IGC Pharma, Inc. (IGC) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced a loss of $0.01, delivering a surprise of +50%.Over the last four quarters, the company has surpass ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) FORM 10-Q ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-32830 IGC PHARMA, INC. | Maryland | 20-2760393 | | --- | --- | | (State or other jurisdiction | (I.R.S. Employer | | of i ...

Financial Data and Key Metrics Changes - The company is focused on minimizing dilution and maintaining a clean cap table, having renewed a $12 million line of credit and funding the business through selective capital raises [27] - The company aims to keep clinical trial costs low, achieving approximately half the typical cost per patient for Phase II trials, which usually range from $100,000 to $150,000 [28] Business Line Data and Key Metrics Changes - The lead asset, IGC-81, is in a Phase II trial for agitation in Alzheimer's dementia, with 146 participants currently enrolled across 22 sites [9][10] - The company has made significant progress on the CALMA trial, adding several new sites and utilizing geo-targeting strategies to enhance patient recruitment [5][12] Market Data and Key Metrics Changes - Agitation affects about 76% of Alzheimer's patients, with approximately 50 million Alzheimer's patients worldwide, including 7 million in the US [7] - The current market for Alzheimer's treatments includes cognitive enhancers and recently approved disease-modifying therapies, with IGC-81 positioned as a potential alternative [32][33] Company Strategy and Development Direction - The company is advancing its AI platform for early detection of Alzheimer's and has developed a new diagnostic model called MINT AD [20][23] - The strategy includes expanding the pipeline into GLP-1 based therapies, targeting both Alzheimer's and metabolic disorders, which could open up a multibillion-dollar market [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trial's progress and the potential for IGC-81 to serve as a disease-modifying therapy, which could significantly enhance the company's valuation [70][71] - The focus is on completing the Phase II trial and launching IGC-81 as a disease-modifying therapy, with positive results expected to drive higher valuations [69][70] Other Important Information - The company has been recognized by the NIH for innovation and is a finalist in the NIA Prepare Challenge for early Alzheimer's detection [24] - The AI model MINT AD aims to identify high-risk groups for Alzheimer's and predict cognitive decline, which could serve as a valuable tool for general practitioners [21][23] Q&A Session Summary Question: Insight into the competitive landscape for Alzheimer's drugs - Management highlighted that current treatments primarily include cognitive enhancers and recently approved disease-modifying therapies, with IGC-81 positioned as a differentiated oral therapy [32][33] Question: Adequacy of trial sites for current trials - Management confirmed that they have 22 sites and are using geo-targeting strategies to increase patient enrollment by approximately 200% [36] Question: Impact of social media on clinical trial costs - Management indicated that the cost of using social media for recruitment would be marginal, budgeting about $1,000 per recruited patient [41][42] Question: Timeline for CALMA trial completion - Management expects to finish the CALMA trial by March of next year, with ongoing discussions for future trials related to amyloid and tau [50][52] Question: Concerns regarding ARIA with current therapies - Management stated that IGC-81 is not a monoclonal antibody and does not expect ARIA, emphasizing its safety profile [56] Question: Positioning against traditional cannabis use - Management clarified that IGC-81 is a medication with controlled dosing and replicability, differentiating it from recreational cannabis [58][60] Question: Expectations for G&A expenses going forward - Management noted a refocus on key priorities, which has led to a reduction in G&A expenses, aiming to complete trials efficiently [63][66]

Financial Data and Key Metrics Changes - The company is focused on minimizing dilution and maintaining a clean cap table, having renewed a $12 million line of credit and funding through selective capital raises [26] - The cost per patient in Phase II trials is significantly lower than industry standards, with the company managing to conduct trials at about half the typical cost of $100,000 to $150,000 per patient [27] Business Line Data and Key Metrics Changes - The lead asset, IGC-81, is in a Phase II trial for agitation in Alzheimer's dementia, with 146 participants currently enrolled across 22 sites [9][10] - The company has made significant progress on the CALMA trial, adding several new sites and utilizing geo-targeting strategies to increase patient recruitment by about 200% [12][36] Market Data and Key Metrics Changes - Agitation affects approximately 76% of Alzheimer's patients, with around 50 million Alzheimer's patients worldwide and about 7 million in the U.S. [7] - The current Alzheimer's treatment landscape includes cognitive enhancers and recently approved disease-modifying therapies, but challenges remain regarding cost and eligibility [32] Company Strategy and Development Direction - The company is advancing its pipeline into the GLP-1 portfolio, which could target a multibillion-dollar market for metabolic disorders [25] - The focus is on completing the Phase II trial for IGC-81 and launching it as a disease-modifying therapy, with plans to initiate IND enabling studies for pipeline expansion [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trial's progress and the potential for IGC-81 to serve as a complementary or alternative solution in the symptomatic management of Alzheimer's [35] - The company is excited about the MINT AD AI model, which aims to help diagnose Alzheimer's risk factors and predict cognitive decline [22][64] Other Important Information - The company has been recognized by the NIH for innovation and was selected as a top finalist in the NIA Prepare Challenge for early Alzheimer's detection [23] - The beta version of the MINT AD model is operational and aims to assist general practitioners in diagnosing Alzheimer's [22] Q&A Session Summary Question: Insight into the competitive landscape - The current Alzheimer's treatment landscape includes cognitive enhancers and recently approved disease-modifying therapies, with IGC-81 positioned as a differentiated oral investigational therapy [32][34] Question: Adequacy of trial sites - The company currently has 22 sites and is using geo-targeting strategies to increase enrollment, projecting to meet enrollment targets without needing additional sites [36][37] Question: Cost implications of using social media for recruitment - The budget for recruiting new patients via social media is approximately $1,000 per patient, which will not significantly increase overall trial costs [41] Question: Timeline for CALMA trial top line results - The CALMA trial is expected to finish by March of next year, with the company internally aiming for a more aggressive timeline [49] Question: Concerns about ARIA with the drug - The medication is not a monoclonal antibody, so the company does not expect ARIA and has not seen any indications of it [55] Question: Positioning against traditional cannabis - The drug is a combination medication with controlled dosing, differentiating it from traditional cannabis use [57][60] Question: Future expectations for G&A expenses - The company has refocused on key priorities, which has led to a reduction in G&A expenses, aiming to complete trials and develop the MINT AD model [62][65]

Group 1 - IGC Pharma, Inc. reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.02, representing an earnings surprise of +50.00% [1] - The company posted revenues of $0.33 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 6.45%, compared to revenues of $0.29 million a year ago [2] - IGC Pharma has surpassed consensus EPS estimates three times over the last four quarters [2] Group 2 - The stock has underperformed the market, losing about 7.7% since the beginning of the year, while the S&P 500 gained 4.4% [3] - The current consensus EPS estimate for the coming quarter is -$0.03 on revenues of $0.33 million, and -$0.11 on revenues of $1.5 million for the current fiscal year [7] - The Zacks Industry Rank for Medical - Drugs is in the top 33% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Revenue for Fiscal 2025 decreased by $74 thousand to $1.271 million, a 6% decline from $1.345 million in Fiscal 2024[294] - Gross profit for Fiscal 2025 was $619 thousand, down 16% from $733 thousand in Fiscal 2024, with a gross margin of 49% compared to 54% in the previous year[295] - Total revenue for Fiscal 2025 was $1.271 million, a slight decrease from $1.345 million in Fiscal 2024, with wellness and lifestyle revenue dropping from $228 thousand to $113 thousand[330] Expenses - Selling, general, and administrative expenses decreased by 35% to approximately $4.4 million in Fiscal 2025, down from $6.7 million in Fiscal 2024[297] - Research and development expenses were approximately $3.7 million in Fiscal 2025, a decrease of 3% from $3.8 million in Fiscal 2024[298] - Net cash used in operating activities for Fiscal 2025 was approximately $4.8 million, a decrease of 8% compared to $5.2 million in Fiscal 2024[316][318] Trial Results - The Phase 2 trial of IGC-AD1 showed a 71% reduction in sleep disturbances at week 2 and a 78% reduction at week 6 compared to placebo[282] - No serious adverse events were reported in the Phase 2 trial, indicating a favorable safety profile for IGC-AD1[292] - The company successfully optimized trial operations, reducing the cost per patient enrolled in the Phase 2 trial to approximately $70 thousand, significantly lower than industry norms of $100 thousand to $150 thousand[280][281] Financing Activities - The company raised over $4.64 million through private equity placements and ATM offerings during Fiscal 2025[296] - Net cash provided by financing activities was approximately $4.4 million for Fiscal 2025, an increase of 26% from $3.5 million in Fiscal 2024[321][322] - The Company raised approximately $3 million in gross proceeds through a Share Purchase Agreement with Bradbury Strategic Investment Fund A, receiving $500 thousand during fiscal 2024 and $2.1 million in April 2024[307] Capital and Assets - Cash and cash equivalents decreased by approximately $793 thousand to $405 thousand in Fiscal 2025, representing a 66% decline from $1.2 million in Fiscal 2024[315] - The Company capitalized approximately $863 thousand in software development costs during Fiscal 2025, focusing on integrating machine learning and AI into clinical trial software[336] - The Company impaired land in Nagpur, India, by approximately $3.3 million during Fiscal 2024, reducing its value from $4.1 million to $720 thousand[333] Shareholder Agreements - The company has entered into a Sales Agreement to offer and sell shares of its common stock with an aggregate offering price of up to $60 million[305] - The Company entered into a Share Purchase Agreement in September 2024, selling 588,235 shares at $0.34 per share for a total of $200,000[309] - The Company expects to utilize its shelf registration to raise capital through at-the-market offerings, subject to limitations on the amount of capital that can be raised[311] Currency and Exchange Rates - The Company operates in multiple currencies, with significant financials denominated in Indian Rupee (INR) and Colombian Peso (COP), affecting its financial statements due to exchange rate fluctuations[337]

Core Viewpoint - IGC Pharma, Inc. reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.03, marking a 33.33% earnings surprise [1][2] Financial Performance - The company posted revenues of $0.26 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 28.50%, compared to $0.2 million in the same quarter last year [2] - Over the last four quarters, IGC Pharma has surpassed consensus EPS estimates two times [2] Stock Performance - IGC Pharma shares have declined approximately 9% since the beginning of the year, while the S&P 500 has gained 4% [3] - The current Zacks Rank for IGC Pharma is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $0.3 million, and for the current fiscal year, it is -$0.11 on revenues of $1.18 million [7] - The trend of earnings estimate revisions is mixed ahead of the earnings release, which could influence future stock movements [6][7] Industry Context - The Medical - Drugs industry, to which IGC Pharma belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, United Therapeutics, is expected to report quarterly earnings of $6.23 per share, reflecting a year-over-year increase of 42.9% [9]

Revenue Performance - As of December 31, 2024, the Company reported total net sales of $941 thousand for the nine months ended December 31, 2024, a decrease of 10.4% compared to $1,050 thousand for the same period in 2023[57]. - The Life Sciences segment generated $101 thousand in revenue from wellness and lifestyle products for the nine months ended December 31, 2024, down 38.8% from $165 thousand in the same period of 2023[57]. - Revenue from white labeling services increased to $841 thousand for the nine months ended December 31, 2024, up 16.2% from $724 thousand in the same period of 2023[57]. - For the three months ended December 31, 2024, total revenue was $257,000, representing a 26% increase compared to $204,000 for the same period in 2023[98]. - The Life Sciences segment generated $257,000 in revenue for the three months ended December 31, 2024, with $223,000 from white labeling services and $34,000 from wellness and lifestyle products[98]. - Revenue for the three months ended December 31, 2024, was approximately $257 thousand, representing a 26% increase from $204 thousand in the same period of 2023[116]. Financial Position - The Company had $1,433 thousand in total inventory as of December 31, 2024, a decrease from $1,540 thousand as of March 31, 2024[60]. - As of December 31, 2024, the Company had cash and cash equivalents, along with a working capital and investments with an available overdraft facility of $12 million, sufficient to support operations beyond the next twelve months[47]. - As of December 31, 2024, total claims receivable amounted to $679 thousand, a slight decrease from $686 thousand as of March 31, 2024[74]. - Total accrued and other liabilities increased to $1.822 million as of December 31, 2024, up from $1.567 million as of March 31, 2024[75]. - As of December 31, 2024, total cash and cash equivalents amounted to $470,000, a decrease from $1,198,000 as of March 31, 2024[94][98]. - The Company has a long-term loan of approximately $134 thousand and a short-term loan of approximately $3 thousand as of December 31, 2024[77]. Losses and Expenses - The Company reported a loss per share for the nine months ended December 31, 2024, with a weighted average number of shares outstanding of 75,494,270, compared to 57,039,035 for the same period in 2023[51]. - The Company expects to continue incurring significant operating and net losses and negative cash flows from operations in the near future[46]. - The Company reported a net loss of approximately $5.9 million for the nine months ended December 31, 2024, compared to a net loss of approximately $10.1 million in the same period of 2023[142][143]. - Selling, general and administrative expenses decreased by approximately $1.1 million or 49% to approximately $1.0 million for the three months ended December 31, 2024, from approximately $2.2 million in the same period of 2023[118]. - Research and development expenses decreased by approximately $51 thousand or 6% to approximately $852 thousand during the three months ended December 31, 2024, from approximately $903 thousand[119]. - Selling, general and administrative expenses for the nine months ended December 31, 2024, decreased by approximately $1.4 million or 27% to approximately $3.8 million from approximately $5.3 million[125]. - Research and development expenses for the nine months ended December 31, 2024, decreased by approximately $260 thousand or 9% to approximately $2.6 million from approximately $2.9 million[126]. Asset Management - The total intangible assets increased to $1,869 thousand as of December 31, 2024, compared to $1,616 thousand as of March 31, 2024[65]. - The Company impaired the land in Nagpur, India, by approximately $3.3 million, reducing its value from $4.1 million to $720 thousand to align with fair market value[72]. - An agreement was made to sell the aforementioned land for a net realizable value of approximately $701 thousand, with a deposit of $344 thousand received[73]. - The Company received approximately $550 thousand related to assets held for sale during the nine months ended December 31, 2024[76]. - Total non-current assets as of December 31, 2024, were $6,027,000, with $5,683,000 in the U.S. and $344,000 in foreign countries[101]. Financing Activities - The Company successfully obtained a working capital credit facility totaling $12 million and signed two SPAs to raise $6 million in exchange for approximately 18.8 million shares[132]. - The Company entered into a Credit Agreement allowing borrowing up to $12 million, with an amendment reducing facility fees from $120,000 to $84,000[78]. - Cash provided by financing activities increased by 28% to approximately $3.6 million for the nine months ended December 31, 2024, compared to $2.9 million in 2023[147][148]. Clinical Development - IGC-AD1, the lead drug candidate, is currently in Phase 2 clinical trials and has shown potential to reduce agitation in Alzheimer's patients within 2 weeks, compared to 6 to 12 weeks for traditional medications[107]. - The Company announced an expansion of its clinical research program for IGC-AD1, an investigational treatment for Alzheimer's disease, based on positive Phase 2 interim results[115]. - The Company plans to invest in clinical trials, AI, R&D, and marketing to drive growth in the Life Sciences segment[112]. - The Company aims to leverage AI for early detection of Alzheimer's and optimizing clinical trial design[104]. Stock and Shareholder Information - As of December 31, 2024, approximately 9.1 million shares of common stock have been issued under the Company's incentive plans[87]. - The share-based expense for the nine months ended December 31, 2024, was $815 thousand, down from $1.4 million for the same period in 2023[89]. - The Company expects to recognize a combined unrecognized expense of $1.98 million related to non-vested shares and share options over the next four years[90]. Cash Flow - Net cash used in operating activities for the nine months ended December 31, 2024, was approximately $4.1 million, a decrease of 13% compared to $4.6 million for the same period in 2023[141][143]. - Net cash used in investing activities was approximately $300 thousand for the nine months ended December 31, 2024, compared to a net cash provided of approximately $6 thousand in 2023[145][146]. - Cash and cash equivalents decreased by approximately $728 thousand to $470 thousand, representing a 61% decline from $1.2 million as of March 31, 2024[140]. - The company experienced a net increase in cash and cash equivalents of approximately $1.1 million, a 60% improvement compared to a decrease of $1.8 million in the prior year[141]. Accounting Policies - Critical accounting policies include revenue recognition, inventory, and stock-based compensation, which are essential for portraying financial condition[150].

Core Viewpoint - IGC Pharma, Inc. has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors [4][6]. - IGC Pharma is projected to earn -$0.11 per share for the fiscal year ending March 2025, reflecting a year-over-year change of 50% [8]. Zacks Rating System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of IGC Pharma to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for near-term price increases [10]. Recent Trends in Earnings Estimates - Over the past three months, the Zacks Consensus Estimate for IGC Pharma has increased by 15.4%, indicating a positive trend in earnings estimates [8].

Core Viewpoint - IGC Pharma, Inc. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For the fiscal year ending March 2025, IGC Pharma, Inc. is expected to earn -$0.11 per share, representing a 50% change from the previous year's reported number [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of IGC Pharma, Inc. to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [11]. Analyst Sentiment - Analysts have increased their earnings estimates for IGC Pharma, Inc. over the past three months, with the Zacks Consensus Estimate rising by 15.4% [8]. - The positive sentiment surrounding the company's earnings outlook is expected to create buying pressure, potentially driving the stock price higher [5][3].