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IGC Reports Financial Results for the June 30, 2021, Quarter

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BETHESDA, Md., August 12, 2021--(BUSINESS WIRE)--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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005835/en/

Contacts

Claudia Grimaldi. Phone: 301-983-0998