MODD

Modular Medical is a pre-revenue, early-commercial insulin-pump developer that just told investors, in its own 10-K, that 'there is substantial doubt about our ability to continue as a going concern for a period of at least one year from June 29, 2026' — a doubt its auditor independently echoed. That single sentence dominates everything else. The company has never reported revenue in the provided history, has an accumulated deficit of $113M, and posted a FY2026 net loss of $28.2M, a full 50% worse than FY2025's $18.8M. Losses are accelerating, not narrowing, as R&D spend climbed 36% to $20M.

The math is unforgiving. Operating cash flow was -$23.8M for the year, yet the company ended FY2026 with just $6.94M of cash — down 47% year-over-year — and $7.54M of current assets. That is roughly three to four months of runway at the current burn. Management's own remedy, an April 2026 registered direct offering, raised only ~$3.375M gross (750,000 shares), a rounding error against the burn, and they concede survival 'depends on our ability to raise additional capital' on terms 'likely to substantially dilute our existing stockholders.' With the balance sheet this thin, a large, dilutive raise is not a risk — it is the base case.