Full Fiscal Year Highlights

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

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

Financial Summary

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

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

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

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

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