Modular Medical, Inc. Material Event: Understanding the Reverse Stock Split

This breakdown explains the latest news from Modular Medical, Inc. in plain English. Here is what you need to know about the recent changes to your investment.

1. What happened?

Modular Medical completed a 1-for-30 reverse stock split. If you owned 30 shares before March 31, 2026, you now own one share. While you own fewer shares, the price of each share increased by 30 times. You did not gain or lose value; it is like trading thirty $1 bills for one $30 bill.

2. Why did it happen?

The company must follow Nasdaq’s rule requiring a minimum share price of $1.00 to stay listed. Modular Medical’s stock price had been trading below this level. By combining 30 shares into one, the company mathematically raises its share price to meet these rules and avoid being moved to the over-the-counter (OTC) markets. Shareholders officially approved this move on January 22, 2026.

3. Why does this matter?

This is a technical adjustment, not a change in business performance. It helps the company stay on the Nasdaq, which is important for keeping institutional investors and analysts interested. It does not change the company's underlying business, which remains focused on the MODD1 insulin pump for diabetics. It only changes how the stock price appears on your trading app.

4. Who is affected?

• Investors: Your account updates automatically; you do not need to do anything. If your share count was not perfectly divisible by 30, you will receive a cash payment for the fractional portion.
• Equity/Warrant Holders: Your options and warrants were adjusted. The number of shares you can buy is divided by 30, and the price you pay to buy them is multiplied by 30. This keeps the total value of your position the same.
• The Company: The total number of shares outstanding dropped from about 139.8 million to 4.66 million.

5. What should investors know?

• Don't panic: A reverse split is a math change, not a sign of the company's health. Your total investment value remains the same.
• Look at the long game: A higher share price does not make a company more profitable. To decide if this is a good investment, focus on product milestones, the rollout of the MODD1 insulin pump, and revenue growth rather than the stock price movement.
• Check your account: You might see a temporary delay while your brokerage updates your share count. This is normal.
• Monitor compliance: The stock still trades under the ticker MODD. The company’s primary goal now is to keep the stock price above $1.00 to remain compliant with Nasdaq requirements.

Disclaimer: I am an AI, not a financial advisor. This summary is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.