India Globalization Capital, Inc. (NYSE American: IGC) announces
its financial results for the Fiscal Year Ended March 31, 2021.
Revenue was approximately $898 thousand and $4.1 million for
Fiscal 2021 and Fiscal 2020, respectively. In Fiscal 2021, the
Company’s revenues were significantly impacted by the COVID-19
pandemic, which hindered our ability to fully operate either of our
two business lines. Revenue in Fiscal 2021 was primarily derived
from our Life Sciences segment, which involved sales of products
such as alcohol-based hand sanitizers, among others. In Fiscal
2020, our revenue was primarily derived from the infrastructure
segment. Due to the ongoing impact of the COVID-19, we currently
have limited visibility on when either of our business segments
will stabilize, generate significant revenue, and become
predictable. We expect volatility in both segments in the
foreseeable future.
Since 2014, our team has been committed to researching the
application of cannabinoids such as Tetrahydrocannabinol (“THC”)
and Cannabidiol (“CBD”) in combination with other compounds to
address various ailments, including Alzheimer's disease. With our
research, we have developed intellectual property, formulations,
and wellness and lifestyle brands.
As recently announced, we continue to focus on our Phase 1 human
trial on patients suffering from Alzheimer’s’ disease, for our
patent pending Tetrahydrocannabinol (THC)-based investigational
drug IGC-AD1. As Fiscal 2022 progresses, we expect to be
opportunistic in providing personal protection equipment, including
hand sanitizers, as the country reopens from the pandemic.
The Company’s highlights for Fiscal 2021 include:
- On July 17, 2020, the Company filed a provisional patent
application with the U.S. Patent and Trademark Office (“USPTO”) for
its IGC-511 formulation for a Cannabidiol-based composition and
method for treating pain.
- On July 30, 2020, the U.S. Food and Drug Administration (“FDA”)
issued authorization for the Company to initiate a 12-subject Phase
1 human trial study to test the safety of IGC’s
tetrahydrocannabinol (“THC”)-based investigational new drug,
IGC-AD1, intended to alleviate the symptoms of individuals
suffering from Alzheimer’s disease. The Company commenced the Phase
1 trial process in November 2020 and proceeded with the trial
throughout the remainder of Fiscal 2021 and into Fiscal 2022. After
the close of Fiscal 2021, on May 1, 2021 the Company announced that
it had completed Cohort 1 of Phase 1 of the trial. On June 7, 2021,
the Company announced that it had completed Cohort 2 that comprised
of a higher dosing level. As previously disclosed, IGC submitted
IGC-AD1 to the FDA under Section 505(i) of the Federal Food, Drug,
and Cosmetic Act.
- On August 5, 2020, the USPTO issued the Company a patent
(#10,751,300) for the Company’s cannabinoid formulation (IGC-502)
for the treatment of seizures in humans and veterinary
animals.
- On December 2, 2020, we filed a provisional patent application
with the USPTO for our IGC-512 formulation for a cannabidiol-based
composition and method for stress relief and calm restoring
beverage.
- On March 2, 2021, the USPTO issued the Company a patent
(#10,933,082) for the Company’s cannabinoid composition and method
for treating pain in patients with Psoriatic Arthritis,
Fibromyalgia, Scleroderma, and other conditions.
- As of March 31, 2021, the Company was a party to two
consolidated shareholder lawsuits (Tchatchou v. India Globalization
Capital, Inc. and Harris-Carr v. India Globalization Capital,
Inc.). On April 6, 2021, after the close of the fiscal year, the
plaintiffs in those lawsuits and the Company reached a preliminary
agreement in principle to settle all pending shareholder
litigation. The settlement is subject to the agreement and
execution of formal settlement documentation and approval by the
United States District Court for the District of Maryland.
Management expects that, if approved, a significant portion of the
settlement would be covered by the Company’s insurance policy, and
the Company’s contribution to the settlement is expected to not
exceed $200 thousand.
Selling, general and administrative (“SG&A”) expenses
increased by approximately $1.9 million or 33% to $7.9 million for
Fiscal 2021, from approximately $6 million for Fiscal 2020. The
increase was attributed to one-time settlement expenses, increased
legal fees, $307 thousand inventory related adjustments, increased
compensation expenses attributed to increased head count and
associated employee-related expenses, marketing and professional
expenses related to our brands and depreciation expense related to
increased Property, Plant and Equipment.
Research and Development (“R&D”) expenses for Fiscal 2021
are approximately $929 thousand and approximately $1 million for
Fiscal 2020. The cost associated with this work is mostly research
comprising of plant extracts that could be productized and data to
support the efficacy of the extracts, including preparing for and
conducting FDA trials, product research, designing, formulating and
market analysis. We expect R&D expenses to increase with
progression in Phase 1 trials on IGC-AD1.
Net loss for Fiscal 2021 was approximately $8.8 million or $0.21
per share, compared to approximately $7.3 million or $0.19 per
share for Fiscal 2020. The larger loss is largely attributed to
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
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 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 Reports on Form
10-K filed with the SEC on June 14, 2021, and July 13, 2020, and
Quarterly Reports on Form 10-Q filed with the SEC on August 19,
2020, November 20, 2020, and February 12, 2021, as if fully set
forth 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.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
March 31,
2021
($)
March 31,
2020
($)
ASSETS
Current assets:
Cash and cash equivalents
14,548
7,258
Marketable securities
-
5,081
Accounts receivable, net
175
133
Inventory
5,478
4,245
Non-Marketable securities
80
-
Deposits and advances
3,236
1,040
Total current assets
23,517
17,757
Intangible assets, net
407
252
Property, plant and equipment, net
10,840
9,780
Non-Marketable securities
12
11
Claims and advances
603
610
Operating lease asset
488
574
Total long-term assets
12,350
11,227
Total assets
35,867
28,984
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
476
762
Accrued liabilities and others
1,588
1,134
Short-term loans
304
50
Total current liabilities
2,368
1,946
Long-term loans
276
-
Other liabilities
15
16
Operating lease liability
405
485
Total non-current liabilities
696
501
Total liabilities
3,064
2,447
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
March 31, 2021 or March 31, 2020.
-
-
Common stock and additional paid-in
capital, $0.0001 par value: 150,000,000 shares authorized;
47,827,273 and 39,320,116 shares issued and outstanding as of March
31, 2021 and March 31, 2020, respectively.
109,720
94,754
Accumulated other comprehensive loss
(2,774
)
(2,850
)
Accumulated deficit
(74,143
)
(65,367
)
Total stockholders' equity
32,803
26,537
Total liabilities and stockholders'
equity
35,867
28,984
These financial statements should be read in
connection with the accompanying notes on Form 10-K for the fiscal
year ending March 31, 2021, filed with the SEC on June 14,
2021.
India Globalization Capital,
Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except loss per
share and share data)
Years Ended March 31,
2021
($)
2020
($)
Revenue
898
4,072
Cost of revenue
(785
)
(3,957
)
Gross Profit
113
115
Selling, general and administrative
expenses
(7,908
)
(5,968
)
Research and development expenses
(929
)
(1,011
)
Operating loss
(8,724
)
(6,864
)
Impairment of investment
(169
)
(782
)
Other income, net
82
331
Loss before income taxes
(8,811
)
(7,315
)
Income tax expense/benefit
-
-
Net loss attributable to common
stockholders
(8,811
)
(7,315
)
Foreign currency translation
adjustments
76
(431
)
Comprehensive loss
(8,735
)
(7,746
)
Loss per share attributable to common
stockholders:
Basic & diluted
$
(0.21
)
$
(0.19
)
Weighted-average number of shares used in
computing loss per share amounts:
41,963,382
39,490,014
These financial statements should be read in
connection with the accompanying notes on Form 10-K for the fiscal
year ending March 31, 2021, filed with the SEC on June 14,
2021.
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version on businesswire.com: https://www.businesswire.com/news/home/20210614005637/en/
Claudia Grimaldi 301-983-0998
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