ORGANIZATION AND PRINCIPAL ACTIVITIES

6 Months Ended

Sep. 30, 2020

Disclosure Text Block [Abstract]

ORGANIZATION AND PRINCIPAL ACTIVITIES

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

Nemaura Medical Inc. (“Nemaura” or the “Company”), through its operating subsidiaries, performs medical device research and manufacturing of a continuous glucose monitoring system (“CGM”), named sugarBEAT^TM. The sugarBEAT^TM device is a non-invasive, wireless device for use by persons with Type I and Type II diabetes and may also be used to screen pre-diabetic patients. The sugarBEAT^TM device extracts analytes, such as glucose, to the surface of the skin in a non-invasive manner where it is measured using unique sensors and interpreted using a unique algorithm.

Nemaura is a Nevada holding company organized in 2013. Nemaura owns 100% of Region Green Limited, a British Virgin Islands corporation (“RGL”) formed on December 12, 2013. RGL owns 100% of the stock in Dermal Diagnostic (Holdings) Limited, an England and Wales corporation (“DDHL”) formed on December 11, 2013, which in turn owns 100% of Dermal Diagnostics Limited, an England and Wales corporation formed on January 20, 2009 (“DDL”), and 100% of Trial Clinic Limited, an England and Wales corporation formed on January 12, 2011 (“TCL”).

DDL is a diagnostic medical device company headquartered in Loughborough, Leicestershire, England, and is engaged in the discovery, development and commercialization of diagnostic medical devices. The Company’s initial focus has been on the development of the sugarBEAT^TM device, which consists of a disposable patch containing a sensor, and a non-disposable miniature wireless transmitter with a re-chargeable power source, which is designed to enable trending or tracking of blood glucose levels. All of the Company’s operations and assets are located in England.

The following diagram illustrates Nemaura’s corporate structure as of September 30, 2020:

	Nemaura Medical Inc. Nevada Corporation
	Region Green Limited British Virgin Islands Corporation
	Dermal Diagnostics (Holdings) Limited England and Wales Corporation
Dermal Diagnostics Limited England and Wales Corporation		Trial Clinic Limited England and Wales Corporation

The Company was incorporated in 2013 and has reported recurring losses from operations to date and an accumulated deficit of $20,267,348 as of September 30, 2020. These operations have resulted in the successful completion of clinical programs to support a CE mark (European Union approval of the product) approval, as well as a De Novo 510(k) medical device application to the U.S. Food and Drug Administration (“FDA”). The Company expects to continue to incur losses from operations until revenues are generated through licensing fees or product sales. However, given the completion of the requisite clinical programs, these losses are expected to be reduced over time. Management has entered into licensing agreements with unrelated third parties relating to the United Kingdom, Europe, Qatar and all countries in the Gulf Cooperation Council.

Management has evaluated the expected expenses to be incurred along with its available cash and has determined that the Company has the ability to continue as a going concern for at least one year subsequent to the date of issuance of these unaudited condensed consolidated financial statements. The Company has an $8 million unsecured senior credit facility made available from certain major stockholders on August 1, 2019. The credit facility is non-dilutive carrying 8% interest with quarterly interest payments only and the principal being due on maturity in 5 years. No draw down has been made to date.

On April 15, 2020, the Company entered into a note purchase agreement resulting in cash proceeds of $4,675,000; as set out in Note 6. The Company has $16,948,939 cash at September 30, 2020. The Company believes the cash position as of September 30, 2020, plus the credit facility made available from certain major stockholders, is adequate for our current level of operations through at least November 2021, and for the achievement of certain of our product development milestones. Our plan is to utilize the cash, plus loan draw down if required, to continue establishing commercial manufacturing operations for the commercial supply of the sugarBEAT^TM device and patches now that CE mark approval has been received.