IGC Reports Financial Results for Fiscal Year Ended March 31, 2024

POTOMAC, Md.--(BUSINESS WIRE)--IGC Pharma, Inc. (“IGC” or the “Company”) (NYSE American: IGC), a clinical-stage pharmaceutical company, has announced its financial results for the fiscal year ended March 31, 2024 (“Fiscal 2024”).

Full Fiscal Year Highlights

• In March 2024, the Company announced positive interim results from its ongoing Phase 2 trial for IGC-AD1. The interim data have shown promising results in reducing Alzheimer’s agitation, which is a major challenge for patients and their caregivers alike. This development marks a significant step forward in the fight against Alzheimer’s and brings hope to millions of people affected by this devastating disease.
• In January 2024, the Company announced details about its drug candidate TGR-63, which specifically targets amyloid-beta plaque, which has the potential to significantly improve the treatment of Alzheimer’s disease. Subsequently, on February 1, 2024, the Company announced further positive results from preclinical studies of TGR-63, demonstrating its potential as an effective treatment for Alzheimer’s disease. These studies demonstrated that TGR-63 was successful in reducing plaque burden in Alzheimer’s cell lines and animal models, making it a promising therapeutic candidate for the disease.
• The Company had significant achievements in our foreign intellectual property rights as the Company received three (3) patents. One (1) patent relates to Method and Composition for CNS Disorder and two (2) patents relate to Method and Composition for Treating Pain.
• In July 2023, IGC Pharma and the University of Los Andes (Faculty of Engineering) signed a Master Cooperation Agreement to conduct innovative research in Artificial Intelligence (“AI”) applied to the pharmaceutical industry. We are harnessing the power of AI to develop early detection models, optimize clinical trials, and explore new applications for our drugs.
• During fiscal year ended March 31, 2024, the Company entered into Share Purchase Agreements (the “SPAs”) with multiple investors, resulting in approximately $6 million in gross proceeds. $2.5 million of the gross proceeds was received in April 2024 subsequent to the close of the fiscal year end. In addition, the Company also received a $12 million credit line from O Bank to support the Company’s expanded operations and ongoing clinical trials.
• In May 2024, subsequent to Fiscal 2024, the Company announced patient enrollment at Neurostudies, Inc., in a Phase 2 trial investigating IGC-AD1, a partial CB1r agonist with anti-neuroinflammatory properties and an inflammasome inhibitor, to treat Agitation in dementia due to Alzheimer’s disease.

Ram Mukunda, CEO of IGC Pharma, commented, “During the fiscal year we accomplished multiple key milestones and significantly advanced our strategy to bring to market treatments to fight Alzheimer’s – a devastating disease affecting a growing patient population around the globe. The most important achievement in our development pipeline was the positive interim results on IGC-AD1, a significant development in the fight against Alzheimer’s and a reflection of our commitment to advancing our product portfolio and delivering value to all stakeholders. Furthermore, the positive results from preclinical studies of TGR-63 demonstrated its success in reducing plaque burden in Alzheimer’s cell lines and animal models, making it a promising therapeutic candidate for the disease. Looking ahead, we are increasingly optimistic about our prospects to build upon these positive results and deliver long-term value to stakeholders. We appreciate the dedication and hard work of our team, whose efforts have been instrumental in achieving these results. We remain focused on executing our strategic initiatives and are excited about the opportunities that lie ahead.”

Financial Summary

In Fiscal 2024, the Company generated approximately $1.3 million in revenue, representing an increase from the $911 thousand generated in Fiscal 2023. The primary source of revenue in both years was from the Life Sciences segment, encompassing the sale of our formulations as white-labeled manufactured products, among others. The increase in revenue derived from the Company’s commitment to its current strategy of driving sales in formulations both as branded and white-labeled products in the Life Science segment. Approximately 10%-12% of revenue in both years was derived from the infrastructure segment.

The Company reported selling, general, and administrative (“SG&A”) expenses for Fiscal 2024 at approximately $6.7 million, representing a decrease of approximately $2 million, or 21%, compared to the $8.5 million recorded in Fiscal 2023. This decline in SG&A expenses is attributable to a reduction in non-cash expenses and costs related to employees as well as legal & professional services.

In Fiscal 2024, the Company reported research and development (“R&D”) expenses of approximately $3.8 million, representing an increase of $312 thousand or 9% compared to approximately $3.5 million in Fiscal 2023. The increase in R&D expenses is primarily attributed to the progression of Phase 2 trials on IGC-AD1 and pre-clinical studies on TGR-63, indicating the Company’s dedication to advancing its product pipeline. As the development of TGR-63 and the Phase 2 trial on Alzheimer’s gain momentum, the Company anticipates further increases in R&D expenses.

To streamline operations and dedicate resources to our core pharmaceutical business, we strategically divested non-core assets. This resulted in a positive impact on our focus and a one-time impairment of PP&E of approximately $3.3 million.

Net loss for Fiscal 2024 was approximately $13 million or $0.22 per share, compared to approximately $11.5 million or $0.22 per share for Fiscal 2023. The net loss for Fiscal 2024 includes a one-time impairment of PP&E of approximately $3.3 million.

About IGC Pharma, Inc.

IGC Pharma Inc. ("IGC") is focused on Alzheimer’s disease, developing innovative solutions to address this devastating illness. The Company’s mission is to transform the landscape of Alzheimer’s treatment with a robust pipeline of five promising drug candidates. IGC-AD1 and LMP target the hallmarks of Alzheimer’s disease, including neuroinflammation, Aβ plaques, and neurofibrillary tangles. IGC-AD1 is currently undergoing a Phase 2 clinical trial for agitation in dementia associated with Alzheimer’s (clinicaltrials.gov, NCT05543681). TGR-63 disrupts the progression of Alzheimer’s by targeting Aβ plaques. IGC-M3, currently in preclinical development, aims to inhibit the aggregation of Aβ plaques, potentially impacting early-stage Alzheimer’s. IGC-1C, also in preclinical stages, targets tau protein and neurofibrillary tangles, representing a forward-thinking approach to Alzheimer’s therapy. In addition to its drug development pipeline, IGC Pharma seeks to leverage artificial intelligence ("AI") for Alzheimer’s research. Their AI projects encompass various areas, including clinical trial optimization and early detection of Alzheimer’s.

Forward-looking Statements

This press release contains forward-looking statements. These forward-looking statements are based largely on IGC Pharma’s expectations and are subject to several risks and uncertainties, certain of which are beyond IGC Pharma’s control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, the Company’s failure or inability to commercialize one or more of the Company’s products or technologies, including the products or formulations described in this release, or failure to obtain regulatory approval for the products or formulations, where required, or government regulations affecting AI or the AI algorithms not working as intended or producing accurate predictions; general economic conditions that are less favorable than expected; the FDA’s general position regarding cannabis- and hemp-based products; and other factors, many of which are discussed in IGC Pharma’s U.S. Securities and Exchange Commission (“SEC”) filings. IGC Pharma incorporates by reference the human trial disclosures and Risk Factors identified in its Annual Report on Form 10-K filed with the SEC on July 24, 2024, as if fully incorporated and restated herein. Considering these risks and uncertainties, there can be no assurance that the forward-looking information contained in this release will occur.

< Financial Tables to Follow>

IGC Pharma, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
	March 31, 2024 ($)		March 31, 2023 ($)
ASSETS
Current assets:
Cash and cash equivalents		1,198		3,196
Accounts receivable, net		39		107
Short term investments		-		154
Inventory		1,540		2,651
Asset held for sale		720		-
Deposits and advances		208		358
Total current assets		3,705		6,466
Non-current assets:
Intangible assets, net		1,616		1,170
Property, plant and equipment, net		3,695		8,213
Claims and advances		688		1,003
Operating lease asset		198		326
Total non-current assets		6,197		10,712
Total assets		9,902		17,178
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		773		530
Accrued liabilities and others		1,567		1,368
Total current liabilities		2,340		1,898
Non-current liabilities:
Long-term loans		137		141
Other liabilities		20		21
Operating lease liability		84		207
Total non-current liabilities		241		369
Total liabilities		2,581		2,267
Commitments and Contingencies – See Note 12
Stockholders’ equity:
Preferred stock, $0.0001 par value: authorized 1,000,000 shares, no shares issued or outstanding as of March 31, 2024, or March 31, 2023.
Common stock and additional paid-in capital, $0.0001 par value: 150,000,000 shares authorized; 66,691,195 and 53,077,436 shares issued and outstanding as of March 31, 2024, and March 31, 2023, respectively.		124,409		118,965
Accumulated other comprehensive loss		(3,423)		(3,389)
Accumulated deficit		(113,665)		(100,665)
Total stockholders’ equity		7,321		14,911
Total liabilities and stockholders’ equity		9,902		17,178

These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal year ending March 31, 2024, filed with the SEC on June 24, 2024.

IGC Pharma, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except loss per share and share data)
	Years Ended March 31,
	2024 ($)			2023 ($)
Revenue		1,345			911
Cost of revenue		(612	)		(469	)
Gross profit		733			442
Selling, general and administrative expenses		(6,758	)		(8,552	)
Research and development expenses		(3,773	)		(3,461	)
Operating loss		(9,798	)		(11,571	)
Impairment loss on PPE		(3,345	)		-
Other income, net		143			65
Loss before income taxes		(13,000	)		(11,506	)
Income tax expense/benefit		-			-
Net loss attributable to common stockholders		(13,000	)		(11,506	)
Foreign currency translation adjustments		(34	)		(421	)
Comprehensive loss		(13,034	)		(11,927	)
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.22	)	$	(0.22	)
Weighted-average number of shares used in computing loss per share amounts:		58,839,868			52,576,258

These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal year ending March 31, 2024, filed with the SEC on June 24, 2024.