IGC Pharma (IGC) risk factors, FY2025 10-K

Risks Related to Our Business, Industry, and Operations

1. 01We have incurred significant losses and have an accumulated deficit. If we cannot achieve profitability, the market price of our common stock could decline significantly
2. 02As of March 31, 2025, we had cash and cash equivalents of approximately $405 thousand and working capital of approximately $639 thousand compared to cash and cash equivalents of $1.2 million and working capital of $1.4 million as of March 31, 2024, for continuing operations
3. 03We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results
4. 04Within the species Cannabis sativa L, most countries define hemp by the amount of THC. Under the 2018 Farm Bill, hemp is classified as a cannabis plant that has 0.3% or less THC by dry weight
5. 05We may engage in strategic transactions that could impact our liquidity, increase our expenses, and present significant distractions to our management, which ultimately may not be successful
6. 06Government financing and economic pressures can lead to negative pricing pressure in various markets where governments take an active role in setting prices, access criteria (e.g., through health technology assessments), or other means of cost control
7. 07Our Company is in a highly regulated industry. Significant and unforeseen changes in policy may have material impacts on our business
8. 08Our Company is inexperienced in conducting pre-clinical and clinical trials
9. 09Clinical trials are expensive, time-consuming, and difficult to design and implement, and involve an uncertain outcome
10. 10The regulatory approval processes of the FDA and comparable foreign authorities are lengthy, time-consuming, and inherently unpredictable, and if we are ultimately unable to obtain regulatory approval for IGC-AD1 or any other product candidates, our business will be substantially harmed
11. 11Enrollment and retention of patients in clinical trials is an expensive and time-consuming process and could be made more difficult or rendered impossible by multiple factors outside our control
12. 12Our product candidates may cause serious adverse events or undesirable side effects, which may delay or prevent marketing approval or, if approved, require them to be taken off the market, require them to include safety warnings, or otherwise limit their sales
13. 13Our product candidates may be unable to achieve the expected market acceptance, consequently limiting our ability to generate revenue from new products
14. 14Business interruptions could delay us in the process of developing our product candidates and could disrupt our product sales
15. 15Climate change concerns could disrupt our businesses, adversely affect client activity levels, adversely affect the creditworthiness of our counterparties, and damage our reputation
16. 16Our business relies heavily on our management team, and any unexpected loss of key officers may adversely affect our operations
17. 17Our quarterly revenue, operating results, and profitability will vary
18. 18We may not successfully register the provisional patents with the USPTO
19. 19We may be unable to protect our intellectual property rights and/or intellectual property rights licensed to us and may be subject to intellectual property litigation and infringement claims by third parties
20. 20We may face risks relating to health care privacy and security laws
21. 21We face risks associated with the manufacture of our products, which could adversely affect our business and financial results
22. 22Potential Risks Associated with the Disposal of Non-Core Assets
23. 23The Company is exposed to the risk of write-downs on the value of its inventory and other assets, in addition to purchase commitment cancellation risk
24. 24Our accounting personnel may make unintentional errors
25. 25The Company is subject to complex and changing laws and regulations worldwide related to climate change and ESG initiatives, which expose the Company to potential liabilities, increased costs, and other adverse effects on the Company’s business

Risks Related to ownership of our common stock

1. 26Future sales of common stock by us could cause our stock price to decline and dilute your ownership in our Company
2. 27Our common stock price has fluctuated considerably and has recently reached our highest price levels, which may not be sustained
3. 28A possible “short squeeze” due to a sudden increase in demand of our common stock that largely exceeds supply may lead to further price volatility in our common stock
4. 29Our management team will have broad discretion over the use of Company funds
5. 30Our publicly filed reports are subject to review by the SEC, and any significant changes or amendments required as a result of any such review may result in material liability to us and may have a material adverse impact on the trading price of our common stock
6. 31We do not anticipate declaring any cash dividends on our common stock
7. 32Maryland anti-takeover provisions and certain anti-takeover effects of our Charter and Bylaws may inhibit a takeover at a premium price that may be beneficial to our stockholders
8. 33Control Share Acquisitions
9. 34Effect of Certain Provisions of our Charter and Bylaws
10. 35Our executive officers and large shareholders concentrated insider ownership of our common stock, which will limit your influence on corporate matters