India Globalization Capital, Inc. (NYSE American: IGC) announces
its financial results for the three months ended June 30, 2021.
Recent highlights:
- Patent: On July 20, 2021, the United States Patent and
Trademark Office (“USPTO”) granted the Company a patent
(#11,065,225) for the treatment of Alzheimer’s disease entitled
“Ultra-Low dose THC as a potential therapeutic and prophylactic
agent for Alzheimer’s Disease.” The original patent application was
initiated by the University of South Florida (“USF”) and filed on
August 1, 2016. IGC holds an exclusive license agreement with USF
with respect to the patent and associated research. The patent
relates to IGC’s proprietary formulation, IGC-AD1, intended to
assist in the treatment of individuals living with Alzheimer’s
disease.
- Phase 1 Clinical Trial: On June 23, 2021, IGC announced
the completion of Cohort 3, the final cohort of its Phase 1
clinical trial on IGC’s tetrahydrocannabinol (“THC”)-based
investigational new drug, IGC-AD1, intended to alleviate the
symptoms of individuals with Alzheimer’s disease. The Company has
completed all dose escalation studies associated with the Phase 1
Alzheimer’s trial. We are in the process of compiling safety,
tolerability, neuropsychiatric inventory, genotyping, phenotyping,
and pharmacokinetics lab data for submission to the U.S. Food and
Drug Administration (“FDA”).
Revenue was approximately $77 thousand and $584 thousand for the
three months ended June 30, 2021, and the three months ended June
30, 2020, respectively. Revenue in the three months ended June 30,
2021, and June 30, 2020, is primarily derived from our Life
Sciences segment, which involves the sale of products such as
cannabinol (“CBD”)-infused tinctures, gummies, and lotions.
Primarily from closures due to COVID-19, revenue in our
Infrastructure segment for the three months ended June 30, 2020,
was nil.
Selling, general and administrative expenses for the two
quarters in 2021 and 2020 are the same at approximately $1.8
million.
Research and Development expenses are attributed to conducting
the Phase 1 Alzheimer’s trial as well as product research in our
Life Sciences segment. The R&D expenses for the three months
ended June 30, 2021, are approximately $444 thousand and
approximately $222 thousand for the three months ended June 30,
2020. The expense in both quarters is mostly associated with the
phase 1 Alzheimer’s clinical trial. We expect R&D expenses to
increase as we increase staffing to progress to efficacy trials on
Alzheimer’s patients using IGC-AD1, subject to FDA.
Other net income increased by approximately $394 thousand or
804% during the three months ended June 30, 2021. The total other
income for the three months ended June 30, 2021, and 2020 is
approximately $443 thousand and $49 thousand, respectively. The
increase is from the forgiveness of a PPP Note that the Company
secured during the pandemic.
Net loss for the three months ended June 30, 2021, was
approximately $1.8 million or $0.04 per share, compared to
approximately $1.9 million or $0.05 per share for the three months
ended June 30, 2020.
Regarding Liquidity, the Company anticipates that it has
adequate liquidity to carry out the Alzheimer’s related efficacy
trials, though the Company expects to opportunistically raise
capital as and when it can.
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 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, the factors
described both herein and ]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 June 14, 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.
< Financial Tables to Follow>
India Globalization Capital,
Inc.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
June 30,
2021
($)
March 31,
2021
($)
ASSETS
Current assets:
Cash and cash equivalents
13,319
14,548
Accounts receivable, net
162
175
Inventory
5,476
5,478
Non-Marketable securities
-
80
Deposits and advances
3,233
3,236
Total current assets
22,190
23,517
Intangible assets, net
405
407
Property, plant and equipment, net
10,704
10,840
Non-Marketable securities
11
12
Claims and advances
596
603
Operating lease asset
538
488
Total long-term assets
12,254
12,350
Total assets
34,444
35,867
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
567
476
Accrued liabilities and others
1,542
1,588
Short-term loans
3
304
Total current liabilities
2,112
2,368
Long-term loans
147
276
Other liabilities
15
15
Operating lease liability
433
405
Total non-current liabilities
595
696
Total liabilities
2,707
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
June 30, 2021 and March 31, 2021.
-
-
Common stock and additional paid-in
capital, $0.0001 par value: 150,000,000 shares authorized;
48,284,017 and 47,827,273 shares issued and outstanding as of June
30, 2021 and March 31, 2021, respectively.
110,528
109,720
Accumulated other comprehensive loss
(2,860)
(2,774
)
Accumulated deficit
(75,931)
(74,143
)
Total stockholders' equity
31,737
32,803
Total liabilities and stockholders'
equity
34,444
35,867
These financial statements should be read in
connection with the accompanying notes on Form 10-Q for the quarter
ended June 30, 2021, filed with the SEC on August 11, 2021.
India Globalization Capital, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(in thousands, except loss per share and share
data)
Three months ended June
30,
2021
($)
2020
($)
Revenue
77
584
Cost of revenue
(51)
(538
)
Gross Profit
26
46
Selling, general and administrative
expenses
(1,776)
(1,755
)
Research and development expenses
(444)
(222
)
Operating loss
(2,194)
(1,931
)
Impairment of investment
(37)
-
Other income, net
443
49
Loss before income taxes
(1,788)
(1,882
)
Net loss attributable to common
stockholders
(1,788)
(1,882
)
Foreign currency translation
adjustments
(86)
(58
)
Comprehensive loss
(1,874)
(1,940
)
Loss per share attributable to common
stockholders:
Basic & diluted
$
(0.04)
$
(0.05
)
Weighted-average number of shares used in
computing loss per share amounts:
47,910,866
40,189,222
These financial statements should be read in
connection with the accompanying notes on Form 10-Q for the quarter
ended June 30, 2021, filed with the SEC on August 11, 2021.
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version on businesswire.com: https://www.businesswire.com/news/home/20210811005835/en/
Claudia Grimaldi. Phone: 301-983-0998
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