Nemaura Medical (NMRD) 10-Q 9 Feb 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2016	Jan. 24, 2017
Document and Entity Information:
Entity Registrant Name	Nemaura Medical Inc.
Document Type	10-Q
Document Period End Date	Dec. 31, 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	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Current Assets:
Cash	$ 7,593,354	$ 9,403,965
Prepaid expenses and other receivables	67,315	148,274
Total Current Assets	7,660,669	9,552,239
Property and equipment, net	10,127	7,649
Intangible assets, net of accumulated amortization	191,169	172,895
Total Noncurrent Assets	201,296	180,544
Total assets	7,861,965	9,732,783
Current Liabilities:
Accounts Payable	44,946	73,015
Other liabilities and accrued expenses	117,896	90,853
Amounts due to related party	820,632	494,145
Total current liabilities	983,474	658,013
Deferred Revenue	1,177,905	1,396,005
Total noncurrent liabilities	1,177,905	1,396,005
Total liabilities	2,161,379	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	(6,793,398)	(5,601,367)
Accumulated other comprehensive (loss)/income	(630,688)	155,460
Total stockholders' equity	5,700,586	7,678,765
Total liabilities and stockholders' equity	$ 7,861,965	$ 9,732,783

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 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		9 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Revenues
Total revenues
Operating Expenses
Research and development		267,638	245,668	794,433	840,682
General and administrative		107,728	83,116	397,598	281,236
Total operating expenses		375,366	328,784	1,192,031	1,121,918
Loss from operations		(375,366)	(328,784)	(1,192,031)	(1,121,918)
Net Loss		(375,366)	(328,784)	(1,192,031)	(1,121,918)
Other comprehensive income
Foreign Currency Translation Adjustment		(396,445)	45,662	(786,148)	27,394
Comprehensive loss		$ (771,811)	$ (283,122)	$ (1,978,179)	$ (1,094,524)
Loss per share
Basic and diluted	[1]
Weighted Average Number of Shares Outstanding		205,000,000	201,902,174	205,000,000	200,636,364
[1]	Per share amounts are less than $0.01

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash Flows From Operating Activities:
Net loss	$ (1,192,031)	$ (1,121,918)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and Amortization	15,629	12,448
Changes in assets and liabilities:
Prepaid expenses and other receivables	69,121	93,889
Accounts payable and other liabilities	(20,584)	77,904
Prepayment to related party for clinical trials		249,459
Net cash used in operating activities	(1,127,865)	(688,218)
Cash Flows from Investing Activities:
Purchase of property and equipment	(6,641)	(5,606)
Purchase of intangible assets	(57,630)	(50,334)
Net Cash used in investing activities	(64,271)	(55,940)
Cash Flows From Financing Activities:
Advances from related party	423,237	239,717
Net proceeds from issuance of common stock		10,000,000
Net cash provided by financing activities	423,237	10,239,717
Net increase (decrease) in cash	(768,899)	9,495,559
Effect of exchange rate changes on cash	(1,041,712)	988
Cash at beginning of period	9,403,965	354,759
Cash at end of period	$ 7,593,354	$ 9,851,306

ORGANIZATION AND PRINCIPAL ACTI

ORGANIZATION AND PRINCIPAL ACTIVITIES	9 Months Ended
	Dec. 31, 2016
Organization And Principal Activities
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 December 31, 2016:

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Dec. 31, 2016
Basis Of Presentation
BASIS OF PRESENTATION	NOTE 2 -- BASIS OF PRESENTATION (a) Basis of presentation: The accompanying condensed 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 December 31, 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 December 31, 2016 are not necessarily an indication of operating results for the full year.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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$). Stockholders' equity is translated into United States dollars from GBP at historical exchange rates. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rates prevailing during the reporting period. The translation rates are as follows: Nine months ended December 31, 2016 (unaudited) Three months ended December 31, 2016 (unaudited) Nine months ended December 31, 2015 (unaudited) Twelve months ended Period end GBP : US$ exchange rate 1.240 1.240 1.521 1.432 Average period/yearly GBP : US$ exchange rate 1.340 1.255 1.530 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 (loss) 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. As the Company has not generated revenues, the adoption of this standard is not expected to have a material impact on the financial statements. In August 2014, the FASB issued ASU No. 2014-15, "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 does not expect that the adoption of this standard will have a material effect on its financial statements.

LICENSING AGREEMENT

LICENSING AGREEMENT	9 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
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 $1.240 million and $1.432 million as of December 31, 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. In November 2015 a Licence, Supply and Distribution agreement with an initial 5 year term and continuing thereafter until terminated by either party with twelve month’s notice, was executed. In addition, in November 2015, the Company entered into a joint venture agreement with the third party, whereby the Company 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 in the first quarter of 2017.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Dec. 31, 2016
Disclosure Text Block [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5 – RELATED PARTY TRANSACTIONS Nemaura Pharma Limited (Pharma) and NDM Technologies Limited (NDM) are entities controlled by the Company's majority shareholder, FH 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. 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 previously 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 nine months ended December 31, 2016 (unaudited) and the year ended March 31, 2016: Nine Months Ended December 31 , (unaudited) ($) Year Ended Balance due from (to) Pharma and NDM at beginning of period (494,145 ) 192,517 Amounts advanced to Pharma 45,391 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) 15,399 16,307 Amounts invoiced by Pharma to DDL and TCL (483,406 ) (331,714 ) Sale of fixed and intangible assets to Pharma and NDM — 17,775 Foreign exchange differences 96,129 28,730 Balance due to Pharma and NDM at end of the period (820,632 ) (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 nine months to December 31, 2016, the increase in the balance due to Pharma is primarily due to invoices of $483,000 received from Pharma. These amounts are unsecured, interest free and payable on demand.

SUMMARY OF SIGNIFICANT ACCOUN11

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Dec. 31, 2016
Policy Text Block [Abstract]
Foreign Currency Translation	(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$). Stockholders' equity is translated into United States dollars from GBP at historical exchange rates. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rates prevailing during the reporting period. The translation rates are as follows: Nine months ended December 31, 2016 (unaudited) Three months ended December 31, 2016 (unaudited) Nine months ended December 31, 2015 (unaudited) Twelve months ended Period end GBP : US$ exchange rate 1.240 1.240 1.521 1.432 Average period/yearly GBP : US$ exchange rate 1.340 1.255 1.530 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 (loss) in Stockholders' Equity.
Recent Accounting Pronouncements	(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. As the Company has not generated revenues, the adoption of this standard is not expected to have a material impact on the financial statements. In August 2014, the FASB issued ASU No. 2014-15, "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 does not expect that the adoption of this standard will have a material effect on its financial statements.

SUMMARY OF SIGNIFICANT ACCOUN12

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Dec. 31, 2016
Summary Of Significant Accounting Policies Tables
Translation Rates	Nine months ended December 31, 2016 (unaudited) Three months ended December 31, 2016 (unaudited) Nine months ended December 31, 2015 (unaudited) Twelve months ended Period end GBP : US$ exchange rate 1.240 1.240 1.521 1.432 Average period/yearly GBP : US$ exchange rate 1.340 1.255 1.530 1.522

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Dec. 31, 2016
Related Party Transactions Tables
Schedule of Related Party Transactions	Nine Months Ended December 31 , (unaudited) ($) Year Ended Balance due from (to) Pharma and NDM at beginning of period (494,145 ) 192,517 Amounts advanced to Pharma 45,391 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) 15,399 16,307 Amounts invoiced by Pharma to DDL and TCL (483,406 ) (331,714 ) Sale of fixed and intangible assets to Pharma and NDM — 17,775 Foreign exchange differences 96,129 28,730 Balance due to Pharma and NDM at end of the period (820,632 ) (494,145 )

SUMMARY OF SIGNIFICANT ACCOUN14

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - £ / $	3 Months Ended	9 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Period End GBP/USD Exchange Rate [Membe]
Exchange rate	1.240	1.240	1.521	1.432
Period Average GBP/USD Exchange Rate [Membe]
Exchange rate	1.255	1.340	1.530	1.522

LICENSING AGREEMENT (Details Na

LICENSING AGREEMENT (Details Narrative) - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Licensing Agreement Details Narrative
Non-refundable, upfront cash payment	$ 1,240,000	$ 1,432,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
Related Party Transactions Details
Balance due (to) Pharma and NDM at beginning of period	$ (494,145)	$ 192,517
Amounts advanced to Pharma	45,391	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)	15,399	16,307
Amount invoiced by Pharma to DDL and TCL	(483,406)	(331,714)
Sale of fixed and intangible assets to Pharma and NDM		17,775
Foreign exchange differences	96,129	28,730
Net balance due from (to) Pharma and NDM at end of the period	$ (820,632)	$ (494,145)