| Summary of Significant Accounting Policies | NOTE 3 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (a) Cash and cash equivalents The Company considers all highly
liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash and cash equivalents
consist primarily of cash deposits maintained in the United Kingdom. From time to time, the Company's cash account balances exceed
amounts covered by the Financial Services Compensation Scheme. The Company has never suffered a loss due to such excess balances. (b) Fixed rate cash accounts From time to time the Company may
invest funds in fixed rate cash savings accounts. Customarily, these accounts, at the time of the initial investment, provide
a higher interest rate than other bank accounts, and require the Company to maintain the funds in the accounts for a certain
period of time. As of March 31, 2019, the Company does not hold any cash reserves in any such savings accounts. (c) Fair value of financial
instruments The Company's financial instruments
primarily consist of cash, fixed rate cash accounts, accounts payable and other current liabilities. The estimated fair values
of non-related party financial instruments approximates their carrying values as presented, due to their short maturities. The
fair value of amounts payable to related parties are not practicable to estimate due to the related party nature of the underlying
transactions. (d) Property and equipment Property and equipment is stated
at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally four years. This
is charged to operating expenses. (e) Intangible assets Intangible assets consist of licenses
and patents associated with the sugarBEAT device and are amortized on a straight-line basis, generally over their legal lives of
up to 20 years and are reviewed for impairment. Costs capitalized relate to invoices received from third parties and not any internal
costs. The Company evaluates its intangible assets (all have finite lives) and other long-lived assets for impairment whenever
events or circumstances indicate that they may not be recoverable, or at least annually. Recoverability of finite and other long-lived
assets is measured by comparing the carrying amount of an asset group to the future undiscounted net cash flows expected to be
generated by that asset group. The Company groups assets for purposes of such review at the lowest level for which identifiable
cash flows of the asset group are largely independent of the cash flows of the other groups of assets and liabilities. The amount
of impairment to be recognized for finite and other long-lived assets is calculated as the difference between the carrying value
and the fair value of the asset group, generally measured by discounting estimated future cash flows. There were no impairment
indicators present during the years ended March 31 2019, 2018 or 2017. (f) Revenue Recognition While the Company is not currently
recognizing revenue, we have considered the guidelines within ASC Topic 606, Revenue from Contracts with Customers . The Company may enter into product
development and other agreements with collaborative partners. The terms of the agreements may include non-refundable signing and
licensing fees, milestone payments and royalties on any product sales derived from collaborations. The Company has entered into license
agreements and for these, recognizes up front license payments as revenue upon delivery of the license only if the license has
stand-alone value to the customer. However, where further performance criteria must be met, revenue is deferred and recognized
on a straight-line basis over the period the Company is expected to complete its performance obligations. Royalty revenue will be recognized
upon the sale of the related products provided the Company has no remaining performance obligations under the agreement. (g) Research and development
expenses The Company charges research and
development expenses to operations as incurred. Research and development expenses primarily consist of salaries and related expenses
for personnel and outside contractor and consulting services. Other research and development expenses include the costs of materials
and supplies used in research and development, prototype manufacturing, clinical studies, related information technology and an
allocation of facilities costs. The CE mark has now been granted and the FDA submission is planned in Q2 2019. Research and Development
costs will therefore decrease significantly for the glucose monitoring application given these major milestones have been achieved
and FDA submission is imminent. (h) Inventory Inventories are stated at the lower
of cost or net realizable value, with cost determined on a first-in first-out basis. At present all inventory relates to raw materials. (i) Income taxes Income taxes are accounted for under
the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases,
and operating loss carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on
deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment
date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely
than not that some portion, or all, of the deferred income tax assets will not be realized. The Company recognizes the effect
of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions
are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are
reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related
to unrecognized tax benefits as part of income tax expense in the consolidated statements of comprehensive loss. The Company does
not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense related
to unrecognized tax benefits recognized for the three years ended March 31, 2019. In December 2017, the US Tax Cuts
and Jobs Act was signed into law. Generally, this Act reduces corporate rates from a top rate of 35% to a top rate of 21%, effective
January 1, 2018. As the Company’s US operations are minimal, and all deferred tax assets maintain a full valuation allowance,
there is no significant impact to the Company as of and for the year ended March 31, 2019. (j) Earnings (loss) per
share Basic earnings (loss) per share is
computed by dividing income (loss) available to common stockholders by the weighted-average number of common shares outstanding
during the period. For the years ended March 31, 2019, 2018, and 2017, warrants to purchase 10 million shares of common stock were
anti-dilutive and were excluded from the calculation of diluted loss per share . (k) Use of estimates The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the periods presented. Actual
results may differ from those estimates. (l) 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$). Stockholders' equity
is translated into United States dollars from GBP at historical exchange rates. Assets and liabilities are translated at the exchange
rates as of the balance sheet date. Income and expenses are translated at the average exchange rates prevailing during the reporting
period. The translation rates are as follows:
2019 2018 2017
Year end GBP : US$ exchange rate 1:1.3030 1:1.4033 1:1.2453
Average period/yearly GBP : US$ exchange rate 1:1.3026 1:1.3305 1:1.3146 Adjustments resulting from translating
the financial statements into the United States dollar are recorded as a separate component of accumulated other comprehensive
loss in stockholders’ equity. (m) Stock-based compensation For stock options granted as consideration
for services rendered by non-employees, the company recognizes compensation expense in accordance with the requirements of FASB
ASC Topic 505-50 (“ASC 505-50”), “Equity Based Payments to Non- Employees.” Non-employee restricted common
stock and stock option grants that do not vest immediately upon grant, and whose terms are known, are recorded as an expense over
the vesting period of the underlying instrument granted. At the end of each financial reporting period prior to vesting, the value
of the instruments granted, will be re-measured using the fair value of the Company’s common stock and the stock-based compensation
recognized during the period will be adjusted accordingly. For restricted common stock and stock
option awards that have performance-based conditions, the Company recognizes the stock-based compensation expense at the fair value
of the award based on the date that the performance conditions have been met. The Company calculates the fair
value of the stock options using the Black Scholes option pricing model. The fair value of restricted common stock
awards is based on the closing price of the Company’s common stock on the applicable measurement date. The assumptions used in calculating
the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application
of management’s judgment. To date, the Company has not granted
any stock-based compensation awards to employees. (n) Direct costs incurred
for equity financing The Company includes all direct
costs incurred in connection with successful equity financings as a component of additional paid-in capital. Direct costs incurred
for equity financings that are unsuccessful are expensed. (o) 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, the Financial Accounting
Standards Board ("FASB") issued Accounting Standards Updates ("ASU") No. 2014-09, Revenue from Contracts with Customers.
ASU 2014-09 has been modified multiple times since its initial release. This ASU outlines a single comprehensive model for entities
to use in accounting for revenue arising from contracts with customers and will replace most existing revenue recognition guidance
in U.S. GAAP when it becomes effective. ASU 2014-09, as amended, becomes effective for annual reporting periods beginning after
December 15, 2017. Early adoption is permitted. As an Emerging Growth Company (we expect our Emerging Growth Company status to
expire on March 31, 2020), the Company is allowed to adopt new, or updated, accounting standards using the same time frame that
applies to private companies. The Company will adopt this standard on April 1, 2019. Management is currently evaluating the impact
of adoption of this ASU on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU
No. 2016-02, Leases. The main difference between the provisions of ASU No. 2016-02 and previous U.S. GAAP is the recognition of
right-of-use assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP.
ASU No. 2016-02 retains a distinction between finance leases and operating leases, and the recognition, measurement, and presentation
of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP. For leases
with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not
to recognize right-of-use assets and lease liabilities. The accounting applied by a lessor is largely unchanged from that applied
under previous U.S. GAAP. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the
earliest period presented using a modified retrospective approach. This ASU is effective for public business entities in fiscal
years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted as of the
beginning of any interim or annual reporting period. As an Emerging Growth Company, the Company is allowed to adopt new, or updated,
accounting standards using the same time frame that applies to private companies. The Company will adopt this standard on April
1, 2020. Management is currently evaluating the impact of adoption of this ASU on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU
2018-07, Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU
No. 2018-13, Fair Value Measurement: Disclosure Framework – (p) Risks and Uncertainties: The Company is in the commercialization
stage for sugarBEAT in the EU now that CE mark approval (European Union approval of the product) has been received. The Company
has entered into sales and marketing agreements for the product. It has also placed orders for the first commercial batch of transmitter
devices with the electronics manufacturer Datalink Limited. It has not entered into exclusive manufacturing agreements with any
of its contract manufacturers. Uncertainties still exist with regards to regulatory acceptance of the Company’s primary
product development efforts in territories outside of Europe. (q) Preferred shares On October 5, 2017, the Company entered
into common stock exchange agreements with each of its three largest shareholders, to exchange, in the aggregate, 137,324,000 shares
of the Company’s common stock for 137,324 shares of Series A Convertible Preferred Stock (the “Series A Preferred”).
Each share of Series A Preferred is convertible into 1,000 shares of the Company’s common stock, automatically upon the occurrence
of all of certain triggering events, as set forth in the Certificate of Designation for the Series A Preferred, namely (a) the
sugarBEAT® device to be commercialized has CE regulatory approval; (b) retail sales having commenced; and (c) retail sales
exceeding USD$5 million, inclusive of advanced sales or voluntarily by the holder after February 7, 2018, if these triggering events
have not occurred. Each holder of issued and outstanding Series A Preferred is entitled to a number of votes equal to the
number of shares of common stock into which the Series A Preferred is convertible. Holders of Series A Preferred are entitled to
vote on any and all matters presented to stockholders of the Company, except as provided by law. The Series A Preferred has
no preference to the common stock as to dividends or distributions of assets upon liquidation or winding up of the Company (which
has been agreed to by the holders of the Series A Preferred). The Company determined that the fair value of the shares of
Series A Preferred issued for the shares of common stock was equivalent to the fair value of the shares of common stock exchanged. On November 6, 2017, the transactions
contemplated by the exchange agreements were consummated and 137,324,000 shares of common stock were cancelled. As a result,
the Company had 67,676,000 shares of common stock issued and outstanding as of March 31, 2018. On June 5, 2018, the three holders
of the Company’s Series A Preferred each delivered notices of conversion to voluntarily convert their Series A Preferred,
in the aggregate amount of 137,324 of Series A Preferred shares, into 137,324,000 shares of common stock. The holders had
the right to voluntarily convert each share of Series A Preferred into 1,000 shares of common stock of the Company. (r) Subsequent events S-3 Registration Prior to the year end, the Company
filed a new Registration Statement on Form S-3, registering up to $250,000,000 of our common stock, preferred stock, warrants,
debt securities and units (the “Form S-3”). The Form S-3 was declared effective by the Securities and Exchange Commission
on April 8, 2019. We may offer and sell up to $250,000,000 in the aggregate of the securities identified from time to time in one
or more offerings. The securities may be sold directly by us, through dealers, or agents, designated from time to time, to or through
underwriters, or through a combination of these methods as set forth in the “Plan of Distribution” included therein.
Each time we offer securities under the prospectus that is part of the Form S-3, we will provide the specific terms of the securities
being offered, including the offering price in a prospectus supplement. On April 10, 2019, the Company re-started
the ATM offering, with Maxim Group LLC, as sales agent (“Maxim”), pursuant to which the Company may offer and sell,
from time to time, through Maxim (the “Offering”), up to $19,544,895 in shares of its common stock (the “Shares”). CE Approval On May 29, 2019 Nemaura Medical announced
it had received confirmation of approval of the European Conformity for sugarBEAT which now allows Nemaura to commence commercialization
of the product in to the European Union. Nemaura has initiated plans to launch
the product into the UK market in Q3 of 2019, followed by Germany and other markets. In the UK, Nemaura is working with its licensee
DBP (Jersey) Ltd., to launch the product in the UK, and is working with its joint venture partner DB Ethitronix to commence registration
and commercial launch into the German market. The Company ordered 12,500 sugarBEAT
devices in July 2018 in anticipation of CE approval, and these devices are currently being assembled and programmed with the updated
software for the planned launch in Germany and the UK, and they are in discussions with their UK licensee with regards to taking
orders for additional quantities to support product launch for the next 12 months. Nemaura has also commenced activities
with respect to registering the CGM product based on the CE Mark in the GCC countries with their respective licensees in that region,
Al-Danah Medical and TPMena. (s) Reclassifications To conform to the current year’s
presentation, as of March 31, 2018, the Company reclassified $70,165 from other liabilities and accrued expenses to current portion
of deferred revenue. There was no impact on total assets, total liabilities, net loss or total equity. |
