MODULAR MEDICAL, INC.

Red flags

• Going-concern warning: cash was $6.9 million at March 31, 2026, accumulated deficit was $113.0 million, and management says the April offering's approximately $3.0 million net proceeds are insufficient to fund operations for the next 12 months.
• Operating cash burn was approximately $23.8 million in fiscal 2026 versus $28.2 million of net loss; the company has no revenue to cover operating expenses.
• The company raised approximately $12.0 million gross in March 2026 and $3.375 million gross in April 2026, yet still expects to require additional capital, creating substantial dilution risk.
• The March 2026 offering included warrants to purchase 2.27 million shares, while 3.03 million common-stock warrants were excluded from diluted EPS at March 31, 2026; the company also increased authorized common shares from 100 million to 250 million.
• Outstanding purchase commitments totaled approximately $1.6 million for machinery and equipment plus $431,000 for supplies and inventory components, adding obligations while liquidity is constrained.