Executive Summary
Modular Medical (MODD) delivered a quarter of limited revenue upside in QQ4 2024, reporting revenue of $0.902 million with a robust gross margin of 74.5% ($672k gross profit on $902k revenue). The company continues to burn cash driven by aggressive R&D and selling, general and administrative investments, posting an operating loss of $4.319 million and a net loss of $4.281 million for the quarter. Despite the negative bottom line, the strength of gross margin at scale and a substantial liquidity runway—bolstered by $11.171 million of net financing activity and ending cash of $9.232 million—underscore a path dependent on milestones toward commercialization rather than immediate profitability. The quarter shows a notable sequential revenue uptick across the four quarters disclosed in 2024 (Q1–Q4) but remains far from break-even on a quarterly basis given the sizable compound annual burn from R&D and SG&A.
From a balance-sheet perspective, Modular Medical remains cash-rich relative to its peers in early-stage medical device development, with total assets of $13.807 million and total stockholders’ equity of $11.535 million. Cash and cash equivalents stood at $9.232 million, and debt remained modest ($1.19 million total debt; net debt was negative by approximately $8.042 million due to cash holdings). The company’s liquidity profile is highly contingent on ongoing equity financing, as evidenced by the $10.61 million principal financing inflow from common stock issuance in the quarter, which provides runway but dilutes existing holders. The core strategic question for investors is whether MODD can convert its R&D intensity and pipeline momentum into a commercialization event that meaningfully scales revenue and moves the company toward sustainable profitability.
Key Performance Indicators
QoQ: 616.92% | YoY:447.38%
QoQ: 18.03% | YoY:-20.91%
QoQ: 18.75% | YoY:-19.87%
Key Insights
Revenue: $0.902 million in QQ4 2024; Cost of Revenue: $0.23 million; Gross Profit: $0.672 million; Gross Margin: 74.5%; Research & Development: $3.676 million; G&A: $0.643 million; SG&A (net): $0.413 million; Other Expenses: $0.038 million; Operating Expenses: $4.089 million; EBITDA: -$4.176 million; Operating Income: -$4.319 million; Income Before Tax: -$4.281 million; Net Income: -$4.281 million; EPS: -0.14; Weighted Avg Shares: 29.769 million.
Cash Flow and Liquidity: Net cash fr...
Financial Highlights
Revenue: $0.902 million in QQ4 2024; Cost of Revenue: $0.23 million; Gross Profit: $0.672 million; Gross Margin: 74.5%; Research & Development: $3.676 million; G&A: $0.643 million; SG&A (net): $0.413 million; Other Expenses: $0.038 million; Operating Expenses: $4.089 million; EBITDA: -$4.176 million; Operating Income: -$4.319 million; Income Before Tax: -$4.281 million; Net Income: -$4.281 million; EPS: -0.14; Weighted Avg Shares: 29.769 million.
Cash Flow and Liquidity: Net cash from operating activities: -$3.503 million; Capex: -$0.483 million; Free Cash Flow: -$3.986 million; Net cash provided by financing activities: $11.171 million; Net change in cash: $7.185 million; Cash at end of period: $9.232 million; Cash at beginning: $2.047 million.
Balance Sheet: Total assets: $13.807 million; Cash and equivalents: $9.232 million; Total current assets: $9.697 million; PPE net: $4.110 million; Total liabilities: $2.272 million; Total stockholders’ equity: $11.535 million; Retained earnings: -$65.929 million; Long-term debt: $0.817 million; Short-term debt: $0.746 million; Current ratio: 6.66; Gross Margin: 74.5%; Operating Margin: -4.79%; Net Margin: -4.75%; ROE: -37.1%; ROA: -31.0%; Price-to-Sales: 59.74; Price-to-Book: 4.67.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
902.00K |
N/A |
N/A |
| Gross Profit |
672.00K |
447.38% |
616.92% |
| Operating Income |
-4.32M |
-20.91% |
18.03% |
| Net Income |
-4.28M |
-19.87% |
18.75% |
| EPS |
-0.14 |
57.58% |
39.13% |
Key Financial Ratios
operatingProfitMargin
-479%
operatingCashFlowPerShare
$-0.12
freeCashFlowPerShare
$-0.13
Management Commentary
No earnings-call transcript was provided for QQ4 2024 in the supplied data. Consequently, there are no management quotes or thematic highlights to annotate. If a transcript becomes available, we will extract themes around strategy, operations, and market conditions and re-integrate with precise quotes.
No earnings-call transcript available for extraction in the provided data.
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No earnings-call transcript available for extraction in the provided data.
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Forward Guidance
There is no explicit forward guidance disclosed in the QQ4 2024 filing. Given the company’s cash runway and burn profile, the primary near-term catalysts would be regulatory/clearance milestones, manufacturing scale-up, and commercial partnerships that can convert R&D progress into revenue. In a base-case scenario, MODD would need to progress from an R&D-led burn toward a commercialization milestone (e.g., FDA clearance, pilot launch, payer coverage decisions) to meaningfully de-risk the business. Potential upside hinges on successful device adoption in the diabetes market, favorable pricing/reimbursement dynamics, and accelerating top-line growth from any new product introductions. Over a 12–24 month horizon, investors should monitor: (1) regulatory milestones and timing, (2) any strategic partnerships or licensing agreements, (3) changes in capital-raising conditions, and (4) early customer or pilot programs that could validate demand.