RELATED PARTY TRANSACTIONS

9 Months Ended

Dec. 31, 2019

Disclosure Text Block [Abstract]

Related Party Transactions

NOTE 4 – RELATED PARTY TRANSACTIONS

Nemaura Pharma Limited (“Pharma”), NDM Technologies Limited (“NDM”) and Black and White Health Care Limited (“B&W”) are entities controlled by the Company’s Chief Executive Officer and majority stockholder, Dewan F.H. Chowdhury.

In accordance with the SEC Staff Accounting Bulletin 55, these condensed consolidated financial statements are intended to reflect all costs associated with the operations of DDL and TCL. Pharma has a service agreement with DDL, to undertake development, manufacture and regulatory approvals under Pharma’s ISO13485 Accreditation. In lieu of these services, DDL invoices Pharma on a periodic basis for said services. Services are provided at cost plus a service surcharge amounting to less than 10% of the total costs incurred.

The following is a summary of activity between the Group and Pharma, NDM and B&W for the nine months ended December 31, 2019 and 2018, and the year ended March 31, 2019. These amounts are unsecured, interest free, and payable on demand.

	Nine Months Ended December 31, 2019 (unaudited) ($)			Nine Months Ended December 31, 2018 (unaudited) ($)			Year Ended March 31, 2019 ($)
Liability due to related party, beginning of period		964,679			613,818			613,818
Amounts invoiced by DDL to Pharma		(5,874	)		—			(977	)
Amounts invoiced by Pharma to DDL, NM and TCL (1)		1,369,272			1,539,114			2,312,412
Amounts repaid by DDL to Pharma		(1,642,019	)		(1,130,755	)		(1,569,496	)
Amounts invoiced by B&W to DDL		—			—			2,206
Amounts repaid by DDL to B&W		—			—			(5,622	)
Foreign exchange differences		15,970			(103,383	)		(84,843	)
Forgiveness of payable accounted for as an equity contribution		—			—			(302,819	)
Liability due to related party, end of the period		702,028			918,794			964,679

(1) These amounts are included primarily in research and development expenses charged to the Company by Pharma.

The Company has an $8 million unsecured senior credit facility made available from certain majority stockholders as of August 1, 2019. The first $3.5 million became available immediately for draw down, which will help fund the Company’s European commercial launch. The credit facility is non-dilutive carrying 8% interest with quarterly interest only payments. The principal is due on maturity in 5 years. There has been no draw down to date. No decision to date has been made on when the remaining capital will be needed and will be available for draw down.

The Company routinely reviews its statement of cash flows presentation of related party transactions for financing or operating classification based on the underlying nature of the item and intended repayment.