POTOMAC, Md.–(BUSINESS WIRE)–India Globalization Capital, Inc. (NYSE American: IGC) today announced financial results for the quarter ended June 30, 2020, which is the first quarter of its 2021 fiscal year.

Revenue was approximately $583 thousand and $1,649 thousand, for the June 30, 2020 and 2019 quarters, respectively. Revenue in the quarter ended June 30, 2020 was primarily derived from our Life Sciences segment, which involved sales of products such as hand sanitizers among others. In contrast, our revenue for the quarter ended June 30, 2019, was primarily derived from the infrastructure segment.

SG&A expense, inclusive of R&D expenses for the June 2020 quarter was approximately to $1,977 thousand compared to approximately $1,496 thousand for the June 2019 quarter. The June 2020 SG&A included a one-time settlement of the derivative suit, legal expenses, and other accruals. We expect general and administrative expenses, not including R&D expenses, to decrease as legal fees abate over the rest of this year.

Net comprehensive loss was approximately $1.940 million or $0.05 per share, for the June 2020 quarter, compared to approximately $1.360 million or $0.03 per share for the June 2019 quarter. Most of the increased loss is attributed to the increased SG&A with the remaining attributed to foreign exchange loss.

Business Updates:

• On August 18, 2020, the Company received an official USPTO Notice of Allowance for its U.S. Trademark NO3ATM, U.S. Serial Number: 88694194.
• On August 5, 2020, the USPTO issued the Company a patent (#10751300) for the Company’s cannabinoid formulation (IGC-502) for the treatment of seizures in humans and veterinary animals.
• On July 30, 2020, IGC received approval from the FDA to proceed with Phase 1 human clinical trials (“removal of full clinical hold”) on its Investigational New Drug Application (INDA) submitted under section 505(i) of the Federal Food, Drug, and Cosmetic Act for IGC-AD1. The Phase 1 trial will involve a randomized placebo controlled Multiple Ascending Dose (MAD) study to evaluate safety and tolerability of IGC-AD1 in subjects with dementia due to Alzheimer’s disease. In addition, the study will evaluate pharmacokinetics (PK) and collect data on other factors. The drug IGC-AD1 is based on a patent filed by the University of South Florida (“USF”) that uses a cannabinoid as one of the active ingredients. The Company has exclusive rights to the patent filing.
• In response to the COVID-19 pandemic we manufactured and distributed alcohol-based hand sanitizers and hand rubs. Part of our hand sanitizers were donated to FEMA, the Navajo Indians in Arizona, and the Crow Indian reservation in North Dakota in an effort to help some of the harder hit communities.
• On July 17, 2020, the Company filed a provisional patent application with the USPTO for its IGC-511 formulation for a cannabinoid based composition and method for treating pain.
• On July 6, 2020, the Court entered an order formally and finally approving the January 2020 settlement between the Company and the named defendant directors and officers resolving all pending derivative suits.
• On May 12, 2020, the Company completed an investment as per the Share Subscription Agreement (“SSA”) with Evolve I, Inc., a Washington corporation (“Evolve”), by transferring part of the consideration to Evolve. As of June 30, 2020, the Company owns approximately 19.8% interest in Evolve.

COVID-19 Update:

We continue to monitor the impact from restrictions imposed by the COVID-19 pandemic on our financial condition, liquidity, operations, suppliers, industry, and workforce. The Company has suffered losses and setbacks because of the COVID-19 pandemic, including being delayed in executing an ongoing construction contract, being unable to commission equipment, and having to slow down operations because of COVID-19.

Revenue from the infrastructure segment continues to be adversely affected as we are unable to fully deploy our workforce. However, as soon as we can, safely, we expect to engage in the infrastructure business including completing the road building contract that we have been awarded. As there is a general lack of visibility regarding the ongoing impact of the COVID-19 pandemic the revenue from Life Sciences segment is unpredictable.

“With the FDA recent approval of its cannabinoid trial on Alzheimer’s patients, IGC will be focusing on preparing to conduct the Phase 1 trial for IGC-AD1 in its Puerto Rico medical facility. We remain confident that we can get to proving efficacy of our formulation for Alzheimer’s, a devastating disease,” said Ram Mukunda, CEO.

About IGC:

IGC currently has two lines of business: (i) infrastructure and (ii) life sciences. The company is based in Potomac, Maryland, U.S.A. Its corporate website is www.igcinc.us and 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. Our success is highly correlated with the success of our product candidates. 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 this patent licensing is that the patent application 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 the requisite trials, to bring a product based on the above-referenced patented formulation 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. Our projections anticipate stable pricing, which may not hold out over the next several years. 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 Federal Food and Drug Administration’s (FDA) general position regarding hemp based products and our products in particular, the ongoing COVID-19 pandemic and its effect on the global and regional economies in which the Company participates, and other factors, many of which are discussed in our SEC filings. The inability of the Company to conduct human trials. The Company incorporates by reference the Risk Factors identified in its Fiscal 2020 annual report filed with the SEC on Form 10-K on July 13, 2020 and on Form 10-Q filed on August 19, 2020. 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)
		June 30, 2020 ($)				March 31, 2020 ($)
ASSETS
Current assets:
Cash and cash equivalents			2,703				7,258
Marketable securities			5,098				5,081
Accounts receivable, net			264				133
Inventories			6,523				4,245
Deposits and advances			1,414				1,040
Total current assets			16,002				17,757
Intangible assets, net			275				252
Property, plant and equipment, net			10,603				9,780
Non-Marketable securities			260				11
Claims and advances			606				610
Operating lease asset			553				574
Total long-term assets			12,297				11,227
Total assets			28,299				28,984
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			1,099				762
Accrued liabilities and others			1,220				1,134
Short-term loans			–				50
Total current liabilities			2,319				1,946
Long-term loans			630				–
Other liabilities			16				16
Operating lease liability			471				485
Total non-current liabilities			1,117				501
Total liabilities			3,436				2,447
Commitments and Contingencies – See Note 12
Stockholders’ equity:
Preferred stock, $0.0001 per value: authorized 1,000,000 shares, no share issued or outstanding as on June 30, 2020 and March 31, 2020			–				–
Common stock and additional paid-in capital, $0.0001 par value: 150,000,000 shares authorized; 41,196,130 and 39,320,116 shares issued and outstanding as on June 30, 2020 and March 31, 2020, respectively.			95,020				94,754
Accumulated other comprehensive loss			(2,908	)			(2,850	)
Accumulated deficit			(67,249	)			(65,367	)
Total stockholders’ equity			24,863				26,537
Total liabilities and stockholders’ equity			28,299				28,984

See accompanying Notes to the Condensed Consolidated Financial Statements in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, as filed with the SEC on August 19, 2020.

India Globalization Capital, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except loss per share)
(Unaudited)
		Three months ended June 30,
		2020 ($)				2019 ($)
Revenues			584				1,649
Cost of revenues			(538	)			(1,608	)
Gross profit			46				41
Selling, general and administrative expenses			(1,755	)			(1,249	)
Research and development expenses			(222	)			(247	)
Operating loss			(1,931	)			(1,455	)
Other income – net			49				76
Loss before income taxes			(1,882	)			(1,379	)
Income taxes expense			–				–
Net loss attributable to common stockholders			(1,882	)			(1,379	)
Foreign currency translation adjustments			(58	)			19
Comprehensive loss			(1,940	)			(1,360	)
Loss per share attributable to common stockholders:
Basic & diluted		$	(0.05	)			(0.03	)
Weighted-average number of shares used in computing loss per share amounts:			40,189				39,508

See accompanying Notes to the Condensed Consolidated Financial Statements in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, as filed with the SEC on August 19, 2020.