India Globalization Capital, Inc. (“IGC” or the “Company”) (NYSE
American: IGC) today announced its financial results for the
quarter ended September 30, 2020, which is the second quarter of
its 2021 fiscal year, and the start of Phase 1 cannabinoid-based
clinical trial for Alzheimer’s Patients.
Revenue in the quarter ended September 30, 2020 and September
30, 2019, were $125 thousand and $1,821 thousand, respectively. The
decrease in revenue is primarily due to restrictions imposed by the
COVID-19 pandemic. The revenue in the quarter ended September 30,
2020 was approximately 53% from the infrastructure segment and
approximately 47% from the Life Science segment. In comparison, the
revenue in the September 2019 quarter was primarily from
infrastructure. In the past 6 months, our ability to provide
services and distribute our products has been impacted due to store
closures and abandoned harvests of hemp. Our facility on the West
Coast, and our Delhi office, both have had COVID-19 outbreaks that
have led to closures, delays, and expenses. In response to the
evolving dynamics of the pandemic, we have decreased our staff in
select areas, delayed and may terminate the acquisition of Evolve
I, Inc., and reoriented our sales focus to online.
In the quarter ended September 30, 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 increased by
approximately $389 thousand or 36% to $1,483 thousand for three
months ended September 30, 2020, from $1,094 thousand for three
months ended September 30, 2019. The increase of approximately $0.4
million is attributed to a one-time settlement expense of
approximately $50 thousand, compensation expenses attributed to
increased head count and associated employee-related expenses,
marketing expense related to expansion of brands, and depreciation
expense related to increase in Property, Plant and Equipment. We
expect general and administrative expenses to decrease as one-time
legal and other one-time expenses continue to abate over the rest
of this fiscal year.
Net comprehensive loss was approximately $1.5 million or $0.04
per share, for the September 2020 quarter, compared to
approximately $1.3 million or $0.03 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
the 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 and November 20, 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)
September 30, 2020 (Unaudited)
($)
March 31, 2020 (Audited)
($)
ASSETS
Current assets:
Cash and cash equivalents
1,151
7,258
Marketable securities
3,850
5,081
Accounts receivable, net
241
133
Inventory
6,684
4,245
Deposits and advances
1,761
1,040
Total current assets
13,687
17,757
Intangible assets, net
344
252
Property, plant and equipment, net
10,906
9,780
Non-Marketable securities
261
11
Claims and advances
616
610
Operating lease asset
532
574
Total long-term assets
12,659
11,227
Total assets
26,346
28,984
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
975
762
Accrued liabilities and others
727
1,134
Short-term loans
196
50
Total current liabilities
1,898
1,946
Long-term loans
384
-
Other liabilities
16
16
Operating lease liability
450
485
Total non-current liabilities
850
501
Total liabilities
2,748
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
September 30, 2020 or March 31, 2020.
-
-
Common stock and additional paid-in
capital, $0.0001 par value: 150,000,000 shares authorized;
41,304,365 and 39,320,116 shares issued and outstanding as of
September 30, 2020 and March 31, 2020, respectively.
95,270
94,754
Accumulated other comprehensive loss
(2,766
)
(2,850
)
Accumulated deficit
(68,906
)
(65,367
)
Total stockholders' equity
23,598
26,537
Total liabilities and stockholders'
equity
26,346
28,984
See accompanying Notes to the Condensed
Consolidated Financial Statements in the Quarterly Report on Form
10-Q for the quarter ended September 30, 2020, as filed with the
SEC on November 20, 2020.
India Globalization Capital,
Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except loss per
share)
(Unaudited)
Three months ended September
30,
Six months ended September
30,
2020
2019
2020
2019
($)
($)
($)
($)
Revenue
125
1,821
709
3,470
Cost of revenue
(99
)
(1,793
)
(637
)
(3,401
)
Gross Profit
26
28
72
69
General and administrative expenses
(1,483
)
(1,094
)
(3,238
)
(2,343
)
Research and development expenses
(219
)
(222
)
(441
)
(469
)
Operating loss
(1,676
)
(1,288
)
(3,607
)
(2,743
)
Other income, net
19
109
68
185
Loss before income taxes
(1,657
)
(1,179
)
(3,539
)
(2,558
)
Income tax expense/benefit
-
-
-
-
Net loss attributable to common
stockholders
(1,657
)
(1,179
)
(3,539
)
(2,558
)
Foreign currency translation
adjustments
142
(143
)
84
(124
)
Comprehensive loss
(1,515
)
(1,322
)
(3,455
)
(2,682
)
Loss per share attributable to common
stockholders:
Basic & Diluted
$
(0.04
)
(0.03
)
(0.09
)
(0.06
)
Weighted-average number of shares used in
computing loss per share amounts:
41,244
39,551
40,720
39,529
See accompanying Notes to the Condensed Consolidated Financial
Statements in the Quarterly Report on Form 10-Q for the quarter
ended September 30, 2020, as filed with the SEC on November 20,
2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201122005096/en/
Claudia Grimaldi info@igcinc.us Phone: 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