual Fiscal Years lease 2021 $ 136,543 2022 153,432 2023 158,028 2024 40,692 Less: Imputed interest (78,548 ) Lease incentive (139,197) Present value of lease liabilities $ 270,950 Rent expense was $35,766 and $36,000 for the years ended March 31, 2020 and 2019, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	During the year ended March 31, 2020, the Company entered into consulting agreements with a member of its board of directors. Under the consulting agreements, during the year ended March 31, 2020, the Company paid the director consulting fees of $140,625

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Mar. 31, 2020
STOCKHOLDERS' EQUITY
STOCK-BASED COMPENSATION	Equity Compensation Plan In October 2017, the Company’s board of directors (the Board) approved the 2017 Equity Incentive Plan (the 2017 Plan) with 3,000,000 shares of common stock reserved for issuance. In January 2020, the Board approved an amendment to the 2017 Plan to increase the number of shares reserved for issuance by 1,000,000 shares. Under the 2017 Plan, eligible employees, directors and consultants may be granted a broad range of awards, including stock options, stock appreciation rights, restricted stock, performance-based awards and restricted stock units. The 2017 Plan is administered by the Board or, in the alternative, a committee designated by the Board. The exercise or purchase price of a stock option shall be calculated as follows: (i) In the case of an incentive stock option, (a) granted to employees, who, at the time of the grant of such incentive stock option own stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company, the per share exercise price shall be not less than one hundred ten percent (110%) of the fair market value per share on the date of grant; or (b) granted to employees, other than to employees, described in the preceding clause, the per share exercise price shall be not less than one hundred percent (100%) of the fair market value per share on the date of grant; (ii) In the case of a non-qualified stock option, the per share exercise price shall be not less than one hundred percent (100%) of the fair market value per share on the date of grant unless otherwise determined by the Board; and (iii) In the case of other grants, such price as determined by the Board. The Board is responsible for determining the consideration to be paid for the shares of common stock to be issued upon exercise or purchase. The 2017 Plan generally does not allow for the transfer of awards, and the Board may amend, suspend or terminate the 2017 Plan at any time. Stock-Based Compensation Expense The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant date fair value. The unamortized compensation cost, as of March 31, 2020 was $2,495,385 related to stock options and is expected to be recognized as expense over a weighted-average period of approximately 2.7 years. During the year ended March 31, 2020, options granted to purchase shares of its common stock to employees, directors and consultants had 10-year terms and a grant-date fair value of $2,839,373. Options to purchase 152,204 shares vested immediately on the grant dates. The following assumptions were used in the fair-value method calculations: Year ended March 31, 2020 2019 Risk-free interest rates 0.77% - 2.37 % 2.73 - 3.01% Volatility 86% - 103 % 71% - 112% Expected life (years) 5.0 - 6.0 5.0 - 6.0 Dividend yield —% —% The fair values of options at the grant date were estimated utilizing the Black-Scholes valuation model, which includes simplified methods to establish the fair term of options as well as average volatility of three comparable organizations. The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates, as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. A dividend yield of zero was applied because the Company has never paid dividends and has no intention to pay dividends in the foreseeable future. In accordance with ASU No. 2016-09, the Company accounts for forfeitures as they occur. A summary of stock option activity under the 2017 Plan is presented below: Shares Options Outstanding Available Number of Weighted Average for Grant Shares Exercise Price Balance at April 1, 2018 3,000,000 — — Options granted (1,529,908) 1,529,908 0.86 Balance at March 31, 2019 1,470,092 1,529,908 0.86 Additional shares authorized under the Plan 1,000,000 — — Options granted (1,717,204) 1,717,204 2.25 Options cancelled and returned to the Plan 69,167 (69,167) 2.25 Balance at March 31, 2020 822,055 3,177,945 1.58 There were no stock options exercised during the years ended March 31, 2020 and 2019. The following table summarizes the range of outstanding and exercisable options as of March 31, 2020: Options Outstanding Options Exercisable Range of Exercise Price Number Weighted Weighted Number Weighted Aggregate $0.66 - $2.48 3,177,945 9.08 $ 1.58 1,586,736 $ 0. 92 $ — The intrinsic value per share is calculated as the excess of the closing price of the common stock on the Company’s principal trading market over the exercise price of the option. The Company is required to present the tax benefits resulting from tax deductions in excess of the compensation cost recognized from the exercise of stock options as financing cash flows in the consolidated statements of cash flows. For the years ended March 31, 2020 and 2019, there were no such tax benefits associated with the exercise of stock options.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Mar. 31, 2020
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	In March 2020, the Company initiated a private placement of shares of its common stock (the 2020 Placement). As of March 31, 2020, the Company sold an aggregate of 321,950 shares of common stock, at a purchase price of $2.87 per share, for aggregate proceeds of approximately $924,000. As the 321,950 shares were issued by the Company’s transfer agent subsequent to March 31, 2020, the $924,000 has been recorded as common stock payable in the stockholders’ equity section of the consolidated balance sheet at March 31, 2020. Subsequent to March 31, 2020, the Company sold approximately 349,350 shares of common stock for aggregate proceeds of approximately $1,002,600. Under the terms of the common stock purchase agreements between the Company and the investors, the Company must use commercially reasonable efforts to file a registration statement with the SEC within 90 days of the closing of the 2020 Placement to register the shares of common stock sold in the 2020 Placement.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	The income tax provision (benefit) consisted of the following: Year Ended March 31, 2020 2019 Current portion: Federal $ — $ — State 1,600 1,589 1,600 1,589 Deferred portion: Federal (1,180,434) (582,782) State (391,865) (193,502) (1,572,299) (776,284) Change in valuation allowance 1,572,299 776,284 Provision for income taxes $ 1,600 $ 1,589 As of March 31, 2020, the Company had net operating loss carryforwards (NOLs) of approximately $7,000,000 for federal and state income tax purposes. These NOLs are available to reduce future taxable income and will expire at various times from 2037 through 2040, except federal NOLs from fiscal 2018, 2019 and 2020 which will never expire. The Company also had federal research and development tax credit carryforwards of approximately $179,000, which will begin expiring at various times from 2038 through 2040, and state research and development credits of approximately $74,000, which do not have an expiration date. A reconciliation of income taxes provided at the federal statutory rate (21% for fiscal 2020 and 2019) to the actual income tax provision is as follows: Year Ended March 31, 2020 2019 Federal statutory rate 21 % 21 % State tax rate, net of federal benefit 7 % 7 % Permanent differences — % — % Research and development tax credits 3 % 2 % Section 179 assets — % 1 % Change in valuation allowance (31) % (31) % Effective income tax rate — % — % Significant components of the Company’s deferred tax assets and liabilities were: March 31, 2020 2019 Net operating loss carryforwards $ 1,965,118 $ 758,799 Stock-based compensation expense 364,989 148,903 Property and equipment 6,842 2,172 Reserves, accruals & other (7,181 ) - Research and development tax credits 237,716 85,310 Total deferred tax assets 2,567,484 995,184 Less: valuation allowance (2,567,484 ) (995,184 ) Deferred tax assets, net $ - $ - Based on the available information and other factors, management believes it is more likely than not that the net deferred tax assets at March 31, 2020 and 2019, will not be fully realizable. Accordingly, management has recorded a full valuation allowance against its net deferred tax assets at March 31, 2020 and 2019. The valuation allowance increased by approximately $776,000 during fiscal 2019. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s consolidated financial statements at March 31, 2020 and 2019. The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date.

ROYALTY AGREEMENT

ROYALTY AGREEMENT	12 Months Ended
	Mar. 31, 2020
Royalty Agreement
ROYALTY AGREEMENT	In July 2017, the Company entered into a royalty agreement with its founder, chief executive officer and major shareholder (the Founder). Pursuant to the agreement, the Founder assigned and transferred all of his rights in the intellectual property of Quasuras in return for future royalty payments on the Company’s product. The Company is obligated to make royalty payments under the agreement to the Founder on any sales of the royalty product sold or otherwise commercialized by the Company equal to (a) $0.75 on each sale of a royalty product or (b) five percent (5%) of the gross sale price of the royalty product, whichever is less. The royalty payments will cease, and the agreement will terminate, at such time as the total sum of royalty payments actually paid to the Founder, pursuant to the agreement, reaches $10,000,000. The Company has the option to terminate the agreement at any time upon payment, to the Founder, of the difference between total royalty payments actually made to him to date and the sum of $10,000,000. All payments of the royalties, if due, for the preceding quarter, will be made by the Company to the Founder within thirty days after the end of each calendar quarter.

RETIREMENT SAVINGS PLAN

RETIREMENT SAVINGS PLAN	12 Months Ended
	Mar. 31, 2020
Retirement Savings Plan
RETIREMENT SAVINGS PLAN	Effective March 2020, the Company adopted the Modular Medical, Inc. 401(k) Plan (the Savings Plan), which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. Full-time and part-time employees who are at least 21 years of age are eligible to participate in the Savings Plan at the time of hire. Participants may contribute up to 15% of their earnings to the Savings Plan. The Plan became effective and began accepting participant contributions in April 2020.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Litigations, Claims and Assessments In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. The Company records legal costs associated with loss contingencies as incurred and accrues for all probable and estimable settlements. Indemnification In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify the counterparties from any losses incurred relating to breach of representations and warranties, failure to perform certain covenants, or claims and losses arising from certain events as outlined within the particular contract, which may include, for example, losses arising from litigation or claims relating to past performance. Such indemnification clauses may not be subject to maximum loss clauses. The Company has also entered into indemnification agreements with its officers and directors. No amounts were reflected in the Company’s consolidated financial statements for the years ended March 31, 2020 and 2019 related to these indemnifications. The Company has not estimated the maximum potential amount of indemnification liability under these agreements due to the limited history of prior claims and the unique facts and circumstances applicable to each particular agreement. To date, the Company has not made any payments related to these indemnification agreements.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Preferred Unit Public Offering On April 2, 2020, the Company’s board of directors authorized the designation of 2,000,000 shares of the Company’s preferred stock as 13% Series A Cumulative Redeemable Perpetual Preferred Stock (the Series A Preferred Stock). On April 9, 2020, the Company filed a registration statement on Form S-1 (No. 333-237615) with the SEC, which was declared effective on May 11, 2020, to register 2,000,000 preferred units (the Preferred Units) at a price of $25.00 per unit. Each Preferred Unit consists of (i) one share of Series A Preferred Stock with a $25.00 liquidation preference amount and (ii) three common stock purchase warrants, each to purchase one share of the Company’s common stock at an exercise price of $11.00 per share. To date, the Company has not sold any of the Preferred Units. PPP Loan On April 24, 2020, the Company received a $368,780 unsecured loan (the PPP Loan) under the Paycheck Protection Program (the PPP), which was established under the U.S. government’s Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The PPP Loan to the Company was made through Silicon Valley Bank (the Lender), and the Company entered into a U.S. Small Business Administration Paycheck Protection Program Note (the Agreement) with the Lender evidencing the PPP Loan. The term of the PPP Loan is two years. Interest will accrue on the outstanding principal balance of the PPP Loan at a fixed rate of 1.0%, which shall be deferred for the first six months of the term of the PPP Loan. Monthly payments will be due and payable beginning in October 2020 and continue each month thereafter until maturity of the PPP Loan. The Company may prepay principal of the PPP Loan at any time in any amount without penalty. The Agreement contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties or provisions of the PPP Loan. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, and/or filing suit and obtaining judgment against the Company. The Company may apply to the Lender for forgiveness of the PPP Loan, and the amount which may be forgiven will be equal to the sum of the payroll and benefit costs and covered rent and utility payments incurred by the Company, as calculated in accordance with the terms of the CARES Act. No assurance is provided that the Company will obtain forgiveness of the PPP Loan in whole or in part, but the Company intends to use the proceeds in accordance with the PPP Loan program.

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity	Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) No. 2014-15 (ASU 2014-15), Going The Company expects to continue to incur operating losses for the foreseeable future and incur cash outflows from operations as it continues to invest in the development and subsequent commercialization of its product. The Company expects that its research and development and general and administrative expenses will continue to increase, and, as a result, it will eventually need to generate significant product revenues to achieve profitability. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued. Implementation of the Company’s plans and its ability to continue as a going concern will depend upon the Company’s ability to raise additional capital, through the sale of additional equity or debt securities, to support its future operations. There can be no assurance that such additional capital, whether in the form of debt or equity financing, will be sufficient or available and, if available, that such capital will be offered on terms and conditions acceptable to the Company. As discussed in Notes 6 and 11, the Company is currently pursuing additional equity financing through a private placement of its common stock and a public offering of its preferred units. In addition, the Company obtained a loan from Silicon Valley Bank in April 2020. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its product, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product offering. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash. These consolidated financial statements do not include any adjustments that might result from this uncertainty.
Basis of Presentation	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Quasuras, Inc. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on March 31 of each calendar year.
Use of Estimates	The preparation of the accompanying consolidated financial statements in conformity with U.S. generally accepted accounting principles (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 amount of revenues and expenses during the reporting period. Estimates may include those pertaining to accruals, stock-based compensation and income taxes. Actual results could differ from those estimates.
Reportable Segment	The Company operates in one business segment and uses one measurement of profitability for its business.
Concentration of Credit Risk	Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are deposited with high credit-quality institutions within the United States, which are insured by the Federal Deposit Insurance Corporation (FDIC) up to limits of approximately $250,000.
Risks and Uncertainties	The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history and the volatility of public markets. COVID-19 The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020. This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in-place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of the Company’s control, and cannot be predicted.
Cash and Cash Equivalents	Cash and cash equivalents include cash in hand and cash in demand deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.
Property & Equipment	Property and equipment are originally recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in operating expenses in the consolidated statements of operations. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and amortization is recorded in operating expenses in the consolidated statements of operations.
Fair Value of Financial Instrument	The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: · Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. · Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. Due to their short-term nature, the carrying values of cash equivalents, accounts payable and accrued expenses, approximate fair value.
Research and Development	The Company expenses research and development expenditures as incurred.
General and Administration	General and administrative expense consists primarily of payroll and benefit related costs, rent, office expenses, equipment supplies and meetings and travel.
Stock-Based Compensation	The Company recognizes stock-based compensation for stock options granted to employees and non-employees on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The Company estimates the value of stock options on the date of grant using the Black-Scholes pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the option price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the term of the awards, and projected stock option exercise behaviors.
Per Share Amounts	Basic net loss per share is computed by dividing net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. For the years ended March 31, 2020 and 2019, 3,177,945 and 1,529,908 outstanding options to purchase common stock were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive.
Income Taxes	The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases of the Company’s assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. Based on the available information and other factors, management believes it is more likely than not that its federal and state net deferred tax assets will not be fully realized, and the Company has recorded a full valuation allowance. The Company accounts for uncertain tax positions in accordance with FASB Accounting Standards Codification (ASC) Topic 740, Income Taxes The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. All tax returns from 2016 to 2019 may be subject to examination by the U.S. federal and state tax authorities. As of March 31, 2020, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions.
Comprehensive Loss	Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the years ended March 31, 2020 and 2019, the Company’s comprehensive loss was the same as its net loss.
Recently Issued Accounting Pronouncements	In 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842 Leases (Topic 842): Targeted Improvements Leases (Topic 842): Codification Improvements, In 2018, the FASB issued ASU No. 2018-07 , Improvements to Nonemployee Share-Based Payment Accounting

CONSOLIDATED BALANCE SHEET DE_2

CONSOLIDATED BALANCE SHEET DETAIL (Tables)	12 Months Ended
	Mar. 31, 2020
Consolidated Balance Sheet Detail
Schedule of property, plant and equipment	March 31, Property and equipment, net: 2020 2019 Leasehold improvements $ 139,197 $ — Office equipment 112,198 49,724 Computer equipment and software 51,882 20,565 Machinery and equipment 49,723 21,937 Less: accumulated depreciation (51,692) (16,278) $ 301,308 $ 75,948
Schedule of accrued expenses	March 31, Accrued expenses 2020 2019 Accrued bonuses $ 172,500 $ 25,000 Wages and employee benefits 25,660 4,915 Professional fees and consulting 4,000 3,800 Other — 6,900 $ 202,160 $ 40,615

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Future minimum payments under operating lease	Operating Annual Fiscal Years lease 2021 $ 136,543 2022 153,432 2023 158,028 2024 40,692 Less: Imputed interest (78,548 ) Lease incentive (139,197) Present value of lease liabilities $ 270,950

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Mar. 31, 2020
STOCKHOLDERS' EQUITY
Fair-value assumptions	Year ended March 31, 2020 2019 Risk-free interest rates 0.77% - 2.37 % 2.73 - 3.01% Volatility 86% - 103 % 71% - 112% Expected life (years) 5.0 - 6.0 5.0 - 6.0 Dividend yield —% —%
Summary of stock option activity	Shares Options Outstanding Available Number of Weighted Average for Grant Shares Exercise Price Balance at April 1, 2018 3,000,000 — — Options granted (1,529,908) 1,529,908 0.86 Balance at March 31, 2019 1,470,092 1,529,908 0.86 Additional shares authorized under the Plan 1,000,000 — — Options granted (1,717,204) 1,717,204 2.25 Options cancelled and returned to the Plan 69,167 (69,167) 2.25 Balance at March 31, 2020 822,055 3,177,945 1.58
Range of outstanding and exercisable options	Options Outstanding Options Exercisable Range of Exercise Price Number Weighted Weighted Number Weighted Aggregate $0.66 - $2.48 3,177,945 9.08 $ 1.58 1,586,736 $ 0. 92 $ —

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax provision	Year Ended March 31, 2020 2019 Current portion: Federal $ — $ — State 1,600 1,589 1,600 1,589 Deferred portion: Federal (1,180,434) (582,782) State (391,865) (193,502) (1,572,299) (776,284) Change in valuation allowance 1,572,299 776,284 Provision for income taxes $ 1,600 $ 1,589
Income tax reconciliation	Year Ended March 31, 2020 2019 Federal statutory rate 21 % 21 % State tax rate, net of federal benefit 7 % 7 % Permanent differences — % — % Research and development tax credits 3 % 2 % Section 179 assets — % 1 % Change in valuation allowance (31) % (31) % Effective income tax rate — % — %
Summary of deferred tax assets	March 31, 2020 2019 Net operating loss carryforwards $ 1,965,118 $ 758,799 Stock-based compensation expense 364,989 148,903 Property and equipment 6,842 2,172 Reserves, accruals & other (7,181 ) - Research and development tax credits 237,716 85,310 Total deferred tax assets 2,567,484 995,184 Less: valuation allowance (2,567,484 ) (995,184 ) Deferred tax assets, net $ - $ -

ORGANIZATION AND SUMMARY OF S_2

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Dilutive securities excluded	3,177,945	1,529,908
Computer equipment and software | Minimum
Estimated useful life	3 years
Computer equipment and software | Maximum
Estimated useful life	5 years
Office equipment | Minimum
Estimated useful life	3 years
Office equipment | Maximum
Estimated useful life	5 years
Buildings and improvements | Minimum
Estimated useful life	3 years
Buildings and improvements | Maximum
Estimated useful life	5 years
Leasehold Improvements | Minimum
Estimated useful life	3 years
Leasehold Improvements | Maximum
Estimated useful life	5 years
Machinery and equipment | Minimum
Estimated useful life	3 years
Machinery and equipment | Maximum
Estimated useful life	5 years

CONSOLIDATED BALANCE SHEET DE_3

CONSOLIDATED BALANCE SHEET DETAIL (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019
Accumulated depreciation	$ (51,692)	$ (16,278)
Property and equipment, net	301,308	75,948
Leasehold Improvements
Property and equipment, gross	139,197	0
Office equipment
Property and equipment, gross	112,198	49,724
Computer equipment and software
Property and equipment, gross	51,882	20,565
Machinery and equipment
Property and equipment, gross	$ 49,723	$ 21,937

CONSOLIDATED BALANCE SHEET DE_4

CONSOLIDATED BALANCE SHEET DETAIL (Details 1) - USD ($)	Mar. 31, 2020	Mar. 31, 2019
Accrued expenses	$ 202,160	$ 40,615
Accrued bonuses
Accrued expenses	172,500	25,000
Wages and employee benefits
Accrued expenses	25,660	4,915
Professional fees and consulting
Accrued expenses	4,000	3,800
Other
Accrued expenses	$ 0	$ 6,900

CONSOLIDATED BALANCE SHEET DE_5

CONSOLIDATED BALANCE SHEET DETAIL (Details Narrative)	Mar. 31, 2020USD ($)
Consolidated Balance Sheet Detail
Stock options unamortized compensation cost	$ 2,495,385
Accrued employee bonuses - current	172,500
Accrued employee bonuses - noncurrent	140,000
Accrued employee bonuses	$ 312,500

LEASES (Details)

LEASES (Details)	Mar. 31, 2020USD ($)
Leases [Abstract]
2021	$ 136,543
2022	153,432
2023	158,028
2024	40,692
Less: Imputed interest	(78,548)
Less: Lease incentive	(139,197)
Present value of lease liabilities	$ 270,950

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Rent expense	$ 35,766	$ 36,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)	12 Months Ended
	Mar. 31, 2020USD ($)
Related Party Transactions [Abstract]
Consulting fees	$ 140,625
Payable to related party	$ 5,585

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details)	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Dividend yield	0.00%	0.00%
Minimum
Risk-free interest rates	0.77%	2.73%
Volatility	86.00%	71.00%
Expected life (years)	5 years	5 years
Maximum
Risk-free interest rates	2.37%	3.01%
Volatility	103.00%	112.00%
Expected life (years)	6 years	6 years

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details 1) - $ / shares	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
STOCKHOLDERS' EQUITY
Shares available for grant, beginning	1,470,092	3,000,000
Additional shares authorized	1,000,000	0
Granted	(1,717,204)	(1,529,908)
Cancelled	69,167	0
Shares available for grant, ending	822,055	1,470,092
Number of options outstanding, beginning	1,529,908	0
Number of options granted		1,529,908
Number of options cancelled		0
Number of options outstanding, ending		1,529,908
Weighted average exercise price outstanding, beginning	$ .86	$ .00
Weighted average exercise price granted	2.25	.86
Weighted average exercise price cancelled	2.25	.00
Weighted average exercise price outstanding, ending	$ 1.58	$ .86

STOCK-BASED COMPENSATION (Det_3

STOCK-BASED COMPENSATION (Details 2) - USD ($)	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018
Weighted average exercise price outstanding	$ 1.58	$ .86	$ .00
Option 1
Exercise price range	0.66-2.48
Number of options outstanding, ending	3,177,945
Weighted average remaining contractual life (in years)	9 years 29 days
Weighted average exercise price outstanding	$ 1.58
Number of options exercisable	1,586,736
Weighted average exercise price exercisable	$ 0.92
Aggregate intrinsic value exercisable	$ 0

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - $ / shares	Mar. 31, 2020	Mar. 31, 2019
STOCKHOLDERS' EQUITY
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	17,870,261	17,840,261
Common stock, shares outstanding	17,870,261	17,840,261

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Federal - current portion	$ 0	$ 0
State - current portion	1,600	1,589
Federal and state - current portion	1,600	1,589
Federal - deferred portion	(1,180,434)	(582,782)
State - deferred portion	(391,865)	(193,502)
Federal and state - deferred portion	(1,572,299)	(776,284)
Change in valuation allowance	1,572,299	776,284
Provision for income taxes	$ 1,600	$ 1,589

INCOME TAXES (Details 1)

INCOME TAXES (Details 1)	12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%
State tax rate, net of federal benefit	7.00%	7.00%
Permanent differences	0.00%	0.00%
Research and development tax credits	2.00%	3.00%
Section 179 assets	1.00%	0.00%
Changes in valuation allowance	(31.00%)	(31.00%)
Effective income tax rate	0.00%	0.00%

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Net operating loss carryforward	$ 1,965,118	$ 758,799
Stock-based compensation expense	364,989	148,903
Property and equipment	6,842	2,172
Reserves, accruals & other	(7,181)	0
Research and development tax credits	237,716	85,310
Total deferred tax assets	2,567,484	995,184
Less: Valuation allowance	(2,567,484)	(995,184)
Total deferred tax assets, net	$ 0	$ 0

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Net operating loss carry-forwards	$ 7,000,000
Change in valuation allowance		$ 776,000