Nemaura Medical (NMRD) 10-Q 9 Aug 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2016	Aug. 02, 2016
Document and Entity Information:
Entity Registrant Name	Nemaura Medical Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Entity Central Index Key	1,602,078
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding		205,000,000
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	2,017
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2016	Mar. 31, 2016
Current Assets:
Cash	$ 8,494,149	$ 9,403,965
Prepaid expenses and other receivables	106,737	148,274
Total Current Assets	8,600,886	9,552,239
Property and equipment, net	6,445	7,649
Intangible assets, net of accumulated amortization	189,974	172,895
Assets, Noncurrent	196,419	180,544
Total assets	8,797,305	9,732,783
Current Liabilities:
Accounts Payable	93,742	73,015
Other Liabilities and accrued expenses	138,079	90,853
Amounts due to related party	645,897	494,145
Total current liabilities	877,718	658,013
Deferred Revenue	1,265,020	1,396,005
Liabilities, Noncurrent	1,265,020	1,396,005
Total liabilities	2,142,738	2,054,018
Commitments and contingencies:
Stockholders' Equity:
Common stock, $0.001 par value, 420,000,000 shares authorized and 205,000,000 shares issued and outstanding	205,000	205,000
Additional paid in capital	12,919,672	12,919,672
Accumulated deficit	(6,095,550)	(5,601,367)
Accumulated other comprehensive income	(374,555)	155,460
Total stockholders' equity	6,654,567	7,678,765
Total liabilities and stockholders' equity	$ 8,797,305	$ 9,732,783

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Mar. 31, 2016
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	205,000,000	205,000,000
Common Stock, Shares Outstanding	205,000,000	205,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Comprehensive Income/(Loss) (Unaudited) - USD ($)		3 Months Ended
		Jun. 30, 2016	Jun. 30, 2015
Revenue:
Total revenue		$ 0	$ 0
Operating Expenses:
Research and development		306,081	264,279
General and administrative		188,102	138,547
Total operating expenses		494,183	402,826
Loss from operations		(494,183)	(402,826)
Net Loss		(494,183)	(402,826)
Other comprehensive loss :
Foreign Currency Translation Adjustment		(530,015)	(11,388)
Comprehensive loss		$ (1,024,198)	$ (414,214)
Loss per share
Basic and diluted	[1]	$ 0	$ 0
Weighted Average Number of Shares Outstanding		205,000,000	200,000,000
[1]	Per share amounts are less than $0.01

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows From Operating Activities:
Net loss	$ (494,183)	$ (402,826)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and Amortization	4,917	4,077
Changes in assets and liabilities:
Prepaid expenses and other receivables	34,573	9,085
Accounts payable and other liabilities	41,876	35,064
Prepayment to related party for clinical trials	0	177,794
Net cash used in operating activities	(412,817)	(176,806)
Cash Flows from Investing Activities:
Purchase of property and equipment	0	(4,767)
Purchase of intangible assets	(34,769)	(48,611)
Net Cash used in investing activities	(34,769)	(53,378)
Cash Flows From Financing Activities:
Advances from related party	193,419	0
Net cash provided by financing activities	193,419	0
Net increase (decrease) in cash	(254,167)	(230,184)
Effect of exchange rate changes on cash	(655,649)	1,266
Cash at beginning of period	9,403,965	354,749
Cash at end of period	$ 8,494,149	$ 125,831

Note 1 - ORGANIZATION AND PRINC

Note 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES	3 Months Ended
	Jun. 30, 2016
Note 1 - Organization And Principal Activities
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 sugarBEAT device, which consists of a disposable patch containing a sensor, and a non-disposable miniature electronic watch with a re-chargeable power source, which is designed to enable trending or tracking of blood glucose levels. The following diagram illustrates our corporate and shareholder structure as of June 30, 2016:

Note 2 - BASIS OF PRESENTATION

Note 2 - BASIS OF PRESENTATION	3 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Note 2 - Basis of Presentation	(a) Basis of presentation: The accompanying consolidated financial statements include the accounts of the Company and the Company’s subsidiaries, DDL, TCL, DDHL and RGL. The consolidated financial statements are 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 June 30, 2016 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, 2016. The results of operations for the period ended June 30, 2016 are not necessarily an indication of operating results for the full year.

Note 3 - SUMMARY OF SIGNIFICANT

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jun. 30, 2016
Accounting Policies [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$). Stockholders’ equity is translated into United States dollars from GBP at historical exchange rates. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rates prevailing during the reporting period. The translation rates are as follows: June 30, 2016 June 30, 2015 March 31, Period end GBP : US$ exchange rate 1.332 1.555 1.432 Average period/yearly GBP : US$ exchange rate 1.394 1.543 1.522 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. (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. 2014-14 on its financial position, results of operations and financial statements disclosures.

Note 4 - LICENSING AGREEMENT

Note 4 - LICENSING AGREEMENT	3 Months Ended
	Jun. 30, 2016
Note 4 - Licensing Agreement
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 sugarBEAT device and related patches under its own brand in the United Kingdom and the Republic of Ireland, the Channel Islands and the Isle of Man. The Company received a non-refundable, upfront cash payment of GBP 1,000,000 (approximately $1.332 million and $1.432 million as of June 30, 2016 and March 31, 2016 respectively), which is wholly non-refundable, upon signing the agreement. 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 and in November 2015 a Licence, Supply and Distribution agreement with an initial 5 year term was executed. In addition, in November 2015, we entered into a joint venture agreement with the third party, whereby we will share the costs and net profits of the sales of the sugarBEAT system in all territories in Europe, with the exception of the territories that are subject to the separate licensing agreement as described above. The full commercial agreement is expected to be signed towards the end of 2016.

Note 5 - RELATED PARTY TRANSACT

Note 5 - RELATED PARTY TRANSACTIONS	3 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Note 5 - Related Party Transactions	Nemaura Pharma Limited (Pharma) and NDM Technologies Limited (NDM) are entities controlled by the Company’s majority shareholder, DFH Chowdhury. Pharma has 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. 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. Following is a summary of activity between the Company and Pharma and NDM for the three months ended June 30, 2016 (unaudited) and the year ended March 31, 2016: Three Months Ended June 30, 2016 (unaudited) Year Ended March 31, 2016 Balance due from (to) Pharma and NDM at beginning of period (494,145 ) 192,517 Amounts advanced to Pharma - 58,197 Amounts received from Pharma - (228,361 ) Reduction in prepayments to Pharma for clinical trials - (247,596 ) Amounts invoiced by DDL to Pharma and NDM (sale of assets) 16,025 16,307 Amounts invoiced by Pharma to DDL and TCL (209,444 ) (331,714 ) Sale of fixed and intangible assets to Pharma and NDM - 17,775 Foreign exchange differences 41,667 28,730 Balance due from (to) Pharma and NDM at end of the period (645,897 ) (494,145 ) The balance due to Pharma at March 31, 2016 consists primarily of cash advances received from Pharma of approximately $228,000 during the year ended March 31, 2016 and amounts owed on invoices received from Pharma during the year of approximately $331,000. During the three months to June 30, 2016, the increase in the balance due to Pharma is primarily due to invoices of $209,000 received from Pharma. These amounts are unsecured, interest free and payable on demand.

Note 3 - Summary of Significa11

Note 3 - Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Jun. 30, 2016
Accounting Policies [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$). Stockholders’ equity is translated into United States dollars from GBP at historical exchange rates. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rates prevailing during the reporting period. The translation rates are as follows: June 30, 2016 June 30, 2015 March 31, Period end GBP : US$ exchange rate 1.332 1.555 1.432 Average period/yearly GBP : US$ exchange rate 1.394 1.543 1.522 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.
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. 2014-14 on its financial position, results of operations and financial statements disclosures.

Note 3 - Summary of Significa12

Note 3 - Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Jun. 30, 2016
Note 3 - Summary Of Significant Accounting Policies Tables
Translation Rates	June 30, 2016 June 30, 2015 March 31, Period end GBP : US$ exchange rate 1.332 1.555 1.432 Average period/yearly GBP : US$ exchange rate 1.394 1.543 1.522

Note 5 - Related Party Transa13

Note 5 - Related Party Transactions (Tables)	3 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Three Months Ended June 30, 2016 (unaudited) Year Ended March 31, 2016 Balance due from (to) Pharma and NDM at beginning of period (494,145 ) 192,517 Amounts advanced to Pharma - 58,197 Amounts received from Pharma - (228,361 ) Reduction in prepayments to Pharma for clinical trials - (247,596 ) Amounts invoiced by DDL to Pharma and NDM (sale of assets) 16,025 16,307 Amounts invoiced by Pharma to DDL and TCL (209,444 ) (331,714 ) Sale of fixed and intangible assets to Pharma and NDM - 17,775 Foreign exchange differences 41,667 28,730 Balance due from (to) Pharma and NDM at end of the period (645,897 ) (494,145 )

Note 3 - Summary of Significa14

Note 3 - Summary of Significant Accounting Policies (Details) - £ / $	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Period end GBP: US$ exchange rate	1.332	1.432	1.555
Average period/yearly GBP: US$ exchange rate	1.394	1.522	1.543

Note 4 - LICENSING AGREEMENT (D

Note 4 - LICENSING AGREEMENT (Details Narrative) - USD ($)	Jun. 30, 2016	Mar. 31, 2016
Note 4 - Licensing Agreement
Non-refundable, upfront cash payment	$ 1,332,000	$ 1,432,000

Note 5 -. RELATED PARTY TRANSAC

Note 5 -. RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Note 5 -. Related Party Transactions Details
Balance due from (to) Pharma and NDM at beginning of period	$ (494,145)	$ 192,517
Amounts advanced to Pharma	0	58,197
Amounts received from Pharma	0	(228,361)
Reduction in prepayments to Pharma for clinical trials	0	(247,596)
Amounts invoiced by DDL to Pharma and NDM (sale of assets)	16,025	16,307
Amounts invoiced by Pharma to DDL and TCL	(209,444)	(331,714)
Sale of fixed and intangible assets to Pharma and NDM	0	17,775
Foreign exchange differences	41,667	28,730
Balance due from (to) Pharma and NDM at end of the period	$ (645,897)	$ (494,145)