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• MODD Insulin Pump System: An integrated system designed for discreet and easy insulin delivery for individuals with diabetes, featuring a patch-like pump, pre-filled cartridges, and a separate controller.
• MODD Insulin Pump: A small, wearable insulin pump that adheres to the skin, providing continuous insulin delivery.
• MODD Insulin Cartridges: Pre-filled, disposable cartridges designed to be easily inserted into the MODD Insulin Pump.
• MODD Pump Controller: A separate handheld device used to program and manage the MODD Insulin Pump.

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Modular Medical (MODD) is an early-stage medical device company focused on developing and commercializing an automated insulin delivery system, the MODD1, for individuals with diabetes. As of its latest public filings, the company has not yet generated significant product revenue from product sales and is in the pre-commercialization phase for its primary product. Therefore, it does not currently have "major customers" in the traditional sense of large purchasing entities.

While the company intends to commercialize its system directly and potentially through distribution partners (which would technically be business-to-business customers), the ultimate users and primary beneficiaries of its product are individuals managing diabetes. Thus, the target customer base primarily consists of individuals. We can categorize the key segments of these end-users as follows:

• Individuals with Type 1 Diabetes: These are patients whose bodies produce little to no insulin and who require continuous, precise insulin delivery to manage their blood glucose levels effectively. Insulin pumps are a critical tool for this population, offering advanced control over insulin dosing.

• Individuals with Type 2 Diabetes: A growing segment of people with Type 2 diabetes, particularly those with advanced disease requiring intensive insulin therapy and multiple daily injections, may also benefit from or be prescribed insulin pump therapy. Pumps can help achieve better glycemic control, reduce the burden of injections, and offer greater flexibility in insulin management.

• Caregivers and Parents of Individuals with Diabetes: For minors or individuals who require assistance with their diabetes management, caregivers (often parents) are crucial decision-makers and active participants in selecting, managing, and utilizing medical devices like insulin pumps. While not the direct "patient," they represent a significant stakeholder group in the customer ecosystem for product adoption and ongoing use.

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James (Jeb) Besser, Chief Executive Officer

Jeb Besser was appointed CEO of Modular Medical in February 2022. He is also the Managing Member of Manchester Management LLC, which is the largest shareholder of Modular Medical, Inc.

James Sullivan, Interim Chief Financial Officer

James Sullivan brings over 30 years of financial management and accounting experience to Modular Medical, with significant public-company experience in hardware, software, and cloud-services businesses. He has completed over 15 financings and has held CFO positions at MoSys, Inc., Apptera, Inc., and 8x8, Inc. Prior to these roles, he held various positions in the assurance practice at PricewaterhouseCoopers LLP.

Paul DiPerna, Founder and President

Paul DiPerna founded what is now Modular Medical in 2015. He possesses 30 years of experience in the medical device industry as a technologist, business executive, and founder of several successful startups. He founded and was CEO and a board member for Tandem Diabetes Care, which completed a $450 million IPO in 2013. Paul also co-invented the Ivera Medical blood-borne infection control device technology and guided the company through its successful exit to 3M in 2015.

Kevin Schmid, Chief Operating Officer

Kevin Schmid serves as Chief Operating Officer, bringing over four decades of expertise in drug delivery and diabetes management. Previously, he was the Vice President of Operations and Business Development at Insulet Corporation and held the position of Chief Executive Officer at Common Sensing.

David Bosshard, Head of International Operations

David Bosshard was appointed Head of International Operations in October 2025. He has two decades of experience in scaling tubeless insulin delivery systems across Europe and other international markets. His background includes leading the European launch of Insulet's Omnipod patch pump at Ypsomed AG from 2010 to 2017 and leading the 2017 launch of YpsoPump.

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The key risks to Modular Medical (MODD) include regulatory hurdles and potential delays in product launch, ongoing financial instability and risks of dilution, and challenges in gaining market acceptance amidst strong competition.

1. Regulatory Approval and Market Launch Delays: As a development-stage medical device company, Modular Medical's ability to generate revenue is highly dependent on securing regulatory clearance for its insulin pump technology. Specifically, the Pivot insulin delivery system is not yet cleared for sale by the United States Food and Drug Administration (FDA). The company has experienced past issues with materials and sterilization compatibility for its MODD-1 insulin pump, leading to anticipated delays in its FDA submission. While Modular Medical anticipates a Q1 2026 market launch for the Pivot system, this remains a forward-looking statement subject to inherent risks and uncertainties associated with regulatory processes and product development in the medical device industry.
2. Financial Instability and Dilution Risks: Modular Medical faces significant financial challenges, as evidenced by its null trailing 12-month revenue and negative EBITDA and net income. The company's long-term viability is uncertain due to a lack of statistically significant data. Recent events, such as a $4.68 million equity and warrant offering, led to a substantial drop in stock price due to investor concerns over dilution. Although the company maintains a strong liquidity position with a current ratio of 4.04, it is "quickly burning through cash".
3. Market Acceptance and Competition: Modular Medical aims to penetrate the diabetes marketplace with its Pivot insulin pump, designed to be affordable and user-friendly, targeting "almost-pumpers". However, the company's ability to convert patients to its product and gain market share is explicitly identified as a risk factor. The insulin pump market is highly competitive, with established companies like Tandem Diabetes Care, Medtronic, and Insulet already present. Overcoming existing market preferences and potential "resistance to change" from healthcare providers for new technologies presents a substantial challenge for adoption.

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The rapid market adoption and technological superiority of competitors' next-generation Automated Insulin Delivery (AID) patch pump systems, such as Insulet's Omnipod 5, which offer advanced closed-loop insulin delivery integrated with continuous glucose monitors (CGMs). This trend poses a significant threat to Modular Medical's POGO Automatic Insulin Delivery System if it cannot match or exceed the level of automation, integration, and user-friendly features offered by these more technologically advanced competing systems, potentially marginalizing MODD's offerings in an increasingly automated diabetes management landscape.

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Modular Medical (MODD) focuses on developing and commercializing innovative insulin pumps to address the diabetes market.

Main Products and Addressable Markets:

• MODD1 Insulin Patch Pump and Pivot Insulin Delivery System: Modular Medical's primary products are their MODD1 insulin patch pump and the next-generation Pivot insulin delivery system. The MODD1 has received FDA clearance, and the Pivot pump is anticipated for FDA 510(k) submission in October 2025.
• Addressable Market: Modular Medical specifically targets the "adult 'almost-pumpers' diabetes market," which is estimated to be a $3 billion market in the U.S. This market segment consists of individuals with diabetes who are aware of insulin pumps but have not adopted them due to factors such as cost and complexity. The company aims to make insulin delivery technology more accessible and affordable for a broader population, including both Type 1 and Type 2 diabetes patients.

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Modular Medical (NASDAQ: MODD) is poised for future revenue growth over the next two to three years, driven by the commercialization of its innovative insulin pump technologies and strategic market expansion. The company focuses on addressing the underserved market of "almost-pumpers" through user-friendly and affordable devices.

1. Commercial Launch and Growth of the MODD1 Insulin Pump: Modular Medical received FDA clearance for its MODD1 patch pump in September 2024, designed specifically for the adult "almost-pumpers" market. Initial shipments for the MODD1 are expected in the first half of fiscal year 2026. This product aims to simplify diabetes care and expand the use of insulin pumps to a broader customer base that traditionally relies on multiple daily injections due to the complexity and cost of existing pump systems.

2. Commercial Launch and Growth of the Next-Generation Pivot Insulin Pump: The company unveiled Pivot, its next-generation tubeless insulin patch pump, in August 2025, with an FDA submission planned for October 2025. A commercial launch for Pivot is anticipated in Q1 2026. The Pivot system has successfully validated its controller line, demonstrating readiness for high-volume production, and is positioned as a key differentiator as it would be one of the few cleared tubeless patch pumps on the market. Pivot aims to target the same significant "almost-pumpers" market with an even more user-friendly and affordable design.

3. Expansion into International Markets: Modular Medical is actively pursuing international expansion for its Pivot insulin delivery system. The company announced ongoing progress in obtaining CE Mark certification for Pivot, a crucial step for market entry in European territories. Furthermore, Modular Medical appointed a seasoned executive to lead its international expansion efforts in October 2025, signaling a strategic focus on expanding its global footprint. This initiative will open up new revenue streams beyond the U.S. market.

4. Capturing the "Almost-Pumpers" Market: A core driver of Modular Medical's future revenue growth is its dedicated strategy to target the "adult almost-pumpers" market, estimated to be a $3 billion segment. This demographic includes individuals with diabetes who require insulin but have not adopted pump therapy due to perceived complexity or high costs. By offering user-friendly and affordable devices like MODD1 and Pivot, Modular Medical aims to convert a significant portion of this population to pump therapy, thereby substantially growing its customer base and market share.

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Share Issuance

• In March 2025, Modular Medical completed a private placement, issuing 12,495,312 shares of common stock and warrants to purchase 6,247,656 shares, which generated approximately $12 million in gross proceeds.
• The company executed an underwritten public offering in November 2024, pricing 5,450,573 shares of common stock at $1.50 per share, which was expected to raise around $8.2 million in gross proceeds.
• In September 2025, the exercise of existing warrants from May 2023 and March 2025 at a reduced price of $0.68 per share resulted in approximately $4.4 million in gross proceeds.

Inbound Investments

• The March 2025 private placement, which raised $12 million, saw participation from institutional and accredited investors, including purchases by certain officers and directors of the company.
• Existing institutional investors, notably Manchester Explorer, L.P., Modular Medical's largest shareholder, led the November 2024 public offering.
• Insider purchases totaling approximately $1.3 million by Manchester Management Company LLC and its affiliates, including CEO James E. Besser, were reported in March 2025.

Capital Expenditures

• Modular Medical’s total operating expenses for fiscal year 2025 were $19.0 million, an increase from $17.5 million in the prior year, primarily driven by a 14.1% rise in research and development costs, which reached $14.7 million.
• The proceeds from the November 2024 public offering were allocated for operations, working capital, and general corporate purposes, including capital expenditures.
• The company's property, plant & equipment increased from $0.36 million in FY2022 to $5.22 million in FY2025, indicating a significant increase in capital expenditures related to its manufacturing capabilities.