What changed in this filing

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Item 2. Management’s Discussion and Analysis

2020-11-20 compared with 2020-08-19 · 147 added, 47 removed, 69 unchanged (74% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The purpose of this Management’s Discussion and Analysis (“MD&A”) is to provide an understanding of the Company's consolidated financial condition, and results of operations and cash flows, and should be read in conjunction with our unaudited condensed financial statements and related notes that appear elsewhere in this Quarterly Report on Form 10-Q for the three months ended June 30, 2020, and the Annual Report on Form 10-K for the fiscal year ended March 31, 2020, filed with the SEC on July 13, 2020.

The purpose of this Management’s Discussion and Analysis (“MD&A”) is to provide an understanding of the Company's consolidated financial condition, and results of operations and cash flows, and should be read in conjunction with our unaudited condensed financial statements and related notes that appear elsewhere in this Quarterly Report on Form 10-Q for the three months and the six months ended September 30, 2020, and the Annual Report on Form 10-K for the fiscal year ended March 31, 2020, filed with the SEC on July 13, 2020 (the “2020 Form 10-K”).

The Company’s actual results could differ materially from those discussed here.

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We disclaim any obligation, except as specifically required by law and the rules of the SEC, to publicly update or revise any such statements to reflect any change in our expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

Company Background

At IGC, our aim is to pioneer the future of pharmaceuticals and wellness products through groundbreaking, innovative research in cannabinoid sciences.

Devastating diseases such as Alzheimer’s, Parkinson’s, Epilepsy, and chronic pain collectively affect over a billion people worldwide.

We believe life-altering solutions are within reach by combining creative concepts, dedicated research and development, with a passion for community, and wellness empowerment.

We believe that wellness and access to affordable naturally derived medicine is a human right.

Since 2014, our team has been committed to researching the application of cannabinoid-based therapies as viable alternatives to many current medications.

Early anecdotal evidence suggests cannabinoid and hemp sciences may open doors to the discovery and development of novel treatments for numerous diseases currently believed to be incurable.

Driven by cutting edge research and technology, we are committed to our goal to make cannabinoid-based formulations accessible to the masses and to continue to change the dialogue and current stigmas around cannabis so that cannabis-based products, including medicines, can be made more widely available to the people who need them most.

We are also committed to our business operations in Asia, including (a) the execution of construction contracts, (b) the purchase and resale of physical commodities used in infrastructure, and (c) the rental of heavy construction equipment..

Although COVID-19 continues to impact this business line, IGC looks forward to increasing these operations as the COVID-19 pandemic allows.

COVID-19 Update

We continue to monitor the impact from restrictions imposed by the COVID-19 pandemic on our financial condition, liquidity, operations, suppliers, industry, and workforce.

We continue to monitor the impact of the COVID-19 pandemic and from restrictions imposed by governmental entities related thereto, on our financial condition, liquidity, operations, suppliers, industry, and workforce.

Revenue from the infrastructure segment continues to be adversely affected as we are unable to fully deploy our workforce.

In response to the evolving circumstances, we supplemented our facilities to manufacture, label, and distribute FDA-registered alcohol-based hand sanitizers and hand rubs.

While there is a general lack of visibility, we anticipate drastically reduced revenue from Infrastructure, and also unpredictable revenue from the Life Sciences segment.

During the three months ended June 30, 2020:

While there is a general lack of visibility, we anticipate drastically reduced revenue from Infrastructure, and also unpredictable revenue from the Life Sciences segment as the world economy remains impacted by the COVID-19 pandemic.

During the six months ended September 30, 2020:

Our revenue from the infrastructure business remains adversely affected with increased expenses.

However, as soon as we can safely do so, and in compliance with applicable laws and regulations, we expect to engage in the infrastructure business including completing the road building contract that we have been awarded.

However, in compliance with applicable laws and regulations, we have commenced limited operations for the completion of the road building contract that we have been awarded.

A majority of our hemp processing and distillation equipment is sourced from China.

While we took delivery of the equipment, the commissioning and certification of the equipment is delayed as it requires Chinese technicians to commission the equipment.

While we took delivery of the equipment, the commissioning and certification of the equipment continues to be delayed.

The commissioning of our large-scale processing and distillation equipment is delayed.

Delivery of some of our equipment, such as the bottling machine is delayed indefinitely as the factory is impacted by an outbreak of COVID-19.

While our primary source of revenue for the three months ended June 30, 2019, is from our Infrastructure segment, our primary source of revenue for the three months ended June 30, 2020, is from our Life Sciences segment, which produced wellness products, including alcohol-based hand sanitizers, among others.

| September 30, 2020 Form 10-Q

While our primary source of revenue for the three months and the six months ended September 30, 2019, is from our Infrastructure segment, our primary source of revenue for the three months ended September 30, 2020 is from our Infrastructure segment and for the six months ended September 30, 2020, is from our Life Sciences segment, which produced wellness products, including alcohol-based hand sanitizers, among others.

The Company operates both segments in compliance with applicable state, national, and local laws and regulations and only in locations and regions where it is legal to do so.

Further information on the Company highlights in the three months ended June 30, 2020, can be found in Part I, Item 1, Note 1 - Business Description, “Business updates”.

| June 30, 2020 Form 10-Q

Results of Operations for the three months ended

June 30, 2020 and June 30, 2019

Further information on the Company highlights in the six months ended September 30, 2020, can be found in Part I, Item 1, Note 1 - Business Description, “Business updates”.

Expanding Sales Strategy

In the Life Sciences segment, we view our desire to be vertically integrated in the hemp industry as providing us with several profit opportunities that we expect to focus on throughout the rest of Fiscal 2021.

The Company has been working on branded products, under the Herbo™, Hyalolex™, Holief™ and Sunday Seltzer™ product lines, and expects to launch online sales during Fiscal 2021 or early Fiscal 2022.

Our strategy for the Infrastructure segment is to continue investing in and competitively bidding on construction contracts, for example to build roads, bridges, and other civil works in Kerala, India, and to opportunistically buy and sell infrastructure and other commodities.

FDA Clinical Trials

On July 30, 2020, IGC received a notice from the FDA to proceed with a 12-subject Phase 1 human clinical trial (“removal of full clinical hold”) on its INDA, submitted under Section 505(i) of the Federal Food, Drug, and Cosmetic Act, for IGC-AD1.

The Phase 1 trial is proposed to involve a randomized placebo-controlled MAD study to evaluate safety and tolerability of IGC-AD1 in subjects with mild to severe dementia due to Alzheimer’s disease.

In addition, the study will evaluate PK and collect data on other factors.

The Company’s IGC-AD1 formulation is based on a patent filed by the USF that uses a cannabinoid as one of the active ingredients.

The Company has exclusive rights to the patent filing.

The Company’s flagship product Hyalolex Drops of Clarity™, currently available in select dispensaries in Puerto Rico, is modeled around this formulation.

For further information on the FDA trial process, please refer the Item 1, Business in Part I of the 2020 Form 10-K.

Alzheimer’s disease

According to the National Institute of Health’s National Institute on Aging (NIA), Alzheimer’s is an irreversible, progressive brain disorder that destroys memory and thinking skills, and, eventually, the ability to carry out the simplest tasks.

Symptoms, for most people, may first appear for individuals in their mid-60s.

1 Some experts believe that Alzheimer’s is the third leading cause of death just behind heart disease and cancer.

Alzheimer’s is believed to cause about 70% of dementia, which is the loss of cognitive functioning that includes thinking, remembering, reasoning, and behavioral abilities.

2 Alzheimer’s is named after Dr.

Alois Alzheimer, who, in 1906, based on a histopathological study, found that the brain tissue of a women who died of unusual mental illness had abnormal clumps and tangled bundles of fiber.

Her symptoms included memory loss, language problems and unpredictable behavior.

The clumps are now called beta-amyloid plaques (plaques) and the bundles are now called neurofibrillary or tau tangles (tangles).

These plaques and tangles are considered the main features, or hallmarks, of Alzheimer’s disease, another being the loss of connection between nerve cells.

1 https://www.nia.nih.gov/health/alzheimers-disease-fact-sheet

2 https://www.who.int/news-room/fact-sheets/detail/dementia

3 https://www.nia.nih.gov/health/alzheimers-disease-fact-sheet

| September 30, 2020 Form 10-Q

While some researchers view Alzheimer’s as a spectrum disease, the NIA categorizes Alzheimer’s in three stages:

mild, moderate, and severe.

Broadly, in mild Alzheimer’s, problems can include wandering, getting lost, not remembering the way home for example, trouble handling money and paying bills, repeating questions, and personality and behavior changes.

In moderate Alzheimer’s there is damage to the areas of the brain that control language, reasoning, sensory processing, and conscious thought.

Problems can include carrying out multistep tasks such as dancing, getting dressed, and more behavior changes including hallucinations, delusions, paranoia and impulsive behavior.

By the time severe Alzheimer’s sets in, plaques and tangles spread throughout the brain, and the brain shrinks significantly.

People with severe Alzheimer’s are completely dependent on others for care, they cannot communicate, and, near the end, the body shuts down.

Plaques are believed to be caused by an unhealthy brain’s inability to clear a protein called beta amyloid (® amyloid, “A®”) that is cleaved, as part of a normal cycle, from a larger protein called Amyloid Precursor Protein (APP).

5 These cleaved smaller-length proteins are cleared in healthy brains.

However, in Alzheimer’s brains, they accumulate, sticking to each other, becoming sticky plaques that are deposited between neurons, affecting neuronal connections and leading, for example, to memory loss.

Inside a neuron there are microtubules, analogous to highways, that help transport nutrients from one part of the nerve cell to another.

Tau protein helps bind and stabilize the microtubule structures.

In Alzheimer’s patients, tau detaches from the microtubules and stick together, forming threads that eventually join to form tangles inside the neurons, leading to neuronal death.

Essentially, plaques deposit between neurons, and tangles kill neurons from the inside.

6 It may be characterized as a near perfect assault on the brain with devastating consequences.

There is no cure for Alzheimer’s disease.

Alzheimer’s patients manifest Behavior and Psychological Symptoms caused by Dementia (BPSD) that include, among others, depression, agitation, aggression, sleep disturbance (sundown syndrome), delusions, hallucinations, anxiety.

These symptoms put a burden on caregivers that leads to caregiver distress.

In 2017, IGC acquired rights to a patent filed by USF on treating Alzheimer’s disease using a cannabinoid in combination with another naturally occurring molecule.

The research on which the patent application is based showed that in Alzheimer’s cell lines, various combinations of the formulation blocked the production of A®, blocked the formation of A® oligomers (plaques), inhibited the hyperphosphorylation of tau, which leads to the destabilization of microtubules, and increases mitochondrial activity, among others.

The research also showed improvement in the memory of Alzheimer’s induced transgenic mice.

Based on this and other data, IGC acquired the patent rights from USF, formulated a liquid investigational medication, and filed an INDA with the FDA.

The investigational drug, IGC-AD1, is ready for human trials, which is expected to begin with a Phase 1 MAD, PK trial.

4 https://www.nia.nih.gov/health/alzheimers-disease-fact-sheet

5 https://www.nia.nih.gov/health/what-happens-brain-alzheimers-disease#:~:text=Amyloid%20Plaques&text=In%20the%20Alzheimer's%20brain%2C%20abnormal,of%20beta-amyloid%20influence%20Alzheimer's.

6 https://www.nia.nih.gov/health/what-happens-brain-alzheimers-disease#:~:text=In%20Alzheimer's%20disease%2C%20however%2C%20abnormal,the%20synaptic%20communication%20between%20neurons.

7 https://www.alz.org/alzheimers-dementia/treatments

8 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5550537/

| September 30, 2020 Form 10-Q

Results of Operations for the T hree M onths E nded

September 30, 2020 and September 30, 2019

The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

The following table presents an overview of our results of operations for the three months ended June 30, 2020 and June 30, 2019:

The following table presents an overview of our results of operations for the three months ended September 30, 2020 and September 30, 2019:

Statement of Operations (in thousands, unaudited)

Three months ended June 30,

Three months ended September 30,

Cost of revenue

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Loss before income taxes

Revenue – Revenue in the quarter ended June 30, 2020, was primarily derived from our Life Sciences segment, which involved sales of products such as alcohol-based hand sanitizers, among others.

In the quarter ended June 30, 2019, our revenue was primarily derived from the infrastructure segment.

Revenue was approximately $584 thousand and $1,649 thousand for the three months ended June 30, 2020 and 2019, respectively.

Revenue in the Life Sciences segment in the quarter ended June 30, 2019, was $104 thousand as compared to $584 thousand in the quarter ended June 30, 2020, albeit with a change in product mix.

At the same time, revenue in our Infrastructure segment for the quarter ended June 30, 2019, was $1,545 thousand and zero in the quarter ended June 30, 2020.

Revenue – 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 pandemic.

Revenue in the Infrastructure segment was approximately $67 thousand and $1,547 thousand for the three months ended September 30, 2020 and 2019 respectively.

The revenue is from the execution of construction contract and sales of infrastructure related physical commodities.

Revenue in the Life Sciences segment for the three months ended September 30, 2020, was $58 thousand as compared to $274 thousand for the three months ended September 30, 2019, albeit with a change in product mix.

Primarily due to COVID-19, we have limited visibility on when either of our segments will stabilize and become predictable.

We expect volatility in both segments in the foreseeable future.

We expect to be opportunistic in providing personal protection equipment as the country reopens from the pandemic.

Cost of revenue – Cost of revenue amounted to approximately $99 thousand for the three months ended September 30, 2020, compared to $1,793 thousand in the three months ended September 30, 2019.

The cost of revenue for the three months ended September 30, 2020, is primarily attributable to raw materials that are required to produce our products.

Selling, general and administrative expenses – Selling, general and administrative expenses consist primarily of employee-related expenses, sales commission, professional fees, legal fees, marketing, other corporate expenses, allocated general overhead and provisions, depreciation and write-offs relating to doubtful accounts and advances, if any.

Selling, general and administrative expenses increased by approximately $389 thousand or 36% to $1,483 thousand for the three months ended September 30, 2020, from $1,094 thousand for the 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 year.

Research and Development expenses – R&D expenses were attributed to our Life Sciences segment.

The R&D expenses for the three months ended September 30, 2020, is approximately $219 thousand and approximately $222 thousand for the three months ended September 30, 2019.

The cost associated with this work is mostly research comprising of plant extracts that could be productized and data to support the efficacy of the extracts, including preparing for potential FDA trials, product research, designing, formulating and market analysis.

We expect R&D expenses to increase with Phase 1 trials on IGC-AD1.

All research and development costs are expensed in the quarter in which they are incurred.

| September 30, 2020 Form 10-Q

Other Income, net – Other net income decreased by approximately $90 thousand or 83% during the three months ended September 30, 2020.

The total other income for the three months ended September 30, 2020 and 2019 is approximately $19 thousand and $109 thousand, respectively.

Other income includes interest income, rental income, dividend income and unrealized gain from marketable securities, net, and income from sale of scrap, among others.

Results of Operations for the S ix M onths E nded

September 30, 2020 and September 30, 2019

The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

The following table presents an overview of our results of operations for the six months ended September 30, 2020 and September 30, 2019:

Statement of Operations (in thousands, unaudited)

Six months ended September 30,

Cost of revenue

Selling, general and administrative expenses

Research and development expenses

Operating loss

Other income, net

Loss before income taxes

Revenue – Revenue in the six months ended September 30, 2020, was primarily derived from our Life Sciences segment, which involved sales of products such as alcohol-based hand sanitizers, among others.

In the six months ended September 30, 2019, our revenue was primarily derived from the infrastructure segment.

Revenue was approximately $709 thousand and $3,470 thousand for the six months ended September 30, 2020 and 2019, respectively.

Revenue in the Life Sciences segment in the six months ended September 30, 2019, was $379 thousand as compared to $642 thousand in the six months ended September 30, 2020, albeit with a change in product mix.

At the same time, revenue in our Infrastructure segment for the six months ended September 30, 2019, was $3,091 thousand and $67 thousand in the six months ended September 30, 2020, relating to sales of infrastructure related physical commodities and execution of construction contract respectively.

Primarily due to COVID-19, we have limited visibility on when either of our segments will stabilize and become predictable.

We expect volatility in both segments in the foreseeable future.

We expect to be opportunistic in providing personal protection equipment, including hand sanitizers, as the country reopens from the pandemic.

Cost of revenue – Cost of revenue amounted to approximately $538 thousand for three months ended June 30, 2020, compared to $1,608 thousand in three months ended June 30, 2019.

The cost of revenue in the quarter ended June 30, 2020, is primarily attributable to raw materials that are required to produce our products.

Cost of revenue – Cost of revenue amounted to approximately $637 thousand for the six months ended September 30, 2020, compared to $3,401 thousand in the six months ended September 30, 2019.

The cost of revenue in the six months ended September 30, 2020, is primarily attributable to raw materials that are required to produce our products.

Selling, general and administrative expenses increased by approximately $506 thousand or 41% to $1,755 thousand for three months ended June 30, 2020, from $1,249 thousand for three months ended June 30, 2019.

The year over year increase of $0.5 million is attributed to a one-time settlement of all derivative lawsuits at $200 thousand, a payroll accrual of $200 thousand and increased legal expenses of around $100 thousand.

We expect general and administrative expenses to decrease as one-time legal and other one-time expenses are expected to abate over the rest of this year.

Selling, general and administrative expenses increased by approximately $895 thousand or 38% to $3,238 thousand for the six months ended September 30, 2020, from $2,343 thousand for the six months ended September 30, 2019.

The increase of approximately $0.9 million is attributed to a one-time settlement expense of approximately $50 thousand, a payroll accrual of approximately $200 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 year.

| September 30, 2020 Form 10-Q

Research and Development expenses – R&D expenses were attributed to our Life Sciences segment.

The R&D expenses for the three months ended June 30, 2020, is about $222 thousand and about $247 thousand for three months ended June 30, 2019.

The R&D expenses for the six months ended September 30, 2020, is approximately $441 thousand and approximately $469 thousand for the six months ended September 30, 2019.

We expect R&D expenses to increase as we begin Phase 1 trials on IGC-AD1.

We expect R&D expenses to increase with Phase 1 trials on IGC-AD1.

All research and development costs are expensed in the quarter in which they are incurred.

Other Income, net – Other net income decreased by approximately $27 thousand or 36% during three months ended June 30, 2020.

The total other income for three months ended June 30, 2020 and 2019 is approximately $49 thousand and $76 thousand, respectively.

During the three months ended June 30, 2020, such amount includes interest income, rental income and approximately $10 thousand dividend income and approximately $7 thousand unrealized gain from marketable securities, net.

| June 30, 2020 Form 10-Q

Other Income, net – Other net income decreased by approximately $117 thousand or 63% during the six months ended September 30, 2020.

The total other income for the six months ended September 30, 2020 and 2019 is approximately $68 thousand and $185 thousand, respectively.

Other income includes interest income, rental income, dividend income and unrealized gain from marketable securities, net, and income from sale of scrap, among others.

Liquidity and Capital Resources

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(in thousands, unaudited)

June 30, 2020

September 30, 2020

March 31, 2020

Percent Change

Cash, cash equivalents and marketable securities

Cash and cash equivalents

Working capital

Cash and cash equivalents

Cash and cash equivalents decreased by approximately $4,555 thousand to $2,703 thousand in the three months ended June 30, 2020, from $7,258 thousand as of March 31, 2020, a decrease of approximately 63%.

The major decrease in three months ended June 30, 2020, was due to $944 thousand in purchase of property, plant, and equipment and $2,277 thousand investment in inventory.

Cash and cash equivalents decreased by approximately $6,107 thousand to $1,151 thousand in the six months ended September 30, 2020, from $7,258 thousand as of March 31, 2020, a decrease of approximately 84%.

A major decrease in our cash and cash equivalents in the six months ended September 30, 2020, was due to $1,229 thousand used in purchase of property, plant, and equipment and a $2,439 thousand investment in inventory.

In addition, cash and cash equivalents decreased as a result of our net losses of approximately $3,539 thousand during the six months ended September 30, 2020.

| September 30, 2020 Form 10-Q

Summary of Cash flows

(in thousands, unaudited)

Three months ended June 30,

Six months ended September 30,

Percent Change

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Cash and cash equivalents at the end of the period

| June 30, 2020 Form 10-Q

Operating Activities

Net cash used in operating activities for the three months ended June 30, 2020, was approximately $4 million.

Net cash used in operating activities for the six months ended September 30, 2020, was approximately $6 million.

This consists of a net loss of approximately $3.5 million and non-cash items totaling approximately $550 thousand, which in turn consist of an amortization/depreciation charge of approximately $185 thousand and stock-based expenses totaling approximately $365 thousand.

Changes in operating assets and liabilities had a negative impact of approximately $2.35 million on cash, of which approximately $2.28 million was due to increase in inventory.

Net cash used in operating activities for the three months ended June 30, 2019, was approximately $2.9 million.

Cash was consumed from continuing operations, with the net loss of approximately $1.4 million, non-cash items totaling approximately $225 thousand, consisting of a depreciation charge of approximately $17 thousand and stock-based expenses totaling approximately $208 thousand and changes in working capital accounts had a negative impact of approximately $1,718 thousand on cash.

Changes in operating assets and liabilities had a negative impact of approximately $3.5 million on cash, of which approximately $2.4 million was due to an increase in inventory..

Net cash used in operating activities for the six months ended September 30, 2019 was $4.4 million.

Cash was consumed from continuing operations, with the net loss of $2.6 million, non-cash items totaling $406 thousand, consisting of a depreciation charge of $45 thousand and stock-based expenses totaling $361 thousand and changes in working capital accounts had a negative impact of $2.3 million on cash.

Investing Activities

Net cash used in investing activities for the three months ended June 30, 2020, was $1.1 million, which is comprised of approximately $26 thousand for the acquisition and filing expenses related to patents and trademarks, purchase of property, plant and equipment of $944 thousand and investments of approximately $149 thousand in non-marketable securities and $17 thousand in marketable securities.

Net cash used in investing activities during the three months ended June 30, 2019, was $6.2 million, which is comprised of approximately $1,173 thousand for purchase of office space, plant and equipment among others, $5,009 thousand for investment in a money market mutual fund and $4 thousand of acquisition and filing of patents.

Net cash used in investing activities for the six months ended September 30, 2020, was $195 thousand, which is comprised of approximately $48 thousand for the acquisition and filing expenses related to patents and trademarks, purchase of property, plant and equipment of $1.2 million and investments of approximately $149 thousand in non-marketable securities and proceeds of $1.2 million from marketable securities.

Net cash used in investing activities during the six months ended September 30, 2019 was $7.1 million which is comprised of approximately $2 million for the purchase of office space, plant and equipment among others, $5 million for investment in a marketable securities and $23 thousand for the acquisition and filing of patents.

Financing Activities

Net cash provided by financing activities was $580 thousand for the three months ended June 30, 2020, consisting of proceeds from loans.

Net cash provided by financing activities was $530 thousand for the six months ended September 30, 2020, which is comprised of proceeds from loans.

Please refer Note 11, “Loans and Other Liabilities” for further information.

There were no financing activities during the three months ended June 30, 2019.

Cash provided by financing activities of approximately $18 thousand during the six months ended September 30, 2019 consisted of share options previously issued to advisor.

| September 30, 2020 Form 10-Q

Off-Balance Sheet Arrangements

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We have a cybersecurity policy in place and tighter cybersecurity measures to safeguard against hackers.

There were no impactful breaches in cybersecurity during the three months ended June 30, 2020.

Please see our disclosures in Note 2 – Summary of Significant Accounting Policies to the Notes to the Unaudited Condensed Consolidated Financial Statements in this report, in the Notes to the Audited Consolidated Financial Statements in Part II of our Annual Report on Form 10-K for the fiscal year ended March 31, 2020, filed with the SEC on July 13, 2020, as well as Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations in the same annual report, for a discussion of all our critical and significant accounting policies.

| June 30, 2020 Form 10-Q

There were no impactful breaches in cybersecurity during the six months ended September 30, 2020.

Please see our disclosures in Note 2 – Summary of Significant Accounting Policies to the Notes to the Unaudited Condensed Consolidated Financial Statements in this report, in the Notes to the Audited Consolidated Financial Statements in the 2020 Form 10-K, as well as Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2020 Form 10-K, for a discussion of all our critical and significant accounting policies.

Recent Accounting Pronouncements

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis