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  4. [8-K] Modular Medical, Inc. Reports Material Event

Modular Medical (NASDAQ: MODD) cuts 29% of workforce, targets $3.4M savings

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Modular Medical, Inc. reported a major workforce reduction to cut costs and extend its cash resources. On March 12, 2026 the company laid off 20 employees, representing approximately 29% of its workforce. Management expects this move to lower annual operating expenses by about $3.4 million, helping align spending with projects viewed as having higher return on investment. The company anticipates one-time severance and related charges of roughly $0.1 million to $0.2 million, with most of these costs incurred by the quarter ending June 30, 2026. Actual charges and savings may differ materially from these estimates.

Positive

  • None.

Negative

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Insights

Large layoff trades near-term charges for ongoing cost savings.

Modular Medical is cutting about 29% of its workforce, eliminating 20 positions to focus on higher-return projects. The company projects annual operating expense savings of roughly $3.4 million, versus one-time severance and related charges of about $0.1 million to $0.2 million.

This shift suggests an emphasis on conserving cash and concentrating resources, which can be significant for a smaller, development-stage business. The move is described as prioritizing activities with higher return on investment, indicating a more selective approach to spending and headcount.

The company expects most restructuring charges to be recorded by the quarter ending June 30, 2026. Actual cost savings and expenses may differ materially from estimates, so subsequent financial statements will clarify how closely realized results track these projections.

Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

What did Modular Medical (MODD) announce in its latest 8-K?
Modular Medical announced an employee layoff and position eliminations to reduce operating expenses and cash burn. The move focuses resources on projects management believes offer higher return on investment, and is expected to generate meaningful annual cost savings with limited one-time charges.

How many employees is Modular Medical (MODD) laying off and what percent of staff is that?
Modular Medical is laying off 20 employees, which represents approximately 29% of its workforce. The reduction is intended to align the company’s cost structure with its prioritized projects and help manage operating expenses and cash usage more tightly.

How much does Modular Medical (MODD) expect to save from the layoffs?
The company expects the workforce reduction to reduce annual operating expenses by approximately $3.4 million. These projected savings come from eliminating 20 positions and are aimed at lowering cash burn while focusing on business activities with higher anticipated return on investment.

What one-time charges will Modular Medical (MODD) incur from the workforce reduction?
Modular Medical estimates total non-recurring charges of about $0.1 million to $0.2 million, primarily severance payments. Management expects most of these charges to be recorded by the quarter ending June 30, 2026, though actual amounts may differ materially from estimates.

Why is Modular Medical (MODD) implementing these layoffs?
The company is implementing layoffs to reduce operating expense and cash burn while it prioritizes business activities and projects believed to offer higher returns. This restructuring aims to concentrate limited resources on areas management views as most likely to create value.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): March 12, 2026

 

MODULAR MEDICAL, INC.

 

(Exact name of registrant as specified in its charter)

 

Nevada   001-41277   87-0620495

(State or other jurisdiction

of incorporation)

   (Commission File No.)  

(IRS Employer

Identification No.)

10740 Thornmint Road, San Diego, California  

 

92127

(Address of principal executive offices)   (Zip Code)

 

858-800-3500

(Registrant’s telephone number, including area code)

 

10740 Thornmint Road

San Diego, CA 92127

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading symbol(s)   Name of each exchange on which registered
Common Stock   MODD   The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 ).

 

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 8.01 Other Events.

 

On March 12, 2026, Modular Medical, Inc. (the “Company”) implemented an employee lay-off and eliminated certain positions (the “Reductions”) to reduce the Company’s operating expense and cash burn, as the Company prioritizes business activities and projects that it believes will have a higher return on investment. The Reductions impacted 20 positions, or approximately 29% of the Company’s workforce. The Company expects that the Reductions will reduce annual operating expenses by approximately $3.4 million.

 

The Company estimates that the total non-recurring charges will approximate $0.1 million to $0.2 million in connection with the Reductions, primarily consisting of severance payments. The Company expects that the majority of the charges would be incurred by the quarter ending June 30, 2026. The charges that the Company expects to incur and the estimated cost savings are subject to a number of assumptions, and actual expenses may differ materially from the estimates disclosed.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Modular Medical, Inc.
   
Date: March 13, 2026 /s/ James E. Besser
  James Besser
  Chief Executive Officer

 

 

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Source: View Original Filing on SEC EDGAR

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