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Document and Entity Information (USD $)
9 Months Ended
Dec. 31, 2014
Jan. 31, 2015
Sep. 30, 2014
Document and Entity Information:
Entity Registrant Name Nemaura Medical Inc.
Document Type 10-Q
Document Period End Date Dec 31, 2014
Amendment Flag false
Entity Central Index Key 0001602078
Current Fiscal Year End Date --03-31
Entity Common Stock, Shares Outstanding 200,000,000
Entity Public Float $ 1,286,353
Entity Filer Category Smaller Reporting Company
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Entity Well-known Seasoned Issuer No
Document Fiscal Year Focus 2015
Document Fiscal Period Focus Q3
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Statement of Financial Position (USD $)
Dec. 31, 2014
Mar. 31, 2014
Assets, Current
Cash and Cash Equivalents, at Carrying Value $ 613,608 $ 1,873,141
Prepayments and Other Assets 39,724 20,390
Prepayment to Related Party for clinical trials 465,454
Assets, Current 1,118,786 1,893,531
Assets, Noncurrent
Finite-Lived Intangible Assets, Net 115,863 70,781
Restricted Cash, Noncurrent 85,462
Tangible Fixed Assets 6,154
Assets, Noncurrent 122,017 156,243
Assets 1,240,803 2,049,774
Liabilities, Current
Accounts Payable, Current 50,408 1,830
Other Liabilities, Current 4,362 6,844
Liabilities, Current 54,770 8,674
Liabilities, Noncurrent
Deferred Revenue and Credits, Noncurrent 1,566,600 1,667,200
Liabilities, Noncurrent 1,566,600 1,667,200
Liabilities 1,621,370 1,675,874
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
Common Stock, Value, Issued 200,000 200,000
Additional Paid in Capital, Common Stock 2,924,672 2,924,672
Accumulated Other Comprehensive Income (Loss), Net of Tax 20,552 (8,882)
Retained Earnings (Accumulated Deficit) (3,525,791) (2,741,890)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest (380,567) 373,900
Liabilities and Equity $ 1,240,803 $ 2,049,774
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Statement of Financial Position - Parenthetical (USD $)
Dec. 31, 2014
Mar. 31, 2014
Balance Sheets
Common Stock, Par Value $ 0.001 $ 0.001
Common Stock, Shares Authorized 420,000,000 420,000,000
Common Stock, Shares Issued 200,000,000 200,000,000
Common Stock, Shares Outstanding 200,000,000 200,000,000
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Statement of Income (USD $)
3 Months Ended 9 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Operating Expenses
Research and Development Expense $ 141,976 $ 172,446 $ 555,795 $ 253,043
General and Administrative Expense 16,790 167,750 228,106 171,064
Operating Expenses 158,766 340,196 783,901 424,107
Operating Income (Loss) (158,766) (340,196) (783,901) (424,107)
Net Income (Loss) (158,766) (340,196) (783,901) (424,107)
Foreign Currency Transaction Adjustment 24,580 (13,460) 29,434 9,906
Comprehensive Income (Loss) $ (134,186) $ (353,656) $ (754,467) $ (414,201)
Earnings Per Share
Earnings Per Share, Basic $ 0 $ 0 $ 0 $ 0
Weighted Average Number of Shares Outstanding, Basic 200,000,000 180,000,000 200,000,000 180,000,000
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Statement of Cash Flows (USD $)
9 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Net Cash Provided by (Used in) Operating Activities
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ (783,901) $ (424,107)
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Depreciation and Amortization 5,536 2,230
Other Cost of Services 218,863
Increase (Decrease) in Assets and Liabilities
Increase (Decrease) in Prepaid Expense and Other Assets (516,212) (2,122)
Increase (Decrease) in Accounts Payable 49,035
Net Cash Provided by (Used in) Operating Activities (1,245,542) (205,136)
Net Cash Provided by (Used in) Investing Activities
Increase Decrease In Restricted Cash And Investments 85,462
Purchase of Intellectual Property (57,222) (10,956)
Payments to Acquire Tangible Fixed Assets (7,181)
Net Cash Provided by (Used in) Investing Activities 21,059 (10,956)
Cash and Cash Equivalents, Period Increase (Decrease) (1,224,484) (216,092)
Effect of Exchange Rate Changes on Cash (35,050) 22,433
Cash and Cash Equivalents, at Carrying Value 1,873,141 200,485
Cash and Cash Equivalents, at Carrying Value $ 613,608 $ 6,826
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Note 1 - Organization and Principal Activities
9 Months Ended
Dec. 31, 2014
Notes
Note 1 - Organization and Principal Activities

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

 

Nemaura Medical Inc. (“Nemaura” or the “Company”), through its operating subsidiaries, performs medical device research and manufacturing of a continuous glucose monitoring system (“CGM”). The CGM system is a non-invasive, wireless device for use by persons with Type I and Type II diabetes, and may also be used  to  screen pre-diabetic patients. The CGM  extracts  analytes, such as glucose, to the surface of the skin in a non-invasive manner to the surface of the skin where it is measured using unique sensors and interpreted using a unique algorithm.

 

Nemaura is a Nevada holding company organized in 2013 Nemaura owns one hundred percent (100%) of Region Green Limited, a British Virgin Islands corporation formed on December 12, 2013.  Region Green Limited owns one hundred percent (100%) of the stock in Dermal Diagnostic (Holdings) Limited, an England and Wales corporation formed on December 11, 2013, which in turn owns one hundred percent (100%) of Dermal Diagnostics Limited, an England and Wales corporation formed on January 20, 2009 (“DDL”), and one hundred percent (100%) of Trial Clinic Limited, an England and Wales corporation formed on January 12, 2011 (“TCL”). 

 

DDL is a diagnostic medical device company headquartered in Loughborough, Leicestershire, England, and is engaged in the discovery, development and commercialization of diagnostic medical devices. The Company’s initial focus has been on the development of the CGM device, which consists of a disposable patch containing a sensor, and a non-disposable miniature electronic watch with a re-chargeable power source, which can enable early detection of subtle changes in blood glucose levels.

 

The following diagram illustrates our corporate and shareholder structure as of December 31, 2014:

 

 

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Note 2 -- Basis of Presentation
9 Months Ended
Dec. 31, 2014
Notes
Note 2 -- Basis of Presentation

NOTE 2 -- BASIS OF PRESENTATION

 

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, 2014 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 Registration Statement on Form S-1 filed with the Securities Exchange Commission on August 12, 2014. The results of operations for the period ended December 31, 2014 are not necessarily an indication of operating results for the full year.

 

In the quarter ending June 30, 2014, the Company elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU has allowed the Company to remove the inception to date information and all references to development stage.

 

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.

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Note 3 - Summary of Significant Accounting Policies
9 Months Ended
Dec. 31, 2014
Notes
Note 3 - Summary of Significant Accounting Policies

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

(a)     Economic and political risk

 

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.

 

(b)     Cash and Restricted Cash

 

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.  Cash and cash equivalents consist primarily of cash deposits maintained in the United Kingdom. From time to time, the Company’s cash account balances exceed amounts covered by the Financial Services Compensation Scheme. The Company has never suffered a loss due to such excess balances. The Company’s restricted cash includes cash held in escrow with use restricted to certain future listing costs.

 

(c)     Fair value of financial instruments

 

The Company’s financial instruments primarily consist of cash and accounts payable. As of the period-end dates, the estimated fair values of financial instruments were not materially different from their carrying values as presented, due to their short maturities.  

 

(d)     Intangible assets

 

Intangible assets consist of licenses and patents associated with the CGM and are amortized on a straight-line basis, generally over their legal life.

 

(e)     Revenue Recognition

 

Revenue is recognized when the four basic criteria of revenue recognition are met:  (1) a contractual agreement exists; (2) transfer of rights has been completed; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. 

 

The Company may enter into product development and other agreements with collaborative partners. The terms of the agreements may include non-refundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations.

 

The Company recognizes up front license payments as revenue upon delivery of the license only if the license has standalone value to the customer. However, where further performance criteria must be met, revenue is deferred and recognized on a straight line basis over the period the Company is expected to complete its performance obligations.

 

Royalty revenue will be recognized upon the sale of the related products provided the Company has no remaining performance obligations under the agreement.

 

(f)      Research and Development Expenses

 

The Company charges research and development expenses to operations as incurred. Research and development expenses primarily consist of salaries and related expenses for personnel and outside contractor and consulting services. Other research and development expenses include the costs of materials and supplies used in research and development, prototype manufacturing, clinical studies, related information technology and an allocation of facilities costs.

 

(g)     Income taxes

 

Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion, or all, of the deferred income tax assets will not be realized.

 

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained.  Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits as part of income tax expense in the Consolidated Statements of Comprehensive Income (Loss).

 

(h)     Earnings per share

 

Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. There were no potentially dilutive securities as of December 31, 2014 and 2013.

 

(i)       Use of estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results may differ from those estimates.

 

(j)      Foreign currency translation

 

The functional currency of the Company is the Great Britain Pound Sterling (“GBP”).  The reporting currency is the United States dollar (US$).  Stockholders’ equity is translated into United States dollars from GBP at historical exchange rates.  Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rates prevailing during the reporting period. 

The translation rates are as follows:

 

 

December 31,

2014

(unaudited)

December 31,

2013

(unaudited)

March 31,

2014

Period end GBP : US$ exchange rate

1.567

1.656

1.667

Average period/yearly GBP : US$ exchange rate

1.601

1.560

1.588

 

Adjustments resulting from translating the financial statements into the United States dollar are recorded as a separate component of accumulated other comprehensive income in Stockholders’ Equity (Deficit).

 

(k)                 Recent accounting pronouncements

 

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company’s consolidated financial statements properly reflect the change.

 

In May 2014, FASB issued ASU No. 2014-09 “Revenue from Contracts from Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and is to be applied retrospectively.  Early adoption is not permitted. The Company is currently evaluating the new standard and assessing the potential impact on its operations and financial statements.

 

In February 2013, FASB issued ASU No. 2013-02, “Comprehensive Income: Reporting the Amounts Reclassified Out of Accumulated Other Comprehensive Income” which expanded the disclosure requirements with respect to changes in accumulated other comprehensive income (AOCI). Under this new guidance, companies are required to disclose the amount of income (or loss) reclassified out of AOCI to each respective line item on the statements of earnings where net income is presented. The guidance allows companies to elect whether to disclose the reclassification either in the notes to the financial statements or parenthetically on the face of the financial statements. The adoption did not have a material impact on the Company’s consolidated financial statements.

 

In August 2014, the FASB issued ASU No. 2014-14, “Presentation of Financial Statements – Going Concern: Disclosures about an Entity’s Ability to Continue as a Going Concern.” The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The new guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter. The Company is currently assessing the impact of the adoption of the ASU No. 2014-15 on its financial position, results of operations and financial statements disclosures.

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Note 4 - Licensing Agreement
9 Months Ended
Dec. 31, 2014
Notes
Note 4 - Licensing Agreement

NOTE 4 – LICENSING AGREEMENT

 

In March 2014, the Company entered into an Exclusive Marketing Rights Agreement with an unrelated third party that granted to the third party the exclusive right to market and promote the CGM and related patches under its own brand in the United Kingdom and the Republic of Ireland. The Company received a non-refundable, upfront cash payment of GBP 1,000,000 (approximately $1.57 million and $1.67 million as of December 31, 2014 and March 31, 2014 respectively), which is wholly non-refundable, upon signing the agreement. A supply cost for goods agreement will be finalized upon product approval and prior to launch, as part of the full commercial licensing agreement also to be signed closer to product approval and launch. 

 

As the Company has continuing performance obligations under the agreement, the upfront fees received from this agreement have been deferred and will be recorded as income over the term of the commercial licensing agreement.

 

In April 2014, a Letter of Intent was signed with the third party, which specified a 10 year term. This relates to a Full Commercial Licensing agreement.

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Note 5 - Cash
9 Months Ended
Dec. 31, 2014
Notes
Note 5 - Cash

NOTE 5 – CASH

 

As of December 31, 2014 and March 31, 2014, the Company held $613,608 and $1,873,141 in cash, respectively.

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Note 6 - Intangible Assets
9 Months Ended
Dec. 31, 2014
Notes
Note 6 - Intangible Assets

NOTE 6 – INTANGIBLE ASSETS

 

Intangible assets are summarized as follows:

 

 

 

 

December 31,

2014

(unaudited)

($)

March 31,

2014

 

($)

Patents and licenses

131,226

87,655

Less accumulated amortization

(15,363)

(16,874)

 

115,863

70,781

 

Estimated amortization expense is approximately $7,000 for each of the next five years.

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Note 7 - Related Party Transactions
9 Months Ended
Dec. 31, 2014
Notes
Note 7 - Related Party Transactions

NOTE 7 – RELATED PARTY TRANSACTIONS

 

Nemaura Pharma Limited (Pharma) and NDM Technologies Limited (NDM) are entities controlled by the Company’s majority shareholder Dewan FH Chowdhury.

 

From inception, Pharma invoiced DDL and TCL for research and development services. In addition, certain operating expenses of DDL and TCL were incurred and paid by Pharma and NDM. In accordance with the United States Securities and Exchange Commission (SEC) Staff Accounting Bulletin 55, these financial statements reflect all costs associated with the operations of DDL and TCL. While certain costs incurred by Pharma and NDM are directly attributable to DDL and TCL, other costs were shared between the organizations. In situations where the costs were shared, expense has been allocated between Pharma and NDM and DDL and TCL using a fixed percentage allocation. Management believes the methodologies used are reasonable and that the costs allocated are not materially different from what they would have been had Pharma and NDM been unaffiliated entities. DDL and TCL advanced Pharma certain amounts to cover a portion of the costs. The remaining amounts were contributed to the Company in the form of contributed services.

 

Following is a summary of activity between the Company and Pharma and NDM as of December 31, 2014 (unaudited) and March 31, 2014:

 

 

Nine Months Ended

December 31, 2014

(unaudited)

($)

Year Ended

March 31, 2014

 

($)

Balance due (to) Pharma and NDM at beginning of period

-

-

Amounts advanced to Pharma

578,409

325,092

Amounts received from Pharma

(1,567)

(149,280)

Amounts invoiced by Pharma to DDL and TCL

(110,106)

(557,670)

Expenses paid by Pharma on behalf of DDL and TCL

-

(28,574)

Assets contributed by Pharma on behalf of DDL and TCL

-

(7,327)

Capital contribution by Pharma (excess of expenses paid over amounts advanced)

-

420,401

Foreign exchange differences

 (1,282)

(2,642)

Balance due from (to) Pharma and NDM at end of the period

465,454

-

 

Advances to Pharma as of December 31, 2014 consist of amounts advanced in connection with the Company’s planned clinical trials. These advances are expected to be expensed in the fourth quarter of fiscal 2015, as clinical trials commence.

 

In addition, the Company engaged a related party, One-E Consulting Limited, to provide certain consulting services, in the amount of $4,453 related to the Company’s public listing transaction.  Bashir Timol serves as Strategic Director of One-E Consulting Limited.  Mr. Timol is also a Director of the Company.

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Note 3 - Summary of Significant Accounting Policies: Economic and Political Risk (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Economic and Political Risk

(a)     Economic and political risk

 

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.

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Note 3 - Summary of Significant Accounting Policies: Cash and Restricted Cash (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Cash and Restricted Cash

(b)     Cash and Restricted Cash

 

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.  Cash and cash equivalents consist primarily of cash deposits maintained in the United Kingdom. From time to time, the Company’s cash account balances exceed amounts covered by the Financial Services Compensation Scheme. The Company has never suffered a loss due to such excess balances. The Company’s restricted cash includes cash held in escrow with use restricted to certain future listing costs.

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Note 3 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Fair Value of Financial Instruments

(c)     Fair value of financial instruments

 

The Company’s financial instruments primarily consist of cash and accounts payable. As of the period-end dates, the estimated fair values of financial instruments were not materially different from their carrying values as presented, due to their short maturities.  

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Note 3 - Summary of Significant Accounting Policies: Intangible Assets (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Intangible Assets

(d)     Intangible assets

 

Intangible assets consist of licenses and patents associated with the CGM and are amortized on a straight-line basis, generally over their legal life.

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Note 3 - Summary of Significant Accounting Policies: Revenue Recognition (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Revenue Recognition

(e)     Revenue Recognition

 

Revenue is recognized when the four basic criteria of revenue recognition are met:  (1) a contractual agreement exists; (2) transfer of rights has been completed; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. 

 

The Company may enter into product development and other agreements with collaborative partners. The terms of the agreements may include non-refundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations.

 

The Company recognizes up front license payments as revenue upon delivery of the license only if the license has standalone value to the customer. However, where further performance criteria must be met, revenue is deferred and recognized on a straight line basis over the period the Company is expected to complete its performance obligations.

 

Royalty revenue will be recognized upon the sale of the related products provided the Company has no remaining performance obligations under the agreement.

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Note 3 - Summary of Significant Accounting Policies: Research and Development Expenses (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Research and Development Expenses

(f)      Research and Development Expenses

 

The Company charges research and development expenses to operations as incurred. Research and development expenses primarily consist of salaries and related expenses for personnel and outside contractor and consulting services. Other research and development expenses include the costs of materials and supplies used in research and development, prototype manufacturing, clinical studies, related information technology and an allocation of facilities costs.

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Note 3 - Summary of Significant Accounting Policies: Income Taxes (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Income Taxes

(g)     Income taxes

 

Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to reduce the carrying amount of deferred income tax assets if it is considered more likely than not that some portion, or all, of the deferred income tax assets will not be realized.

 

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained.  Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits as part of income tax expense in the Consolidated Statements of Comprehensive Income (Loss).

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Note 3 - Summary of Significant Accounting Policies: Earnings Per Share (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Earnings Per Share

(h)     Earnings per share

 

Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding during the period. There were no potentially dilutive securities as of December 31, 2014 and 2013.

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Note 3 - Summary of Significant Accounting Policies: Use of Estimates (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Use of Estimates

(i)       Use of estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results may differ from those estimates.

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Note 3 - Summary of Significant Accounting Policies: Foreign Currency Translation (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Foreign Currency Translation

(j)      Foreign currency translation

 

The functional currency of the Company is the Great Britain Pound Sterling (“GBP”).  The reporting currency is the United States dollar (US$).  Stockholders’ equity is translated into United States dollars from GBP at historical exchange rates.  Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rates prevailing during the reporting period. 

The translation rates are as follows:

 

 

December 31,

2014

(unaudited)

December 31,

2013

(unaudited)

March 31,

2014

Period end GBP : US$ exchange rate

1.567

1.656

1.667

Average period/yearly GBP : US$ exchange rate

1.601

1.560

1.588

 

Adjustments resulting from translating the financial statements into the United States dollar are recorded as a separate component of accumulated other comprehensive income in Stockholders’ Equity (Deficit).

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Note 3 - Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)
9 Months Ended
Dec. 31, 2014
Policies
Recent Accounting Pronouncements

(k)                 Recent accounting pronouncements

 

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company’s consolidated financial statements properly reflect the change.

 

In May 2014, FASB issued ASU No. 2014-09 “Revenue from Contracts from Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of potential goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to the exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and is to be applied retrospectively.  Early adoption is not permitted. The Company is currently evaluating the new standard and assessing the potential impact on its operations and financial statements.

 

In February 2013, FASB issued ASU No. 2013-02, “Comprehensive Income: Reporting the Amounts Reclassified Out of Accumulated Other Comprehensive Income” which expanded the disclosure requirements with respect to changes in accumulated other comprehensive income (AOCI). Under this new guidance, companies are required to disclose the amount of income (or loss) reclassified out of AOCI to each respective line item on the statements of earnings where net income is presented. The guidance allows companies to elect whether to disclose the reclassification either in the notes to the financial statements or parenthetically on the face of the financial statements. The adoption did not have a material impact on the Company’s consolidated financial statements.

 

In August 2014, the FASB issued ASU No. 2014-14, “Presentation of Financial Statements – Going Concern: Disclosures about an Entity’s Ability to Continue as a Going Concern.” The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The new guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter. The Company is currently assessing the impact of the adoption of the ASU No. 2014-15 on its financial position, results of operations and financial statements disclosures.

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Note 3 - Summary of Significant Accounting Policies: Foreign Currency Translation: Foreign Currency Disclosure (Tables)
9 Months Ended
Dec. 31, 2014
Tables/Schedules
Foreign Currency Disclosure

 

December 31,

2014

(unaudited)

December 31,

2013

(unaudited)

March 31,

2014

Period end GBP : US$ exchange rate

1.567

1.656

1.667

Average period/yearly GBP : US$ exchange rate

1.601

1.560

1.588

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Note 6 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables)
9 Months Ended
Dec. 31, 2014
Tables/Schedules
Schedule of Finite-Lived Intangible Assets

 

 

 

December 31,

2014

(unaudited)

($)

March 31,

2014

 

($)

Patents and licenses

131,226

87,655

Less accumulated amortization

(15,363)

(16,874)

 

115,863

70,781

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Note 7 - Related Party Transactions: Schedule of Related Party Transactions (Tables)
9 Months Ended
Dec. 31, 2014
Tables/Schedules
Schedule of Related Party Transactions

 

Nine Months Ended

December 31, 2014

(unaudited)

($)

Year Ended

March 31, 2014

 

($)

Balance due (to) Pharma and NDM at beginning of period

-

-

Amounts advanced to Pharma

578,409

325,092

Amounts received from Pharma

(1,567)

(149,280)

Amounts invoiced by Pharma to DDL and TCL

(110,106)

(557,670)

Expenses paid by Pharma on behalf of DDL and TCL

-

(28,574)

Assets contributed by Pharma on behalf of DDL and TCL

-

(7,327)

Capital contribution by Pharma (excess of expenses paid over amounts advanced)

-

420,401

Foreign exchange differences

 (1,282)

(2,642)

Balance due from (to) Pharma and NDM at end of the period

465,454

-

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