The accompanying financial statements of Nemaura have been prepared in accordance with the instructions to quarterly reports on Form 10-Q. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in financial position at December 31, 2015 and for all periods presented have been made. Certain information and footnote data necessary for fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s Annual Report on Form 10-K for the Year Ended March 31, 2015.  The results of operations for the period ended December 31, 2015 are not necessarily an indication of operating results for the full year.

The Company’s operations are conducted in the United Kingdom. Accordingly, the political, economic, and legal environments in the United Kingdom may influence the Company’s business, financial condition, and results of operations.

The functional currency for the majority of the Company’s operations is the Great Britain Pound Sterling (“GBP”), and the reporting currency is the US Dollar.

As reflected in the accompanying consolidated financial statements, the Company reported a net loss of approximately $1,122,000 and net cash used in operations of approximately $688,000 for the nine months ended December 31, 2015, an accumulated deficit of approximately $5,184,000, and  total equity of approximately $10,102,000 at December 31, 2015.

During the three months ended December 31, 2015, the Company received proceeds of $10 million from the sale of 5 million shares of common stock and warrants to acquire 10 million shares of common stock. The warrants are exercisable over 5 years commencing on the date the Company’s Common Stock is approved for listing on a national securities exchange and have an exercise price of $0.50 per share.