India Globalization Capital, Inc. Announces FY22 Revenue of $397,000, Net Loss of $15M By Investing.com

India Globalization Capital, Inc. (NYSE American: IGC) announces its financial results for the fiscal year ended March 31, 2022.

Highlights of fiscal year 2022:

  • IGC has completed the first-in-human safety and tolerability trial of its investigational new tetrahydrocannabinol (THC) drug IGC-AD1. During the trial, the Company found positive signals to improve several neuropsychiatric symptoms, including agitation in dementia associated with Alzheimer’s disease. Based on these signals, we are initiating a larger efficacy trial to test IGC-AD1 as a symptom modifier, specifically on agitation in dementia due to Alzheimer’s disease.
  • The Company recently acquired the rights to a family of naphthalene monoimide (“NMI”) molecules. TGR-63, a lead NMI molecule, is an enzyme inhibitor shown in preclinical trials to reduce neurotoxicity in Alzheimer’s disease cell lines and improve memory in a mouse model of the disease of Alzheimer’s. Subject to further study, research and development, TGR-63 could give the Company a potential disease-modifying agent and help expand the Company’s search for a drug that could treat or modify the disease. of Alzheimer’s.
  • The company has licensed a patent application to the University of South Florida titled “Ultra-Low dose THC as a Potential Therapeutic and Prophylactic Agent for Alzheimer’s Disease.” The United States Patent and Trademark Office (“USPTO”) issued a patent (#11,065,225) for this filing on July 20, 2021. The granted patent relates to the proprietary formulation of IGC, IGC-AD1, intended to aid in the treatment people living with Alzheimer’s disease.
  • On June 7, 2022, the USPTO issued a patent (#11,351,152) to the company titled “Method and Composition for the Treatment of Seizure Disorders”. The patent relates to compositions and methods for treating several types of seizure disorders and epilepsy in humans and animals using a combination of cannabidiol (CBD) with other compounds. Subject to further research and study, the combination is intended to reduce side effects caused by hydantoin-based anticonvulsant drugs such as phenobarbital, by reducing the dosage of anticonvulsant drugs in humans, dogs and cats .

Revenues were approximately $397,000 and $898,000 for fiscal 2022 and fiscal 2021, respectively. In fiscal 2022 and fiscal 2021, revenue came primarily from our Life Sciences segment, which involved, among other things, sales of private label and alcohol-based hand sanitizers. In fiscal 2022, we reduced the importance of manufacturing and selling low-margin hand sanitizers and focusing on higher-margin white-label services and product sales. under our brands. This increased our gross margin from 12% in fiscal year 2021 to 48% in fiscal year 2022. The infrastructure segment experienced lower revenue in fiscal year 2022 due to the impact continuing of the COVID-19 pandemic.

Selling, general and administrative (“SG&A”) expenses primarily include employee-related expenses, sales commissions, professional fees, legal expenses, marketing, other corporate expenses, allocated overhead and provisions, amortization and write-offs relating to bad debts and advances, if applicable. SG&A expenses increased approximately $5.3 million or 68% to $13.2 million in fiscal 2022 from approximately $7.9 million in fiscal 2021. The increase is attributed one-time expenses, which include lawsuit settlement costs of approximately $264,000; impairment of a facility of $833,000; net realizable value (NRV) adjustment of $1.7 million for our hemp crop; approximately $475,000 in provisions for advances paid; approximately $1.7 million in provisions for inventory that was stolen from our supplier’s premises; and an increase of approximately $1.3 million due to non-cash expenses. Factoring in approximately $5.3 million of one-time and non-cash expenses, general and administrative expenses for fiscal year 2022 decreased by approximately $500,000 year-over-year.

Research and development (“R&D”) expenditures have been allocated to our Life Sciences segment. R&D expenses increased approximately $1.4 million or 151% to $2.3 million in fiscal 2022 from approximately $929,000 in fiscal 2021. This increase is attributed to the phase 1 clinical trial in Alzheimer’s disease, now complete. We expect R&D spending to increase as Phase 2 trials of IGC-AD1 and preclinical trials of TGR-63 progress.

Net loss for fiscal 2022 was approximately $15 million or $0.30 per share, compared to approximately $8.8 million or $0.21 per share for fiscal 2021. After adjusting for approximately $5.3 million in one-time, non-cash expenses, net loss is approximately $9.7 million in Fiscal Year 2022.

About the IGC:

IGC has two segments: Infrastructure and Life Sciences. The company is based in Maryland, USA

Forward-looking statements: This press release contains forward-looking statements. These forward-looking statements are based largely on IGC’s expectations and are subject to numerous risks and uncertainties, some of which are beyond IGC’s control. Actual results could differ materially from these forward-looking statements due to, among other factors, the Company’s failure or inability to commercialize one or more of the Company’s products or technologies, including the product or formulation described in this release, or the inability to obtain regulatory approval for the product or formulation, if any; general economic conditions less favorable than expected, in particular due to the ongoing COVID-19 pandemic; the general position of the FDA regarding cannabis and hemp products; and other factors, many of which are discussed in IGC’s filings with the SEC. IGC incorporates by reference the human trial disclosures and identified risk factors in its Annual Report on Form 10-K filed with the SEC on June 22, 2022, 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 occur.

India Globalization Capital, Inc.

CONSOLIDATED RESULTS

(in thousands, except shared data)

March, 31st,
2022
($)

March, 31st,
2021
($)

ASSETS

Current assets:

Cash and cash equivalents

10,460

14,548

Accounts receivable, net

125

175

Inventory

3,548

5,478

Investment in non-negotiable securities

80

Deposits and advances

978

3,236

Total current assets

15 111

23,517

Intangible assets, net

917

407

Property, plant and equipment, net

9,419

10,840

Non-negotiable securities

12

Receivables and advances

937

603

Operating lease asset

450

488

Total long-term assets

11,723

12,350

Total assets

26,834

35,867

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

981

476

Accruals and others

1,457

1,588

Short term loan

3

304

Total current liabilities

2,441

2,368

Long term loans

144

276

Other liabilities

16

15

Operating lease liability

341

405

Total non-current liabilities

501

696

Total responsibilities

2,942

3,064

Commitments and contingencies See Note 12

Equity:

Preferred shares, $0.0001 par value: 1,000,000 shares authorized, no shares issued or outstanding as of March 31, 2022 or March 31, 2021.

Common shares and contribution premium, par value of $0.0001: 150,000,000 shares authorized; 51,054,017 and 47,827,273 shares issued and outstanding as of March 31, 2022 and March 31, 2021, respectively.

116,019

109,720

Accumulated other comprehensive income

(2,968

)

(2,774

)

Accumulated deficit

(89,159

)

(74,143

)

Full shareholder equity

23,892

32,803

Total Liabilities and Equity

26,834

35,867

These financial statements should be read in conjunction with the accompanying notes on Form 10-K for the year ended March 31, 2022, filed with the SEC on June 22, 2022.

India Globalization Capital, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(in thousands, except loss per share and share data)

Years ended March 31

2022
($)

2021
($)

Revenue

397

898

Revenue cost

(203

)

(785

)

Gross profit

194

113

Selling, general and administrative expenses

(13,292

)

(7,908

)

Research and development costs

(2,330

)

(929

)

Operating loss

(15,428

)

(8,724

)

Investment depreciation

(49

)

(169

)

Other income, net

461

82

Loss before income taxes

(15,016

)

(8,811

)

Income tax expense/benefit

Net loss attributable to common shareholders

(15,016

)

(8,811

)

Foreign currency translation adjustments

(194

)

76

Overall loss

(15,210

)

(8,735

)

Loss per share attributable to common shareholders:

Basic & Diluted

$

(0.30

)

$

(0.21

)

Weighted average number of shares used in the calculation of losses per share:

49,991,631

41,963,382

These financial statements should be read in conjunction with the accompanying notes on Form 10-K for the year ended March 31, 2022, filed with the SEC on June 22, 2022.

Claudia Grimaldi

301-983-0998

Source: India Globalization Capital, Inc.

Ann J. Cox