{"url_path":"/sec/modd/10-k/2026/item-11","section_key":"item-11","section_title":"Item 11 EXECUTIVE COMPENSATION","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-29","source_url":"https://www.sec.gov/Archives/edgar/data/1074871/0001213900-26-073223-index.html","accession_number":"0001213900-26-073223","cik":"0001074871","ticker":"MODD","issuer_name":"Modular Medical, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1074871/0001213900-26-073223-index.html","primary_entity_key":"0001074871","primary_entity_name":"Modular Medical, Inc."},"word_count":2529,"has_tables":true,"body_markdown":"ITEM\n11. EXECUTIVE COMPENSATION\n\n \n\nSUMMARY\nCOMPENSATION TABLE\n\n \n\nThe following table sets forth compensation information for fiscal\n2026 and 2025 for each of our named executive officers.\n\n \n\nName and Principal Position \nYear  \nSalary\n\n($)  \nStock Awards\n\n($)  \nOption Awards\n\n($)(1)  \nNon-Equity Incentive Plan Compensation\n\n($)  \nAll Other Compensation\n\n($)  \nTotal\n\n($) \n\nJames E. Besser, \n 2026  \n —  \n —  \n 46,999  \n       —  \n         —  \n 46,999 \n\nChief Executive Officer(2) \n 2025  \n —  \n —  \n —  \n —  \n —  \n — \n\nPaul DiPerna, \n 2026  \n 360,000  \n —  \n 302,871  \n —  \n —  \n 662,871 \n\nPresident, President \n    \n    \n    \n    \n    \n    \n   \n\nChief Financial Officer, Treasurer and Chairman \n 2025  \n 360,000  \n —  \n 215,751  \n —  \n —  \n 575,751 \n\nKevin Schmid, \n 2026  \n 300,000  \n —  \n 75,718  \n —  \n —  \n 375,718 \n\nChief Operating Officer \n 2025  \n 300,000  \n —  \n 100,967  \n —  \n —  \n 400,967 \n\n \n\n \n\n(1)Award\namounts reflect the aggregate grant date fair value with respect to awards granted, as determined pursuant to Financial Accounting Standards\nBoard (“FASB”) ASC Topic 718. The assumptions used to calculate the aggregate grant date fair value of option awards are\nset forth in the notes to the consolidated financial statements included in item 8 of this Report. These amounts do not reflect actual\ncompensation earned or to be earned by our named executive officers.\n\n(2)Mr.\nBesser is paid *de minimis* annual compensation of $1.00.\n\n \n\nOutstanding\nEquity Awards at Fiscal Year-End\n\n \n\nThe\nfollowing table shows certain information regarding outstanding equity awards held by our named executive officers as of March 31, 2026.\n\n \n\n  \nNumber of   \nNumber of  \n   \n \n\n  \nSecurities   \nSecurities  \n   \n \n\n  \nUnderlying   \nUnderlying  \nOption  \n \n\n  \nUnexercised   \nUnexercised  \nExercise  \nOption\n\n  \nOptions (#)   \nOptions (#)  \nPrice  \nExpiration\n\nName \nExercisable   \nUnexercisable  \n($)  \nDate(1)\n\nJames E. Besser \n 4,505(2)  \n        —  \n 33.30  \n10/2/2033\n\n  \n 2,084(3)  \n —  \n 28.20  \n04/24/2035\n\nPaul DiPerna \n 39(4)  \n —  \n 284.40  \n6/1/2030\n\n  \n 39(5)  \n —  \n 284.40  \n5/1/2030\n\n  \n 39(6)  \n —  \n 284.40  \n4/1/2030\n\n  \n 56(7)  \n —  \n 223.20  \n3/2/2030\n\n  \n 59(8)  \n —  \n 223.20  \n2/1/2030\n\n  \n 58(9)  \n —  \n 223.20  \n1/1/2030\n\n  \n 61(10)  \n —  \n 202.50  \n12/1/2029\n\n  \n 61(11)  \n —  \n 202.50  \n11/1/2029\n\n  \n 58(12)  \n —  \n 202.50  \n10/1/2029\n\n  \n 56(13)  \n —  \n 202.50  \n9/15/2029\n\n  \n 56(14)  \n —  \n 202.50  \n8/15/2029\n\n  \n 56(15)  \n —  \n 202.50  \n7/15/2029\n\n  \n 55(16)  \n —  \n 202.50  \n6/15/2029\n\n  \n 56(17)  \n —  \n 202.50  \n5/15/2029\n\n  \n 55(18)  \n —  \n 202.50  \n4/15/2029\n\n  \n 57(18)  \n —  \n 202.50  \n3/15/2029\n\n \n\n54 \n\n \n\n \n\n  \nNumber of   \nNumber of  \n   \n \n\n  \nSecurities   \nSecurities  \n   \n \n\n  \nUnderlying   \nUnderlying  \nOption  \n \n\n  \nUnexercised   \nUnexercised  \nExercise  \nOption\n\n  \nOptions (#)   \nOptions (#)  \nPrice  \nExpiration\n\nName \nExercisable   \nUnexercisable  \n($)  \nDate(1)\n\n  \n 55(20)  \n    —  \n 202.50  \n2/15/2029\n\n  \n 54(21)  \n —  \n 202.50  \n1/15/2029\n\n  \n 60(22)  \n —  \n 202.50  \n12/15/2028\n\n  \n 60(23)  \n —  \n 202.50  \n11/15/2028\n\n  \n 201(24)  \n —  \n 59.40  \n10/15/2028\n\n  \n 201(25)  \n —  \n 59.40  \n09/15/2028\n\n  \n 201(26)  \n —  \n 59.40  \n08/15/2028\n\n  \n 3,334(27)  \n —  \n 202.50  \n11/25/2029\n\n  \n 1,500(28)  \n —  \n 127.20  \n4/14/2032\n\n  \n 1,620(29)  \n 47(29)  \n 49.50  \n4/3/2033\n\n  \n 3,004(2)  \n —  \n 33.30  \n10/2/2033\n\n  \n 2,130(31)  \n 1,204(31)  \n 45.60  \n4/8/2034\n\n  \n 1,952(32)  \n —  \n 51.30  \n8/22/2034\n\n  \n 6,667(3)  \n —  \n 28.20  \n4/24/2035\n\nKevin Schmid \n 5,834(33)  \n —(33)  \n 127.20  \n7/21/2032\n\n  \n 3,241(29)  \n 93(29)  \n 45.00  \n4/3/2033\n\n  \n 1,252(2)  \n —  \n 33.30  \n10/2/2033\n\n  \n 1,065(31)  \n 602(31)  \n 45.60  \n4/8/2034\n\n  \n 814(32)  \n —  \n 51.30  \n8/22/2034\n\n  \n 1,667(3)  \n —  \n 28.20  \n4/24/2035\n\n \n\n \n\n(1)The\nstandard option term is ten years, but all of the options expire automatically unless exercised within 90 days after the cessation of\nservice as an employee, director or consultant.\n\n(2)The\noption was granted on October 2, 2023 and vested on January 19, 2024 upon our 510(k) premarket submission to the FDA for our initial\npump product.\n\n(3)The\noption was granted on April 24, 2025 and vested upon our 510(k) premarket submission to the FDA for our Pivot pump product.\n\n(4)The\noption was granted on June 1, 2020, and the shares subject to this option were fully vested on the grant date.\n\n(5)The\noption was granted on May 1, 2020, and the shares subject to this option were fully vested on the grant date.\n\n(6)The\noption was granted on April 1, 2020, and the shares subject to this option were fully vested\non the grant date.\n\n(7)The\noption was granted on March 2, 2020, and the shares subject to this option were fully vested\non the grant date.\n\n(8)The\noption was granted on February 1, 2020, and the shares subject to this option were fully vested\non the grant date.\n\n(9)The\noption was granted on January 1, 2020, and the shares subject to this option were fully vested\non the grant date.\n\n(10)The\noption was granted on December 1, 2019, and the shares subject to this option were fully\nvested on the grant date.\n\n(11)The\noption was granted on November 1, 2019, and the shares subject to this option were fully\nvested on the grant date.\n\n(12)The\noption was granted on October 1, 2019, and the shares subject to this option were fully vested\non the grant date.\n\n(13)The\noption was granted on September 15, 2019, and the shares subject to this option were fully\nvested on the grant date.\n\n(14)The\noption was granted on August 15, 2019, and the shares subject to this option were fully vested\non the grant date.\n\n(15)The\noption was granted on July 15, 2019, and the shares subject to this option were fully vested\non the grant date.\n\n(16)The\noption was granted on June 15, 2019, and the shares subject to this option were fully vested\non the grant date.\n\n(17)The\noption was granted on May 15, 2019, and the shares subject to this option were fully vested\non the grant date.\n\n(18)The\noption was granted on April 15, 2019, and the shares subject to this option were fully vested\non the grant date.\n\n(19)The\noption was granted on March 15, 2019, and the shares subject to this option were fully vested\non the grant date.\n\n(20)The\noption was granted on February 15, 2019, and the shares subject to this option were fully\nvested on the grant date.\n\n(21)The\noption was granted on January 15, 2019, and the shares subject to this option were fully\nvested on the grant date.\n\n(22)The\noption was granted on December 15, 2018, and the shares subject to this option were fully\nvested on the grant date.\n\n(23)The\noption was granted on November 15, 2018, and the shares subject to this option were fully\nvested on the grant date.\n\n(24)The\noption was granted on October 15, 2018, and the shares subject to this option were fully\nvested on the grant date.\n\n(25)The\noption was granted on September 15, 2018, and the shares subject to this option were fully\nvested on the grant date.\n\n(26)The\noption was granted on August 15, 2018, and the shares subject to this option were fully vested\non the grant date.\n\n(27)The\noption was granted on November 25, 2019, and the shares subject to this option vested monthly\nover three years commencing January 1, 2020, subject to continued service as an employee,\ndirector or consultant.\n\n \n\n55 \n\n \n\n \n\n(28)The\noption was granted on April 14, 2022, and the shares subject to this option vest: i) one-third\non the annual anniversary of the grant date and ii) the remaining two-thirds monthly over\nthe next two years, subject to continued service as an employee, director or consultant\n\n(29)The\noption was granted on April 3, 2023, and the shares subject to this option vest: i) one-third\non the annual anniversary of the grant date and ii) the remaining two-thirds monthly over\nthe next two years subject to continued service as an employee, director or consultant.\n\n(30)The\noption was granted on October 2, 2023, and the shares subject to this option vested in January\n2024 upon the Company’s 510(k) premarket submission to the U.S. Food and Drug Administration\n(“FDA”) for its initial pump product.\n\n(31)The\noption was granted on April 8, 2024, and the shares subject to this option vest: i) one-third\non the annual anniversary of the grant date and ii) the remaining two-thirds vest over the\nnext two years subject to continued service as an employee, director or consultant.\n\n(32)The\noption was granted on August 22, 2024, and the shares subject to this option vested in September\n2024 upon the Company’s receipt of clearance from the FDA for its MODD1 product.\n\n(33)The\noption was granted on July 21, 2022, and the shares subject to this option vest: i) one-third\non the annual anniversary of the grant date and ii) the remaining two-thirds monthly over\nthe next two years subject to continued service as an employee, director or consultant.\n\n \n\nEmployment\nAgreements\n\n \n\nWe\nhave entered into our standard form of employment, confidential information and invention assignment agreement with each of our named\nexecutive officers. We also have entered into agreements to indemnify our directors and executive officers, in addition to the indemnification\nprovided for in our articles of incorporation and bylaws. These agreements, among other things, provide for indemnification of our directors\nand certain executive officers for many expenses, including attorneys’ fees, judgments, fines and settlement amounts incurred by\nany such person in any action or proceeding, including any action by or in the right of the Company, arising out of such person’s\nservices as a director or executive officer of ours, any subsidiary of ours or any other company or enterprise to which such person provided\nservices at our request.\n\n \n\nThe\nDiPerna Employment and Related Agreements\n\n \n\nWe\nentered into an employment agreement dated August 1, 2018, with Mr. DiPerna, as amended (the “DiPerna Agreement”), pursuant\nto which Mr. DiPerna is currently employed by us as our president and chief financial officer. Mr. DiPerna’s employment agreement\nhad an initial two-year term and automatically renews for additional one-year terms. Effective April 1, 2024, we amended the DiPerna\nAgreement to increase Mr. DiPerna’s annual base salary to $360,000.\n\n \n\nThe\nDiPerna Agreement provides benefits that are intended to encourage the continued dedication of Mr. DiPerna and to mitigate potential\ndisincentives to the consideration of a transaction that would result in a change in control, particularly where the services of Mr.\nDiPerna may not be required by a potential acquirer. Mr. DiPerna will receive change of control payments and benefits in accordance with\nthe terms and conditions of the DiPerna Agreement. The DiPerna Agreement provides for benefits for Mr. DiPErna in the event of a “Change\nof Control,” which is generally defined as: the removal of Mr. DiPerna as an executive and chair of our board of directors as the\nresult of the occurrence of any of the following events:\n\n \n\n●the\nsale, lease, conveyance or other disposition of all or substantially all of our assets as an entirety or substantially as an entirety\nto any person, entity or group of persons acting in concert; (B) any “person” (as such term is used in Sections 13(d) and\n14(d) of the Securities Exchange Act of 1934, as amended), other than any then currently existing shareholder as of the Change of Control\ndate, becoming the “beneficial owner,’’ as defined in Rule 13d-3 under said act, directly or indirectly, of securities\nof the Company representing 50% or more of the total voting power represented by our then outstanding voting securities but in no event\nshall the completion of an offering (i) of our common stock pursuant to a registration statement filed with the Securities and Exchange\nCommission in our initial public offering or (ii) a private offering of shares of the capital stock of us constitute a Change of Control;\nor\n\n \n\n●a\nmerger or consolidation of us with any other corporation or not affiliated with any currently existing shareholder, other than a merger\nor consolidation, which would result in the voting securities of us outstanding immediately prior thereto continuing to represent (either\nby remaining outstanding or by being converted into voting securities of the surviving entity) at least 50% of the total voting power\nrepresented by the voting securities of us or such surviving entity outstanding immediately after such merger or consolidation.\n\n \n\n56 \n\n \n\n \n\nIf\na change of control occurred on March 31, 2026, under the DiPerna Agreement, Mr. DiPerna would be entitled to the following:\n\n \n\n●payment\nof a lump sum of $360,000 within 60 days of the time at which such Change of Control takes place.\n\n \n\n●accelerated\nvesting of 1,251 shares of common stock under unvested stock options. The value of the shares subject to accelerated vesting is calculated\nas the intrinsic value per share multiplied by the number of shares that would become fully vested upon a change of control. The intrinsic\nvalue per share would be calculated as the excess of the closing price of the common stock of $4.55 on the Nasdaq Capital Market on March\n31, 2026 over the exercise price of the option. As of March 31, 2026, the shares subject to accelerated vesting had no intrinsic value.\n\n \n\nIn\nconnection with our acquisition of Quasuras, we entered into an Intellectual Property Transfer Agreement, dated as of July 24, 2017,\nwith Quasuras and Mr. DiPerna, pursuant to which Mr. DiPerna transferred to us all intellectual property rights owned directly and/or\nindirectly by him related to our business. Separately, we agreed to pay Mr. DiPerna, as part of his compensation for services to be performed\nfor us, pursuant to a royalty agreement, certain fees based upon future sales, if any, of our potential product subject to a maximum\n$10,000,000 cap on the aggregate amount of fees that Mr. DiPerna could earn from such arrangement.\n\n \n\nDirector\nCompensation\n\n \n\nIn\nthe first quarter of fiscal 2022, our board of directors approved our outside (non-employee) director compensation plan (the “Director\nPlan”). Pursuant to the Director Plan, outside directors are paid the following annual retainers:\n\n \n\n●$25,000\nfor service as a member of the board of directors; and\n\n \n\n●$5,000\nfor service as chair of a committee of the board of directors.\n\n \n\nThe\nannual retainers are paid in quarterly installments in either cash, options to purchase shares of our common stock or in shares of our\ncommon stock, as directed by each director based on an annual election.\n\n \n\nIn\naddition, under the Director Plan, each director receives an annual service equity award of $100,000 paid in quarterly installments in\neither options to purchase shares of our common stock or shares of our common stock, as directed by each director based on an annual\nelection. In July 2022, the Board amended the Director Plan to provide that a minimum price of $300.00 per share of common stock would\nbe used to calculate the number of shares subject to options or share awards.\n\n \n\nThe\nfollowing table summarizes the compensation earned by our non-employee directors in fiscal 2026: \n\n \n\nName \nFee Compensation ($)  \nOption Awards ($)(1)(2)  \nAll Other Compensation ($)(1)(3)  \nTotal\n\n($) \n\nDuane DeSisto \n 30,000  \n —  \n 4,728  \n 34,728 \n\nSteven Felsher \n —  \n 11,032  \n 1,419  \n 12,451 \n\nMorgan Frank \n —  \n 13,789  \n —  \n 13,789 \n\nJeffrey Goldberg \n 21,497  \n 8,792  \n —  \n 30,289 \n\nPhilip Sheibley \n 30,000  \n 11,032  \n —  \n 41,032 \n\nCarmen Volkart \n —  \n —  \n 5,906  \n 5,906 \n\nEllen\nO’Connor Vos \n 25,000  \n 11,032  \n —  \n 36,032 \n\n \n\n(1)Award\namounts reflect the aggregate grant date fair value with respect to awards granted, as determined pursuant to FASB ASC Topic 718. The\nassumptions used to calculate the aggregate grant date fair value of option awards are set forth in the notes to the consolidated financial\nstatements included in Item 8 of this Annual Report on Form 10-K. These amounts do not reflect actual compensation earned or to be earned\nby our directors.\n\n(2)As of March 31, 2026, our non-employee directors each held outstanding\noptions to purchase the following number of shares of our common stock: Steven Felsher, 5,271; Morgan Frank, 8,427; Jeffrey Goldberg,\n860; Philip Sheibley, 2,556; Carmen Volkart, 6,021, Ellen O’Connor Vos, 7,535.\n\n(3)Represents\nstock awards under the Director Plan; we calculated the estimated fair value of the stock awards issued using the closing price per share\nof our common stock on the day prior to the grant date in accordance with the Director Plan.\n\n \n\n57"}