India Globalization Capital, Inc. (“IGC” or the “Company”) (NYSE
American: IGC) today announced its financial results for the
quarter ended December 31, 2020, which is the third quarter of its
2021 fiscal year.
Revenue in the quarter ended December 31, 2020 and December 31,
2019, was $108 thousand and $573 thousand respectively. The
decrease in revenue is from infrastructure and is primarily due to
restrictions imposed by the COVID-19 pandemic. The revenue in the
quarter ended December 31, 2020 was approximately 15% from the
infrastructure segment and approximately 85% from the Life Science
segment. In comparison, the revenue in the December 2019 quarter
was primarily from infrastructure.
The ongoing COVID-19 pandemic has impacted our revenue and
increased our expenses. In the past nine months, our ability to
provide services and distribute our products has been impacted due
to store closures and abandoned harvests of hemp. Our facilities on
the West Coast of the U.S. and Delhi, India have had COVID-19
outbreaks that have led to closures, delays and expenses.
In the quarter ended December 31, 2020, our primary focus has
been to initiate and carry out the Phase 1 clinical trial on our
Investigational Drug Candidate IGC-AD1.
Selling, general and administrative expenses consist primarily
of employee-related expenses, sales commission, professional fees,
legal fees, marketing, other corporate expenses, allocated general
overhead and provisions, depreciation and write-offs relating to
doubtful accounts and advances, if any. Selling, general and
administrative expenses increased by approximately $773 thousand or
55% to $2,186 thousand for the three months ended December 31,
2020, from $1,413 thousand for the three months ended December 31,
2019. The increase of approximately $773 thousand is related to
increased overheads, marketing and professional expenses, a
one-time SEC settlement expense of $175 thousand previously
disclosed on Form 8-K on December 22, 2020, one-time $245 thousand
inventory related adjustments, and $124 thousand in increased
depreciation expense, among others.
Net comprehensive loss was approximately $2,283 thousand or
$0.06 per share, for the December 2020 quarter, compared to
approximately $1,646 thousand or $0.04 per share for the September
2019 quarter. Most of the increased loss is attributable to the
increased SG&A.
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. For the next several
years, our success is highly correlated primarily with the
successful outcome of our clinical trials and the recovery of the
world and local economies following the COVID-19 pandemic, and,
secondarily, on the sale of our products and services candidates.
IGC may not be able to complete human trials on our investigational
drug candidates, or, once conducted, the results of human trials
testing results may not be favorable or as anticipated. Our
projections and investments anticipate stable pricing, which may
not hold out over the next several years, and certain regulatory
changes, specifically in states where medical cannabis has been,
is, or will be legalized and the diseases which we anticipate our
products will target are approved conditions for treatment or usage
with cannabis/cannabinoids. 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
patent licensing is that the patent applications we have licensed
may not be granted by the United States Patent and Trademark Office
(“USPTO”), even if the Company is in full compliance with USPTO
requirements. We may not have adequate resources including
financial resources, to successfully conduct all requisite clinical
trials, to bring a product 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. 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 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; Quarterly Reports on Form
10-Q filed with the SEC on August 19, 2020, November 20, 2020 and
February 12, 2021 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.
India Globalization Capital,
Inc.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
(Unaudited)
December 31,
2020
(Unaudited)
($)
March 31,
2020
(Audited)
($)
ASSETS
Current assets:
Cash and cash equivalents
968
7,258
Marketable securities
2,000
5,081
Accounts receivable, net
226
133
Inventory
5,156
4,245
Deposits and advances
3,071
1,040
Total current assets
11,421
17,757
Intangible assets, net
384
252
Property, plant and equipment, net
10,968
9,780
Non-Marketable securities
261
11
Claims and advances
619
610
Operating lease asset
510
574
Total long-term assets
12,742
11,227
Total assets
24,163
28,984
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
875
762
Accrued liabilities and others
791
1,134
Short-term loans
252
50
Total current liabilities
1,918
1,946
Long-term loans
328
-
Other liabilities
17
16
Operating lease liability
428
485
Total non-current liabilities
773
501
Total liabilities
2,691
2,447
Commitments and Contingencies – See
Note 12
Stockholders' equity:
Preferred stock, $0.0001 per value:
authorized 1,000,000 shares, no shares issued or outstanding as of
December 31, 2020 or March 31, 2020.
-
-
Common stock and additional paid-in
capital, $0.0001 par value: 150,000,000 shares authorized;
41,304,365 and 39,320,116 shares issued and outstanding as of
December 31, 2020 and March 31, 2020, respectively.
95,427
94,754
Accumulated other comprehensive loss
(2,726)
(2,850
)
Accumulated deficit
(71,229)
(65,367
)
Total stockholders' equity
21,472
26,537
Total liabilities and stockholders'
equity
24,163
28,984
See accompanying Notes to the Condensed
Consolidated Financial Statements in the Quarterly Report on Form
10-Q for the quarter ended December 31, 2020, as filed with the SEC
on February 12, 2021.
India Globalization Capital, Inc. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in
thousands, except loss per share) (Unaudited)
Three months ended December
31,
Nine months ended December
31,
2020
2019
2020
2019
($)
($)
($)
($)
Revenue
108
573
817
4,043
Cost of revenue
(94)
(543)
(731)
(3,944)
Gross Profit
14
30
86
99
Selling, general and administrative
expenses
(2,186)
(1,413)
(5,424)
(3,756)
Research and development expenses
(154)
(295)
(595)
(764)
Operating loss
(2,326)
(1,678)
(5,933)
(4,421)
Other income, net
3
75
71
260
Loss before income taxes
(2,323)
(1,603)
(5,862)
(4,161)
Income tax expense/benefit
-
-
-
-
Net loss attributable to common
stockholders
(2,323)
(1,603)
(5,862)
(4,161)
Foreign currency translation
adjustments
40
(43)
124
(167)
Comprehensive loss
(2,283)
(1,646)
(5,738)
(4,328)
Loss per share attributable to common
stockholders:
Basic & Diluted
$
(0.06)
(0.04)
(0.14)
(0.11)
Weighted-average number of shares used in
computing loss per share amounts:
41,304
39,571
40,915
39,543
See accompanying Notes to the Condensed Consolidated Financial
Statements in the Quarterly Report on Form 10-Q for the quarter
ended December 31, 2020, as filed with the SEC on February 12,
2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210212005547/en/
Claudia Grimaldi info@igcinc.us Phone: 301-983-0998
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