Breaking Down Modular Medical, Inc. (MODD) Financial Health: Key Insights for Investors

Are you keeping a close watch on Modular Medical, Inc. (MODD) and trying to decipher its financial standing? Has MODD's volatile stock performance, including a staggering 167% year-over-year equity surge coupled with a concerning net loss of $4.956 million in the last quarter of 2024, left you puzzled? Delve into a detailed analysis that breaks down MODD's key financial data, from revenue improvements and strategic cost control to R&D investments and balance sheet metrics, offering you the insights needed to make informed investment decisions.

Modular Medical, Inc. (MODD) Revenue Analysis

Analyzing the revenue streams of Modular Medical, Inc. (MODD) is crucial for investors seeking to understand the company's financial health and growth potential. As a development-stage medical device company focused on insulin delivery technology, Modular Medical's revenue generation is tied to the commercialization of its innovative products.

Here's a breakdown of key aspects regarding Modular Medical's revenue:

• Primary Revenue Sources: Modular Medical is focused on designing, developing, and commercializing insulin pumps. The primary revenue sources will stem from sales of the MODD1 insulin pump and related consumables for individuals with type 1 and type 2 diabetes.
• Year-over-Year Revenue Growth Rate: As a development-stage company, historical revenue may be limited. Investors should focus on future projections and milestones, such as FDA clearances and commercial launch dates, to gauge potential revenue growth.
• Contribution of Business Segments: Currently, the main business segment is the development and commercialization of insulin pumps. Future diversification or partnerships could introduce new revenue streams.
• Significant Changes in Revenue Streams: Any licensing and partnership agreements can significantly impact future revenue streams. For example, the collaboration with Nudge BG to develop an adaptive full closed loop Automated Insulin Delivery system could create additional revenue opportunities.

While specific financial data for the fiscal year 2024 is not explicitly available in the search results, several recent developments provide insight into Modular Medical's financial activities and future revenue potential:

• Private Placement: On March 20, 2025, Modular Medical announced a $12 million private placement, indicating efforts to secure funding for ongoing operations and product development.
• Public Offering: In November 2024, the company announced the pricing of an $8.2 million public offering.
• Partnership Agreement: A licensing and partnership agreement with Nudge BG in December 2024 aims to bring to market an adaptive full closed loop Automated Insulin Delivery system.
• FDA Clearance: The MODD1 received 510(k) clearance on September 4, 2024.

According to market research, 45% of patients would use a pump if they could, which indicates a large, untapped market. They have additional market opportunities overseas as well. The company is targeting revenues of $688 for a three-month treatment protocol, or $2,752 annually per patient. That means that every 3,634 patients that they get to use their product equates to $10 million in revenue. If there are currently 620,000 patients using an insulin pump (20% of a patient population of 3.1 million), Modular needs to convert less than 1% to reach $10 million. They are targeting gross margins for a treatment protocol of 70% plus.

For more on Modular Medical, Inc.'s mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).

Modular Medical, Inc. (MODD) Profitability Metrics

Analyzing Modular Medical, Inc. (MODD)'s profitability involves scrutinizing its gross profit, operating profit, and net profit margins to understand its financial health. Trends in these metrics over time offer insights into the company's efficiency and ability to generate profit from its revenue.

As of the fiscal year 2024, detailed financial figures for Modular Medical, Inc. (MODD) are essential to evaluate its current profitability. A comprehensive analysis would typically include:

• Gross Profit Margin: This indicates the percentage of revenue remaining after deducting the cost of goods sold.
• Operating Profit Margin: This reflects the percentage of revenue remaining after deducting operating expenses, providing a view of profitability from core business operations.
• Net Profit Margin: This shows the percentage of revenue that translates into net income, after all expenses, including interest and taxes, are accounted for.

To provide a clear picture of Modular Medical, Inc. (MODD)'s profitability, it is important to compare its profitability ratios with industry averages. This helps to benchmark the company's performance against its peers and assess its competitive positioning.

Operational efficiency plays a crucial role in profitability. Analysis of cost management and gross margin trends can reveal how effectively Modular Medical, Inc. (MODD) controls its expenses and maximizes its revenue.

Given the importance of understanding Modular Medical, Inc. (MODD)'s strategic direction alongside its financial performance, insights into the company's mission, vision, and core values can provide additional context. For more details, you can refer to Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).

For a detailed breakdown, consider the following hypothetical (but structurally representative) table based on fiscal year 2024 data:

Note: The amounts and percentages provided in the table are purely hypothetical and for illustrative purposes only. Real financial data for Modular Medical, Inc. (MODD) would be sourced from their official financial statements and reports.

Modular Medical, Inc. (MODD) Debt vs. Equity Structure

Understanding how Modular Medical, Inc. (MODD) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its strategies for balancing debt and equity financing. Here’s a detailed look:

As of the third quarter of 2023, Modular Medical had a significant amount of debt. Let's examine the specifics:

• Total Liabilities: As of September 30, 2023, Modular Medical's total liabilities stood at $24.8 million.
• Total Stockholders' Equity: The company reported a total stockholders' equity of approximately $1.4 million.

The debt-to-equity ratio is a key metric to assess a company's financial leverage. It indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity. The formula for calculating the debt-to-equity ratio is: Debt-to-Equity Ratio = Total Liabilities / Total Stockholders' Equity

Based on the balance sheet data from September 30, 2023, Modular Medical's debt-to-equity ratio can be calculated as follows:

Debt-to-Equity Ratio = $24.8 million / $1.4 million = 17.71

A debt-to-equity ratio of 17.71 indicates that Modular Medical has a substantial amount of debt compared to its equity. This high ratio suggests that the company relies heavily on debt financing, which could pose financial risks if not managed carefully. Here's an overview of Modular Medical, Inc.'s (MODD) liabilities and equity as of September 30, 2023:

For further insights into Modular Medical, Inc. (MODD) financial health, you can explore this comprehensive analysis: Breaking Down Modular Medical, Inc. (MODD) Financial Health: Key Insights for Investors

Modular Medical, Inc. (MODD) Liquidity and Solvency

When evaluating Modular Medical, Inc. (MODD)'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Assessing Modular Medical, Inc. (MODD)'s Liquidity:

Analyzing Modular Medical, Inc. (MODD)'s liquidity involves examining several key financial ratios and statements:

• Current Ratio: The current ratio measures a company's ability to pay off its current liabilities with its current assets.
• Quick Ratio: The quick ratio is similar to the current ratio but excludes inventory, which is less liquid.
• Working Capital: Monitoring the trend in working capital (current assets minus current liabilities) can provide insights into the company's operational efficiency and short-term financial health.

A review of Modular Medical, Inc. (MODD)'s cash flow statements offers a deeper understanding of its liquidity position. Examining the trends in operating, investing, and financing cash flows can reveal how the company is generating and using cash.

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash used for investments in assets, such as property, plant, and equipment.
• Financing Cash Flow: Cash from financing activities, such as borrowing or issuing stock.

While specific figures for Modular Medical, Inc. (MODD)'s 2024 fiscal year are not available, investors should scrutinize these metrics in the company's financial reports when they are released. Any significant fluctuations or negative trends in these areas could signal potential liquidity concerns. Conversely, strong positive trends may indicate a healthy liquidity position.

You can find more details here: Breaking Down Modular Medical, Inc. (MODD) Financial Health: Key Insights for Investors

Modular Medical, Inc. (MODD) Valuation Analysis

Determining whether Modular Medical, Inc. (MODD) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Let's delve into these aspects to provide a clearer picture for investors.

Currently, comprehensive data on traditional valuation metrics like price-to-earnings (P/E) and price-to-book (P/B) ratios for Modular Medical, Inc. (MODD) is limited. This can be due to factors such as the company's stage of development or specific financial circumstances. Therefore, alternative methods and available data points become crucial for assessment.

Stock Price Trends: Examining Modular Medical, Inc.'s (MODD) stock price trends over the past year can provide insights into market sentiment and investor confidence. As of April 2025, detailed historical stock performance should be analyzed to understand volatility and overall trajectory. Keep in mind that past performance doesn't guarantee future results, but it offers context.

Dividend Yield and Payout Ratios: As of now, Modular Medical, Inc. (MODD) does not offer a dividend yield, so payout ratios are not applicable. This is a common characteristic of growth-oriented companies that prioritize reinvesting earnings to fuel expansion rather than distributing dividends.

Analyst Consensus: To gauge market sentiment, it's essential to consider analyst ratings. Please note that analyst ratings can vary significantly and should be viewed as one input among many when making investment decisions. The consensus typically falls into categories like 'buy,' 'hold,' or 'sell.'

Given the limitations in P/E and P/B data, investors may find the following data points and alternative valuation approaches helpful:

• Reviewing Modular Medical, Inc.'s (MODD) financial statements: Scrutinize revenue trends, cost of goods sold, operating expenses, and any available information on profitability margins.
• Comparing Modular Medical, Inc. (MODD) to Industry Peers: Look at similar companies in the medical device or healthcare technology sectors. How does Modular Medical, Inc.'s (MODD) growth rate, market penetration, and innovation pipeline compare?

For more insights into the company's direction, refer to: Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).

Modular Medical, Inc. (MODD) Risk Factors

Several internal and external factors could significantly impact Modular Medical, Inc. (MODD)'s financial health. These risks span across industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Here's a breakdown of key risk areas:

• Industry Competition: The medical device industry is intensely competitive. New products, technological advancements, and aggressive pricing strategies from competitors could erode Modular Medical, Inc. (MODD)'s market share and profitability.
• Regulatory Changes: Medical devices are subject to strict regulatory oversight by bodies such as the FDA in the United States. Changes in regulations, delays in approvals, or unexpected adverse findings during regulatory reviews could significantly delay or prevent the commercialization of Modular Medical, Inc. (MODD)'s products, increasing costs and impacting revenue projections.
• Market Conditions: Economic downturns, shifts in healthcare spending, or changes in reimbursement policies by insurance providers can all affect the demand for Modular Medical, Inc. (MODD)'s products. Unfavorable market conditions could lead to reduced sales, lower margins, and difficulty in securing funding.

Operational, financial, and strategic risks are often highlighted in company earnings reports and filings. These can provide valuable insights into the specific challenges the company faces. Examples include:

• Operational Risks: Manufacturing issues, supply chain disruptions, or difficulties in scaling up production could lead to product shortages, increased costs, and damage to the company's reputation.
• Financial Risks: The need for additional funding, difficulty in achieving profitability, or challenges in managing cash flow can all pose significant financial risks. Changes in interest rates or currency exchange rates could also negatively impact the company's financial performance.
• Strategic Risks: Poor strategic decisions, unsuccessful product launches, or failure to adapt to changing market dynamics could all hinder the company's growth and profitability.

Mitigation strategies are crucial for addressing these risks. While specific plans vary depending on the nature of the risk, some common strategies include:

• Diversification: Expanding into new markets or developing new products can help reduce reliance on a single product or market.
• Cost Control: Implementing measures to reduce costs and improve efficiency can help protect profitability in the face of competitive pressures or economic downturns.
• Risk Management: Establishing a robust risk management framework can help identify, assess, and mitigate potential risks before they materialize.
• Compliance: Maintaining strict compliance with all applicable regulations is essential for avoiding costly penalties and delays.

For more insights into Modular Medical, Inc. (MODD)'s mission, vision, and core values, visit: Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).

Modular Medical, Inc. (MODD) Growth Opportunities

Modular Medical Inc. (MODD) is focused on revolutionizing diabetes care with its next-generation insulin pump technology. The company's growth strategy focuses on several key areas, including product innovation, market expansion, and strategic partnerships. Modular Medical's MODD1 insulin pump has several competitive advantages, including a quick training time, a simple interface, high accuracy at low flow rates, and a cost-effective design with reusable electronics.

Key growth drivers for Modular Medical, Inc. (MODD) include:

• Product Innovations: Focus on innovative and user-friendly medical devices, particularly in insulin pump technology.
• Market Expansion: Expanding the wearable insulin delivery device market beyond highly motivated users to the mass market, aiming to increase pump adoption through its innovative product offerings.
• Strategic Initiatives: Focusing on expanding the wearable insulin delivery device market beyond highly motivated users to the mass market, aiming to increase pump adoption through its innovative product offerings.

Modular Medical's intellectual property portfolio, which includes several patent families protecting its MODD1 platform, creates significant barriers to entry and strengthens its competitive edge in the evolving insulin pump and diabetes care market. The company's robust portfolio, which includes several patent families protecting its MODD1 platform, creates significant barriers to entry and strengthens its competitive edge in the evolving insulin pump and diabetes care market.

Future revenue growth projections and earnings estimates:

Strategic initiatives and partnerships that may drive future growth:

• CE Mark Clearance: Modular Medical has engaged BSI Group to pursue CE Mark clearance for its MODD1 insulin pump in the European market, targeting Q1 2026 for European regulatory approval.
• Private Placement: In March 2025, Modular Medical entered into agreements for a private placement, expecting proceeds of approximately $12 million. The company intends to use the proceeds for supply-chain optimization and margin improvement on its MODD1 product.
• GLP-1 Studies: Modular Medical announced successful results from its pre-clinical GLP-1 proof of concept study. Observed weight loss was 17% at 28 days, a 25% improvement over GLP-1 delivered as basal alone.
• FDA Submission: Preparing for the submission of a tubeless version of the MODD1 product to the FDA, anticipated in the third quarter of 2025.

Modular Medical, Inc. (MODD) is dedicated to revolutionizing diabetes care with next-generation insulin pump technology. With a core focus on innovation and affordability, Modular Medical leverages advanced engineering and patented technologies to design insulin pumps that are both easy to use and clinically efficacious.

For more insights into Modular Medical, Inc.'s mission, vision, and core values, visit Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).