BETHESDA, MD. August 2, 2018 – India Globalization Capital, Inc. (NYSE AMERICAN: IGC) today announces financial results for the quarter ended June 30, 2018, which is the first quarter of its 2019 fiscal year.
Total revenue was approximately $1.48 million for the three months ended June 30, 2018, as compared to approximately $53 thousand for the three months ended June 30, 2017. The increase and all quarterly revenue was attributable to the legacy trading business. The consolidated GAAP net income loss for the period was approximately ($512,000), which is a GAAP EPS loss of ($0.02), compared to a GAAP net loss of ($432,000) and a GAAP EPS loss of ($0.02) for the same three months last fiscal year. The increase in loss is attributable to an increase in SG&A stemming primarily from the issuance of ESOP shares.
According to CEO Ram Mukunda, “We are focused on bringing Hyalolextm, our lead cannabinoid based alternative therapy, to market and laying the foundation to position IGC as a leader in the commercialization of cannabinoid based alternative supplements for indications such as Alzheimer’s disease, Parkinson’s disease and pain.”
“In the first quarter, we built a marketing plan to launch Hyalolextm, which is our non-FDA approved alternative cannabinoid-based product for treating the symptoms of Alzheimer’s. It comes in a liquid form and will be branded as ‘Drops of Clarity,’” he said.
Alzheimer’s disease (AD) is a form of dementia, known for being especially devastating over time to both the patient and the caregiver. In addition, it is America’s most expensive disease, with an estimated cost tothe U.S. economy of $236 billion. AD currently affects more than 5.3 million Americans and over 60% of AD patients are women. The Company intends to enter into licensing arrangements with manufacturers, to expand its reach into multiple U.S. markets and Canada.
Alternative Therapy Overview
We focus on the development and commercialization of cannabinoid-based combination therapies. Cannabinoids are chemical compounds that exert a range of effects on the body, including impacting the immune response, gastrointestinal maintenance and motility, muscle functioning, and nervous system response and functioning. Phytocannabinoids are cannabinoids that occur naturally in the cannabis plant. In medical applications, cannabinoids are extracted from the cannabis plant using a variety of well-established technologies, including using CO2, butane, and alcohol, among others, as solvents. The refined extracted material is isolated for specific active ingredients like THC and CBD, among others, and used in formulations as the primary or secondary active ingredient.
Our work, based on our strategy, is to use cannabinoids synergistically with other active ingredients that in some cases have been established to treat specific medical conditions. We seek, through these synergies, for our combination therapies, to decrease side effects, increase bio-availability of active ingredients, and enhance efficacy.
We have filed eight provisional patents with the United States Patent and Trademark Office (“USPTO”), in the phytocannabinoid-based combination therapy space, for the indications of pain, medical refractory epilepsy, and cachexia. In addition, in May 2017, we acquired an exclusive license to a patent filed by the University of South Florida Research Foundation entitled “Cannabidiol and Synthetic Dronabinol for treatment of Alzheimer’s Disease.” Hyalolex is based on this work.
The Company has developed and deployed a QR code-based system that allows patients to access a website with specific information on Hyalolex. Each QR code is specific to a state and displays information specific to that state. We are in the process of creating a mobile optimized version that will expand the product information available to patients to include location of dispensaries that carry our products, based on zip code, and in turn also allow us to gather information through surveys and obtain feedback from patients.
As the number of states in which the product is available increases, we expect to expand the backend to a blockchain that allows for inputs directly from growers, processors, and dispensaries. This information will collectively display product identification, and product origination, by providing the patient with information regarding the origin, chemicals, and processes used to manufacture the product. We expect to expand the QR code-based system in several phases over fiscal 2019.
Total revenue is approximately $2.19 million for FYE 2018, as compared to approximately $580 thousand for the FYE 2017. This revenue is generated from our legacy business that includes trading of steel and iron ore and rental of heavy equipment. The increase year-over year is attributable to an increase in the volume of trading commodities. Our plan for the legacy business is to maintain annual trading revenue between $3 and $5 million and work on increased margins. In the second half of calendar 2018 we expect to add revenue from Hyalolex with a goal of introducing the product into 10 states by the end of 2018.
Selling, general and administrative expenses are about $1.87 million for fiscal 2018, as compared to about $2.27 million for fiscal 2017. The decrease in SG&A is attributable to decreased depreciation and other SG&A expenses.
India Globalization Capital, Inc. (”IGC”) has developed a patent-pending cannabis-based combination therapy to treat endpoints of Alzheimer’s including plaques, tangles, anxiety, agitation and other NPS, which it plans to market through Canadian and U.S. medical dispensaries in early 2018. Its pipeline includes cannabis-based medications for end points of Parkinson’s, pain, nausea, eating disorders and epilepsy in cats and dogs. The company is also working on leveraging its expertise to develop blockchain technology based solutions for the cannabis market. IGC has a legacy business based in India, through which it is engaged in infrastructure and commodity trading, and in Malaysia it is engaged in real-estate management. IGC’s registered US office is located in Bethesda, Maryland. The company maintains an R&D center in Washington State and also has a back office in Kochi, Kerala India.
IGC announces intention to develop blockchain solution for cannabis market
On December 26, 2017, IGC announced that it plans to utilize blockchain technology to address industry issues specific to the medical cannabis industry. The company cited areas including product identification assurance (PIA), inadequate product labeling, transactional difficulties, and product origin assurance as areas that it was seeking to address. Clearly, blockchain technology, which uses a continuously growing list of records, called blocks, which are linked and secured using cryptography to manage large databases securely, is an area of high attention given its robust growth and crucial role in cryptocurrencies. We believe the company intends to develop a platform first for Hyaolex’s go-to-market strategy in the dispensary market, with an aim to leverage the platform for the highly regulated and rapidly evolving cannabis industry.
Alzheimer’s Disease (AD) is a form of dementia. It is known as America’s most expensive disease, with an estimated cost to the U.S. economy of $236 billion. AD currently affects more than 5.3 million Americans and over 65% of AD patients are women. Over the next 20 years, the number of those afflicted with the disease is expected to double. The forecast is staggering, considering that to date, no effective cure has been found.
Know more about India Globalization Capital Inc.
The Company has two lines of businesses, a legacy infrastructure business and a cannabis pharmaceutical business that has developed a lead product for treating Alzheimer’s patients. The company is based in Maryland, USA.