India Globalization Capital, Inc. ("IGC" or the "Company") (NYSE American: IGC) today announced its financial results for the quarter ended September 30, 2020, which is the second quarter of its 2021 fiscal year, and the start of Phase 1 cannabinoid-based clinical trial for Alzheimer's Patients.
Revenue in the quarter ended September 30, 2020 and September 30, 2019, were $125 thousand and $1,821 thousand, respectively.
The decrease in revenue is primarily due to restrictions imposed by the COVID-19 pandemic.
The revenue in the quarter ended September 30, 2020 was approximately 53% from the infrastructure segment and approximately 47% from the Life Science segment.
In comparison, the revenue in the September 2019 quarter was primarily from infrastructure.
In the past 6 months, our ability to provide services and distribute our products has been impacted due to store closures and abandoned harvests of hemp.
Our facility on the West Coast, and our Delhi office, both have had COVID-19 outbreaks that have led to closures, delays, and expenses. In response to the evolving dynamics of the pandemic, we have decreased our staff in select areas, delayed and may terminate the acquisition of Evolve I, Inc., and reoriented our sales focus to online.
In the quarter ended September 30, 2020, our primary focus has been to initiate and
carry out the Phase 1 clinical trial on our Investigational Drug Candidate IGC-AD1.
Selling, general and administrative expenses increased by approximately $389 thousand or 36% to $1,483 thousand for three months ended September 30, 2020, from $1,094 thousand for three months ended September 30, 2019.
The increase of approximately $0.4 million is attributed to a one-time settlement expense of approximately $50 thousand, compensation expenses attributed to increased head count and associated employee-related expenses, marketing expense related to expansion of brands, and depreciation expense related to increase in Property, Plant and Equipment. We expect general and administrative expenses to decrease as one-time legal and other one-time expenses continue to abate over the rest of this fiscal year.
Net comprehensive loss was approximately $1.5 million or $0.04 per share, for the September 2020 quarter, compared to approximately $1.3 million or $0.03 per share for the September 2019 quarter.
Most of the increased loss is attributable to the increased SG&A.
About IGC:
IGC operates two lines of business: (i) infrastructure and (ii) life sciences. The Company is based in Potomac, Maryland, U.S.A. Social media: www.igcinc.us / www.igcpharma.com / Twitter @IGCIR.
