Modular Medical, Inc. 8-K

What Happened
Modular Medical, Inc. (MODD) filed an 8-K (Item 1.01) announcing a secured promissory note with its CEO, James E. Besser, providing a $350,000 revolving credit facility. The Note matures on March 25, 2026, and as of the filing date no amounts had been drawn.

Key Details

• Lender: James E. Besser, the Company’s chief executive officer (related‑party transaction).
• Facility size: $350,000 revolving credit; draws must be at least $50,000 and cannot cause outstanding principal to exceed $350,000.
• Interest and repayment: 12% interest applies to each draw; principal and interest due by March 25, 2026, or earlier if the Company receives more than $2,000,000 in equity proceeds before that date.
• Security and default: The Note is secured by all Company assets and intellectual property; lender may accelerate payment upon an Event of Default.

Why It Matters
This agreement gives Modular Medical short‑term access to up to $350,000 of secured financing from its CEO, which can help cover near‑term cash needs. Because the loan is secured by all assets and IP and is a related‑party transaction, it affects the Company’s capital structure and creditor priority and will be relevant to investors evaluating liquidity and potential impacts on future financings.