Modular Medical Establishes Insider-Backed Short-Term Credit Facility

An update from Modular Medical ( (MODD) ) is now available.

On February 23, 2026, Modular Medical, Inc. issued a secured promissory note to its chief executive officer, James E. Besser, establishing a $350,000 revolving credit facility that matures on March 25, 2026, with interest fixed at 12% on each draw regardless of timing. The facility, which as of the filing date had not yet been utilized, is secured by all of the company’s assets and intellectual property and must be repaid by the maturity date or earlier upon the company raising more than $2 million in equity financing, highlighting short-term liquidity support from insiders but also the company’s reliance on near-term capital raises.

Individual drawdowns under the facility must be at least $50,000 and cannot exceed the remaining undrawn balance, with three days’ written notice required before each advance by the lender. In the event of a default, all outstanding principal, interest and other amounts under the note can be accelerated and become immediately due, underscoring the heightened financial risk and collateral exposure associated with this insider-backed credit arrangement.

More about Modular Medical

Modular Medical, Inc. operates in the medical technology sector, focusing on products that leverage its intellectual property and other assets to address healthcare needs. The company’s capital structure and access to financing are important to sustaining its operations and advancing its product and technology development roadmap.

Average Trading Volume: 362,321

Technical Sentiment Signal: Sell

Current Market Cap: $35.05M

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