IGC Pharma(IGC) - 2022 Q4 - Annual Report

Revenue and Profitability - Revenue for Fiscal 2022 was approximately $397 thousand, a decrease of 56% compared to $898 thousand in Fiscal 2021[230] - Total revenue for the year ended March 31, 2022, was $397,000, a decrease of 55.8% compared to $898,000 for the year ended March 31, 2021[291] - Gross profit increased by 72% to $194 thousand in Fiscal 2022, up from $113 thousand in Fiscal 2021, reflecting a gross margin increase from 12% to 48%[231] - Gross profit for the year ended March 31, 2022, was $194,000, compared to $113,000 for the previous year, indicating an increase in gross profit margin despite lower revenue[291] - The Life Sciences segment contributed $359,000 (91%) to total revenue in Fiscal 2022, while the Infrastructure segment contributed $37,000 (9%)[400] - Revenue from the Life Sciences segment decreased from $723,000 (80%) in Fiscal 2021 to $359,000 (91%) in Fiscal 2022[400] - Revenue from the Infrastructure segment decreased from $175,000 (20%) in Fiscal 2021 to $37,000 (9%) in Fiscal 2022[400] - In Fiscal 2022, 83% of total revenue was generated from the U.S. ($329,000), while 17% came from India ($68,000)[400] Expenses and Losses - Selling, general and administrative expenses rose by 68% to $13.2 million in Fiscal 2022, primarily due to one-time expenses totaling approximately $5.3 million[232] - Operating loss for the year ended March 31, 2022, was $15,428,000, which is a significant increase from the operating loss of $8,724,000 in the prior year, reflecting higher selling, general, and administrative expenses[291] - Net loss attributable to common stockholders for the year ended March 31, 2022, was $15,016,000, compared to a net loss of $8,811,000 for the year ended March 31, 2021, representing a 70.0% increase in net loss[291] - The Company reported a net income loss before tax of $15,016 thousand for Fiscal 2022, with an expected income tax recovery of $3,153 thousand[389] Research and Development - Research and development expenses increased by 151% to $2.3 million in Fiscal 2022, compared to $929 thousand in Fiscal 2021[230] - Research and Development (R&D) expenses increased by approximately $1.4 million or 151% to $2.3 million in Fiscal 2022 from approximately $929 thousand in Fiscal 2021[233] - The company completed all dose escalation studies for its investigational drug candidate IGC-AD1 for Alzheimer's disease, with results submitted to the FDA[217] - The company has developed IGC-AD1, an investigational drug candidate for Alzheimer's, and completed all dose escalation studies, with results submitted to the FDA[301] - IGC has filed fifteen patent applications related to various diseases, with six patents granted as of March 31, 2022[302] - A patent for a method and composition for treating seizure disorders was issued on June 7, 2022, which may reduce side effects of existing anticonvulsant drugs[405] Cash Flow and Liquidity - Cash and cash equivalents decreased by approximately $4 million to $10.5 million in Fiscal 2022, a decline of approximately 28% from $14.5 million in Fiscal 2021[241] - Net cash used in operating activities for Fiscal 2022 was approximately $7.5 million, an improvement of 31% compared to $10.8 million in Fiscal 2021[244] - Net cash provided by financing activities was approximately $4.1 million for Fiscal 2022, a decrease of 72% from $14.7 million in Fiscal 2021[249] - Cash used in operating activities for fiscal 2022 was $7,462,000, an improvement from $10,800,000 in fiscal 2021[298] - As of March 31, 2022, the company had cash and cash equivalents of $10,460,000, a decrease from $14,548,000 at the end of the previous fiscal year[298] Assets and Liabilities - Total assets decreased to $26,834,000 as of March 31, 2022, down from $35,867,000 as of March 31, 2021, reflecting a decline in current assets[289] - Total stockholders' equity decreased to $23,892,000 as of March 31, 2022, from $32,803,000 as of March 31, 2021, reflecting the impact of accumulated losses[289] - Non-current assets as of March 31, 2022, totaled $11,723,000, a decrease from $12,350,000 as of March 31, 2021[403] - The net deferred tax asset as of March 31, 2022, was $10,570 thousand, fully offset by a valuation allowance[390] Inventory and Valuation - The company incurred a $1.7 million adjustment to inventory due to pandemic-related disruptions affecting its hemp crop[222] - As of March 31, 2022, total inventory decreased to $3,548 thousand from $5,478 thousand as of March 31, 2021, representing a decline of approximately 35%[353] - The Company wrote off approximately $252 thousand of inventory in Fiscal 2022, down from $307 thousand in Fiscal 2021, indicating a reduction of about 18%[354] - The company values its harvested crops at cost, as they do not have a readily available market, reflecting a conservative approach to inventory valuation[342] Capital Raising and Shareholder Impact - The company raised approximately $4.1 million in net proceeds from equity stock issuance during Fiscal 2022[231] - The company plans to continue utilizing "at the market" (ATM) offerings to raise capital, which may be dilutive to existing shareholders[237] - The company raised approximately $4.1 million from an "at the market" offering during Fiscal 2022, net of commission, for working capital and capital expenditures[379] - The weighted-average number of shares used in computing loss per share increased to 49,991,631 for the year ended March 31, 2022, from 41,963,382 in the prior year, affecting per-share loss calculations[291] Operational Highlights - The infrastructure segment executed a $1.2 million road-building contract in Kerala, India, and was awarded another project for $289 thousand[212] - The life sciences segment focuses on cannabinoid-based products, including the Holief™ wellness brand and Sunday Seltzer™, a CBD-infused energy drink[309] - The company has a facility in Maryland and additional locations in Washington state, Colombia, and India, supporting its operational capabilities[310] Other Financial Metrics - Other income for Fiscal 2022 was approximately $461 thousand, up from $82 thousand in Fiscal 2021, primarily due to the forgiveness of a PPP loan amounting to $430 thousand[235] - Impairment loss decreased to approximately $49 thousand in Fiscal 2022 from $169 thousand in Fiscal 2021, reflecting a reduction in recorded impairments[234] - Claims receivable decreased to $368 thousand as of March 31, 2022, from $382 thousand as of March 31, 2021, reflecting a decline of approximately 4%[364] - The Company recognized a total lease expense of approximately $327 thousand for Fiscal 2022, down from $356 thousand in Fiscal 2021, indicating a decrease of about 8%[369]