Nemaura Medical (NMRD) 10-Q 12 Nov 15 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2015	Nov. 06, 2015
Document and Entity Information:
Entity Registrant Name	Nemaura Medical Inc.
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Entity Central Index Key	1,602,078
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding		200,000,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Assets, Current
Cash	$ 99,820	$ 354,749
Paid expenses and other receivables	78,561	164,004
Prepayment to related party	0	247,596
Total Current Assets	178,381	766,349
Other Assets
Property and equipment, net	20,910	13,669
Intangible assets, net of accumulated amortization	180,278	133,090
Assets, Noncurrent	201,188	146,759
Assets	379,569	913,108
Liabilities, Current
Accounts Payable	30,444	66,191
Other Liabilities and accrued expenses	202,428	937
Amounts due to related party	310,711	55,091
Total current liabilities	543,583	122,219
Liabilities, Noncurrent
Accrued expenses, net of current portion	0	170,000
Deferred Revenue	1,564,800	1,538,300
Liabilities, Noncurrent	1,564,800	1,708,300
Total liabilities	2,108,383	1,830,519
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $0.001 par value, 420,000,000 shares authorized and 200,000,000 shares issued and outstanding	200,000	200,000
Additional paid in capital	2,924,672	2,924,672
Accumulated deficit	(4,854,865)	(4,061,730)
Accumulated other comprehensive income	1,379	19,647
Total stockholders' deficit	(1,728,814)	(917,411)
Total liabilities and stockholders' equity (deficit)	$ 379,569	$ 913,108

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Mar. 31, 2015
Statement of Financial Position [Abstract]
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	420,000,000	420,000,000
Common Stock, Shares Issued	200,000,000	200,000,000
Common Stock, Shares Outstanding	200,000,000	200,000,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($)	3 Months Ended				6 Months Ended
	Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015		Sep. 30, 2014
Revenues
Total revenues	$ 0		$ 0		$ 0		$ 0
Operating Expenses
Research and development	330,735		251,333		595,014		413,819
General and administrative	59,574		104,552		198,120		211,316
Total operating expenses	390,309		355,885		793,134		625,135
(Loss) from operations	(390,309)		(355,885)		(793,134)		(625,135)
Net Loss	(390,309)		(355,885)		(793,134)		(625,135)
Other comprehensive income
Foreign Currency Translation Adjustment	(6,880)		8,865		(18,268)		4,854
Comprehensive loss	$ (397,189)		$ (347,020)		$ (811,402)		$ (620,281)
Loss per share
Basic and diluted		[1]		[1]		[1]
Weighted Average Number of Shares Outstanding	200,000,000		200,000,000		200,000,000		200,000,000
[1]	Per share amounts are less than $0.01

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows From Operating Activities:
Net loss	$ (793,134)	$ (625,135)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and Amortization	8,853	1,827
Changes in assets and liabilities:
Prepaid expenses and other receivables	108,831	(30,598)
Accounts payable and other liabilities	(6,549)	139,860
Prepayment to related party for clinical trials	229,547	(515,563)
Net cash used in operating activities	(452,452)	(1,029,609)
Cash Flows from Investing Activities:
Decrease in restricted cash	0	85,462
Purchase of property and equipment	(9,566)	(6,358)
Purchase of intangible assets	(50,859)	(22,679)
Net Cash used in investing activities	(60,425)	56,425
Cash Flows From Financing Activities:
Loans from related party	254,673	0
Net cash provided by financing activities	254,673	0
Net decrease in cash	(258,204)	(973,184)
Effect of exchange rate changes on cash	3,275	7,345
Cash at beginning of period	354,749	1,873,141
Cash at end of period	$ 99,820	$ 907,302

Note 1 - ORGANIZATION AND PRINC

Note 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES	6 Months Ended
	Sep. 30, 2015
Disclosure Text Block [Abstract]
Note 1 - Organization and Principal Activities	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. 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. Nemaura is a Nevada holding company organized in 2013. Nemaura owns one hundred percent (100%) of Region Green Limited, a British Virgin Islands corporation formed on December 12, 2013. Region Green Limited owns one hundred percent (100%) of the stock in Dermal Diagnostic (Holdings) Limited, an England and Wales corporation formed on December 11, 2013, which in turn owns one hundred percent (100%) of Dermal Diagnostics Limited, an England and Wales corporation formed on January 20, 2009 ("DDL"), and one hundred percent (100%) of Trial Clinic Limited, an England and Wales corporation formed on January 12, 2011 ("TCL"). DDL is a diagnostic medical device company headquartered in Loughborough, Leicestershire, England, and is engaged in the discovery, development and commercialization of diagnostic medical devices. The Company's initial focus has been on the development of the CGM device, which consists of a disposable patch containing a sensor, and a non-disposable miniature electronic watch with a re-chargeable power source, which can enable early detection of subtle changes in blood glucose levels. The following diagram illustrates our corporate and shareholder structure as of September 30, 2015: Image Omitted

Note 2 - BASIS OF PRESENTATION

Note 2 - BASIS OF PRESENTATION AND MANAGEMENT'S PLANS	6 Months Ended
	Sep. 30, 2015
Disclosure Text Block [Abstract]
Note 2 -- Basis of Presentation and Management's Plans	(a) Basis of presentation: The accompanying financial statements of Nemaura have been prepared in accordance with the instructions to quarterly reports on Form 10-Q. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in financial position at September 30, 2015 and for all periods presented have been made. Certain information and footnote data necessary for fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company's Annual Report on Form 10-K for the Year Ended March 31, 2015. The results of operations for the period ended September 30, 2015 are not necessarily an indication of operating results for the full year. The Company's operations are conducted in the United Kingdom. Accordingly, the political, economic, and legal environments in the United Kingdom may influence the Company's business, financial condition, and results of operations. The functional currency for the majority of the Company's operations is the Great Britain Pound Sterling ("GBP"), and the reporting currency is the US Dollar. (b) Management's plans: As reflected in the accompanying consolidated financial statements, the Company reported a net loss of approximately $793,000 and net cash used in operations of approximately $452,000 for the six months ended September 30, 2015, an accumulated deficit of approximately $4,855,000, and a total deficit of approximately $1,729,000 at September 30, 2015. Nemaura Pharma Limited, a related company, has agreed to provide a loan facility to fund the Company’s operations through December 31, 2016. The Company believes that this loan facility will be sufficient to meet its estimated cash needs for the remainder of 2015 and through December 2016. During the three month’s ended September 30, 2015, the Company borrowed $255,000 under this loan facility.

Note 3 - SUMMARY OF SIGNIFICANT

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Sep. 30, 2015
Disclosure Text Block [Abstract]
Note 3 - Summary of Significant Accounting Policies	(a) Foreign currency translation The functional currency of the Company is the Great Britain Pound Sterling ("GBP"). The reporting currency is the United States dollar (US$). Stockholders' equity (deficit) is translated into United States dollars from GBP at historical exchange rates. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rates prevailing during the reporting period. The translation rates are as follows: September 30, 2015 (unaudited) September 30, 2014 (unaudited) March 31, 2015 Period end GBP: US$ exchange rate 1.565 1.665 1.538 Average period/yearly GBP: US$ exchange rate 1.566 1.688 1.599 Adjustments resulting from translating the financial statements into the United States dollar are recorded as a separate component of accumulated other comprehensive income in Stockholders' Equity (Deficit). (b) Recent accounting pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company's consolidated financial statements properly reflect the change. In May 2014, FASB issued ASU No. 2014-09 "Revenue from Contracts from Customers," which supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)," and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. In July 2015, the FASB extended the effective date of ASU 2014-09 by one year, to now be effective for fiscal years, and interim periods beginning after December 31, 2017, and is to be applied retrospectively, with early adoption now permitted for fiscal years, and interim periods beginning after December 15, 2015. The Company is currently evaluating the new standard and assessing the potential impact on its operations and financial statements. In August 2014, the FASB issued ASU No. 2014-14, "Presentation of Financial Statements – Going Concern: Disclosures about an Entity's Ability to Continue as a Going Concern." The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. The new guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter. The Company is currently assessing the impact of the adoption of the ASU No. 2014-15 on its financial position, results of operations and financial statements disclosures.

Note 4 - LICENSING AGREEMENT

Note 4 - LICENSING AGREEMENT	6 Months Ended
	Sep. 30, 2015
Disclosure Text Block [Abstract]
Note 4 - Licensing Agreement	In March 2014, the Company entered into an Exclusive Marketing Rights Agreement with an unrelated third party that granted to the third party the exclusive right to market and promote the CGM and related patches under its own brand in the United Kingdom and the Republic of Ireland. The Company received a non-refundable, upfront cash payment of GBP 1,000,000 (approximately $1.565 million and $1.538 million as of September 30, 2015 and March 31, 2015 respectively), which is wholly non-refundable, upon signing the agreement. A supply cost for goods agreement will be finalized upon product approval and prior to launch, as part of the full commercial licensing agreement which will be signed closer to product approval and launch. As the Company has continuing performance obligations under the agreement, the upfront fees received from this agreement have been deferred and will be recorded as income over the term of the commercial licensing agreement. In April 2014, a Letter of Intent was signed with the third party, which specified a 10 year term. This relates to a Full Commercial Licensing agreement.

Note 5 - RELATED PARTY TRANSACT

Note 5 - RELATED PARTY TRANSACTIONS	6 Months Ended
	Sep. 30, 2015
Disclosure Text Block [Abstract]
Note 5 - Related Party Transactions	Nemaura Pharma Limited (Pharma) and NDM Technologies Limited (NDM) are entities controlled by the Company's majority shareholder Dewan FH Chowdhury. From inception, Pharma invoiced DDL and TCL for research and development services. In addition, certain operating expenses of DDL and TCL were incurred and paid by Pharma and NDM. In accordance with the United States Securities and Exchange Commission (SEC) Staff Accounting Bulletin 55, these financial statements reflect all costs associated with the operations of DDL and TCL. While certain costs incurred by Pharma and NDM are directly attributable to DDL and TCL, other costs were shared between the organizations. In situations where the costs were shared, expense has been allocated between Pharma and NDM and DDL and TCL using a fixed percentage allocation. Management believes the methodologies used are reasonable and that the costs allocated are not materially different from what they would have been had Pharma and NDM been unaffiliated entities. DDL and TCL advanced Pharma certain amounts to cover a portion of the costs. The remaining amounts were contributed to the Company in the form of contributed services. Following is a summary of activity between the Company and Pharma and NDM for the six months ended September 30, 2015 (unaudited) and the year ended March 31, 2015: Six Months Ended September 30, 2015 (unaudited) ($) Year Ended March 31, 2015 ($) Balance due from (to) Pharma and NDM at beginning of period 192,505 - Amounts advanced to Pharma - 567,633 Amounts received from Pharma (164,304 ) (7,692 ) Reduction in prepayments to Pharma for clinical trials (247,596 ) (257,441 ) Amounts invoiced by Pharma to DDL and TCL - (106,193 ) Expenses paid by Pharma on behalf of DDL and TCL (90,369 ) 134 Intellectual Property costs paid by Pharma on behalf of DDL and TCL - (946 ) Foreign exchange differences (947 ) (2,990 ) Balance due from (to) Pharma and NDM at end of the period (310,711 ) 192,505 At September 30, 2015, the net balance due to Pharma is comprised of loans from Nemaura Pharma and expenses paid by Pharma on behalf of the Company.

Note 3 - Summary of Significa11

Note 3 - Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Sep. 30, 2015
Policy Text Block [Abstract]
Foreign Currency Translation	The functional currency of the Company is the Great Britain Pound Sterling ("GBP"). The reporting currency is the United States dollar (US$). Stockholders' equity (deficit) is translated into United States dollars from GBP at historical exchange rates. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rates prevailing during the reporting period. The translation rates are as follows: September 30, 2015 (unaudited) September 30, 2014 (unaudited) March 31, 2015 Period end GBP: US$ exchange rate 1.565 1.665 1.538 Average period/yearly GBP: US$ exchange rate 1.566 1.688 1.599 Adjustments resulting from translating the financial statements into the United States dollar are recorded as a separate component of accumulated other comprehensive income in Stockholders' Equity (Deficit).
Recent Accounting Pronouncements	The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company's consolidated financial statements properly reflect the change. In May 2014, FASB issued ASU No. 2014-09 "Revenue from Contracts from Customers," which supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)," and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. In July 2015, the FASB extended the effective date of ASU 2014-09 by one year, to now be effective for fiscal years, and interim periods beginning after December 31, 2017, and is to be applied retrospectively, with early adoption now permitted for fiscal years, and interim periods beginning after December 15, 2015. The Company is currently evaluating the new standard and assessing the potential impact on its operations and financial statements. In August 2014, the FASB issued ASU No. 2014-14, "Presentation of Financial Statements – Going Concern: Disclosures about an Entity's Ability to Continue as a Going Concern." The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. The new guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter. The Company is currently assessing the impact of the adoption of the ASU No. 2014-15 on its financial position, results of operations and financial statements disclosures.

Note 3 - Summary of Significa12

Note 3 - Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Sep. 30, 2015
Note 3 - Summary Of Significant Accounting Policies Tables
Translation Rates	September 30, 2015 (unaudited) September 30, 2014 (unaudited) March 31, 2015 Period end GBP: US$ exchange rate 1.565 1.665 1.538 Average period/yearly GBP: US$ exchange rate 1.566 1.688 1.599

Note 5 - Related Party Transa13

Note 5 - Related Party Transactions: Schedule of Related Party Transactions (Tables)	6 Months Ended
	Sep. 30, 2015
Table Text Block Supplement [Abstract]
Schedule of Related Party Transactions	Six Months Ended September 30, 2015 (unaudited) ($) Year Ended March 31, 2015 ($) Balance due from (to) Pharma and NDM at beginning of period 192,505 - Amounts advanced to Pharma - 567,633 Amounts received from Pharma (164,304 ) (7,692 ) Reduction in prepayments to Pharma for clinical trials (247,596 ) (257,441 ) Amounts invoiced by Pharma to DDL and TCL - (106,193 ) Expenses paid by Pharma on behalf of DDL and TCL (90,369 ) 134 Intellectual Property costs paid by Pharma on behalf of DDL and TCL - (946 ) Foreign exchange differences (947 ) (2,990 ) Balance due from (to) Pharma and NDM at end of the period (310,711 ) 192,505

Note 2 - BASIS OF PRESENTATIO14

Note 2 - BASIS OF PRESENTATION AND MANAGEMENT'S PLANS (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Note 2 - Basis Of Presentation And Managements Plans Details Narrative
Net cash used in operating activities		$ (452,452)	$ (1,029,609)
Accumulated deficit	$ (4,854,865)	$ (4,854,865)		$ (4,061,730)
Proceeds from loan	$ 255,000

Note 3 - Summary of Significa15

Note 3 - Summary of Significant Accounting Policies (Details) - £ / $	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2014
Note 3 - Summary Of Significant Accounting Policies Details
Period end GBP: US$ exchange rate	1.565	1.538	1.665
Average period/yearly GBP: US$ exchange rate	1.566	1.599	1.688

Note 4 - LICENSING AGREEMENT (D

Note 4 - LICENSING AGREEMENT (Details Narrative) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Note 4 - Licensing Agreement Details Narrative
Non-refundable, upfront cash payment	$ 1,565,000	$ 1,538,000

Note 5 -. RELATED PARTY TRANSAC

Note 5 -. RELATED PARTY TRANSACTIONS (Details) - USD ($)	6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Note 5 -. Related Party Transactions Details
Balance due (to) Pharma and NDM at beginning of period	$ 192,505	$ 0
Amounts advanced to Pharma	0	567,633
Amounts received from Pharma	(164,304)	(7,692)
Reduction in prepayments to Pharma for clinical trials	(247,596)	(257,441)
Amount invoiced by Pharma to DDL and TCL	0	(106,193)
Expenses paid by Pharma on behalf of DDL and TCL	(90,369)	134
Intellectual property costs paid by Pharma on behalf of DDL and TCL	0	(946)
Foreign exchange differences	(947)	(2,990)
Net balance due from (to) Pharma and NDM at end of the period	$ (310,711)	$ 192,505