India Globalization Capital Archives - Green Market Report

StaffJune 23, 2022
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4min5360

India Globalization Capital, Inc. (IGC) (NYSE: IGC) announces its financial results for the fiscal year ending March 31, 2022. IGC reported that its revenue was approximately $397 thousand and $898 thousand for Fiscal 2022 and Fiscal 2021, respectively. The net loss for Fiscal 2022 for IGC was approximately $15 million or $0.30 per share, compared to approximately $8.8 million or $0.21 per share for Fiscal 2021. Adjusting for approximately $5.3 million in one-time and non-cash expenses, the net loss is approximately $9.7 million in Fiscal 2022.

In Fiscal 2022 and Fiscal 2021, revenue was primarily derived from the Life Sciences segment, which involved sales of in-house brands and alcohol-based hand sanitizers, among others. In Fiscal 2022, the company de-emphasized the manufacturing and sale of low-margin hand sanitizers and shifted its focus to higher-margin white label services and the sale of products under its brands. This increased the gross margin from 12% in Fiscal 2021 to 48% in Fiscal 2022. The infrastructure segment had lower revenue in Fiscal 2022 due to the continued impact of the COVID-19 pandemic.

The company has roughly $10 million in cash on hand. SG&A expenses increased by approximately $5.3 million or 68% to $13.2 million for Fiscal 2022, from approximately $7.9 million for Fiscal 2021. The increase is attributed to one-time expenses, which include law-suit settlement expenses of approximately $264 thousand; impairment of facility of $833 thousand; net realizable value (NRV) adjustment of $1.7 million for its hemp crop; approximately $475 thousand in provisions for advances paid; approximately $1.7 million in provisions against inventory that was stolen at our vendor’s facility; and an increase of approximately $1.3 million attributable to non-cash expenses. Adjusting for approximately $5.3 million in one-time and non-cash expenses, the SG&A for the fiscal year 2022 was lower year over year by approximately $500 thousand.

R&D

Research and Development expenses were attributed to the Life Sciences segment. The R&D expenses increased by approximately $1.4 million or 151% to $2.3 million in Fiscal 2022, from approximately $929 thousand for Fiscal 2021. The increase is attributed to the now completed Phase 1 clinical trial on Alzheimer’s. “We expect R&D expenses to increase with progression in Phase 2 trials on IGC-AD1 and pre-clinical trials on TGR-63.”

Alzheimer’s

IGC completed the first-in-human safety and tolerability trial on its tetrahydrocannabinol (THC) based investigational new drug IGC-AD1. During the trial, the company discovered positive signals for improving several neuropsychiatric symptoms including agitation in dementia associated with Alzheimer’s. “Based on these signals, we are initiating a larger efficacy trial to test IGC-AD1 as a symptom modifying agent, specifically on agitation in dementia due to Alzheimer’s disease.”

On June 7, 2022, the USPTO issued a patent (#11,351,152) to IGC titled “Method and Composition for Treating Seizures Disorders.” The patent relates to compositions and methods for treating multiple 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 anticonvulsant drugs such as phenobarbital, by reducing the dosing of anticonvulsant drugs in humans, dogs, and cats.


StaffOctober 16, 2018
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3min17700

If you’ve ever watched the movie Ironman, there’s a scene where Jim Cramer talks about Tony Stark’s company on Mad Money saying, “It’s a weapons company that doesn’t make weapons.” That’s basically what  India Globalization Capital Inc. (IGC) is – a cannabis company that doesn’t sell cannabis and is listed on the New York Stock Exchange (ICE).

The company only books revenue from its legacy business of trading commodities and heavy equipment rental. For the three months ending September 30, this was $811,000. The net loss for the quarter was $858,000. There is no revenue from cannabis products at this time.

The company says that its “focus is to develop and commercial cannabinoid-based alternative therapies for indications such as Alzheimer’s disease, Parkinson’s disease, and pain. Our flagship product Hyalolex is not a U.S. Food and Drug Administration (“FDA”) approved pharmaceutical product. The commercialization of Hyalolextm has commenced and we expect revenue in the fiscal year 2019, though there can be no assurance as to the amount of such revenue.”

The company has filed for patents for its hemp-oil-CBD-infused energy drink. The filings read, “The Company cannot guarantee that such patent filings will result in a successful registration with the USPTO.”

The company took a $1.8 million loan from Bricoleur back in 2009 and has been paying it back with stock shares. The company asked shareholders last year to give Bricoleur more shares, but the request was rejected. On May 2, 2018, IGC filed a lawsuit in the Circuit Court for Montgomery County, Maryland, seeking a declaratory judgment that the shares issued to Bricoleur by the Company represent payment on the loan and damages for improper lending practices under Maryland law. The lawsuit is currently pending.

The company is headquartered in India but has offices in Washington and Maryland. “During the quarter ended September 30, 2018, the total rent paid to the affiliates (of the CEO) was $13,500 for the office space (and administrative services) in Maryland and $18,300 for the facilities in Washington State.” Ram Mukunda is the President and Chief Executive Officer.

The stock has dropped 11% in early trading to sell at $4.66.


Jack SmithDecember 27, 2017
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6min31620
One of the biggest stories of 2017 has been the rise of cryptocurrencies, such as bitcoin and Ethereum, and the technologies backing them up, including blockchain, a digital ledger system. As society gets more comfortable with blockchain, it appears poised to up-end various industries, including cannabis.
India Globalization Capital (IGC) has announced that it will utilize blockchain, as well as its team of technology and healthcare experts for product identification assurance in the cannabis industry. By doing this, it hopes to solve issues such as improper product labeling, where the product is coming from and other issues that may impede sales.
“We understand the unique challenges facing the cannabis industry and believe that our team has the expertise to be the first to create meaningful solutions to address these issues using distributed ledgers inherent in blockchain technology,” IGC CEO Ram Mukunda said in a statement.
Mukunda added that the NYSE-listed company would it would use blockchain for the rollout of one of its medical-trial ready products, Hyalolex, which is “aimed at reducing the buildup of beta-amyloid in Alzheimer’s disease,” according to the company.
Blockchain use
According to a 2016 Fortune article, blockchain appears poised to disrupt many industries, making transactions simpler and more cost-effective. It’s described as “a way to structure data” and allows “competitors to share a digital ledger across a network of computers without the need for a central authority.”
Citing data from a study published in the Journal of the American Medical Association, IGC claims nearly 70% of all cannabidiol products sold on the internet have problems with their labels. Some are over-labeled, while others are under-labeled, creating confusion.
IGC aims to provide blockchain-enabled solutions for both dispensaries and consumers, looking at both the consumer and enterprise portions of the market, something that has been an issue as legal cannabis consumption has increased.
IGC is the latest public company to catch the attention of bitcoin and blockchain-enthusiasts. After making the announcement yesterday, the Maryland-based company saw its stock jump more than 100%, giving it a market cap of just over $35 million.
In recent days, companies from all industries have attached themselves to the cryptocurrency craze in hopes of garnering investor attention to themselves.
Importance of Hyalolex
Used for patients with Alzheimer’s, Hyalolex is IGC’s leading product and it aims to use a two-part strategy to commercialize it.
Starting next year, the company hopes Hyalolex will move through FDA registered pre-clinical and clinical trials. In addition to these trials, IGC said it expects to license its formulation technology to licensed cannabis dispensaries around the country, including dispensaries in Washington D.C. and Maryland, with more states to come.
Alzheimer’s disease affects millions of people every year and has shown no sign of slowing down. According to data compiled by the Texas Department of State Health Services, more than 5.5 million Americans had Alzheimer’s disease in 2016, including 200,000 under the age of 65.
In 2016, Alzheimer’s and other dementia diseases are expected to cost the U.S. $259 billion in related costs, potentially rising to as much as $1.1 trillion by 2050.
In addition to Hyalolex, IGC has three other products ready for medical-trial: Natrinol, a natural substitute for Marinol used to relieve nausea, vomiting and appetite stimulation in patients who have AIDS and cancer; Caesafin, used to help alleviate seizures in dogs and cats; and Serosapse, used to help patients with Parkinson’s disease.

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