Modular Medical, Inc. Annual Report - How They Did This Year

I’m writing this guide to help you understand how Modular Medical, Inc. performed during the fiscal year ending March 31, 2026. My goal is to explain their financial filings in plain English so you can decide if this company fits your investment strategy.

1. What does this company do?

Modular Medical develops next-generation insulin delivery systems. Their main product, the MODD1, is designed to be a simpler, more affordable, and user-friendly insulin pump. They are currently transitioning from product development and regulatory approval into the commercial sales phase.

2. Financial performance: The "Big Picture"

The company is currently in a "fundraising" phase rather than a "profit-making" phase. As of March 31, 2026, they are classified as a "smaller reporting company," reflecting their early stage in the growth cycle.

• Market Value: As of September 30, 2025, the total market value of stock held by non-company insiders was approximately $37.45 million.
• Share Count: As of June 22, 2026, there were 5,413,160 shares of common stock outstanding.
• Profitability: The company is not yet profitable. They are prioritizing clinical and regulatory goals over immediate sales, which results in ongoing losses as they fund research and operations.

3. Major wins and challenges

• Wins: The company successfully maintained its Nasdaq listing and secured the capital needed to fund operations through various public and private offerings.
• Challenges: Because the company does not generate enough profit to cover its costs, it relies heavily on outside funding. This often requires issuing new shares, which reduces the ownership percentage of existing shareholders.

4. Financial health

The company is in a "cash-burn" stage. They rely on selling stock and taking on debt, such as convertible bridge notes, to bridge the gap until they can sell products at scale. They also use stock options and restricted stock units to compensate their team. These programs increase the total number of future shares, which can further dilute the value of current holdings.

5. Key risks

• Dilution: Frequent issuance of new shares and warrants to raise capital means your ownership percentage may decrease over time.
• Supplier Concentration: The company relies on a small group of vendors. If one of these partners faces manufacturing delays, quality issues, or financial trouble, Modular Medical may be unable to build or ship their pumps.
• Capital Needs: Their survival depends on the stock market’s willingness to provide ongoing funding. If investor interest fades or the company misses key milestones, they could face liquidity constraints.

6. Competitive positioning

Modular Medical competes in a crowded market dominated by large, well-funded companies. Their success depends on the MODD1’s ability to stand out through its simple design and lower cost, as well as their ability to clear final regulatory hurdles to reach patients.

7. Future outlook

The company is in "growth and survival" mode. Their future depends on executing their product strategy and managing their debt and stock obligations. Investors should watch for updates on product launches and manufacturing progress to see if the company can successfully transition from spending cash to generating consistent sales.

8. Market trends and regulatory oversight

As a medical device company, they face strict FDA oversight. Any changes in how the FDA approves insulin pumps, or how insurance companies and Medicare pay for these devices, will directly affect the company’s ability to reach its target market.

Final Thought for Investors: When considering an investment in Modular Medical, ask yourself if you are comfortable with a "high-risk, high-reward" profile. Because they are still in the early stages of commercialization, your investment is essentially a bet on their ability to successfully launch the MODD1 and eventually become self-sustaining. Keep a close eye on their cash levels and regulatory updates, as these will be the primary indicators of their progress.