Please replace the release dated August 19, 2020 with the
following corrected version due to multiple revisions.
The updated release reads:
IGC REPORTS FINANCIAL RESULTS FOR JUNE 30,
2020 QUARTER AND PREPARES FOR PHASE 1 CANNABINOID CLINICAL TRIAL
FOR ALZHEIMER’S PATIENTS
India Globalization Capital, Inc. (“IGC” or the “Company”) (NYSE
American: IGC) today announced its financial results for the
quarter ended June 30, 2020, which is the first quarter of its 2021
fiscal year.
Revenue was approximately $584,000 and $1.649 million, for the
June 30, 2020 and 2019 quarters, respectively. Revenue in the
quarter ended June 30, 2020 was primarily derived from IGC’s Life
Sciences segment, which involved sales of products such as hand
sanitizers. In contrast, IGC’s revenue for the quarter ended June
30, 2019 was primarily derived from its infrastructure segment.
SG&A inclusive of R&D expenses for the June 2020 quarter
was approximately $1.977 million compared to approximately $1.496
million for the June 2019 quarter. The June 2020 SG&A included
a one-time settlement of all derivative suits against the Company
and its officers and directors, legal expenses, and other accruals.
IGC expects general and administrative expenses, not including
R&D expenses, to decrease as one-time legal and other one-time
expenses abate over the rest of this fiscal year.
Net comprehensive loss was approximately $1.94 million or $0.05
per share, for the June 2020 quarter, compared to approximately
$1.36 million or $0.03 per share for the June 2019 quarter. Most of
the increased loss is attributable to the increased SG&A with
the remaining amount attributable to foreign exchange loss.
Important Business Updates:
- On August 18, 2020, IGC received an official USPTO Notice of
Allowance for its U.S. trademark NO3ATM, U.S. Serial Number:
88694194.
- On August 5, 2020, the USPTO issued IGC a patent (no. 10751300)
for its IGC-502 cannabinoid formulation for the treatment of
seizures in humans and veterinary animals.
- On July 30, 2020, IGC received notice from the FDA to proceed
with a 12-subject Phase 1 human clinical trial (“removal of full
clinical hold”) on its Investigational New Drug Application (INDA)
for IGC-AD1, submitted under section 505(i) of the Federal Food,
Drug, and Cosmetic Act. The Phase 1 trial will involve a randomized
placebo controlled Multiple Ascending Dose (MAD) study to evaluate
safety and tolerability of IGC-AD1 in subjects with mild to severe
dementia due to Alzheimer’s disease. The study will evaluate
pharmacokinetics and collect data on other factors. The
investigational drug candidate IGC-AD1 is based on a patent filed
by the University of South Florida that uses a cannabinoid as one
of the active ingredients. IGC has exclusive intellectual property
rights to the patent filing.
- In response to the COVID-19 pandemic, IGC manufactured and
distributed alcohol-based hand sanitizers and hand rubs. In an
effort to help some of the harder hit communities, a portion of
IGC’s hand sanitizers were donated to MEMA, the Navajo Indians in
Arizona, the Crow Indian reservation in Montana, and the Sioux on
the Rosebud Reservation in South Dakota.
- On July 17, 2020, IGC filed a provisional patent application
with the USPTO for its IGC-511 formulation for a cannabinoid-based
composition and method for treating pain.
- On July 6, 2020, the United States District Court for the
District of Maryland entered an order formally and finally
approving the January 2020 settlement between the derivative
plaintiffs, IGC, and the named defendant directors and officers,
thereby resolving all pending derivative suits. All derivative
actions have now been formally terminated.
- On May 12, 2020, IGC completed an investment as per the Share
Subscription Agreement (“SSA”) with Evolve I, Inc., a Washington
corporation (“Evolve”), by transferring a portion of the
consideration to Evolve. As of June 30, 2020, IGC owned
approximately 19.8% interest in Evolve.
COVID-19 Update:
IGC continues to monitor the impact from restrictions imposed by
the COVID-19 pandemic on its financial condition, liquidity,
operations, suppliers, industry, and workforce. IGC has suffered
losses and setbacks due to the COVID-19 pandemic, resulting in
delays in executing an ongoing construction contract, inability to
commission equipment and a general slow-down in operations.
Revenue from the infrastructure segment continued to be
adversely affected as IGC was unable to fully deploy its workforce.
However, as soon as IGC can safely proceed, in compliance with
applicable laws and regulations, it expects to engage in the
infrastructure business including completing the roadbuilding
contract that it has been awarded. As there is a general lack of
visibility regarding the ongoing impact of the COVID-19 pandemic
the revenue from the Life Sciences segment is also
unpredictable.
“With the FDA’s recent notice to proceed with a cannabinoid
trial on Alzheimer’s patients, IGC will be focusing on preparing to
conduct the Phase 1 trial for IGC-AD1 in its Puerto Rico medical
facility. Despite the ongoing world health crisis, we are excited
to begin developing and analyzing trial data on safety and
tolerability so that we can hopefully move forward to efficacy
trials of our investigational drug formulation for Alzheimer's in
the future. We are encouraged by these important steps toward our
ultimate goal to assist in the management and treatment of this
devastating disease,” said Ram Mukunda, CEO.
About IGC:
IGC operates two lines of business: (i) infrastructure and (ii)
life sciences. The Company is based in Potomac, Maryland, U.S.A.
social media: www.igcinc.us www.igcpharma.com Twitter @IGCIR.
Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements are based largely on IGC’s
expectations and are subject to several risks and uncertainties,
certain of which are beyond IGC’s control. IGC’s success is highly
correlated with the success of its product candidates. IGC may not
be able to protect its intellectual property adequately or receive
patents. IGC’s patent applications, including ones that we have
licensed, may not be granted by the USPTO, even if IGC is in full
compliance with USPTO requirements. IGC may not have adequate
resources, including financial resources, to successfully conduct
all requisite clinical trials, to bring a product based on its
patented formulation to market, or to pay applicable maintenance
fees over time. IGC may not be able to successfully commercialize
its products even if they are successful and receive regulatory
approval. IGC may not be able to complete human trials, or, once
conducted, human trial testing results may not be favorable or as
anticipated. IGC’s projections anticipate stable pricing, which may
not hold out over the next several years. Failure or delay with
respect to any of the factors above could have a material adverse
effect on IGC’s business, future results of operations, stock
price, and financial condition. Actual results could differ
materially from these forward-looking statements as a result of,
among other factors, competitive conditions in the industries in
which IGC operates, failure to commercialize one or more of the
technologies of IGC, general economic conditions that are less
favorable than expected, the FDA’s general position regarding
hemp-based products , the ongoing COVID-19 pandemic and its effect
on global and regional economies in which IGC participates, and
other factors, many of which are discussed in IGC’s SEC filings.
IGC incorporates by reference the Risk Factors identified in its
Annual Report on Form 10-K filed with the SEC on July 13, 2020 and
its Quarterly Report on Form 10-Q filed with the SEC on August 19,
2020 as if fully incorporated and restated herein. In light of
these risks and uncertainties, there can be no assurance that the
forward-looking information contained in this release will in fact
occur.
< Financial Tables to Follow >
India Globalization Capital,
Inc.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data) (Unaudited)
June 30, 2020
($)
March 31, 2020
($)
ASSETS
Current assets:
Cash and cash equivalents
2,703
7,258
Marketable securities
5,098
5,081
Accounts receivable, net
264
133
Inventories
6,523
4,245
Deposits and advances
1,414
1,040
Total current assets
16,002
17,757
Intangible assets, net
275
252
Property, plant and equipment, net
10,603
9,780
Non-Marketable securities
260
11
Claims and advances
606
610
Operating lease asset
553
574
Total long-term assets
12,297
11,227
Total assets
28,299
28,984
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
1,099
762
Accrued liabilities and others
1,220
1,134
Short-term loans
-
50
Total current liabilities
2,319
1,946
Long-term loans
630
-
Other liabilities
16
16
Operating lease liability
471
485
Total non-current liabilities
1,117
501
Total liabilities
3,436
2,447
Commitments and Contingencies – See
Note 12
Stockholders' equity:
Preferred stock, $0.0001 per value:
authorized 1,000,000 shares, no share issued or outstanding as on
June 30, 2020 and March 31, 2020
-
-
Common stock and additional paid-in
capital, $0.0001 par value: 150,000,000 shares authorized;
41,196,130 and 39,320,116 shares issued and outstanding as on June
30, 2020 and March 31, 2020, respectively.
95,020
94,754
Accumulated other comprehensive loss
(2,908
)
(2,850
)
Accumulated deficit
(67,249
)
(65,367
)
Total stockholders' equity
24,863
26,537
Total liabilities and stockholders'
equity
28,299
28,984
See accompanying Notes to the Condensed
Consolidated Financial Statements in the Quarterly Report on Form
10-Q for the quarter ended June 30, 2020, as filed with the SEC on
August 19, 2020.
India Globalization Capital,
Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(in thousands, except loss per
share) (Unaudited)
Three months ended June
30,
2020
($)
2019
($)
Revenues
584
1,649
Cost of revenues
(538
)
(1,608
)
Gross profit
46
41
Selling, general and administrative
expenses
(1,755
)
(1,249
)
Research and development expenses
(222
)
(247
)
Operating loss
(1,931
)
(1,455
)
Other income – net
49
76
Loss before income taxes
(1,882
)
(1,379
)
Income taxes expense
-
-
Net loss attributable to common
stockholders
(1,882
)
(1,379
)
Foreign currency translation
adjustments
(58
)
19
Comprehensive loss
(1,940
)
(1,360
)
Loss per share attributable to common
stockholders:
Basic & diluted
(0.05
)
(0.03
)
Weighted-average number of shares used in
computing loss per share amounts:
40,189
39,508
See accompanying Notes to the Condensed
Consolidated Financial Statements in the Quarterly Report on Form
10-Q for the quarter ended June 30, 2020, as filed with the SEC on
August 19, 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200819005713/en/
Claudia Grimaldi info@igcinc.us / Phone: 301-983-0998
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