India Globalization Capital Inc. (NYSE American: IGC) posted rising revenues and cut losses as it reported its second fiscal quarter 2023 financial results.
Revenue was roughly $202,000 for the second quarter, versus $56,000 during the same time last year. The company said that the rise in revenue is due mostly to growing sales of its CBD-based products and services, which increased 345% over last year.
Net loss totaled $2.4 million, or ($0.05) per share, versus nearly $4.3 million, or ($0.09), per share during the same time last year.
“We are very pleased with the developments we have made this quarter, especially as they pertain to our investigational drug candidate, IGC-AD1. We believe that we possess a revolutionary drug formulation that could provide much-needed relief for patients suffering from Alzheimer’s disease,” CEO Ram Mukunda said. “This drug is the first natural low-dose THC-based drug formulation to enter FDA trials and has the potential to fill a very prevalent void in the broad and expanding market for the treatment of Alzheimer’s symptoms.”
The company said that IGC-AD1 and TGR-63, both small molecules, have shown promise to help quell a key protein in Alzheimer’s cell lines responsible for the disease. IGC-AD1, the company’s therapeutic candidate, is entering Phase 2 trials for treating agitation in dementia from Alzheimer’s disease. TGR-63 is an enzyme inhibitor shown in preclinical trials to lower neurotoxicity in Alzheimer’s cell lines.
IGC-AD1 is partially based on this research of a patented treatment for the disease. The University of South Florida, the original patent applicant, inked a license agreement with the company in 2017 with respect to the patent application and the associated research conducted on Alzheimer’s disease.
Selling, general, and administrative expenses fell by $2.2 million to $1.9 million this quarter, a 115% improvement since $4.1 million since the same time in 2021, due to an adjustment of one-time expenses and a reduction of legal and marketing expenses.
Research and development expenses were $768,000 for the second quarter, a 64% rise versus nearly $276,000 in the same period last year. The company lent the increase to progression of Phase 2 trials on IGC-AD1 and preclinical studies on TGR-63.
The company said that it would crank up the spending as development of TGR-63 and the Phase 2 trial on IGC-AD1 gain momentum.