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IGC Pharma(IGC) - 2025 Q1 - Quarterly Report
IGC PharmaIGC Pharma(US:IGC)2024-08-07 20:03

Clinical Trials and Research - IGC Pharma launched a Phase 2 clinical trial for IGC-AD1, targeting 146 Alzheimer's patients, with no dose-limiting adverse events observed to date[20] - IGC-AD1, the company's lead drug candidate, is currently in Phase 2 clinical trials and has shown potential to reduce agitation in Alzheimer's patients faster than traditional medications[72] - Interim data from the Phase 2 clinical trial of IGC-AD1 showed a clinically significant reduction in agitation in Alzheimer's patients at week two compared to placebo[79] - Research and development expenses increased by 19% to approximately $889 thousand in Q2 2024, driven by the progression of Phase 2 trials on IGC-AD1 and preclinical studies on other small molecule assets[83] - IGC Pharma is leveraging AI and machine learning to optimize clinical trial protocols and predict drug outcomes, potentially reducing costs and time[22] - IGC Pharma is integrating AI into its clinical trial software to enhance decision-making and reduce costs associated with clinical trials[76] - The company aims to leverage its proprietary software for data management in clinical trials, which is designed to improve operational efficiency[76] - The company shared positive pre-clinical results for TGR-63 on June 25, 2024, indicating its potential in combating Alzheimer's disease[78] Financial Performance - Revenue for the three months ended June 30, 2024, was $272 thousand, a decrease of 51% compared to $555 thousand for the same period in 2023[36] - The Life Sciences segment generated $272 thousand in total revenue, with $21 thousand from wellness and lifestyle products and $251 thousand from white labeling services[36] - Gross profit for the same period was $163 thousand, down 36% from $255 thousand in the prior year, resulting in gross margins of 60% in 2024 compared to 46% in 2023[81] - The company reported a net loss of approximately $2.4 million for the three months ended June 30, 2024, which is a 15% increase from a net loss of $2.1 million in the same period of 2023[80] - Cash and cash equivalents increased by approximately 52% to $1.8 million as of June 30, 2024, up from $1.2 million as of March 31, 2024[88] - Net cash provided by financing activities was approximately $2.5 million for the three months ended June 30, 2024, compared to a net cash used of approximately $1 thousand in the same period of 2023[92] Assets and Liabilities - As of June 30, 2024, the company reported $1.51 million in total inventory, a slight decrease from $1.54 million as of March 31, 2024[37] - Total liabilities increased to $1,718,000 as of June 30, 2024, from $1,567,000 as of March 31, 2024, representing a growth of 9.6%[49] - The company has approximately $392 thousand in clinical trial-related inventory as of June 30, 2024[38] - Non-current assets as of June 30, 2024, total $6,187,000, with $5,815,000 located in the U.S.[68] - Claims receivable remained stable at $686,000 as of June 30, 2024, unchanged from March 31, 2024[48] Shareholder Information - The weighted average number of shares outstanding for the three months ended June 30, 2024, was 72,813,538, compared to 53,077,436 for the same period in 2023[31] - The company issued approximately 8.8 million shares of common stock at a price of $0.34 per share during the quarter, raising approximately $3 million in gross proceeds[54] - The company has a combined unrecognized expense of $2.7 million related to non-vested shares and share options expected to be recognized over the next four years[59] Intangible Assets and Expenses - Total intangible assets increased to $1,720,000 as of June 30, 2024, from $1,616,000 as of March 31, 2024, reflecting a growth of 6.4%[42] - The amortization expense for patents was approximately $20,000 for the three months ended June 30, 2024, compared to $18,000 for the same period in 2023, representing an increase of 11.1%[43] - The estimated annual amortization expense is projected to rise from $88,000 in 2026 to $129,000 in 2030, indicating a 46.6% increase over the five-year period[44] - Depreciation expense for the three months ended June 30, 2024, was approximately $142,000, compared to $137,000 for the same period in 2023, reflecting a 3.6% increase[46] Cybersecurity and Compliance - The company has a cybersecurity policy in place, with no impactful breaches reported during the three months ended June 30, 2024[32] - The company considers the applicability and impact of all newly issued Accounting Standards Updates (ASUs) from the Financial Accounting Standards Board (FASB)[95] - Newly issued ASUs not listed are expected to have no impact on the company's consolidated financial position and results of operations[95] - Recent accounting pronouncements that may apply to the company are detailed in Note 2, "Significant Accounting Policies"[95] Company Strategy and Operations - IGC Pharma expects to continue incurring significant operating and net losses in the near future as it remains in the clinical trial stage[29] - The company operates in two segments: Life Sciences and Infrastructure, with the latter including construction contracts and heavy equipment rental[75] - The company successfully renewed a working capital credit facility totaling $12 million for one year to support ongoing liquidity requirements[70] - The company plans to leverage investments in clinical trials, AI, R&D, and acquisitions to drive growth in its Life Sciences segment[78] - The company impaired land in Nagpur, India, reducing its value from $4.1 million to $720,000, a decrease of approximately 82.4%[47]