IGC Announces Financial Results for Fiscal Year Ended March 31, 2016
July 18 2016 - 8:30AM
India Globalization Capital, Inc. (NYSE MKT:IGC) announces
financial results for the fiscal year ended March 31, 2016.
Total revenue was approximately $6.37 million for
the year ended March 31, 2016, as compared to approximately $7.68
million for the year ended March 31, 2015, a decrease of about
17.4%. In both fiscal years our main revenue driver was electronic
component trading with revenue performance based on volume and
product diversity.
Selling, general and administrative expenses were approximately
$2.7 million for fiscal 2016 as compared to approximately $4.14
million for fiscal 2015, an improvement of 34.8%. The overall
SG&A for fiscal 2016 consists primarily of (i) non-cash charges
associated with ESOP and other share issuances; (ii) one-time
expenses associated with the acquisition of Ultima; and (iii)
R&D expenses for the development of phytocannabinoid-based
therapies. Adjusted for these events, the SG&A for fiscal 2016
reflects a steep cut in expenses associated with a further
realignment of resources with the current business plan
Loss from operations was approximately $2.9 million in fiscal
year 2016, as compared to approximately $4.34 million in fiscal
year 2015. The improvement in operating loss year over year is
attributed to lower SG&A.
In fiscal year 2016, our investment in others was approximately
$5.17 million and at March 31, 2015 it was about $0.031 million.
The increase in investment stems from the acquisition of land in
Nagpur India that was part of the settlement with Sricon. This is a
reclassification from Investment in affiliates.
At the end of fiscal year 2016, the Company has approximately
$1.49 million in cash and cash equivalents. In fiscal 2016,
the non-GAAP total cash burn after adjusting for non-cash items
that include ESOPs, interest payments paid in stock, foreign
exchange losses, one time acquisition related expenses, and other
miscellaneous non-cash items, was approximately $0.856
million. This is attributable largely to public company
related expenses as our operating business was marginally
profitable.
Our strategy in fiscal 2016 and fiscal 2017 is: (i) to develop
an addressable market product portfolio of phytocannabinoid-based
therapies for end of care and compassionate use; (ii) wind down the
low margin electronic parts supply business; and (iii) re-focus on
infrastructure and real estate development.
Financial Tables to Follow
|
|
INDIA GLOBALIZATION CAPITAL, INC. AND
SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(Audited) |
|
|
|
All
amounts in USD except share data |
|
As of |
|
|
|
31-March - 16 |
|
|
31-March - 15 |
|
|
|
(audited) |
|
|
(audited) |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
1,490,693 |
|
|
$ |
824,492 |
|
Accounts receivable,
net of allowances |
|
|
962,658 |
|
|
|
993,296 |
|
Inventories |
|
|
162,091 |
|
|
|
709,649 |
|
Prepaid expenses and
other current assets |
|
|
1,226,507 |
|
|
|
1,950,295 |
|
Total current
assets |
|
$ |
3,841,949 |
|
|
$ |
4,477,732 |
|
Goodwill |
|
|
1,180,951 |
|
|
|
982,782 |
|
Intangible Assets |
|
|
113,321 |
|
|
|
306,131 |
|
Property, plant and
equipment, net |
|
|
7,074,437 |
|
|
|
7,784,447 |
|
Investments in
affiliates |
|
|
609,148 |
|
|
|
5,997,058 |
|
Investments-others |
|
|
5,175,392 |
|
|
|
30,477 |
|
Deferred Income
taxes |
|
|
356,684 |
|
|
|
318,548 |
|
Other non-current
assets |
|
|
507,300 |
|
|
|
434,284 |
|
Total long-term
assets |
|
$ |
15,017,233 |
|
|
$ |
15,853,727 |
|
Total
assets |
|
$ |
18,859,182 |
|
|
$ |
20,331,459 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Short -term
borrowings |
|
|
27,762 |
|
|
|
1,280,356 |
|
Trade payables |
|
|
330,631 |
|
|
|
174,584 |
|
Accrued expenses |
|
|
300,111 |
|
|
|
422,252 |
|
Loans - others |
|
|
189,680 |
|
|
|
73,707 |
|
Notes payable |
|
|
1,800,000 |
|
|
|
- |
|
Other current
liabilities |
|
|
550,877 |
|
|
|
496,985 |
|
Total current
liabilities |
|
$ |
3,199,061 |
|
|
$ |
2,447,884 |
|
Long -term
borrowings |
|
|
801,467 |
|
|
|
323,904 |
|
Notes payable |
|
|
- |
|
|
|
1,800,000 |
|
Other non-current
liabilities |
|
|
910,583 |
|
|
|
1,009,889 |
|
|
|
$ |
1,712,050 |
|
|
$ |
3,133,793 |
|
Total
liabilities |
|
$ |
4,911,111 |
|
|
$ |
5,581,677 |
|
Stockholders'
equity: |
|
|
|
|
|
|
|
|
Common stock — $.0001 par value;
150,000,000 shares authorized; 14,766,333 issued and outstanding as
of March 31, 2015 and 23,265,531 issued and outstanding as of
March 31, 2016. |
|
$ |
2,327 |
|
|
$ |
1,477 |
|
Additional paid-in capital |
|
|
65,885,243 |
|
|
|
63,479,918 |
|
Accumulated other comprehensive
income |
|
|
(2,269,357 |
) |
|
|
(1,913,585 |
) |
Retained earnings (Deficit) |
|
|
(50,142,199 |
) |
|
|
(47,333,955 |
) |
Total equity
attributable to Parent |
|
$ |
13,476,014 |
|
|
$ |
14,233,855 |
|
Non-controlling interest |
|
$ |
472,057 |
|
|
$ |
515,927 |
|
Total
stockholders' equity |
|
$ |
13,948,071 |
|
|
$ |
14,749,782 |
|
Total liabilities and
stockholders' equity |
|
$ |
18,859,182 |
|
|
$ |
20,331,459 |
|
|
|
These financial
statements should be read in connection with the accompanying notes
on Form 10-K for fiscal 2016 filed with the SEC on July 14,
2016. |
|
INDIA
GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES |
|
CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
(Audited) |
|
|
|
|
|
All amounts in USD except share data |
|
|
|
Year ended March 31, |
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
6,366,550 |
|
|
$ |
7,680,257 |
|
Cost of revenues (excluding
depreciation) |
|
|
(5,523,256 |
) |
|
|
(7,100,568 |
) |
Selling, general and administrative
expenses |
|
|
(2,702,753 |
) |
|
|
(4,140,434 |
) |
Depreciation |
|
|
(728,741 |
) |
|
|
(781,546 |
) |
Loss on investments /
associates /joint ventures |
|
|
(317,510 |
) |
|
|
- |
|
Operating income
(loss) |
|
$ |
(2,905,710 |
) |
|
$ |
(4,342,291 |
) |
Interest expense |
|
|
(213,928 |
) |
|
|
(286,332 |
) |
Interest income |
|
|
2,085 |
|
|
|
6,799 |
|
Other income, net |
|
|
284,186 |
|
|
|
(56,367 |
) |
Income before income taxes
and minority interest attributable to non-controlling
interest |
|
$ |
(2,833,367 |
) |
|
$ |
(4,678,191 |
) |
Income taxes benefit/
(expense) |
|
|
(579 |
) |
|
|
(5,157 |
) |
Net
income/(loss) |
|
$ |
(2,833,946 |
) |
|
$ |
(4,683,348 |
) |
|
|
|
|
|
|
|
|
|
Non-controlling interests in
earnings of subsidiaries |
|
|
(25,702 |
) |
|
|
(69,165 |
) |
Net income / (loss)
attributable to common stockholders |
|
$ |
(2,808,244 |
) |
|
$ |
(4,614,183 |
) |
Earnings/(loss) per
share attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.17 |
) |
|
$ |
(0.31 |
) |
Diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.31 |
) |
Weighted-average number
of shares used in computing earnings per share amounts: |
|
|
|
|
|
|
|
|
Basic |
|
|
16,387,290 |
|
|
|
14,755,893 |
|
Diluted |
|
|
16,387,290 |
|
|
|
14,755,893 |
|
|
|
|
|
|
|
|
|
|
These financial
statements should be read in connection with the accompanying notes
on Form 10-K for fiscal 2016 filed with the SEC on July 14,
2016. |
|
|
|
About IGC
In the United States, we develop phytocannabinoid-based
therapies. We have several patent filings for the indications of
Pain, Medical Refractory Epilepsy and Cachexia using
phytocannabinoids. In addition, we engage in leasing, trading,
developing and managing infrastructure, and real estate projects.
We are based in Bethesda, Maryland.
Our website: www.igcinc.us. Twitter @IGCIR
Facebook.com/IGCIR/
Forward-looking Statements
Some of the statements contained in this press release that are
not historical facts constitute forward-looking statements under
the federal securities laws. Forward-looking statements can be
identified by the use of the words "may," "will," "should,"
"could," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "intends," "potential," "proposed" or the
negative of those terms. These statements are not a guarantee of
future developments and are subject to risks, uncertainties, and
other factors, some of which are beyond IGC's control and are
difficult to predict. Consequently, actual results may differ
materially from information contained in the forward-looking
statements as a result of future changes or developments in IGC's
business and acquisition and diversification strategy, competitive
environment, infrastructure demands, and governmental, regulatory,
political, economic, legal and social conditions in, among other
places, China and India. Except as required by federal securities
laws, IGC undertakes no obligation to publicly update any
forward-looking statements, whether as a result of new information
or future events, or otherwise. Other factors and risks that could
cause or contribute to actual results differing materially from
such forward-looking statements have been discussed in greater
detail in IGC's Form 10-K for fiscal year ended March 31, 2016, and
in subsequent reports filed with the U.S. Securities and Exchange
Commission.
Contact:
Claudia Grimaldi
301-983-0998