Exchange: NASDAQ | Sector: Healthcare | Industry: Medical Devices
Q1 2025
Published: Aug 13, 2024
Earnings Highlights
EPS of $-0.12 increased by 45.5% from previous year
Net income of -4.14M
"N/A" - N/A
Modular Medical Inc (MODD) QQ1 2025 Results Analysis – Early-Stage Diabetes Insulin Pump Developer: Revenue Gap, Elevated Burn, and Cautious Outlook
Executive Summary
Modular Medical, a San Diego-based development-stage medical device company focused on insulin pump technology, reported no revenue for QQ1 2025, continuing a substantial burn driven by R&D and G&A expenses. Reported operating expenses of $4.22 million, with R&D at $3.21 million and G&A at $1.02 million, producing an EBITDA of -$4.02 million and net income of -$4.14 million (basic). The company ended QQ1 2025 with cash of $5.05 million and total debt of $1.10 million, yielding a net debt position of -$3.95 million and a cash runway far shorter than a typical growth-stage med-tech pathway would require if no near-term funding is expected. The balance sheet remains liquidity-rich on a relative basis (current ratio ~4.0), yet the firm carries a substantial cumulative deficit (retained earnings at -$70.07 million, with requisite equity support contributing to total stockholders’ equity of $8.02 million). There is a pronounced shift in quarterly performance versus the prior disclosed period (Q4 2024 revenue of $0.902 million but a sharply negative quarterly net income), highlighting the company’s continued dependence on external funding and demonstrated product development progression rather than commercial monetization.
Key implications for investors: (1) near-term profitability remains elusive given the lack of reportedQQ1 2025 revenue and heavy R&D spend; (2) liquidity is present but fragile without new financing, given an approximate quarterly cash burn of ~$4.2 million; (3) strategic milestones (regulatory approvals, partnerships, or early payer adoption) are critical to unlock upside; (4) long-term value will hinge on successful commercialization of insulin-pump technology and adoption in the diabetes market. The absence of an earnings call transcript constrains the ability to anchor management sentiment, but the quantitative profile underscores a high-burn, pre-revenue development story typical of a medical-device innovator in a regulated market.
Key Performance Indicators
Operating Income
-4.22M
QoQ: 2.29% | YoY:-12.50%
Net Income
-4.14M
QoQ: 3.36% | YoY:-10.70%
EPS
-0.12
QoQ: 14.29% | YoY:45.45%
Revenue Trend
Margin Analysis
Key Insights
revenue, early-stage profile with speculative upside.
Financial Highlights
Revenue: No QQ1 2025 revenue reported. Prior quarterly revenue disclosures show modest top-line contributions in late 2024 (Q4 2024 revenue $902,000; Q3 2024 revenue $130,000; Q2 2024 revenue $180,000; Q1 2024 revenue $141,000). Gross Profit: -$0.286 million driven by cost of revenue of $0.286 million with no material revenue in QQ1 2025. Gross Margin: not meaningful for a quarter with no revenue; the quarter records a gross loss rather than margin expansion. Operating Expenses: $4.22 million (R&D $3.21 million; G&A $1.02 million). EBITDA: -$4.024 million; Operating Income: -$4.22 million. Net Income: -$4.137 million; EPS: -$0.12. D&A: $0.196 million. Capex: -$0.842 million; Free Cash Flow: -$4.39 million.
Liquidity and Balance Sheet: Cash and cash equivalents $5.05 million; total assets $10.07 million; total liabilities $2.06 million; total stockholders’ equity $8.02 million (retained earnings -$70.07 million; other stockholders’ equity $78.05 million). Current ratio 4.03, quick ratio 4.03, cash ratio 3.76. Net debt position is negative at -$3.95 million (cash exceeds debt). Revenue and gross margin metrics continue to be non-meaningful in QQ1 2025 due to lack of reported revenue; however, liquidity creditors remain unfettered by debt levels. Valuation proxies show a negative enterprise value/EBITDA ambiance and a price-to-book around 6.43, reflecting a pre- revenue, early-stage profile with speculative upside.
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-286.00K
-102.84%
-142.56%
Operating Income
-4.22M
-12.50%
2.29%
Net Income
-4.14M
-10.70%
3.36%
EPS
-0.12
45.45%
14.29%
Key Financial Ratios
currentRatio
4.03
returnOnAssets
-41.1%
returnOnEquity
-51.6%
debtEquityRatio
0.14
operatingCashFlowPerShare
$-0.11
freeCashFlowPerShare
$-0.13
priceToBookRatio
6.43
priceEarningsRatio
-3.11
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript provided in the dataset. Consequently, there are no management quotes or call-out themes to summarize. If a transcript becomes available, a themes-by-episode synthesis (strategy, operations, market conditions, regulatory milestones) with direct quotes and context should be added.
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward guidance was disclosed in the QQ1 2025 data provided. Given the current trajectory, the company faces a narrow near-term runway absent additional financing. Investors should monitor: (i) any regulatory milestones related to the insulin pump platform (FDA submissions, trials, or clearance timelines); (ii) potential partnering or licensing agreements that could de-risk capex needs and accelerate revenue; (iii) additional equity or debt financing rounds and the resulting dilution; (iv) milestones around unit economics, manufacturing scalability, and payer adoption that could signal a path to revenue. In the absence of guidance, the most defensible view is a wait-and-see stance on near-term revenue generation, pending meaningful clinical/regulatory milestones and capital-raising events.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
MODD Focus
0.00%
0.00%
-51.60%
-3.11%
NPCE
73.60%
-41.60%
-62.20%
-10.84%
NXL
-3.27%
-13.65%
-44.70%
-3.39%
SSKN
45.60%
-42.80%
-35.70%
-1.04%
NMRD
0.00%
0.00%
18.10%
-2.57%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Modular Medical presents a classic high-risk, high-uncertainty developmental pipeline profile. The QQ1 2025 result shows no revenue and a substantial quarterly burn, implying a fragile near-term liquidity runway absent additional financing. The current position could be sustainable only if the company secures a financing event (equity or debt) or achieves milestone-based partnerships that provide non-dilutive or low-dilution funding and potential revenue streams. Investors should assign a premium to the probability and timing of meaningful regulatory milestones and revenue generation, while acknowledging the downside risk from continued cash burn and possible dilution. If the company can convert its insulin-pump platform into a revenue-generating product with favorable margins, the long-term upside could be substantial given the diabetes market size; however, near-term visibility remains limited without explicit guidance or an earnings-call-backed roadmap. Key monitoring points: regulatory milestones, partnership/licensing agreements, capital-raising announcements, and any shift in product development milestones that could de-risk the business model.
Key Investment Factors
Growth Potential
Long-term upside hinges on successful regulatory clearance and commercial adoption of Modular Medical’s insulin-pump platform. The addressable diabetes device market is large, with potential for device adoption acceleration if the pump demonstrates usability, accuracy, and patient outcomes advantages that drive physician and payer support.
Profitability Risk
Key risks include: continued regulatory hurdles and potential delays, reliance on external financing to sustain operations, competition from established pump players and emerging digital-health competitors, manufacturing scale-up challenges, and the need to convert pre-commercial development into revenue with acceptable margins. The burn rate and lack of QQ1 2025 revenue heighten near-term funding risk and equity dilution risk for existing shareholders.
Financial Position
Liquidity remains present but fragile. Cash balance of $5.05M relative to quarterly burn of ~$4.2M suggests a runway of roughly one quarter absent new financing. The balance sheet shows minimal current liabilities, a modest debt load ($1.10M), and a substantial accumulated deficit (retained earnings -$70.07M) offset by equity and a sizable non-operating equity component (othertotalStockholdersEquity $78.05M). Net debt is negative, indicating cushion, but the sustainability of this cushion depends on securing capital and achieving revenue generation.
SWOT Analysis
Strengths
Healthy liquidity cushion for a pre-revenue, development-stage med tech firm (cash $5.05M; net debt negative).
Low leverage footprint with total debt of $1.10M and a strong current ratio (~4.0).
Clear focus on a high-potential diabetes device opportunity (insulin pump technology) with a recognizable market need.
Weaknesses
No QQ1 2025 revenue; persistent negative earnings and heavy quarterly burn.
Significant cumulative deficit (retained earnings -$70.07M) that requires external financing to sustain development.
Reliance on future funding rounds and regulatory/clinical milestones to unlock value.
Opportunities
Potential partnerships or licensing deals to accelerate development and commercialization without heavy capex.
Regulatory progress or early payer acceptance could unlock revenue streams and improve funding outlook.
Market opportunity in diabetes device adoption with evolving digital health integration.
Threats
Regulatory delays or adverse outcomes in trials could extend runway constraints.
Equity dilution risk from upcoming financing rounds amid a hostile financing environment for micro-caps.
Competitive dynamics in insulin pump space with incumbents and new entrants.