3 unchanged sentences
(in thousands, except share data)
−Removed: June 30, 2023
+Added: September 30, 2023
March 31, 2023
25 unchanged sentences
Preferred stock, $ 0.0001 par value:
−Removed: authorized 1,000,000 shares, no shares issued or outstanding as of June 30, 2023, and March 31, 2023.
+Added: authorized 1,000,000 shares, no shares issued or outstanding as of September 30, 2023, and March 31, 2023.
Common stock and additional paid-in capital, $ 0.0001 par value:
150,000,000 shares authorized;
−Removed: 53,077,436 shares issued and outstanding as of June 30, 2023, and March 31, 2023, respectively.
+Added: 63,706,939 and 53,077,436 shares issued and outstanding as of September 30, 2023, and March 31, 2023, respectively.
Accumulated other comprehensive loss
3 unchanged sentences
The accompanying notes should be read in connection with these Condensed Consolidated Financial Statements.
−Removed: | June 30, 2023, Form 10-Q
+Added: | September 30, 2023, Form 10-Q
IGC Pharma, Inc.
1 unchanged sentence
(in thousands, except loss per share and share data)
−Removed: Three months ended June 30,
+Added: Three months ended
+Added: September 30,
+Added: Six months ended
+Added: September 30,
Cost of revenue
8 unchanged sentences
Comprehensive loss
−Removed: Loss per share attributable to common stockholders:
+Added: Net loss per share attributable to common stockholders:
Basic and diluted
−Removed: Weighted-average number of shares used in computing loss per share amounts:
+Added: Weighted-average number of shares used in computing net loss per share amounts:
The accompanying notes should be read in connection with these Condensed Consolidated Financial Statements.
−Removed: | June 30, 2023, Form 10-Q
+Added: | September 30, 2023, Form 10-Q
IGC Pharma, Inc.
1 unchanged sentence
(in thousands)
+Added: Three months ended September 30, 2022
Common Shares
4 unchanged sentences
Total Stockholders’
−Removed: Balances as of March 31, 2022
+Added: Balances as of June 30, 2022
Common stock-based compensation & expenses, net
−Removed: Net proceeds from the issuance of common stock
+Added: Issuance of common stock through offering (net of expenses)
+Added: Cancellation/forfeiture of shares
Foreign currency translation adjustments
+Added: Balances as of September 30, 2022
+Added: Three months ended September 30, 2023
Balances as of June 30, 2023
+Added: Common stock-based compensation & expenses, net
+Added: Issuance of common stock through offering (net of expenses)
+Added: Cancellation/forfeiture of shares
+Added: Foreign currency translation adjustments
+Added: Balances as of September 30, 2023
+Added: Six months ended September 30, 2022
+Added: Common Shares
+Added: Common Stock and
+Added: Additional Paid in
+Added: Accumulated Other
+Added: Comprehensive Loss
+Added: Total Stockholders’
Balances as of March 31, 2022
Common stock-based compensation & expenses, net
−Removed: Net proceeds from the issuance of common stock
−Removed: Foreign currency translation
−Removed: Balances as of June 30, 2023
+Added: Issuance of common stock through offering (net of expenses)
+Added: Cancellation/forfeiture of shares
+Added: Foreign currency translation adjustments
+Added: Balances as of September 30, 2022
+Added: Six months ended September 30, 2023
+Added: Balances as of March 31, 2023
+Added: Common stock-based compensation & expenses, net
+Added: Issuance of common stock through offering (net of expenses)
+Added: Cancellation/forfeiture of shares
+Added: Foreign currency translation adjustments
+Added: Balances as of September 30, 2023
The accompanying notes should be read in connection with these Condensed Consolidated Financial Statements.
−Removed: | June 30, 2023, Form 10-Q
+Added: | September 30, 2023, Form 10-Q
IGC Pharma, Inc.
1 unchanged sentence
(in thousands)
−Removed: Three months Ended
+Added: Six months Ended
+Added: September 30,
Cash flows from operating activities:
14 unchanged sentences
Sale of property, plant, and equipment
+Added: Investment in short term investments
Acquisition and filing cost of patents and rights
−Removed: Net cash used in investing activities
+Added: Net cash provided by investing activities
Cash flows from financing activities:
1 unchanged sentence
Repayment of long-term loan
−Removed: Net cash used in financing activities
+Added: Net cash provided by financing activities
Effects of exchange rate changes on cash and cash equivalents
6 unchanged sentences
The accompanying notes should be read in connection with these Condensed Consolidated Financial Statements.
−Removed: | June 30, 2023, Form 10-Q
+Added: | September 30, 2023, Form 10-Q
IGC Pharma, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: THREE MONTHS ENDED JUNE 30, 2023
+Added: THREE MONTHS AND SIX MONTHS ENDED SEPTEMBER 30, 2023
(in thousands, except for share data and loss per share, unaudited)
4 unchanged sentences
NOTE 1 – BUSINESS DESCRIPTION
−Removed: IGC Pharma, Inc., is a clinical-stage pharmaceutical company with a diversified revenue model that develops prescription drugs and over-the-counter (OTC) products.
−Removed: We are a Maryland corporation established in 2005 with a fiscal year that is a 52- or 53-week period that ends on March 31.
−Removed: Our focus is on developing innovative therapies for neurological disorders such as Alzheimer’s disease, epilepsy, Tourette syndrome, and sleep disorders.
−Removed: We also focus on formulations for eating disorders, chronic pain, premenstrual syndrome (PMS), and dysmenorrhea, in addition to health and wellness OTC formulations.
−Removed: The Company is developing its proprietary lead candidate, IGC-AD1, an investigational oral therapy for the treatment of agitation associated with Alzheimer’s disease.
−Removed: IGC-AD1 is currently in Phase 2 (Phase 2B) clinical trials after completing nearly a decade of research and realizing positive results from pre-clinical and a Phase 1 trial.
−Removed: This previous research into IGC-AD1 has demonstrated efficacy in reducing plaques and tangles, which are two important hallmarks of Alzheimer’s, as well as reducing neuropsychiatric symptoms associated with dementia in Alzheimer’s disease, such as agitation.
−Removed: IGC has two segments:
+Added: IGC Pharma is a clinical-stage pharmaceutical company developing novel therapies for Alzheimer’s disease and conditions related to the central nervous system.
+Added: The company is pursuing five assets:
+Added: IGC-AD1, TGR-63, LMP, IGC-1C, and IGC-M3, all of which target Alzheimer’s disease and are at various stages of development.
+Added: Our most clinically advanced investigational new drug for Alzheimer’s, IGC-AD1, has shown significant promise in preclinical studies.
+Added: In Alzheimer’s cell lines, IGC-AD1 has demonstrated the potential to effectively suppress or ameliorate two key hallmarks of Alzheimer’s disease:
+Added: plaques and tangles.
+Added: In animal models, it has shown effectiveness in improving memory.
+Added: Furthermore, in a Phase 1 multiple ascending dose (MAD) trial, it exhibited potential efficacy in reducing neuropsychiatric symptoms, including agitation, anxiety, and depression.
+Added: IGC-AD1 is currently in a Phase 2B, multi-center, randomized, double-blind, placebo-controlled trial, specifically designed to address agitation in dementia from Alzheimer’s disease (clinicaltrials.gov, NCT05543681).
+Added: This condition affects more than 10 million individuals in North America and Europe.
+Added: The trial is being conducted at 10 sites in the US and Canada.
+Added: Our portfolio includes four other small molecule assets, each at distinct stages of development, all with a singular mission — to transform the landscape of Alzheimer's treatment.
+Added: LMP targets neuroinflammation, Aβ plaques, and neurofibrillary tangles, TGR-63 targets Aβ plaque, where we seek to disrupt the progression of Alzheimer's disease.
+Added: IGC-M3 targets the inhibition of Aβ plaque aggregation with the potential to create a profound impact on early-stage Alzheimer’s.
+Added: IGC-1C targets tau and neurofibrillary tangles, IGC-1C represents a forward-thinking approach to Alzheimer's therapy.
+Added: Furthermore, IGC controls a total of 36 patent filings.
+Added: IGC maintains a state-of-the-art manufacturing facility in Washington State, which is poised for potential use in a Phase 3 trial and commercialization of IGC-AD1.
+Added: In Bogota, Colombia, we also operate an R&D laboratory and an internal Contract Research Organization (CRO) that provides clinical trial services.
+Added: We are actively expanding our technological capabilities with a primary focus on Generative Artificial Intelligence (AI) to enhance various aspects of clinical trial operations and data analysis.
+Added: Our Company is investing in and driving AI development with an immediate focus on clinical trial processes, and analysis.
+Added: Our AI initiatives are centered on informing clinical trials, developing a methodology for early detection of Alzheimer’s, and investigating the interaction of pharmaceuticals with cannabinoids.
+Added: Collectively, these core assets and initiatives underscore our commitment to advancing the field of pharmaceuticals, delivering groundbreaking treatments, and creating lasting value for our investors.
+Added: We remain steadfast in our pursuit of excellence and our mission to improve the lives of those affected by Alzheimer’s and related conditions.
+Added: Our manufacturing facility is also utilized to produce women’s wellness products under the brand “Holief.” IGC Pharma is a Maryland corporation established in 2005 with a fiscal year ending on March 31, spanning a 52- or 53-week period.
+Added: The company operates in two primary business segments:
Life Sciences and Infrastructure.
3 unchanged sentences
As a company engaged in the clinical-stage pharmaceutical industry, we focus our research and development efforts, subject to results of future clinical trials, on seeking pharmaceutical solutions that may a) alleviate neuropsychiatric symptoms such as agitation, anxiety, and depression associated with dementia in Alzheimer’s disease; and b) halt the onset, progression, or cure Alzheimer’s disease.
−Removed: The Company currently has two main investigational small molecules in various stages of development:
−Removed: 1) IGC-AD1 , our proprietary lead therapeutic candidate, is a Tetrahydrocannabinol (THC) based formulation that has demonstrated in Alzheimer’s cell lines the potential to reduce the buildup of Aβ plaques and the potential to decrease or inhibit the phosphorylation of tau, a protein that is responsible for the formation of neurofibrillary tangles (NFTs), both important hallmarks of Alzheimer’s.
−Removed: In addition, Phase 1 human trial results demonstrated IGC-AD1’s potential to reduce agitation in dementia due to Alzheimer’s.
−Removed: IGC-AD1 is currently in Phase 2B trials for treating agitation in dementia from Alzheimer’s, a condition that affects over 10 million individuals in North America and Europe, and
−Removed: 2) TGR-63 , non-cannabinoid small molecule that has shown promise in pre-clinical trials for reducing amyloid burden in an Alzheimer’s disease model.
−Removed: In Alzheimer’s, the accumulation of beta-amyloid protein in the brain leads to the formation of Aβ plaques, which are associated with neurotoxicity and cell dysfunction, ultimately leading to cell death and cognitive decline.
−Removed: The potential efficacy of TGR-63 lies in its ability to inhibit the aggregation of beta-amyloid.
−Removed: If shown to be safe and efficacious in human trials in reducing the formation of Aβ plaques, this molecule could halt the neurotoxic process caused by beta-amyloid, thereby preventing or treating Alzheimer’s.
−Removed: | June 30, 2023, Form 10-Q
+Added: | September 30, 2023, Form 10-Q
Over-the-Counter Products :
2 unchanged sentences
The products are available online and through Amazon and other online channels.
−Removed: In addition, we sell our product formulations to other companies that market them under their brand.
−Removed: This is the white label part of the OTC business.
−Removed: Phase 2 Clinical Trial
−Removed: Typically, a Phase 2 trial is divided into a Phase 2A and a Phase 2B trial with the former designed to assess dosing requirements and the latter to establish efficacy.
−Removed: In this document, we refer to the trial as Phase 2 and Phase 2B interchangeably.
−Removed: The Company has initiated a Phase 2B protocol titled “A Phase 2, Multi-Center, Double-Blind, Randomized, Placebo-controlled, trial of the safety and efficacy of IGC-AD1 on agitation in participants with dementia due to Alzheimer’s disease”.
−Removed: The protocol is powered at 146 Alzheimer’s patients, with half receiving placebo, and is a superiority, parallel group study.
+Added: In addition, we white label our product formulations to other companies that market them under their brand.
+Added: Phase 2 Clinical Trial Update
+Added: In this document, we use the terms Phase 2 and Phase 2B interchangeably, though typically, a Phase 2 trial is divided into a Phase 2A and a Phase 2B trial.
+Added: Phase 2A is designed to assess dosing requirements, while Phase 2B is intended to establish efficacy.
+Added: Our company has started a Phase 2B protocol called “A Phase 2, Multi-Center, Double-Blind, Randomized, Placebo-controlled trial of the safety and efficacy of IGC-AD1 on agitation in participants with dementia due to Alzheimer’s disease.” The trial is powered at 146 Alzheimer’s patients, with half receiving a placebo, and is a superior, parallel-group study.
The primary end point is agitation in dementia due to Alzheimer’s disease, as rated by the Cohen-Mansfield Agitation Inventory (CMAI) over a six-week period.
1 unchanged sentence
In addition, the trial will evaluate the impact of CYP450 polymorphisms and specifically CYP2C9 on each of the NPS and assess any reductions in psychotropic drugs, among others.
−Removed: CYP2C9 ranks amongst the most important drug metabolizing enzymes in humans, as it breaks down over 100 drugs, including nonsteroidal anti-inflammatory all drugs.
+Added: CYP2C9 ranks amongst the most important drug metabolizing enzymes in humans, as it breaks down over 100 drugs, including nonsteroidal anti-inflammatory drugs.
We seek to understand how various versions of the enzyme act on IGC-AD1.
Each participant will receive two doses of IGC-AD1 (b.i.d.) or two doses of placebo per day for six weeks.
+Added: Infrastructure Segment
+Added: The Company’s infrastructure business has been operating since 2008.
+Added: It includes (i) execution of construction contracts and (ii) rental of heavy construction equipment.
Business Organization
−Removed: As of June 30, 2023, the Company had the following operating subsidiaries:
+Added: As of September 30, 2023, the Company had the following operating subsidiaries:
Techni Bharathi Private Limited (TBL), IGCare LLC, Holi Hemp LLC, IGC Pharma LLC, SAN Holdings LLC, Sunday Seltzer LLC, Hamsa Biopharma India Pvt.
−Removed: And Colombia-based beneficially-owned subsidiary IGC Pharma SAS (formerly Hamsa Biopharma Colombia SAS) (Hamsa).
+Added: Ltd., Colombia-based beneficially-owned subsidiary IGC Pharma SAS (formerly Hamsa Biopharma Colombia SAS) and IGC Pharma IP LLC.
The Company’s fiscal year is the 52- or 53-week period that ends on March 31.
−Removed: The Company’s principal office is in Maryland established in 2005.
+Added: The Company’s principal office is in Maryland.
Additionally, the Company has offices in Washington state, Colombia, and India.
The Company’s filings are available on www.sec.gov.
+Added: IGC Pharma, Inc.
+Added: was incorporated in 2005.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
−Removed: The accompanying condensed consolidated Balance Sheet as of June 30, 2023, and March 31, 2023, condensed consolidated statements of operations for the three months ended June 30, 2023, and 2022, and condensed consolidated statements of cash flows for the three months ended June 30, 2023, and 2022, are unaudited.
−Removed: The consolidated balance sheet as of March 31, 2023, has been derived from audited financial statements, and the accompanying as of June 30, 2023 unaudited condensed consolidated financial statements (“interim statements”) of the Company have been prepared in accordance with accounting principles generally accepted in the U.S.
+Added: The accompanying condensed consolidated Balance Sheet as of September 30, 2023, and March 31, 2023, condensed consolidated statements of operations for the three months and six months ended September 30, 2023, and 2022, and condensed consolidated statements of cash flows for the six months ended September 30, 2023, and 2022, are unaudited.
+Added: The consolidated balance sheet as of March 31, 2023, has been derived from audited financial statements, and the accompanying as of September 30, 2023 unaudited condensed consolidated financial statements (“interim statements”) of the Company have been prepared in accordance with accounting principles generally accepted in the U.S.
GAAP”) as determined by the Financial Accounting Standards Board (the “FASB”) within its Accounting Standards Codification (“ASC”) and under the rules and regulations of the SEC.
4 unchanged sentences
These interim statements should be read in conjunction with the Company’s audited consolidated financial statements for the fiscal year ended March 31, 2023 (“Fiscal 2023”) contained in the Company’s Form 10-K for Fiscal 2023, filed with the SEC on July 7, 2023, specifically in Note 2 to the consolidated financial statements.
−Removed: | June 30, 2023, Form 10-Q
+Added: | September 30, 2023, Form 10-Q
Principles of consolidation
22 unchanged sentences
If the financial condition of a customer deteriorates, additional allowances may be required.
−Removed: We had $ 17 thousand of provision for the doubtful debt of $ 225 thousand as of June 30, 2023, as compared to $ 107 thousand of accounts receivable as of March 31, 2023.
+Added: We had $ 137 thousand of accounts receivable, net of provision for the doubtful debt of $ 12 thousand as of September 30, 2023, as compared to $ 107 thousand of accounts receivable, net of provision for the doubtful debt of $ 17 thousand as of March 31, 2023.
Loss per share
−Removed: The computation of basic loss per share for the three months ended June 30, 2023, excludes potentially dilutive securities of approximately 10 million shares which includes share options, unvested shares such as restricted shares and restricted share units, granted to employees, non-employees, and advisors, and shares from the conversion of outstanding units, if any because their inclusion would be anti-dilutive.
−Removed: In addition, the Company entered into a private placement agreement on June 30, 2023.
−Removed: As per the terms of the agreement, the Company will issue 10 million shares of unregistered common stock.
−Removed: The weighted average number of shares outstanding for the three months ended June 30, 2023, and 2022, used for the computation of basic earnings per share (“EPS”) is 53,077,436 and 51,616,598 , respectively.
−Removed: Due to the loss incurred by the Company during the three months ended June 30, 2023, and 2022, all the potential equity shares are anti-dilutive, and accordingly, the fully diluted EPS is equal to the basic EPS.
−Removed: | June 30, 2023, Form 10-Q
+Added: The computation of basic loss per share for the six months ended September 30, 2023, excludes potentially dilutive securities of approximately 9 million shares, which includes share options, unvested shares such as restricted shares and restricted share units, granted to employees, non-employees, and advisors, and shares from the conversion of outstanding units, if any because their inclusion would be anti-dilutive.
+Added: The weighted average number of shares outstanding for the six months ended September 30, 2023, and 2022, used for the computation of basic earnings per share (“EPS”) is 53,695,912 and 52,082,096 , respectively, as compared to 54,301,087 and 52,194,098 for the three months ended September 30, 2023, and 2022, respectively.
+Added: Due to the loss incurred by the Company during the six months ended September 30, 2023, and 2022, all the potential equity shares are anti-dilutive, and accordingly, the fully diluted EPS is equal to the basic EPS.
+Added: | September 30, 2023, Form 10-Q
Cybersecurity
We have a cybersecurity policy in place and have taken cybersecurity measures to safeguard against hackers, however, there can be no assurance thereof.
−Removed: During the three months ended June 30, 2023, there were no impactful breaches in cybersecurity.
+Added: During the six months ended September 30, 2023, there were no impactful breaches in cybersecurity.
Revenue Recognition
10 unchanged sentences
Revenue in the Infrastructure segment is recognized for the renting business when the equipment is rented, and the terms of the agreement have been fulfilled during the period.
−Removed: Revenue from the execution of infrastructure contracts is recognized on the basis of the output method as and when part of the performance obligation has been completed and approval from the contracting agency has been obtained after survey of the performance completion as of that date.
+Added: Revenue from the execution of infrastructure contracts is recognized based on the output method as and when part of the performance obligation has been completed, and approval from the contracting agency has been obtained after survey of the performance completion as of that date.
In the Life Sciences segment, the revenue from the wellness and lifestyle business is recognized once goods have been sold to the customer and the performance obligation has been completed.
3 unchanged sentences
Revenue from white label services is recognized when the performance obligation has been completed, and output material has been transferred to the customer.
−Removed: Net sales disaggregated by significant products and services for the three months ended June 30, 2023, and 2022 are as follows:
+Added: Net sales disaggregated by significant products and services for the three months and six months ended September 30, 2023, and 2022 are as follows:
(in thousands)
−Removed: Three months ended June 30,
+Added: Three months ended
+Added: September 30, 2023
+Added: (in thousands)
+Added: September 30, 2022
+Added: (in thousands)
+Added: Six months ended
+Added: September 30, 2023
+Added: (in thousands)
+Added: Six months ended
+Added: September 30, 2022
Infrastructure segment (1)
10 unchanged sentences
Newly issued ASUs not listed are expected to have no impact on the Company’s consolidated financial position and results of operations, because either the ASU is not applicable, or the impact is expected to be immaterial.
−Removed: | June 30, 2023, Form 10-Q
+Added: | September 30, 2023, Form 10-Q
NOTE 3 – INVENTORY
(in thousands)
−Removed: June 30, 2023
+Added: September 30, 2023
March 31, 2023
2 unchanged sentences
Finished goods
−Removed: During the three months ended June 30, 2023, the Company wrote off approximately $ 20 thousand of inventory due to abnormal loss due to idle facility expense, freight, handling costs, scrap, and wasted material (spoilage).
+Added: During the six months ended September 30, 2023, and 2022, the Company wrote off approximately $ 3 thousand and $ 40 thousand of inventory due to abnormal loss due to idle facility expense, freight, handling costs, scrap, and wasted material (spoilage).
This charge was recorded in Selling, General, and Administrative Expenses.
We capitalize inventory costs related to our investigational drug, provided that management determines there is a potential alternative use for the inventory in future research and development projects or other purposes.
−Removed: As of June 30, 2023, and March 31, 2023, our consolidated balance sheet reported approximately $ 397 thousand and $ 407 clinical trial-related inventory, respectively.
+Added: As of September 30, 2023, and March 31, 2023, our consolidated balance sheet reported approximately $ 397 thousand and $ 407 thousand clinical trial-related inventory, respectively.
NOTE 4 – DEPOSITS AND ADVANCES
(in thousands)
−Removed: June 30, 2023
+Added: September 30, 2023
March 31, 2023
2 unchanged sentences
Prepaid expenses and other current assets
−Removed: The Advances to suppliers and consultants primarily relate to advances to suppliers in our Life Sciences and Infrastructure segments.
−Removed: Prepaid expenses and other current assets include approximately $ 21 thousand of statutory advances as of June 30, 2023, as compared to $ 25 thousand as of March 31, 2023.
+Added: The Advances to suppliers and consultants primarily relate to advances to vendors.
+Added: Prepaid expenses and other current assets include approximately $ 25 thousand of statutory advances as of September 30, 2023, and March 31, 2023, respectively.
NOTE 5 – INTANGIBLE ASSETS
(in thousands)
−Removed: June 30, 2023
+Added: September 30, 2023
March 31, 2023
7 unchanged sentences
Total intangible assets
−Removed: | June 30, 2023, Form 10-Q
+Added: | September 30, 2023, Form 10-Q
The value of intangible assets includes the cost of acquiring patent rights, supporting data, and the expense associated with filing of patent applications.
1 unchanged sentence
The intangible with finite life is up to 20 years are amortized on straight-line basis, commencing from the date of grant or acquisition.
−Removed: The amortization expense in the three months ended June 30, 2023, and 2022, amounted to approximately $ 18 thousand and $ 10 thousand, respectively.
−Removed: The Company regularly reviews its intangible assets to determine if any intangible asset is other-than-temporarily impaired, which would require the Company to record an impairment charge in the period and concluded that, as of June 30, 2023, there was no impairment.
+Added: The amortization expense in the three months ended September 30, 2023, and 2022, amounted to approximately $ 18 thousand and $ 14 thousand, respectively, whereas the amortization expense in the six months ended September 30, 2023, and 2022 amounted to approximately $ 36 thousand and $ 24 thousand, respectively.
+Added: The Company regularly reviews its intangible assets to determine if any intangible asset is other-than-temporarily impaired, which would require the Company to record an impairment charge in the period and concluded that, as of September 30, 2023, there was no impairment.
Estimated annual amortization expense
8 unchanged sentences
Useful Life (years)
−Removed: June 30, 2023
+Added: September 30, 2023
March 31, 2023
7 unchanged sentences
Total property, plant, and equipment, net
−Removed: The depreciation expense in the three months ended June 30, 2023, and 2022 amounted to approximately $ 137 thousand and $ 152 thousand, respectively.
+Added: The depreciation expense in the three months ended September 30, 2023, and 2022 amounted to approximately $ 140 thousand and $ 156 thousand, respectively.
+Added: The depreciation expense in the six months ended September 30, 2023, and 2022 amounted to approximately $ 277 thousand and $ 308 thousand, respectively.
The net decrease in Total property, plant, and equipment is primarily due to depreciation.
−Removed: The Company sold a fully depreciated property in India for net proceeds of approximately $ 43 thousand and accounted for a profit of approximately $ 43 thousand in other income.
+Added: During the six months ended September 2023, the Company sold a fully depreciated property in India for net proceeds of approximately $ 43 thousand and accounted the same in other income.
For more information, please refer to Note 16 – “Segment Information” for the non-current assets other than financial instruments held in the country of domicile and foreign countries.
NOTE 7 – LEFT BLANK INTENTIONALLY
−Removed: | June 30, 2023, Form 10-Q
+Added: | September 30, 2023, Form 10-Q
NOTE 8 – CLAIMS AND ADVANCES
(in thousands)
−Removed: June 30, 2023
+Added: September 30, 2023
March 31, 2023
8 unchanged sentences
(in thousands)
−Removed: June 30, 2023
+Added: September 30, 2023
March 31, 2023
5 unchanged sentences
In addition, provision for expenses includes provision for legal, professional, and marketing expenses.
−Removed: Other current liability also includes statutory payables of approximately $ 48 thousand and $ 31 thousand as of June 30, 2023, and March 31, 2023, respectively, and approximately $ 3 thousand of short-term loans as of June 30, 2023, and March 31, 2023, respectively.
+Added: Other current liability also includes statutory payables of approximately $ 37 thousand and $ 31 thousand as of September 30, 2023, and March 31, 2023, respectively, and approximately $ 3 thousand of short-term loans as of September 30, 2023, and March 31, 2023, respectively.
NOTE 11 – LOANS AND OTHER LIABILITIES
−Removed: Loan as of June 30, 2023:
+Added: Loan as of September 30, 2023:
On June 11, 2020, the Company received an Economic Injury Disaster Loan (“EIDL”) for approximately $ 150 thousand at an annual interest rate of 3.75 %.
The Company must pay principal and interest payments of $ 731 every month beginning June 5, 2021.
−Removed: The SBA will apply each installment payment first to pay interest accrued to the day SBA receives the payment and will then apply any remaining balance to reduce principal.
+Added: The SBA will apply each installment payment first to pay interest accrued to the day the SBA receives the payment and will then apply any remaining balance to reduce the principal.
All remaining principal and accrued interest is due and payable 30 years from the date of the loan.
−Removed: For the three months ended June 30, 2023, and June 30, 2022, the interest expense and principal payment for the EIDL was approximately $ 1 thousand and $ 1 thousand, respectively.
−Removed: As of June 30, 2023, approximately $ 140 thousand of the loan is classified as Long-term loans and approximately $ 3 thousand as Short-term loans.
−Removed: On June 30, 2023, the Company successfully entered into a Master Loan and Security Agreement (the “Credit Agreement”) with O-Bank, CO., LTD., pursuant to which the Company may borrow up to $ 12 million.
−Removed: The Credit Agreement serves to satisfy ongoing liquidity requirements and ensure the Company’s ability to sustain its operations.
−Removed: The Credit Agreement matures on June 30, 2024, with an option to renew.
−Removed: Borrowings under the Credit Agreement will bear interest, calculated according to the interest rate mentioned in the Certificate of Deposit (as defined in the Credit Agreement), as the case may be, plus an applicable margin of 1 %, and the Company shall bear the tax.
−Removed: Interest is due and payable in full by the Company on the last business day of each interest period.
−Removed: As of June 30, 2023, the entire amount of $ 12 million remains unused.
−Removed: | June 30, 2023, Form 10-Q
+Added: For the six months ended September 30, 2023, the interest expense and principal payment for the EIDL were approximately $ 3 thousand and $ 2 thousand, respectively.
+Added: For the six months ended September 30, 2022, the interest expense and principal payment for the EIDL were approximately $ 2 thousand each.
+Added: As of September 30, 2023, approximately $ 139 thousand of the loan is classified as Long-term loans and approximately $ 3 thousand as Short-term loans.
+Added: | September 30, 2023, Form 10-Q
+Added: On June 30, 2023, the Company entered into a Master Loan and Security Agreement with O-Bank, CO., LTD.
+Added: (the “Credit Agreement”), pursuant to which the Company may borrow up to $ 12 million, which will be used to fulfill liquidity requirements and ensure the Company’s ability to sustain its operations.
+Added: The Credit Agreement matures June 30, 2024, with an option to renew.
+Added: Interest on borrowings will be calculated according to the interest rate stated in the Certificate of Deposit (as defined in the Credit Agreement), plus an applicable margin of 1 %, and the Company will bear the tax.
+Added: The Company must pay the interest in full on the last business day of each interest period.
+Added: As of September 30, 2023, the Company has not yet used any of the $ 12 million available under the Credit Agreement.
Other Liability:
(in thousands)
−Removed: June 30, 2023
+Added: September 30, 2023
March 31, 2023
4 unchanged sentences
Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.
−Removed: There are no such matters that are deemed material to the condensed consolidated financial statements as of June 30, 2023, except as disclosed in legal proceedings section below.
+Added: There are no such matters that are deemed material to the condensed consolidated financial statements as of September 30, 2023, except as disclosed in the legal proceedings section below.
In the U.S., we provide health insurance, life insurance, and a 401(k) plan wherein the Company matches up to 6 % of the employee’s pre-tax contribution up to a maximum annual amount determined by the IRS.
−Removed: In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (“Gratuity Plan”) covering certain categories of employees.
+Added: In accordance with applicable laws of foreign countries, the Company provides for gratuity, a defined benefit retirement plan (“Gratuity Plan”) covering certain categories of employees.
The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, an amount based on the respective employee’s last drawn salary and the years of employment with the Company.
In addition, employees receive benefits from a provident fund, a defined contribution plan.
−Removed: The employee and employer each make monthly contributions to the plan equal to 12 % of the covered employee’s salary.
−Removed: The contribution is made to the Indian Government’s provident fund.
+Added: The employee and employer each make monthly contributions to the plan as required by the law.
+Added: The contribution is made to the Foreign Government’s funds.
NOTE 13 – SECURITIES
−Removed: As of June 30, 2023, the Company was authorized to issue up to 150,000,000 shares of common stock, par value $ 0.0001 per share, and 53,077,436 shares of common stock were issued and outstanding.
−Removed: The Company is also authorized to issue up to 1,000,000 shares of preferred stock, par value $ 0.0001 per share, and no preferred shares were issued and outstanding as of June 30, 2023.
+Added: As of September 30, 2023, the Company was authorized to issue up to 150,000,000 shares of common stock, par value $ 0.0001 per share, and 63,706,939 shares of common stock were issued and outstanding.
+Added: The Company is also authorized to issue up to 1,000,000 shares of preferred stock, par value $ 0.0001 per share, and no preferred shares were issued and outstanding as of September 30, 2023.
Our common stock is listed on the NYSE American (ticker symbol:
3 unchanged sentences
The unit holders are requested to contact the Company or our transfer agent, Continental Stock Transfer and Trust, to separate their units into common stock.
−Removed: On January 13, 2021, the Company entered into a Sales Agreement (the “Agreement”) with The Benchmark Company, LLC (the “Sales Agent”) pursuant to which the Sales Agent is acting as the Company’s sales agent with respect to the issuance and sale of up to $ 75,000,000 of the Company’s shares of common stock, par value $ 0.0001 per share (the “Shares”), from time to time in an “at the market” (“ATM”) offering as defined in Rule 415(a)(4) of the Securities Act of 1933, as amended (the “Securities Act”).
−Removed: On June 30, 2023, the Company entered into a SPA with Bradbury Asset Management and three unrelated investors resulting in approximately $ 3 million in gross proceeds.
−Removed: The completion of the private placement is subject to customary closing conditions, including approval by the NYSE.
−Removed: Under the terms of the private placement, IGC will issue 10 million shares of unregistered common stock at a price of $ 0.30 per share.
−Removed: Shares are intended to be exempt from registration under the Securities Act, by virtue of the provisions of Section 4(a)(2) of the Securities Act and Regulation D and/or Regulation S adopted thereunder.
+Added: Pursuant to the December 18, 2014, Purchase Agreement with Apogee, we issued Apogee 1.2 million shares of IGC’s common stock valued at $ 888 thousand for the purchase of a 24.9 % ownership interest in Midtown Partners & Co., LLC (MTP).
+Added: During Fiscal 2018, after considering several factors, the Company concluded that it no longer had significant influence over MTP and maintained the same investment value of approximately $ 773 thousand.
+Added: During Fiscal 2020, the Company created a provision for this investment.
+Added: The Company initiated the litigation on February 8, 2021, against Apogee.
+Added: During the three months ended September 2023, the court’s ruling on the motion for summary judgment, the parties participated in a mediation where they agreed in principle to a settlement as to all claims against each other.
+Added: As per the summary judgement, Apogee returned 500 thousand of Company’s shares back and Company cancelled the shares.
+Added: For more information, kindly refer to Item 1 – Legal Proceedings for more information.
+Added: | September 30, 2023, Form 10-Q
+Added: On October 27, IGC Pharma, Inc.
+Added: (the “Company”) entered into a Sales Agreement (the “Agreement”) with A.G.P./Alliance Global Partners (the “Agent”) pursuant to which the Company may offer and sell, from time to time, through the Agent, as sales agent and/or principal, shares of its common stock, par value $ 0.0001 per share (the “Common Stock”), having an aggregate offering price of up to $ 60 million (“Shares”), subject to certain limitations on the amount of Common Stock that may be offered and sold by the Company set forth in the Sales Agreement (the “Offering”).
+Added: Prior to entering into the Sales Agreement with A.G.P./Alliance Global Partners, the Company terminated the Sales Agreement dated January 13, 2021, with The Benchmark Company.
NOTE 14 – STOCK-BASED COMPENSATION
−Removed: As of June 30, 2023, 10 million restricted share units (RSUs), fair valued at $ 7 million with a weighted average value of $ 0.70 per share, have been granted but not yet issued from different Incentive Plans and Grants.
+Added: As of September 30, 2023, 9 million restricted share units (RSUs), fair valued at $ 5.7 million with a weighted average value of $ 0.64 per share, have been granted but not yet issued from different Incentive Plans and Grants.
This includes 4.7 million RSUs granted to employees and directors, which consists of a vesting schedule based entirely on the attainment of both operational milestones and market conditions, assuming continued employment either as an employee or director with the Company.
The performance-based RSUs are accounted upon certification by Management, confirming the probability of achievement of milestones.
−Removed: As of June 30, 2023, Management confirmed three of the milestones had been achieved, and the rest were considered probable to be achieved by March 31, 2027.
−Removed: | June 30, 2023, Form 10-Q
+Added: As of September 30, 2023, Management confirmed three of the milestones had been achieved, and the rest were considered probable to be achieved by March 31, 2028.
Additionally, options held by advisors and directors to purchase 150 thousand shares of common stock fair valued at $ 69 thousand with a weighted average of $ 0.46 per share have been granted but are to be exercised over a service period ending in Fiscal 2031.
9 unchanged sentences
The expense associated with share-based payments to employees, directors, advisors, and contractors is allocated over the vesting or service period and recognized in the Selling, General, and Administrative expenses (including research and development).
−Removed: For the three months ended June 30, 2023, the Company’s share-based expense and option-based expense shown in Selling, general and administrative expenses (including research and development) were $ 354 thousand and $ 4 thousand, respectively and for the three months ended June 30, 2022, the Company’s share-based expense and option-based expense was $ 1.14 million and $ 8 thousand, respectively.
+Added: For the six months ended September 30, 2023, the Company’s share-based expense and option-based expense shown in Selling, General and Administrative expenses (including research and development) were $ 901 thousand and $ 6 thousand, respectively, and for the six months ended September 30, 2022, the Company’s share-based expense and option-based expense was $ 1.8 million and $ 17 thousand, respectively.
Non-vested shares
4 unchanged sentences
Cancelled/forfeited
−Removed: Non-vested shares as of June 30, 2023
+Added: Non-vested shares as of September 30, 2023
(in thousands)
5 unchanged sentences
Cancelled/forfeited
−Removed: Options outstanding as of June 30, 2023
+Added: Options outstanding as of September 30, 2023
+Added: | September 30, 2023, Form 10-Q
There was a combined unrecognized expense of $ 2.7 million related to non-vested shares and share options that the Company expects to be recognized over the weighted average life of 5 years.
NOTE 15 – FAIR VALUE OF FINANCIAL INSTRUMENTS
−Removed: As of June 30, 2023, the Company’s investments may consist of money market funds, debt and equity funds, and other marketable securities, among others which have been classified as Level 1 of the fair value hierarchy because they have been valued using quoted prices in active markets.
+Added: As of September 30, 2023, the Company’s investments may consist of money market funds, debt and equity funds, and other marketable securities, among others, which have been classified as Level 1 of the fair value hierarchy because they have been valued using quoted prices in active markets.
The Company’s cash and cash equivalents have also been classified as Level 1 on the same principle.
Financial instruments are classified as current if they are expected to be liquidated within the next twelve months.
−Removed: The Certificate of Deposits are classified as Level 2 as they do not have regular market pricing, but their fair value can be determined based on other data values or market prices.
+Added: The Certificates of Deposit are classified as Level 2 as they do not have regular market pricing, but their fair value can be determined based on other data values or market prices.
The Company’s remaining investments have been classified as Level 3 instruments as there is little or no market data.
Level 3 investments are valued using the cost method.
−Removed: | June 30, 2023, Form 10-Q
−Removed: The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of June 30, 2023, and March 31, 2023, and indicates the fair value hierarchy of the valuation techniques the Company used to determine such fair value:
+Added: The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2023, and March 31, 2023, and indicates the fair value hierarchy of the valuation techniques the Company used to determine such fair value:
(in thousands)
−Removed: As of June 30, 2023
+Added: As of September 30, 2023
Adjusted Cost
Cash Equivalents
+Added: Short Term Investments
Money Market Fund
−Removed: Certificate of Deposits
+Added: Certificates of Deposit
As of March 31, 2023
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Cash Equivalents
+Added: Short Term Investments
Money Market Fund
−Removed: Certificate of Deposits
+Added: Certificates of Deposit
+Added: | September 30, 2023, Form 10-Q
NOTE 16 – SEGMENT INFORMATION
2 unchanged sentences
The CODM evaluates revenues and gross profits based on product lines and routes to market.
−Removed: Based on our integration and Management strategies, we operate in two reportable segments:
−Removed: (i) Infrastructure segment and (ii) Life Sciences segment.
+Added: Based on our integration and Management strategies, we operate in two reportable segments, the (i) Infrastructure segment and (ii) Life Sciences segment.
The Company’s CODM is the Company’s Chief Executive Officer (CEO).
1 unchanged sentence
Therefore, and before our Life Sciences segment started, the Company determined that it operated in a single operating and reportable segment.
−Removed: As of the date of this report and in preparation for the new and different source of revenue, the Company has determined that it operates in two operating and reportable segments:
−Removed: (a) Infrastructure segment and (b) Life Sciences segment.
+Added: As of the date of this report and in preparation for the new and different source of revenue, the Company has determined that it operates in two operating and reportable segments, the (a) Infrastructure segment and (b) Life Sciences segment.
The Company does not include intercompany transfers between segments for Management reporting purposes.
−Removed: | June 30, 2023, Form 10-Q
The following provides information required by ASC 280-10-50-38 “Entity-wide Information”:
The table below shows revenue reported by segment:
−Removed: Products and Services
(in thousands)
Three months ended
−Removed: June 30, 2023
−Removed: Percentage of
−Removed: Total Revenue
−Removed: Infrastructure segment
−Removed: Life Sciences segment
+Added: September 30, 2023
(in thousands)
−Removed: Three months ended
−Removed: June 30, 2022
−Removed: Percentage of
−Removed: Total Revenue
+Added: September 30, 2022
+Added: (in thousands)
+Added: Six months ended
+Added: September 30, 2023
+Added: (in thousands)
+Added: Six months ended
+Added: September 30, 2022
Infrastructure segment
Life Sciences segment
+Added: Wellness and lifestyle
+Added: White labeling services
For information on revenue by product and service, refer to Note 2, “Summary of Significant Accounting Policies”.
3 unchanged sentences
Three months ended
−Removed: June 30, 2023
−Removed: Percentage of
−Removed: Total Revenue
+Added: September 30, 2023
+Added: Six months ended
+Added: September 30, 2023
(in thousands)
Three months ended
−Removed: June 30, 2022
−Removed: Percentage of
−Removed: Total Revenue
−Removed: | June 30, 2023, Form 10-Q
+Added: September 30, 2022
+Added: Six months ended
+Added: September 30, 2022
+Added: | September 30, 2023, Form 10-Q
3) The table below shows the non-current assets other than financial instruments held in the country of domicile (U.S.) and foreign countries.
4 unchanged sentences
(India, Hong Kong, and Colombia)
−Removed: June 30, 2023
+Added: September 30, 2023
Intangible assets, net
15 unchanged sentences
NOTE 17 – SUBSEQUENT EVENTS
−Removed: On July 11, 2023, the Canadian Intellectual Property Office issued a patent (#2,961,410) to the Company titled “CANNABINOID COMPOSITION AND METHOD FOR TREATING PAIN”.
−Removed: The patent relates to compositions and methods for treating multiple types of seizure disorders in humans using a combination of cannabinoids with other compounds.
−Removed: Subject to further research and study, the combination may be used for relieving pain in patients with psoriatic arthritis, fibromyalgia, scleroderma, shingles, and related pain-generating conditions.
−Removed: | June 30, 2023, Form 10-Q
+Added: On October 8, 2023, the European Intellectual Property Office issued a patent (#3193862) to the Company titled “CANNABINOID COMPOSITION AND METHOD FOR TREATING PAIN”.
+Added: The granted patent introduces a pioneering method for treating pain in humans.
+Added: Utilizing a cream base infused with a unique blend of cannabinoids, including tetrahydrocannabinol (THC) and cannabidiol (CBD), alongside other compounds, this revolutionary cream or gel is designed for transdermal absorption.
+Added: It interacts harmoniously with the peripheral nervous and immune systems, delivering effective pain relief without psychotropic or adverse side effects.
+Added: On October 27, IGC Pharma, Inc.
+Added: (the “Company”) entered into a Sales Agreement (the “Agreement”) with A.G.P./Alliance Global Partners (the “Agent”) pursuant to which the Company may offer and sell, from time to time, through the Agent, as sales agent and/or principal, shares of its common stock, par value $ 0.0001 per share (the “Common Stock”), having an aggregate offering price of up to $ 60 million (“Shares”), subject to certain limitations on the amount of Common Stock that may be offered and sold by the Company set forth in the Sales Agreement (the “Offering”).
+Added: Prior to entering into the Sales Agreement with A.G.P./Alliance Global Partners, the Company terminated the Sales Agreement dated January 13, 2021, with The Benchmark Company.
+Added: | September 30, 2023, Form 10-Q
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 IGC Pharma, Inc.’s (“IGC,” the “Company,” “we,” “our,” and/or “us”) consolidated financial condition and results of operations and cash flows.
−Removed: The MD&A 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, 2023, and the Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the SEC on July 7, 2023 (the “2023 Form 10-K”).
+Added: The MD&A 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 six months ended September 30, 2023, and the Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the SEC on July 7, 2023 (the “2023 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 expressly 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 outlined in the forward-looking statements.
−Removed: IGC Pharma, Inc.
−Removed: is a clinical-stage pharmaceutical company with a diversified revenue model that develops both prescription drugs and over-the-counter (OTC) products.
−Removed: Our focus is on developing innovative therapies for neurological disorders such as Alzheimer’s disease, epilepsy, Tourette syndrome, and sleep disorders.
−Removed: We also focus on formulations for eating disorders, chronic pain, premenstrual syndrome (PMS), and dysmenorrhea, in addition to health and wellness OTC formulations.
−Removed: The Company is developing its lead candidate, IGC-AD1, an investigational oral therapy for the treatment of agitation associated with Alzheimer’s disease.
−Removed: IGC-AD1 is currently in Phase 2 (Phase 2B) clinical trials after completing nearly a decade of research and realizing positive results from pre-clinical and a Phase 1 trial.
−Removed: This previous research into IGC-AD1 has demonstrated efficacy in reducing plaques and tangles, which are two important hallmarks of Alzheimer’s, as well as reducing neuropsychiatric symptoms associated with dementia in Alzheimer’s disease, such as agitation.
−Removed: We were formerly known as India Globalization Capital, Inc.
−Removed: and incorporated in Maryland on April 29, 2005.
−Removed: Our fiscal year is the 52- or 53-week period ending March 31.
−Removed: Currently, most of our revenue comes from the Life Sciences segment and, in the future, we believe, from our investigational drugs for treating Alzheimer’s disease.
−Removed: We have also built a facility for a potential Phase 3 trial and have strategic relations for the procurement of Active Pharmaceutical Ingredients (APIs).
−Removed: In addition, we have acquired and initiated work on TGR-63, a pre-clinical molecule that exhibits an impressive affinity for reducing neurotoxicity in Alzheimer’s cell lines.
−Removed: The advancement of IGC-AD1 into Phase 2 trials represents a significant milestone for the company and positions us for multiple pathways to future success.
−Removed: Although there can be no assurance, we anticipate that the positive outcomes from these and other trials will drive further growth, valuation, and market potential for IGC-AD1.
−Removed: IGC has two segments:
+Added: IGC Pharma is a clinical-stage pharmaceutical company developing novel therapies for Alzheimer’s disease and conditions related to the central nervous system.
+Added: The company is pursuing five assets:
+Added: IGC-AD1, TGR-63, LMP, IGC-1C, and IGC-M3, all of which target Alzheimer’s disease and are at various stages of development.
+Added: Our most clinically advanced investigational new drug for Alzheimer’s, IGC-AD1, has shown significant promise in preclinical studies.
+Added: In Alzheimer’s cell lines, IGC-AD1 has demonstrated the potential to effectively suppress or ameliorate two key hallmarks of Alzheimer’s disease:
+Added: plaques and tangles.
+Added: In animal models, it has shown effectiveness in improving memory.
+Added: Furthermore, in a Phase 1 multiple ascending dose (MAD) trial, it exhibited potential efficacy in reducing neuropsychiatric symptoms, including agitation, anxiety, and depression.
+Added: IGC-AD1 is currently in a Phase 2B, multi-center, randomized, double-blind, placebo-controlled trial, specifically designed to address agitation in dementia from Alzheimer’s disease (clinicaltrials.gov, NCT05543681).
+Added: This condition affects more than 10 million individuals in North America and Europe.
+Added: The trial is being conducted at 10 sites in the US and Canada.
+Added: Our portfolio includes four other small molecule assets, each at distinct stages of development, all with a singular mission — to transform the landscape of Alzheimer's treatment.
+Added: LMP targets neuroinflammation, Aβ plaques, and neurofibrillary tangles, TGR-63 targets Aβ plaque, where we seek to disrupt the progression of Alzheimer's disease.
+Added: IGC-M3 targets the inhibition of Aβ plaque aggregation with the potential to create a profound impact on early-stage Alzheimer’s.
+Added: IGC-1C targets tau and neurofibrillary tangles, IGC-1C represents a forward-thinking approach to Alzheimer's therapy.
+Added: Furthermore, IGC controls a total of 36 patent filings.
+Added: IGC maintains a state-of-the-art manufacturing facility in Washington State, which is poised for potential use in a Phase 3 trial and commercialization of IGC-AD1.
+Added: In Bogota, Colombia, we also operate an R&D laboratory and an internal Contract Research Organization (CRO) that provides clinical trial services.
+Added: The Company is actively expanding its technological capabilities with a primary focus on Generative Artificial Intelligence (AI) to enhance various aspects of operations including clinical research and clinical trials.
+Added: Our company is investing in and driving AI development with a strong focus on transforming our approach, gaining insights, and increasing cost efficiencies.
+Added: Our AI initiatives are centered on informing clinical trials, developing a methodology for early detection of Alzheimer’s, and investigating the interaction of pharmaceuticals with cannabinoids.
+Added: Collectively, these core assets and initiatives underscore our commitment to advancing the field of pharmaceuticals, delivering groundbreaking treatments, and creating lasting value for our investors.
+Added: We remain steadfast in our pursuit of excellence and our mission to improve the lives of those affected by Alzheimer’s and related conditions.
+Added: Our manufacturing facility is also utilized to produce women’s wellness products under the brand “Holief.” IGC Pharma is a Maryland corporation established in 2005 with a fiscal year ending on March 31, spanning a 52- or 53-week period.
+Added: The company operates in two primary business segments:
Life Sciences and Infrastructure.
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As a company engaged in the clinical-stage pharmaceutical industry, we focus our research and development efforts, subject to results of future clinical trials, on seeking pharmaceutical solutions that may a) alleviate neuropsychiatric symptoms such as agitation, anxiety, and depression associated with dementia in Alzheimer’s disease; and b) halt the onset, progression, or cure Alzheimer’s disease.
−Removed: The Company currently has two main investigational small molecules in various stages of development:
−Removed: 1) IGC-AD1 , our proprietary lead therapeutic candidate, is a Tetrahydrocannabinol (THC) based formulation that has demonstrated in Alzheimer’s cell lines, the potential to reduce the buildup of Aβ plaques and the potential to decrease or inhibit the phosphorylation of tau, a protein that is responsible for the formation of neurofibrillary tangles (NFTs), both important hallmarks of Alzheimer’s.
−Removed: In addition, Phase 1 human trial results demonstrated IGC-AD1’s potential to reduce agitation in dementia due to Alzheimer’s.
−Removed: IGC-AD1 is currently in Phase 2B trials for treating agitation in dementia from Alzheimer’s, a condition that affects over 10-million individuals in North America and Europe, and
−Removed: | June 30, 2023, Form 10-Q
−Removed: 2) TGR-63 , is a non-cannabinoid small molecule that has shown promise in pre-clinical trials for reducing amyloid burden in an Alzheimer’s disease model.
−Removed: In Alzheimer’s, the accumulation of beta-amyloid protein in the brain leads to the formation of Aβ plaques, which are associated with neurotoxicity and cell dysfunction, ultimately leading to cell death and cognitive decline.
−Removed: The potential efficacy of TGR-63 lies in its ability to inhibit the aggregation of beta-amyloid.
−Removed: If shown to be safe and efficacious in human trials in reducing the formation of Aβ plaques, this molecule could halt the neurotoxic process caused by beta-amyloid, thereby preventing, or treating Alzheimer’s.
+Added: | September 30, 2023, Form 10-Q
Currently, IGC-AD1 is in a Phase 2B safety and efficacy clinical trial for agitation in dementia from Alzheimer’s (clinicaltrials.gov, NCT05543681).
−Removed: The progress we are making in the clinic, gives us confidence in the potential of IGC-AD1 as a potentially groundbreaking therapy, with the potential to treat Alzheimer’s and also to manage devastating symptoms that separate families, increase admissions to nursing homes, and drive the cost of Alzheimer’s care, although there can be no assurance.
−Removed: We have a two-pronged approach for our Alzheimer’s investigational drug development strategy, the first prong is to investigate IGC-AD1 as an Alzheimer’s symptoms modifying agent, and the second is to investigate TGR-63 as a disease modifying agent.
−Removed: This involves conducting more trials on IGC-AD1 over the next few years, subject to FDA approval, with, although there can be no assurance, the anticipated goal of demonstrating safety and efficacy and potentially obtaining FDA approval for IGC-AD1 as a cannabinoid-based new drug that can help to manage agitation for patients suffering from Alzheimer’s disease.
−Removed: The second prong is to investigate the potential efficacy of TGR-63 on memory and/or decreasing or managing plaques and tangles, some of the hallmarks of Alzheimer’s disease.
−Removed: Although there can be no assurance, we believe that additional investment in clinical trials, research, and development (“R&D’), facilities, marketing, advertising, and acquisition of complementary products and businesses supporting our Life Sciences segment will be critical to the development and delivery of innovative products and positive patient and customer experiences.
+Added: The progress we are making in the clinical trial, gives us confidence in the potential of IGC-AD1 as a potentially groundbreaking therapy, with the potential to treat Alzheimer’s and to manage devastating symptoms that separate families, increase admissions to nursing homes, and drive the cost of Alzheimer’s care, although there can be no assurance.
+Added: Although there can be no assurance, we believe that additional investment in clinical trials, research, and development (R&D), facilities, marketing, advertising, AI and acquisition of complementary products and businesses supporting our Life Sciences segment will be critical to the development and delivery of innovative products and positive patient and customer experiences.
We hope to leverage our R&D and intellectual property to develop ground-breaking, science-based products that are proven effective through planned pre-clinical and clinical trials.
Although there can be no assurance, we believe this strategy has the potential to improve existing products and lead to the creation of new products, which, based on scientific study and research, may offer positive results for the management of certain conditions, symptoms, and side effects.
−Removed: While the bulk of our medium and longer-term focus is on clinical trials and getting IGC-AD1 to be an FDA approved drug, our shorter-term strategy, is to use our resources to provide white label services and market Holief™.
+Added: While the bulk of our medium and longer-term focus is on clinical trials and getting IGC-AD1 into an FDA-approved drug, our shorter-term strategy is to use our resources to provide white-label services and market Holief™.
We believe this may provide us with several profit opportunities, although there can be no assurance of such profit opportunities.
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The products are available online and through Amazon and other online channels.
+Added: In addition, we sell our product formulations to other companies that market them under their brand.
+Added: This is the white label part of the OTC business.
+Added: Contract Research Organization (CRO) and Clinical Trial Software:
+Added: The IGC-Pharma Electronic Data Capture system (IGC-EDC) is a secure and user-friendly data management software designed to collect clinical trial data in electronic format.
+Added: The software incorporates rigorous security measures that help IGC to protect data and ensure compliance with regulatory requirements and industry standards.
+Added: This format is designed for our clinical trials, especially our Phase 2 trial.
+Added: The EDC system is designed to store and organize handwritten source documents, including medical history, concomitant medications, laboratory results, neuropsychiatric scales scores, adverse events, vital signs, safety calls, demographics, among others.
+Added: The system allows users to generate data reports that will be used for data analysis and generate computational models to simulate the effects of our investigational drug IGC-AD1 on participants’ outcomes.
+Added: At IGC Pharma, we recognize the significance of operational excellence and cost management in clinical trials.
+Added: One major cost driver in conducting trials is the expense associated with engaging CROs.
+Added: These costs can significantly impact on the overall budget of a trial.
+Added: To address this challenge and optimize trial costs, we have established an internal CRO, including proprietary software that we believe sets us apart from the traditional approach of outsourcing.
+Added: We believe this strategic move will enable us to reduce the costs associated with clinical trials compared to relying on external CROs, although there can be no assurance.
+Added: On July 21, 2023, IGC Pharma and the University of Los Andes (Faculty of Engineering) signed a Master Cooperation Agreement, to conduct innovative research in AI applied to the pharmaceutical industry and to join efforts to create academic spaces that allow for generating research and development projects and innovation.
+Added: This agreement will enable us to work closely with some of the brightest minds in the field and develop innovative projects.
+Added: We are excited to collaborate with the University of Los Andes and are committed to advancing the frontiers of science and technology together.
+Added: We believe this overlay of Artificial Intelligence (AI) will help us simulate trial scenarios, generate new insights to facilitate improved decision-making, efficiently design our Phase 3 trial, provide advanced data analysis, and ultimately enhance the effectiveness and efficiency of our clinical trials, although there can be no assurance thereof.
+Added: Our AI initiatives are centered on enhancing clinical trials, developing a methodology for early detection of Alzheimer’s, and investigating the interaction of pharmaceuticals with cannabinoids.
+Added: By leveraging AI technology, we aim to accelerate progress in Alzheimer’s drug development and revolutionize the way we approach treatment.
+Added: We believe that our commitment to advancing the field of AI in medicine creates a strategic advantage in the industry, although there can be no assurance thereof.
+Added: | September 30, 2023, Form 10-Q
Infrastructure Segment
−Removed: The Company’s infrastructure business has been operating since 2008, it includes:
−Removed: (i) Execution of Construction Contracts and (ii) Rental of Heavy Construction Equipment.
−Removed: Company Highlights
−Removed: During the three months ended June 30, 2023, the Company generated approximately $555 thousand in revenue, representing an increase of approximately $343 thousand, or 161%, compared to the approximately $212 thousand recorded during the three months ended June 30, 2022.
−Removed: On June 30, 2023, the Company secured a $12 million revolving line of credit from the Hong Kong Branch of O-Bank Co.
−Removed: (“O-Bank” or the “Bank”).
−Removed: This funding will support the working capital needs of the Company, primarily related to Alzheimer’s research.
−Removed: On June 30, 2023, the Company entered into the Share Purchase Agreement (“SPA”), and under the terms of the SPA, the Company issued 10 million shares of unregistered common stock at a price of $0.3 per share.
−Removed: On June 6, 2023, the Company received a Notice of Allowance from the Commissioner of Patents, Canada, for its patent filing on the use of cannabinoids in the treatment of seizures (IGC-501).
−Removed: The formulation also received an intent to grant from the European Patent Office, protecting the formulation in the U.S., Canada, and certain European countries.
−Removed: | June 30, 2023, Form 10-Q
+Added: The Company’s infrastructure business has been operating since 2008.
+Added: It includes (i) execution of construction contracts and (ii) rental of heavy construction equipment.
+Added: Company Highlights for the Quarter ended September 30, 2023
+Added: The Company has increased its revenue by 44% compared to the same period in 2022.
+Added: During the three months ended September 30, 2023, the Company generated $291thousand in revenue.
+Added: On July 21, 2023, IGC Pharma and the University of Los Andes (Faculty of Engineering) signed a Master Cooperation Agreement to conduct innovative research in AI applied to the pharmaceutical industry and to join efforts to create academic spaces that allow for generating research and development projects and innovation.
+Added: On July 11, 2023, the Canadian Intellectual Property Office issued a patent (#2,961,410) to the Company titled “CANNABINOID COMPOSITION AND METHOD FOR TREATING PAIN”.
+Added: The patent relates to compositions and methods for treating multiple types of seizure disorders in humans using a combination of cannabinoids with other compounds.
+Added: Subject to further research and study, the combination may be used for relieving pain in patients with psoriatic arthritis, fibromyalgia, scleroderma, shingles, and related pain-generating conditions.
Business Strategy
The Life Sciences business strategy includes:
−Removed: Subject to FDA approval, developing IGC-AD1 as a drug for treating agitation in dementia due to Alzheimer’s and investigating and developing TGR-63 for the potential treatment of Alzheimer’s disease.
+Added: Subject to FDA approval, developing IGC-AD1 as a drug for treating agitation in dementia due to Alzheimer’s and investigating and developing TGR-63, LMP, IGC-1C and IGC -M3 for the potential treatment of Alzheimer’s disease.
Marketing Holief TM and formulations.
−Removed: We believe developing a drug for both symptom and disease-modifying agent has less risk due to the need for expensive multi-year trials.
+Added: We believe developing a drug for both symptom and disease-modifying agents has less risk due to the need for expensive multi-year trials.
However, there is considerable upside and significant value creation to the extent we obtain a first-in-class advantage, of which there can be no assurance.
If we were to obtain a first-in-class advantage, such an advantage could result in significant growth if and when an approved drug such as IGC-AD1 launches.
−Removed: We believe that additional investment in clinical trials, artificial intelligence (“AI"), research, and development (R&D), facilities, marketing, advertising, and acquisition of complementary products and businesses will be critical to the ongoing growth of the Life Sciences segment.
+Added: We believe that additional investment in clinical trials, AI, research and development (R&D), facilities, marketing, advertising, and acquisition of complementary products and businesses will be critical to the ongoing growth of the Life Sciences segment.
Although there can be no assurance, we believe these investments will fuel the development and delivery of innovative products that drive positive patient and customer experiences.
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Although there can be no assurance, we believe this strategy can improve our existing products and lead to the creation of new products that can provide treatment options for multiple conditions, symptoms, and side effects.
+Added: | September 30, 2023, Form 10-Q
Results of Operations for the Three Months Ended
−Removed: June 30, 2023, and June 30, 2022
−Removed: The results presented below are not necessarily indicative of the results that may be expected for any future period.
−Removed: The following table presents an overview of our results of operations for the three months ended June 30, 2023, and June 30, 2022:
+Added: September 30, 2023, and September 30, 2022
+Added: The historical results presented below are not necessarily indicative of the results that may be expected for any future period.
+Added: The following table presents an overview of our results of operations for the three months ended September 30, 2023, and September 30, 2022:
Statement of Operations (in thousands, unaudited)
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
Cost of revenue
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Income tax expense/benefit
−Removed: Revenue – During the three months ended June 30, 2023, the Company generated approximately $555 thousand in revenue, representing an increase of approximately $343 thousand, or 161%, compared to the approximately $212 thousand recorded during the three months ended June 30, 2022.
−Removed: The primary source of revenue in both the years was from the Life Sciences segment, encompassing the sales of our formulations as white-labeled manufactured products and sales of branded holistic women’s health care products, among others.
−Removed: The Infrastructure segment revenue was approximately $167 thousand and $10 thousand for the three months ended June 30, 2023, and June 30, 2022, respectively.
−Removed: The increase in revenue derived from the Infrastructure segment relates to the completion of a construction contract.
−Removed: The Company remains committed to its current strategy of driving sales in formulations both as branded and white-labeled products.
−Removed: | June 30, 2023, Form 10-Q
−Removed: Cost of revenue – Cost of revenue amounted to approximately $300 thousand for the three months ended June 30, 2023, compared to $70 thousand in the three months ended June 30, 2022, this represents gross margins of 46% to 67%, respectively.
+Added: Revenue – During the three months ended September 30, 2023, the Company generated approximately $291 thousand in revenue, representing an increase of approximately $89 thousand, or 44%, compared to the approximately $202 thousand recorded during the three months ended September 30, 2022.
+Added: The primary source of revenue in both quarters was from the Life Sciences segment, encompassing the sales of our formulations as white-labeled manufactured products and sales of branded holistic women’s health care products, among others.
+Added: The Infrastructure segment revenue was nil and approximately $7 thousand for the three months ended September 30, 2023, and September 30, 2022, respectively.
+Added: Cost of revenue – Cost of revenue amounted to approximately $117 thousand for the three months ended September 30, 2023, compared to $67 thousand in the three months ended September 30, 2022, this represents gross margins of 60% to 67%, respectively.
The cost of revenue is primarily attributable to the cost of raw materials, labor, and other direct overheads required to produce our products in the Life Science segment.
−Removed: The decrease in gross margin is reflective of a change in the mix of revenue between Infrastructure and Life Science.
−Removed: Typically, the gross margin in the Life Sciences business, while higher than in the infrastructure, will fluctuate from one quarter to another based on the mix within the Life Science business between white label, private label, and branded products.
−Removed: It is early to model or project gross margins.
+Added: Typically, the gross margin in the Life Sciences business will fluctuate from one quarter to another based on the mix within the Life Science business between white label, private label, and branded products.
+Added: There is insufficient revenue to model or project gross margins.
Selling, General and Administrative expenses (“SG&A”) – SG&A expenses primarily encompass various costs such as employee-related expenses, sales commissions, professional fees, legal fees, marketing expenses, other corporate expenses, allocated general overhead, provisions, depreciation, and write-offs related to doubtful accounts and advances.
−Removed: During the three months ended June 30, 2023, SG&A expenses increased by approximately $97 thousand or 6% to approximately $1.6 million, from approximately $1.5 million recorded for the three months ended June 30, 2022.
−Removed: The increase in SG&A expenses is attributed to operational expenses.
+Added: During the three months ended September 30, 2023, SG&A expenses decreased by approximately $458 thousand or 25% to approximately $1.4 million, from approximately $1.9 million recorded for the three months ended September 30, 2022.
+Added: The decrease in SG&A expenses is attributed to a decrease in operational and corporate expenses.
Research and Development expenses – R&D expenses were attributed to our Life Sciences segment.
−Removed: The R&D expenses decreased by approximately $647 thousand or 46% to $747 thousand during the three months ended June 30, 2023, from approximately $1.4 million for the three months ended June 30, 2022.
−Removed: The decrease is primarily attributable to a one-time non-cash expense during the three months ended June 30, 2022.
−Removed: Other than one-time non-cash expenses, the R&D expenses for both quarters are approximately the same.
−Removed: Other income, net – Other net income increased by approximately $47 thousand or 276% during the three months ended June 30, 2023.
−Removed: The total other income for the three months ended June 30, 2023, and 2022, is approximately $64 thousand and $17 thousand, respectively.
−Removed: The increase in other income for the three months ended June 30, 2023, is attributable to profit from the sale of assets.
+Added: The R&D expenses increased by approximately $500 thousand or 65% to $1.3 million during the three months ended September 30, 2023, from approximately $768 thousand for the three months ended September 30, 2022.
+Added: The increase is primarily attributable to the progression of Phase 2 trials on IGC-AD1 and pre-clinical studies on the other small molecule assets.
+Added: Although there can be no assurance, we anticipate increased R&D expenses as the development of our other small molecule assets targeting Alzheimer’s and the Phase 2B trial on Alzheimer’s expand.
+Added: Other income, net – Other net income decreased by approximately $6 thousand or 13% during the three months ended September 30, 2023.
+Added: The total other income for the three months ended September 30, 2023, and 2022, is approximately $40 thousand and $46 thousand, respectively.
The component of other income typically includes interest and rental income, dividend income, profits from the sale of assets, unrealized gains from non-debt investments, net income, and income from the sale of scraps.
These sources contribute to the overall other income generated by the Company.
+Added: | September 30, 2023, Form 10-Q
+Added: Results of Operations for the Six Months Ended September 30, 2023, and September 30, 2022
+Added: The historical results presented below are not necessarily indicative of the results that may be expected for any future period.
+Added: The following table presents an overview of our results of operations for the six months ended September 30, 2023, and September 30, 2022:
+Added: Statement of Operations (in thousands, unaudited)
+Added: Six months ended September 30,
+Added: Cost of revenue
+Added: Selling, General and Administrative expenses
+Added: Research and development expenses
+Added: Operating loss
+Added: Other income, net
+Added: Loss before income taxes
+Added: Income tax expense/benefit
+Added: Revenue – Revenue was approximately $846 thousand and $414 thousand for the six months ended September 30, 2023, and September 30, 2022, respectively.
+Added: Revenue in both quarters was primarily derived from our Life Sciences segment, which involved providing white-label manufactured products and sales of holistic women’s health care products, among others.
+Added: The Infrastructure segment revenue was approximately $166 thousand and $17 thousand for the six months ended September 30, 2023, and September 30, 2022, respectively.
+Added: The increase in revenue derived from the Infrastructure segment relates to the completion of a construction contract.
+Added: The Company remains committed to its current strategy of driving sales in formulations both as branded and white-labeled products in the Life Science segment.
+Added: Cost of revenue – Cost of revenue amounted to approximately $417 thousand for the six months ended September 30, 2023, compared to $137 thousand in the six months ended September 30, 2022, this represents gross margins of 51% and 67%, respectively.
+Added: The cost of revenue is primarily attributable to the cost of raw materials, labor, and other direct overheads required to produce our products in the Life Science segment.
+Added: The decrease in gross margin is reflective of a change in the mix of revenue between Infrastructure and Life Science.
+Added: Typically, the gross margin in the Life Sciences business, while higher than in the infrastructure, will fluctuate from one quarter to another based on the mix within the Life Science business between white label, private label, and branded products.
+Added: Selling, General and Administrative expenses – SG&A expenses were approximately $3 million and $3.4 million for the six months ended September 30, 2023, and September 30, 2022, respectively.
+Added: The decrease of $361 thousand is attributed to a decrease in operational and corporate expenses.
+Added: SG&A 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 advance, if any.
+Added: Research and Development expenses – R&D expenses were attributed to our Life Sciences segment.
+Added: The R&D expenses decreased by approximately $147 thousand or 7% to $2 million during the six months ended September 30, 2023, from approximately $2.1 million during the six months ended September 30, 2022.
+Added: The decrease is primarily attributable to the reduction of non-cash expenses due to achievement of performance-based milestone.
+Added: Other income, net – Other net income increased by approximately $41 thousand or 65% during the six months ended September 30, 2023.
+Added: As a result, the total other income for the six months ended September 30, 2023, and 2022 is approximately $104 thousand and $63 thousand, respectively.
+Added: The increase in other income for the six months ended September 30, 2023, is attributable to profit from the sale of assets.
+Added: Other income includes interest and rental income, dividend income, profit from the sale of assets, unrealized gains from investments, net income, and income from scrap sales.
+Added: | September 30, 2023, Form 10-Q
Liquidity and Capital Resources
3 unchanged sentences
Please refer to Note 12, “Commitments and contingencies,” and Note 11, “Loans and Other Liabilities,” in Item 1 of this report for further information on Company commitments and contractual obligations.
−Removed: On June 30, 2023, the Company successfully entered into a Master Loan and Security Agreement (the “Credit Agreement”) with O-Bank, CO., LTD., pursuant to which the Company may borrow up to $12 million and, in addition, sold 10 million shares for $3 million pursuant to an SPA with Bradbury Asset Management and three unrelated investors.
−Removed: The equity raise and the Credit Agreement serve to satisfy ongoing liquidity requirements and ensure the Company’s ability to sustain its operations.
−Removed: Furthermore, the Company intends to raise additional funds through private placement and ATM offerings, subject to market conditions, although there can be no assurance thereof.
+Added: On June 30, 2023, the Company signed the Master Loan and Security Agreement (the “Credit Agreement”) with O-Bank, CO., LTD.
+Added: pursuant to which the Company may borrow up to $12 million.
+Added: Additionally, the Company sold 10 million shares of common stock for $3 million pursuant to an SPA with Bradbury Asset Management and three unrelated investors.
+Added: These measures have been taken to address ongoing liquidity requirements and ensure the Company’s ability to sustain its operations.
+Added: Moreover, the Company plans to raise additional funds through private placement and ATM offerings, subject to market conditions, although there can be no assurance that such financing efforts will be successful.
The Credit Agreement matures on June 30, 2024, with an option to renew.
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Interest is due and payable in full by the Company on the last business day of each interest period.
−Removed: As of June 30, 2023, the entire amount of $12 million remains unused.
+Added: As of September 30, 2023, the entire amount of $12 million remains unused.
+Added: On October 27, IGC Pharma, Inc.
+Added: (the “Company”) entered into a Sales Agreement (the “Agreement”) with A.G.P./Alliance Global Partners (the “Agent”) pursuant to which the Company may offer and sell, from time to time, through the Agent, as sales agent and/or principal, shares of its common stock, par value $0.0001 per share (the “Common Stock”), having an aggregate offering price of up to $60 million (“Shares”), subject to certain limitations on the amount of Common Stock that may be offered and sold by the Company set forth in the Sales Agreement (the “Offering”).
+Added: Prior to entering into the Sales Agreement with A.G.P./Alliance Global Partners, the Company terminated the Sales Agreement dated January 13, 2021, with The Benchmark Company.
The Company expects to raise further capital for its research and development initiatives as and when it is able to do so, but there can be no assurance thereof.
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In addition, subject to limitations on the amount of capital that can be raised, the Company expects to utilize its shelf registration on a statement on Form S- 3 to raise capital through at-the-market offerings or otherwise.
−Removed: | June 30, 2023, Form 10-Q
Please refer to Item 1A.
1 unchanged sentence
(in thousands, unaudited)
−Removed: June 30, 2023
+Added: September 30, 2023
March 31, 2023
3 unchanged sentences
Cash and cash equivalents
−Removed: Cash and cash equivalents decreased by approximately $1.4 million to $2 million in the three months ended June 30, 2023, from $3.2 million as of March 31, 2023, a decrease of approximately 46%.
+Added: Cash and cash equivalents decreased by approximately $170 thousand to $3 million in the six months ended September 30, 2023, from $3.2 million as of March 31, 2023, a decrease of approximately 5%.
+Added: | September 30, 2023, Form 10-Q
Summary of Cash flows
(in thousands, unaudited)
−Removed: Three months ended June 30,
+Added: Six months ended September 30,
Cash used in operating activities
−Removed: Cash used in investing activities
−Removed: Cash used in financing activities
+Added: Cash provided by investing activities
+Added: Cash provided by financing activities
Effects of exchange rate changes on cash and cash equivalents
3 unchanged sentences
Operating Activities
−Removed: Net cash used in operating activities for the three months ended June 30, 2023, was approximately $1.5 million.
−Removed: It consists of a net loss of approximately $2.1 million, a positive impact on cash due to non-cash expenses of approximately $459 thousand, and a positive change in operating assets and liabilities of approximately $148 thousand.
+Added: Net cash used in operating activities for the six months ended September 30, 2023, was approximately $3.1 million.
+Added: It consists of a net loss of approximately $4.5 million, a positive impact on cash due to non-cash expenses of approximately $1.1 million, and a positive change in operating assets and liabilities of approximately $272 thousand.
Non-cash expenses consist of an amortization and depreciation charge of approximately $313 thousand, stock-based expenses of approximately $907 thousand, and an approximately $52 thousand decrease in other non-cash items.
In addition, changes in operating assets and liabilities had a positive impact of approximately $272 thousand on cash, of which approximately $30 thousand is due to a decrease in accounts receivables, approximately $19 thousand increase in accounts payable, approximately $185 thousand increase in accrued and other liabilities and approximately $98 thousand increase in other net current assets and liabilities.
−Removed: Net cash used in operating activities for the three months ended June 30, 2022, was approximately $2.2 million.
+Added: Net cash used in operating activities for the six months ended September 30, 2022, was approximately $3.8 million.
It consists of a net loss of approximately $5.2 million, a positive impact on cash due to non-cash expenses of approximately $2.2 million, and a negative change in operating assets and liabilities of approximately $808 thousand.
−Removed: Non-cash expenses consist of an amortization/depreciation charge of approximately $162 thousand and stock-based expenses of approximately $1.2 million.
−Removed: In addition, changes in operating assets and liabilities had a negative impact of approximately $793 thousand on cash, of which approximately $258 thousand is due to decrease in accrued and other liabilities and approximately $524 thousand decrease in accounts payable.
−Removed: | June 30, 2023, Form 10-Q
+Added: Non-cash expenses consist of an amortization/depreciation charge of approximately $332 thousand, stock-based expenses of approximately $1.8 million, and net loss on the sale of a fixed asset of approximately $45 thousand.
+Added: In addition, changes in operating assets and liabilities had a negative impact of approximately $808 thousand on cash, of which approximately $65 thousand is due to a decrease in accounts receivables, approximately $524 thousand decrease in accounts payable, and approximately $219 thousand decrease in other net current assets and liabilities.
Investing Activities
−Removed: Net cash used in investing activities for the three months ended June 30, 2023, was approximately $5 thousand, which comprised of expenses of approximately $28 thousand for the acquisition and filing expenses related to intellectual property, approximately $23 thousand for the purchase of property, plant, and equipment.
−Removed: Net cash used in investing activities for the three months ended June 30, 2022, was approximately $158 thousand, which comprised of expenses of approximately $31 thousand for the acquisition and filing expenses related to patents and purchase of property, plant, and equipment of approximately $127 thousand.
+Added: Net cash provided by investing activities for the six months ended September 30, 2023, was approximately $67 thousand, which comprised of expenses of approximately $48 thousand for the acquisition filing expenses related to intellectual property, approximately $13 thousand for the net purchase of property, plant, and equipment and approximately $128 thousand of investment in marketable securities.
+Added: Net cash provided by investing activities for the six months ended September 30, 2022, was approximately $24 thousand, which comprised proceeds from the sale of property, plant, and equipment of approximately $277 thousand, adjusted with cash expenses of approximately $60 thousand for the acquisition and filing expenses related to patents and approximately $193 thousand of a short-term investment.
Financing Activities
−Removed: Net cash used by financing activities was approximately $1 thousand for the three months ended June 30, 2023 and June 30, 2022, which is comprised of re-payment of loan.
+Added: Net cash provided by financing activities was approximately $2.8 million for the six months ended September 30, 2023, which is comprised of net proceeds from issuance of equity stock of approximately $2.8 million and re-payment of the loan of approximately $2 thousand.
+Added: Net cash provided by financing activities from the issuance of equity stock through our 2021 ATM offering, net of all expenses related to the issuance of stock, was approximately $101 thousand and re-payment of the loan of approximately $2 thousand for the six months ended September 30, 2022.
+Added: | September 30, 2023, Form 10-Q
Off-Balance Sheet Arrangements
12 unchanged sentences
Newly issued ASUs not listed are expected to have no impact on the Company’s consolidated financial position and results of operations because either the ASU is not applicable, or the impact is expected to be immaterial.
−Removed: Recent accounting pronouncements which may be applicable to us are described in Note 2, “Significant Accounting Policies” to the Notes to the Unaudited Condensed Consolidated Financial Statements in this report and in the Notes to the Audited Consolidated Financial Statements in Part II of our 2023 Form 10-K.
−Removed: | June 30, 2023, Form 10-Q
+Added: Recent accounting pronouncements that may apply to us are described in Note 2, “Significant Accounting Policies” to the Notes to the Unaudited Condensed Consolidated Financial Statements in this report and in the Notes to the Audited Consolidated Financial Statements in Part II of our 2023 Form 10-K.
+Added: | September 30, 2023, Form 10-Q
Quantitative and Qualitative Disclosures about Market Risk
1 unchanged sentence
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.