India Globalization Capital, Inc. (NYSE American: IGC) today
announced financial results for the quarter ended June 30, 2020,
which is the first quarter of its 2021 fiscal year.
Revenue was approximately $583 thousand and $1,649 thousand, for
the June 30, 2020 and 2019 quarters, respectively. Revenue in the
quarter ended June 30, 2020 was primarily derived from our Life
Sciences segment, which involved sales of products such as hand
sanitizers among others. In contrast, our revenue for the quarter
ended June 30, 2019, was primarily derived from the infrastructure
segment.
SG&A expense, inclusive of R&D expenses for the June
2020 quarter was approximately to $1,977 thousand compared to
approximately $1,496 thousand for the June 2019 quarter. The June
2020 SG&A included a one-time settlement of the derivative
suit, legal expenses, and other accruals. We expect general and
administrative expenses, not including R&D expenses, to
decrease as legal fees abate over the rest of this year.
Net comprehensive loss was approximately $1.940 million or $0.05
per share, for the June 2020 quarter, compared to approximately
$1.360 million or $0.03 per share for the June 2019 quarter. Most
of the increased loss is attributed to the increased SG&A with
the remaining attributed to foreign exchange loss.
Business Updates:
- On August 18, 2020, the Company 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 the Company a patent
(#10751300) for the Company’s cannabinoid formulation (IGC-502) for
the treatment of seizures in humans and veterinary animals.
- On July 30, 2020, IGC received approval from the FDA to
proceed with Phase 1 human clinical trials (“removal of full
clinical hold”) on its Investigational New Drug Application (INDA)
submitted under section 505(i) of the Federal Food, Drug, and
Cosmetic Act for IGC-AD1. 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
dementia due to Alzheimer’s disease. In addition, the study will
evaluate pharmacokinetics (PK) and collect data on other factors.
The drug IGC-AD1 is based on a patent filed by the University of
South Florida (“USF”) that uses a cannabinoid as one of the active
ingredients. The Company has exclusive rights to the patent
filing.
- In response to the COVID-19 pandemic we manufactured and
distributed alcohol-based hand sanitizers and hand rubs. Part of
our hand sanitizers were donated to FEMA, the Navajo Indians in
Arizona, and the Crow Indian reservation in North Dakota in an
effort to help some of the harder hit communities.
- On July 17, 2020, the Company 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 Court entered an order formally and
finally approving the January 2020 settlement between the Company
and the named defendant directors and officers resolving all
pending derivative suits.
- On May 12, 2020, the Company completed an investment as per the
Share Subscription Agreement (“SSA”) with Evolve I, Inc., a
Washington corporation (“Evolve”), by transferring part of the
consideration to Evolve. As of June 30, 2020, the Company owns
approximately 19.8% interest in Evolve.
COVID-19 Update:
We continue to monitor the impact from restrictions imposed by
the COVID-19 pandemic on our financial condition, liquidity,
operations, suppliers, industry, and workforce. The Company has
suffered losses and setbacks because of the COVID-19 pandemic,
including being delayed in executing an ongoing construction
contract, being unable to commission equipment, and having to slow
down operations because of COVID-19.
Revenue from the infrastructure segment continues to be
adversely affected as we are unable to fully deploy our workforce.
However, as soon as we can, safely, we expect to engage in the
infrastructure business including completing the road building
contract that we have been awarded. As there is a general lack of
visibility regarding the ongoing impact of the COVID-19 pandemic
the revenue from Life Sciences segment is unpredictable.
“With the FDA recent approval of its 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.
We remain confident that we can get to proving efficacy of our
formulation for Alzheimer's, a devastating disease,” said Ram
Mukunda, CEO.
About IGC:
IGC currently has two lines of business: (i) infrastructure and
(ii) life sciences. The company is based in Potomac, Maryland,
U.S.A. Its corporate website is www.igcinc.us and 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. Our success is highly
correlated with the success of our product candidates. We may not
be able to protect our intellectual property adequately or receive
patents. We may not receive regulatory approval for our products,
or trials. An additional risk factor worth highlighting
specifically related to this patent licensing is that the patent
application we have licensed may not be granted by the USPTO, even
if the Company is in full compliance with USPTO requirements. We
may not have adequate resources including financial resources to
successfully conduct the requisite trials, to bring a product based
on the above-referenced patented formulation to market, or to pay
applicable maintenance fees over time. We may not be able to
successfully commercialize our products even if they are successful
and receive regulatory approval. Our 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 our business, future results of
operations, our stock price, and our 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
Federal Food and Drug Administration’s (FDA) general position
regarding hemp based products and our products in particular, the
ongoing COVID-19 pandemic and its effect on the global and regional
economies in which the Company participates, and other factors,
many of which are discussed in our SEC filings. The inability of
the Company to conduct human trials. The Company incorporates by
reference the Risk Factors identified in its Fiscal 2020 annual
report filed with the SEC on Form 10-K on July 13, 2020 and on Form
10-Q filed on August 19, 2020. 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 301-983-0998
IGC Pharma (AMEX:IGC)
Historical Stock Chart
From Aug 2024 to Sep 2024
IGC Pharma (AMEX:IGC)
Historical Stock Chart
From Sep 2023 to Sep 2024