India Globalization Capital, Inc. (NYSE American: IGC) announces
its financial results for the three months ending December 31, 2021
– quarter three of the Company’s 2022 fiscal year.
Highlights include:
- The Company appointed former congressman James Moran to its
Board of Directors. During his 24 years in Congress, Moran was
recognized as a champion of innovative research and development in
areas including healthcare and national security, environmental
protection and sustainability, and international trade and fiscal
responsibility.
- The Company completed a Phase 1 clinical trial for IGC-AD1, an
investigational new Tetrahydrocannabinol (THC) based drug candidate
designed to treat the symptoms of Alzheimer’s disease. As
previously reported, the trial analyzed the safety and efficacy of
different dosages, and the results were encouraging. Patients
receiving the drug showed a decrease in agitation, anxiety,
depression and other Neuropsychiatric Symptoms (NPS). From the
trial, we gained valuable knowledge about the impact of dosing that
will be studied further in additional clinical trials, subject to
FDA approval. Complete findings have been submitted in the
Clinical/Statistical Report (“CSR”) filed with the FDA.
- While market conditions are subject to change, and there can be
no assurances, the Company hopes and believes that, if IGC-AD1 can
gain FDA approval, it can have a substantial impact on the lives of
Alzheimer’s patients and their caregivers. We believe the demand
for a drug that can reduce symptoms such as agitation, anxiety, and
depression in Alzheimer’s patients is potentially significant. On
September 17, 2021, the Company filed a patent application,
IGC-513, to protect these initial trial findings.
- The Company is currently planning to proceed with additional
clinical trials for IGC-AD1. We plan to submit a protocol to the
FDA, for a large, double-blind, placebo-controlled Phase 2 trial to
test the impact of IGC-AD1 in relieving agitation in dementia due
to Alzheimer’s.
- On October 28, 2021, the Company won the Best CBD Topical award
for its broad-spectrum hemp extract cream called Holi Wonder™ at
the USA CBD Expo event held in Chicago, Illinois.
- On October 5, 2021, the Company received a Good Manufacturing
Practice (GMP) certificate for its manufacturing and processing
facility in Vancouver, Washington.
The Company’s financial results for the quarter ending December
31, 2021 relative to the same period a year ago:
- The Life Sciences segment, which includes the sale of
hemp-based products such as lotion, gummies, and hand sanitizers
was the largest revenue driver with $134 thousand in revenue for
the quarter, compared to $56 thousand the year prior.
- The Infrastructure segment, which includes a construction
contract, was $8 thousand in the quarter, relative to $52 thousand
the year prior.
Primarily due to COVID-19, we expect volatility in both segments
in the foreseeable future and it is difficult to predict when
either segment will generate significant, stable revenue.
The following expense results refer to the quarters ending
December 31, 2021, and December 31, 2020:
- Research and Development (R&D) expenses related to the
Phase 1 clinical trial described above and product research in our
Life Sciences segment was approximately $377 thousand compared to
$154 thousand the year prior. We expect R&D expenses to
increase with subsequent IGC-AD1 clinical trials, subject to FDA
approval.
- Selling, General and Administrative (SG&A) expenses were
$2.07 million in the quarter, a decrease of $116 thousand relative
to $2.19 million the year prior. The SG&A decrease includes a
one-time inventory-related adjustments of $245 thousand.
- Net loss was approximately $2.38 million or ($0.05) per share,
compared to approximately $2.32 million or ($0.06) per share in the
same quarter the prior year.
About IGC:
India Globalization Capital, Inc. (IGC), headquartered in
Maryland, engages in the development of cannabinoid-based therapies
for healthcare applications. IGC recently completed the first
safety and tolerability clinical trial to treat symptoms of
Alzheimer’s patients using a THC-based investigational new drug.
The Company also operates an infrastructure business based in
India. www.igcinc.us, www.igcpharma.com
Forward-Looking Statements:
This press release contains forward-looking statements that are
based largely on IGC’s expectations and are subject to several
risks and uncertainties, which may be beyond IGC’s control. Actual
results could differ significantly from these if the Company is
unable to commercialize one or more of the Company’s products or
technologies, including the investigational new drug IGC-AD1
described in this press release. Other risks which could materially
impact results include failure to obtain FDA approval for IGC-AD1
or additional clinical trials; unanticipated or unfavorable testing
results from subsequent clinical trials; general economic
conditions that are less favorable than expected; the impact of the
ongoing COVID-19 pandemic; the FDA’s general position regarding
cannabis- and hemp-based products; and other factors, which are
discussed in IGC’s SEC filings.
IGC incorporates by reference the human trial disclosures and
Risk Factors identified in its Annual Reports on Form 10-K filed
with the SEC on June 14, 2021, and Quarterly Report on Form 10-Q,
filed with the SEC on August 11, 2021, October 29, 2021, and
February 10, 2022. Given these risks and uncertainties, we cannot
assure the forward-looking information contained in this release
will occur.
< Financial Tables to Follow>
India Globalization Capital,
Inc.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
December 31,
March 31,
2021
2021
($)
($)
ASSETS
Current assets:
Cash and cash equivalents
11,941
14,548
Accounts receivable, net
164
175
Inventory
5,428
5,478
Non-Marketable securities
-
80
Deposits and advances
1,704
3,236
Total current assets
19,237
23,517
Intangible assets, net
426
407
Property, plant and equipment, net
10,520
10,840
Non-Marketable securities
11
12
Claims and advances
612
603
Operating lease asset
482
488
Total long-term assets
12,051
12,350
Total assets
31,288
35,867
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
357
476
Accrued liabilities and others
919
1,588
Short-term loans
3
304
Total current liabilities
1,279
2,368
Long-term loans
145
276
Other liabilities
15
15
Operating lease liability
374
405
Total non-current liabilities
534
696
Total liabilities
1,813
3,064
Commitments and Contingencies –
See Note 12
Stockholders' equity:
Preferred stock, $0.0001 par value:
authorized 1,000,000 shares, no shares issued or outstanding as of
December 31, 2021, and March 31, 2021.
-
-
Common stock and additional paid-in
capital, $0.0001 par value: 150,000,000 shares authorized;
51,041,017 and 47,827,273 shares issued and outstanding as of
December 31, 2021 and March 31, 2021, respectively.
114,894
109,720
Accumulated other comprehensive loss
(2,763
)
(2,774
)
Accumulated deficit
(82,656
)
(74,143
)
Total stockholders' equity
29,475
32,803
Total liabilities and stockholders'
equity
31,288
35,867
These financial statements should be read in
connection with the accompanying notes on Form 10-Q for the quarter
ended December 31, 2021, filed with the SEC on February 10,
2022.
India Globalization Capital,
Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except loss per
share and share data)
Three months ended December
31,
2021
($)
2020
($)
Revenue
142
108
Cost of revenue
(80
)
(94
)
Gross Profit
62
14
Selling, general and administrative
expenses
(2,070
)
(2,186
)
Research and development expenses
(377
)
(154
)
Operating loss
(2,385
)
(2,326
)
Impairment of investment
-
-
Other income, net
4
3
Loss before income taxes
(2,381
)
(2,323
)
Net loss attributable to common
stockholders
(2,381
)
(2,323
)
Foreign currency translation
adjustments
77
40
Comprehensive loss
(2,304
)
(2,283
)
Loss per share attributable to common
stockholders:
Basic & diluted
$
(0.05
)
$
(0.06
)
Weighted-average number of shares used in
computing loss per share amounts:
51,053,191
41,304,365
These financial statements should be read in
connection with the accompanying notes on Form 10-Q for the quarter
ended December 31, 2021, filed with the SEC on February 10,
2022.
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version on businesswire.com: https://www.businesswire.com/news/home/20220210005859/en/
Claudia Grimaldi Phone: 301-983-0998
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