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<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Modular Medical, Inc. (the “Company”)
was organized under the laws of the State of Nevada on October 22, 1998, to engage in any lawful purpose.  In June of 2017,
the Company changed its name to Modular Medical, Inc. by filing a Certificate of Amendment to the Company’s Articles of Incorporation
with the Nevada Secretary of State. The Company has, at the present time, not paid any dividends and any dividends that may be
paid in the future will depend upon the financial requirements of the Company and other relevant factors.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Through the year ended June 30, 2001, the Company
was seeking to rent out snowmobiles and all-terrain vehicles (“ATV”).  In June of 2000, the Company also purchased
the rights to manufacture, use, market, and sell the Net Caddy, a backpack style bag used to transport fishing gear. The Company
abandoned both the snowmobile and ATV plans, as well as the Net Caddy plans.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Quasuras, Inc. (“Quauras”) was incorporated
in Delaware on April 20, 2015.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Quasuras has developed a hardware technology
allowing people with diabetes to receive their daily insulin in two ways, through a continuous "basal" delivery allowing
a small amount of insulin to be in the blood at all times and a "bolus" delivery to address meal time glucose input and
to address when the blood glucose level becomes too high. By addressing the time and effort required to effectively treat their
condition, Quasuras believes it can address the less technically savvy, less motivated part of the market.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Reorganization</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 24, 2017, pursuant to a Reorganization
and Share Exchange Agreement, by and among, the Company and Quasuras, the Company acquired one hundred percent (100%) of the issued
and outstanding shares of Quasuras for 7,582,060 shares of the Company, resulting in Quasuras becoming a wholly-owned subsidiary
of the Company. Since the major shareholder of Quasuras retained control of both the Company and Quasuras, the share exchange was
accounted for as a reverse merger. As such, the Company recognized the assets and liabilities of Quasuras, acquired in the reorganization,
at their historical carrying amounts.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the reorganization, the Company
changed the fiscal year end from June 30 to March 31, to coincide with the year end for Quasuras.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements of the Company have
been prepared in accordance with accounting principles generally accepted in the United States of America.  The following
summarizes the more significant of such policies:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Basis of Presentation</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying condensed consolidated financial
statements were prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”)
and with the instructions to Form 10-Q.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain information and footnote disclosures
normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to U.S.
GAAP rules and regulations for presentation of interim financial information. Therefore, the unaudited condensed interim consolidated
financial statements should be read in conjunction with the financial statements and the notes thereto, included in the Company’s
Annual Report on the Form 10-K for the fiscal year ended March 31, 2018. Current and future financial statements may not be directly
comparable to the Company’s historical financial statements. However, except as disclosed herein, there have been no material
changes in the information disclosed in the notes to the financial statements for the fiscal year ended March 31, 2018 included
in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. In the opinion of Management,
all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made.
Operating results for the six months ended September 30, 2018 are not necessarily indicative of the results that may be expected
for the fiscal year ending March 31, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Principles of Consolidation</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include
the accounts of Modular Medical, Inc. and its wholly-owned subsidiary, Quasuras, Inc., collectively referred to as the Company.
All material intercompany accounts, transactions and profits were eliminated in consolidation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of Estimates</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of the accompanying financial
statements in conformity with U.S. GAAP 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
amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Reportable Segment</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has one reportable segment. The
Company's activities are interrelated, and each activity is dependent upon and supportive of the other. Accordingly, all significant
operating decisions are based on analysis of financial products provided as a single global business.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue is recognized when persuasive evidence
of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. Revenue generally
is recognized net of allowances for returns and any taxes collected from customers and subsequently remitted to governmental authorities.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Cost of Sales </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cost of sales consists primarily of inventory
costs, as well as warehousing costs (including the cost of warehouse labor), shipping, importation duties and charges, third party
royalties and product sampling.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Research and Development</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses the cost of research and
development, as incurred. Research and development costs charged to operations were approximately $367,550 and $83,408 for the
three months ended September 30, 2018 and 2017, respectively. For the six months ended September 30, 2018 and 2017, the costs were
approximately $503,340 and $87,754 respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>General and Administration</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">General and administration expenses consist
primarily of payroll and benefit related costs, rent, office expenses, and meetings and travel.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Income Taxes</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company utilizes FASB Accounting Standards
Codification (“ASC”) Topic 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for
the expected future tax consequences of events that were included in the financial statements or tax returns. Under this method,
deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and
liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable
to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary,
to reduce deferred tax assets to the amount expected to be realized.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows FASB Interpretation No.
48, Accounting for Uncertainty in Income Taxes, (codified in FASB ASC Topic 740). When tax returns are filed, it is likely that
some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about
the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position
is recognized in the financial statements in the period during which, based on all available evidence, management believes it is
more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes,
if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not
recognition threshold are measured as the largest amount of tax benefit that is more than fifty percent (50%) likely of being realized
upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds
the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets
along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated
with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative
expenses in the statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At September 30, 2018 and 2017, the Company
had not taken any significant uncertain tax positions on its tax returns for periods ended March 31, 2018 and prior years or in
computing its tax provision for 2017. Management has considered its tax positions and believes that all of the positions taken
by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company is subject
to examination by U.S. Federal and State tax authorities for the period ended March 31, 2018 to the present, generally for three
years after they are filed.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Concentration of Credit Risk</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial instruments that potentially subject
the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business
activities. The Company places its cash in what it believes to be credit-worthy financial institutions.  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Risks and Uncertainties</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is subject to risks from, among
other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements,
rapidly changing customer requirements, limited operating history and the volatility of public markets.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Contingencies</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain conditions may exist as of the date
the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more
future events occur or fail to occur. The Company's management and legal counsel assess such contingent liabilities, and such assessment
inherently involves judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company
or unasserted claims that may result in such proceedings, the Company's legal counsel evaluates the perceived merits of any legal
proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If the assessment of a contingency indicates
it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability
would be accrued in the Company's financial statements. If the assessment indicates that a potential material loss contingency
is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability,
together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered
to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Cash and Cash Equivalents</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents include cash
in hand and cash in demand deposits, certificates of deposit and all highly liquid debt instruments with original maturities of
three months or less. At September 30, 2018 and March 31, 2018, the Company had $3,687,822 and $4,296,676, respectively, in cash.
 Deposits at the bank are insured up to $250,000 by the Federal Deposit Insurance Corporation. The Company’s uninsured
portion of the balances held at the bank aggregated to approximately $3,187,822 and $3,933,002, respectively. No reserve has been
made in the financial statements for any possible loss due to any financial institution failure.  The Company has not
experienced any losses in such accounts and believes we are not exposed to any significant risk on cash and cash equivalents.</p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Property, Plant & Equipment</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at cost and
depreciated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. The estimated
useful lives of our property and equipment are generally as follows: computer software developed or acquired for internal use,
three to ten years; computer equipment, two to three years; buildings and improvements, five to fifteen years; leasehold improvements,
two to ten years; and furniture and equipment, one to five years.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">As of September 30, 2018, and March 31, 2018, property, plant and
equipment amounted to:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>March 31, 2018</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt">Computer and equipment</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">47,856</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">15,103</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,033</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,844</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">42,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,259</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expenses for the three months ended
September 30, 2018 and 2017 were $1,802 and $154, respectively. For the six months ended September 30, 2018 and 2017 depreciation
was approximately $3,189 and $300, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Fair Value of Financial Instrument</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For certain of the Company's financial instruments,
including cash and equivalents, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due
to their short maturities. ASC Topic 820, "Fair Value Measurements and Disclosures," requires disclosure of the fair value
of financial instruments held by the Company. ASC Topic 825, "Financial Instruments," defines fair value, and establishes
a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value
measures. The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial
instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such
instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are
defined as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 1 inputs to the valuation methodology
are quoted prices for identical assets or liabilities in active markets. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2 inputs to the valuation methodology
include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability,
either directly or indirectly, for substantially the full term of the financial instrument.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 3 inputs to the valuation methodology
are unobservable and significant to the fair value measurement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company analyzes all financial instruments
with features of both liabilities and equity under ASC 480, "Distinguishing Liabilities from Equity," and ASC 815.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2018 and June 30, 2018,
the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Earnings Per Share (EPS)</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic EPS is computed by dividing income available
to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar
to basic net income per share except that the denominator is increased to include the number of additional common shares that would
have been outstanding if all the potential common shares, warrants and stock options had been issued and if the additional common
shares were dilutive. Diluted EPS is based on the assumption that all dilutive convertible shares and stock options were converted
or exercised. Dilution is computed by applying the treasury stock method for the outstanding options and the if-converted method
for the outstanding convertible preferred shares. Under the treasury stock method, options and warrants are assumed to be exercised
at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common
stock at the average market price during the period. Under the if-converted method, convertible outstanding instruments are assumed
to be converted into common stock at the beginning of the period (or at the time of issuance, if later).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table sets for the computation
of basic and diluted earnings per share for three & six months ended September 30, 2018 and 2017:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td><b> </b></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b>Three Months Ended</b></td><td><b> </b></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><b> </b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-bottom: 2.5pt">Net Loss</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(543,774</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(176,002</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(793,340</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(219,091</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td></tr>
<tr style="vertical-align: bottom">
<td>Net Loss Per Share</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Basic and Diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.034</td><td style="text-align: left; padding-bottom: 2.5pt">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.013</td><td style="text-align: left; padding-bottom: 2.5pt">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.050</td><td style="text-align: left; padding-bottom: 2.5pt">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.020</td><td style="text-align: left; padding-bottom: 2.5pt">)</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Weighted average number of shares used in computing basic and diluted net loss per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt">Basic</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">13,882,970</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">10,749,730</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt">Diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">13,882,970</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">10,749,730</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Recently Issued Accounting Pronouncements</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August of 2017, the FASB issued guidance
that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components
excluded from the assessment. Some of the modifications include the ineffectiveness of derivative gain/loss in highly effective
cash flow hedge to be recorded in OCI, the change in fair value of derivative to be recorded in the same income statement line
as hedged item, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging
on financial statement lines for components excluded from the assessment. The amendment also simplifies the application of hedge
accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective
for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal
2020. Early adoption is permitted, and the modified retrospective transition method should be applied. We do not expect the adoption
of this guidance to have a material impact on our consolidated financial statements.</p>
<p style="font: 8pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other recent accounting pronouncements issued
by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities
and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future
consolidated financial statements. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Reclassification</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified
for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations
or cash flow.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">On April 26, 2017, Modular Medical issued
2,900,000 shares (the “Control Block”), of newly issued, restricted common stock, par value, $0.001, per share, for
a purchase price of $375,000, resulting in a change in control of Modular Medical.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">On July 24, 2017, pursuant to a Reorganization
and Share Exchange Agreement, by and among, Modular Medical, three Quasuras shareholders and Quasuras (the “Acquisition Agreement”),
Modular Medical acquired all 4,400,000 shares of Quasuras’ common stock which represented one hundred percent (100%) of the
issued and outstanding shares of Quasuras for 7,582,060 shares of our common stock, resulting in Quasuras becoming our wholly-owned
subsidiary (the “Acquisition”).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Simultaneously with the closing of the
Acquisition and as a condition thereto, we sold in a private placement (the “Private Placement”) an aggregate of 7,233,031
for cash and 568,182 from reissuance of previously canceled shares of our common stock pursuant to one or more exemptions from
the registration requirements of the Securities Act, at a purchase price of $0.66 per share resulting in net proceeds to us of
approximately $4,731,872. Simultaneously with the Acquisition and Private Placement, the Company cancelled all 2,900,000 Control
Block shares it had issued in the Control Block Acquisition (the “Share Cancellation”). In connection with the Private
Placement, we paid $41,928 as compensation in connection with sales of our shares therein.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Following the Acquisition, the Private
Placement and the Share Cancellation, we had issued and outstanding 15,983,273 shares of our common stock.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The cash received in the Private Placement was
recorded as the cash received in reorganization in the accompanying financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Simultaneously with and as a condition to the
closing of the Acquisition and the Private Placement, pursuant to an Intellectual Property Transfer Agreement, dated as of July
24, 2017, by and among Modular Medical, Quasuras and Mr. Paul DiPerna (the “IP Transfer Agreement”), Mr. Paul DiPerna
transferred to us all intellectual property rights owned directly and/or indirectly by him related to our proposed business. Separately,
we agreed to pay Mr. Paul DiPerna as part of his compensation for services to be performed for us pursuant to a Royalty Agreement
(the “Royalty Agreement”) certain fees based upon future sales, if any, of our proposed product subject to a maximum
$10,000,000 cap on the aggregate amount of fees that Mr. Paul DiPerna could earn from such arrangement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2018 and March 31, 2018,
accrued expenses amounted to $46,837 and $14,955, respectively. Accrued expenses comprised of credit card transactions, rent and
stock compensation as of September 30, 2018 and March 31, 2018.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Payable to related party comprises of the amounts
paid by the major shareholder on behalf of the Company. The payable is unsecured, non-interest bearing and due on demand. As of
September 30, 2018 and March 31, 2018, respectively, the payable to related party amounted to $0 and $516, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Common stock</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 24, 2017, pursuant to the Acquisition
Agreement, the Company acquired one hundred percent (100%) of the issued and outstanding shares of Quasuras for 7,582,060 shares
of the Company, resulting in Quasuras becoming a wholly-owned subsidiary of the Company. The historical equity for Quasuras was
restated pursuant to the reorganization.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has 50,000,000 shares of common
stock authorized. The par value of the shares is $0.001. As of September 30, 2018, 15,983,273 shares of common stock of the Company
were issued and outstanding.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Preferred Stock</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has 5,000,000 shares of preferred
stock authorized. The par value of the shares is $0.001. As of September 30, 2018, none of the shares of preferred stock of the
Company were issued.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b>Stock Options</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 19, 2017, the Board of Directors
approved an Employee Stock Option Program (“ESOP”) that reserves 3,000,000 shares of common stock of the Company to
be issued. Under the Company’s ESOP, eligible employees, directors and consultants are granted options to purchase shares
of common stock of the Company. The ESOP is administered by the Company’s Board of Directors or, in the alternative, if necessary,
a committee designated by the Board of Directors, and has the sole power over the exercise of the ESOP. The Board of Directors
determines whether the ESOP will allow for the issuance of shares of common stock or an option to purchase shares of common stock,
such option designated as either an incentive stock option or a non-qualified stock option.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The exercise or purchase price shall be calculated
as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 48px; font: 12pt Arial, Helvetica, Sans-Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(i)</font></td>
<td style="font: 12pt Arial, Helvetica, Sans-Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">In the case of an incentive stock option, (A) granted to employees, directors and consultants who, at the time of the grant of such incentive stock option own stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company, the per share exercise price shall be not less than one hundred ten percent (110%) of the fair market value per share on the date of grant; or (B) granted to employees, directors and consultants other than to employees, directors and consultants described in the preceding clause, the per share exercise price shall be not less than one hundred percent (100%) of the fair market value per share on the date of grant;</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 48px; font: 12pt Arial, Helvetica, Sans-Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(ii)</font></td>
<td style="font: 12pt Arial, Helvetica, Sans-Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">In the case of a non-qualified stock option, the per share exercise price shall be not less than one hundred percent (100%) of the fair market value per share on the date of grant unless otherwise determined by the Board of Directors; and</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 48px; font: 12pt Arial, Helvetica, Sans-Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">(iii)</font></td>
<td style="font: 12pt Arial, Helvetica, Sans-Serif; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif">In the case of other grants, such price as is determined by the Board of Directors.</font></td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Board of Directors are responsible for determining
the consideration to be paid for the shares of common stock to be issued upon exercise or purchase. The ESOP generally doesn’t
allow for the transfer of the options, and the Board of Directors may amend, suspend or terminate the ESOP at any time.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended September 30,
2018, we granted options for a total of $1,351,515 shares with a weighted average grant date fair value of $0.55 per option. No
options were granted during the prior quarters.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair values of options at the grant date
were estimated utilizing the Black-Scholes valuation model with the following weighted average assumptions for the three months
ended September 30, 2018: (i) dividend yield on our common stock of 0 percent, (ii) expected stock price volatility of 88 percent,
(iii) a risk-free interest rate of 3.2 percent, and (iv) and expected option term of 9 years.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">General and administrative expense for the three
months ended September 30, 2018 included stock-based compensation expense of $8,334. Research and development expenses also included
stock-based compensation expenses of $174,504 for the three months ended September 30, 2018. No such expenses were recognized in
the prior quarters.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2018, the unrecognized stock-based
compensation expenses related to non-vested stock options was approximately $562,000, which will be amortized over an estimated
weighted average period of approximately 9 months.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Based on the available information and other
factors, management believes it is more likely than not that the net deferred tax assets at, September 30, 2018 and March 31, 2018
will not be fully realizable. Accordingly, management has recorded a full valuation allowance against its net deferred tax assets
at September 30, 2018 and March 31, 2018. At September 30, 2018 and March 31, 2018, the Company had federal net operating loss
carry-forwards of approximately $380,500 and $182,500, respectively, expiring beginning in 2037.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">Deferred tax assets consist of the following components: </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>March 31, 2018</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left">Net loss carryforward</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">380,500</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">182,500</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">(380,500</td><td style="text-align: left; padding-bottom: 1pt">)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">(182,500</td><td style="text-align: left; padding-bottom: 1pt">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Total deferred tax assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">—  </td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">—  </td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 12, 2017, the Company entered into a
royalty agreement with the founder and major shareholder. Pursuant to the agreement, the founder and major shareholder is assigning
and transferring all of his rights in the intellectual property in return for royalty payments. The Company shall pay royalty to
the founder on any sales of the royalty product sold or otherwise commercialized by the Company, equal to (a) US$0.75 on each sale
of a royalty product, or (b) five percent (5%) of the gross sale price of the royalty product, whichever is less. The royalty payments
shall cease, and this agreement shall terminate, at such time as the total sum of royalty payments actually paid to the founder,
pursuant to this agreement, reaches $10,000,000. The Company shall have the option to terminate this agreement at any time upon
payment, to the founder, of the difference between total royalty payments actually made to him to date and the sum of $10,000,000.
All payments of the royalties, if due, for the preceding quarter, shall be made by the Company within thirty days after the calendar
quarter.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 21, 2017, the Company entered into
a sublease agreement to rent office space. The term of the lease commences on September 1, 2017 and expires on December 14, 2019.
The monthly rent for the lease is $3,000. The Company paid a deposit of $7,500 upon execution of the lease which has been recorded
as a security deposit in the accompanying financial statements. The amounts of minimum lease payments and periods during which
they become due are as follows: </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center"><b>Year</b></td><td><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>March 31,</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2019</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">18,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: left; padding-bottom: 1pt">2020</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">25,500</td><td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="text-align: left; padding-bottom: 2.5pt">Total minimum lease payment</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">43,500</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
18000
25500
43500
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="3" style="text-align: center"><b>Year</b></td><td><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>March 31,</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left">2019</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">18,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt"> </td><td style="text-align: left; padding-bottom: 1pt">2020</td><td style="text-align: left; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">25,500</td><td style="text-align: left; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="text-align: left; padding-bottom: 2.5pt">Total minimum lease payment</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">43,500</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>March 31, 2018</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left">Net loss carryforward</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">380,500</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">182,500</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">(380,500</td><td style="text-align: left; padding-bottom: 1pt">)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td><td style="text-align: right; border-bottom: Black 1pt solid">(182,500</td><td style="text-align: left; padding-bottom: 1pt">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Total deferred tax assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">—  </td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">—  </td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>March 31, 2018</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt">Computer and equipment</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">47,856</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">15,103</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,033</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,844</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">42,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,259</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td><b> </b></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b>Three Months Ended</b></td><td><b> </b></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><b> </b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-bottom: 2.5pt">Net Loss</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(543,774</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(176,002</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(793,340</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(219,091</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td></tr>
<tr style="vertical-align: bottom">
<td>Net Loss Per Share</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Basic and Diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.034</td><td style="text-align: left; padding-bottom: 2.5pt">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.013</td><td style="text-align: left; padding-bottom: 2.5pt">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.050</td><td style="text-align: left; padding-bottom: 2.5pt">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.020</td><td style="text-align: left; padding-bottom: 2.5pt">)</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Weighted average number of shares used in computing basic and diluted net loss per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt">Basic</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">13,882,970</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">10,749,730</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt">Diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">13,882,970</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">10,749,730</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 24, 2017, pursuant to a Reorganization
and Share Exchange Agreement, by and among, the Company and Quasuras, the Company acquired one hundred percent (100%) of the issued
and outstanding shares of Quasuras for 7,582,060 shares of the Company, resulting in Quasuras becoming a wholly-owned subsidiary
of the Company. Since the major shareholder of Quasuras retained control of both the Company and Quasuras, the share exchange was
accounted for as a reverse merger. As such, the Company recognized the assets and liabilities of Quasuras, acquired in the reorganization,
at their historical carrying amounts.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the reorganization, the Company
changed the fiscal year end from June 30 to March 31, to coincide with the year end for Quasuras.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The financial statements of the Company have
been prepared in accordance with accounting principles generally accepted in the United States of America.  The following
summarizes the more significant of such policies:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying condensed consolidated financial
statements were prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”)
and with the instructions to Form 10-Q.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain information and footnote disclosures
normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to U.S.
GAAP rules and regulations for presentation of interim financial information. Therefore, the unaudited condensed interim consolidated
financial statements should be read in conjunction with the financial statements and the notes thereto, included in the Company’s
Annual Report on the Form 10-K for the fiscal year ended March 31, 2018. Current and future financial statements may not be directly
comparable to the Company’s historical financial statements. However, except as disclosed herein, there have been no material
changes in the information disclosed in the notes to the financial statements for the fiscal year ended March 31, 2018 included
in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. In the opinion of Management,
all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made.
Operating results for the six months ended September 30, 2018 are not necessarily indicative of the results that may be expected
for the fiscal year ending March 31, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements include
the accounts of Modular Medical, Inc. and its wholly-owned subsidiary, Quasuras, Inc., collectively referred to as the Company.
All material intercompany accounts, transactions and profits were eliminated in consolidation.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of the accompanying financial
statements in conformity with U.S. GAAP 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
amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has one reportable segment. The
Company's activities are interrelated, and each activity is dependent upon and supportive of the other. Accordingly, all significant
operating decisions are based on analysis of financial products provided as a single global business.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue is recognized when persuasive evidence
of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. Revenue generally
is recognized net of allowances for returns and any taxes collected from customers and subsequently remitted to governmental authorities.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cost of sales consists primarily of inventory
costs, as well as warehousing costs (including the cost of warehouse labor), shipping, importation duties and charges, third party
royalties and product sampling.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company expenses the cost of research and
development, as incurred. Research and development costs charged to operations were approximately $367,550 and $83,408 for the
three months ended September 30, 2018 and 2017, respectively. For the six months ended September 30, 2018 and 2017, the costs were
approximately $503,340 and $87,754 respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">General and administration expenses consist
primarily of payroll and benefit related costs, rent, office expenses, and meetings and travel.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company utilizes FASB Accounting Standards
Codification (“ASC”) Topic 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for
the expected future tax consequences of events that were included in the financial statements or tax returns. Under this method,
deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and
liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable
to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary,
to reduce deferred tax assets to the amount expected to be realized.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows FASB Interpretation No.
48, Accounting for Uncertainty in Income Taxes, (codified in FASB ASC Topic 740). When tax returns are filed, it is likely that
some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about
the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position
is recognized in the financial statements in the period during which, based on all available evidence, management believes it is
more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes,
if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not
recognition threshold are measured as the largest amount of tax benefit that is more than fifty percent (50%) likely of being realized
upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds
the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets
along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated
with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative
expenses in the statements of income.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At September 30, 2018 and 2017, the Company
had not taken any significant uncertain tax positions on its tax returns for periods ended March 31, 2018 and prior years or in
computing its tax provision for 2017. Management has considered its tax positions and believes that all of the positions taken
by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company is subject
to examination by U.S. Federal and State tax authorities for the period ended March 31, 2018 to the present, generally for three
years after they are filed.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial instruments that potentially subject
the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business
activities. The Company places its cash in what it believes to be credit-worthy financial institutions.  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is subject to risks from, among
other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements,
rapidly changing customer requirements, limited operating history and the volatility of public markets.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain conditions may exist as of the date
the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more
future events occur or fail to occur. The Company's management and legal counsel assess such contingent liabilities, and such assessment
inherently involves judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company
or unasserted claims that may result in such proceedings, the Company's legal counsel evaluates the perceived merits of any legal
proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If the assessment of a contingency indicates
it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability
would be accrued in the Company's financial statements. If the assessment indicates that a potential material loss contingency
is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability,
together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered
to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents include cash
in hand and cash in demand deposits, certificates of deposit and all highly liquid debt instruments with original maturities of
three months or less. At September 30, 2018 and March 31, 2018, the Company had $3,687,822 and $4,296,676, respectively, in cash.
 Deposits at the bank are insured up to $250,000 by the Federal Deposit Insurance Corporation. The Company’s uninsured
portion of the balances held at the bank aggregated to approximately $3,187,822 and $3,933,002, respectively. No reserve has been
made in the financial statements for any possible loss due to any financial institution failure.  The Company has not
experienced any losses in such accounts and believes we are not exposed to any significant risk on cash and cash equivalents.</p>
<p style="font: 8pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at cost and
depreciated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. The estimated
useful lives of our property and equipment are generally as follows: computer software developed or acquired for internal use,
three to ten years; computer equipment, two to three years; buildings and improvements, five to fifteen years; leasehold improvements,
two to ten years; and furniture and equipment, one to five years.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">As of September 30, 2018, and March 31, 2018, property, plant and
equipment amounted to:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt; text-align: center"> </td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid"><b>March 31, 2018</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 56%; text-align: left; padding-left: 5.4pt">Computer and equipment</td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">47,856</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">15,103</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Less: accumulated depreciation</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,033</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,844</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">42,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,259</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expenses for the three months ended
September 30, 2018 and 2017 were $1,802 and $154, respectively. For the six months ended September 30, 2018 and 2017 depreciation
was approximately $3,189 and $300, respectively.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For certain of the Company's financial instruments,
including cash and equivalents, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due
to their short maturities. ASC Topic 820, "Fair Value Measurements and Disclosures," requires disclosure of the fair value
of financial instruments held by the Company. ASC Topic 825, "Financial Instruments," defines fair value, and establishes
a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value
measures. The carrying amounts reported in the balance sheets for receivables and current liabilities each qualify as financial
instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such
instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are
defined as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 1 inputs to the valuation methodology
are quoted prices for identical assets or liabilities in active markets. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 2 inputs to the valuation methodology
include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability,
either directly or indirectly, for substantially the full term of the financial instrument.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Level 3 inputs to the valuation methodology
are unobservable and significant to the fair value measurement.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company analyzes all financial instruments
with features of both liabilities and equity under ASC 480, "Distinguishing Liabilities from Equity," and ASC 815.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2018 and June 30, 2018,
the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic EPS is computed by dividing income available
to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar
to basic net income per share except that the denominator is increased to include the number of additional common shares that would
have been outstanding if all the potential common shares, warrants and stock options had been issued and if the additional common
shares were dilutive. Diluted EPS is based on the assumption that all dilutive convertible shares and stock options were converted
or exercised. Dilution is computed by applying the treasury stock method for the outstanding options and the if-converted method
for the outstanding convertible preferred shares. Under the treasury stock method, options and warrants are assumed to be exercised
at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common
stock at the average market price during the period. Under the if-converted method, convertible outstanding instruments are assumed
to be converted into common stock at the beginning of the period (or at the time of issuance, if later).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table sets for the computation
of basic and diluted earnings per share for three & six months ended September 30, 2018 and 2017:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td><b> </b></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b>Three Months Ended</b></td><td><b> </b></td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid"><b>Six Months Ended</b></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><b> </b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td><td style="padding-bottom: 1pt"><b> </b></td>
<td colspan="3" style="text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"><b>September 30, 2018</b></td></tr>
<tr style="vertical-align: bottom">
<td style="width: 40%; text-align: left; padding-bottom: 2.5pt">Net Loss</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(543,774</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(176,002</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(793,340</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td><td style="width: 3%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; text-align: left; border-bottom: Black 2.5pt double">$</td><td style="width: 10%; text-align: right; border-bottom: Black 2.5pt double">(219,091</td><td style="width: 1%; text-align: left; padding-bottom: 2.5pt">)</td></tr>
<tr style="vertical-align: bottom">
<td>Net Loss Per Share</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Basic and Diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.034</td><td style="text-align: left; padding-bottom: 2.5pt">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.013</td><td style="text-align: left; padding-bottom: 2.5pt">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.050</td><td style="text-align: left; padding-bottom: 2.5pt">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double">$</td><td style="text-align: right; border-bottom: Black 2.5pt double">(0.020</td><td style="text-align: left; padding-bottom: 2.5pt">)</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Weighted average number of shares used in computing basic and diluted net loss per share:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt">Basic</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">13,882,970</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">10,749,730</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt">Diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">13,882,970</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">15,983,273</td><td style="text-align: left; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left; border-bottom: Black 2.5pt double"> </td><td style="text-align: right; border-bottom: Black 2.5pt double">10,749,730</td><td style="text-align: left; padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 8pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August of 2017, the FASB issued guidance
that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components
excluded from the assessment. Some of the modifications include the ineffectiveness of derivative gain/loss in highly effective
cash flow hedge to be recorded in OCI, the change in fair value of derivative to be recorded in the same income statement line
as hedged item, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging
on financial statement lines for components excluded from the assessment. The amendment also simplifies the application of hedge
accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective
for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal
2020. Early adoption is permitted, and the modified retrospective transition method should be applied. We do not expect the adoption
of this guidance to have a material impact on our consolidated financial statements.</p>
<p style="font: 8pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other recent accounting pronouncements issued
by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities
and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future
consolidated financial statements. </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified
for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations
or cash flow.</p>
3189
300
1802
154