IGC Pharma(US:IGC)2025-02-14 21:00Revenue 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].