India Globalization Capital, Inc. (“IGC” or the “Company”) (NYSE American: IGC) announces its financial results for the three months ended June 30, 2022, which is the first quarter of the Company’s 2023 fiscal year.
The highlights for the quarter are:
Revenue was approximately $212 thousand and $77 thousand for the three months ended June 30, 2022, and June 30, 2021, respectively. Revenue in both quarters was primarily derived from our Life Sciences segment, which involved sales of products such as lotion, gummies, and alcohol-based hand sanitizers, among others.
Selling, general, and administrative (“SG&A”) expenses were approximately $1.5 million for the three months ended June 30, 2022, and approximately $1.8 million for the three months ended June 30, 2021, a decrease of approximately $226 thousand or 13% stemming mostly from a decrease in marketing and legal expenses. SG&A expenses consist primarily of employee-related expenses, sales and marketing, professional and legal fees, other corporate expenses, allocated general overhead and provisions, depreciation and write-offs relating to doubtful accounts and advances, if any.
Research and Development (“R&D”) expenses were $1.4 million during the three months ended June 30, 2022, and approximately $444 thousand for the three-month ended June 30, 2021. The increase of approximately $950 thousand or 214% is primarily attributable to the progression of Phase 2 trials on IGC-AD1 and pre-clinical studies on TGR-63. We anticipate additional increases in R&D expenses as the Phase 2 trials on IGC-AD1 commence.
Net loss for the three months ended June 30, 2022, was approximately $2.8 million or ($0.05) per share, compared to approximately $1.8 million or ($0.04) per share for the three months ended June 30, 2021.
About IGC:
IGC has two segments: Life Sciences and Infrastructure. The company is based in Maryland, U.S.A.
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 several risks and uncertainties, certain of which are beyond IGC’s control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, the Company’s failure or inability to commercialize one or more of the Company’s products or technologies, including the products or formulations described in this release, or failure to obtain regulatory approval for the products or formulations, where required; general economic conditions that are less favorable than expected, including as a result of the ongoing COVID-19 pandemic; the FDA’s general position regarding cannabis- and hemp-based products; and other factors, many of which are discussed in IGC’s SEC filings. IGC incorporates by reference the human trial disclosures and Risk Factors identified in its Annual Report on Form 10-K filed with the SEC on June 23, 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.
< Financial Tables to Follow>
India Globalization Capital, Inc. |
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CONSOLIDATED BALANCE SHEETS |
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(in thousands, except share data) |
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(Unaudited) |
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June 30,
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March 31,
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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8,053 |
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10,460 |
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Accounts receivable, net |
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147 |
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125 |
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Inventory |
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3,622 |
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3,548 |
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Deposits and advances |
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905 |
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978 |
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Total current assets |
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12,727 |
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15,111 |
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Intangible assets, net |
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937 |
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917 |
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Property, plant and equipment, net |
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9,161 |
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9,419 |
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Claims and advances |
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922 |
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937 |
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Operating lease asset |
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419 |
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450 |
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Total long-term assets |
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11,439 |
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11,723 |
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Total assets |
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24,166 |
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26,834 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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456 |
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981 |
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Accrued liabilities and others |
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1,200 |
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1,457 |
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Short-term loans |
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3 |
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3 |
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Total current liabilities |
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1,659 |
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2,441 |
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Long-term loans |
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143 |
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144 |
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Other liabilities |
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16 |
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16 |
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Operating lease liability |
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308 |
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341 |
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Total non-current liabilities |
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467 |
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501 |
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Total liabilities |
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2,126 |
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2,942 |
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Commitments and Contingencies – See Note 12 |
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Stockholders’ equity: |
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Preferred stock, $0.0001 par value: authorized 1,000,000 shares, no shares
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Common stock and additional paid-in capital, $0.0001 par value: 150,000,000
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117,171 |
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116,019 |
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Accumulated other comprehensive loss |
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(3,187 |
) |
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(2,968 |
) |
Accumulated deficit |
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(91,944 |
) |
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(89,159 |
) |
Total stockholders’ equity |
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22,040 |
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23,892 |
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Total liabilities and stockholders’ equity |
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24,166 |
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26,834 |
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These financial statements should be read in connection with the accompanying notes on Form 10-Q for the quarter ended June 30, 2022, filed with the SEC on August 5, 2022.
India Globalization Capital, Inc. |
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
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(in thousands, except loss per share and share data) |
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(Unaudited) |
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Three months ended June 30, |
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2022
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2021
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Revenue |
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212 |
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77 |
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Cost of revenue |
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(70 |
) |
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(51 |
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Gross profit |
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142 |
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26 |
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Selling, general and administrative expenses |
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(1,550 |
) |
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(1,776 |
) |
Research and development expenses |
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(1,394 |
) |
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(444 |
) |
Operating loss |
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(2,802 |
) |
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(2,194 |
) |
Impairment of investment |
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- |
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(37 |
) |
Other income, net |
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17 |
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443 |
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Loss before income taxes |
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(2,785 |
) |
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(1,788 |
) |
Income tax expense/benefit |
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- |
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- |
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Net loss attributable to common stockholders |
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(2,785 |
) |
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(1,788 |
) |
Foreign currency translation adjustments |
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(219 |
) |
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(86 |
) |
Comprehensive loss |
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(3,004 |
) |
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(1,874 |
) |
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Loss per share attributable to common stockholders: |
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Basic & diluted |
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$ |
(0.05 |
) |
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$ |
(0.04 |
) |
Weighted-average number of shares used in computing loss per share
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51,616,598 |
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47,910,866 |
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These financial statements should be read in connection with the accompanying notes on Form 10-Q for the quarter ended June 30, 2022, filed with the SEC on August 05, 2022.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005223/en/
Claudia Grimaldi
301-983-0998