IGC Announces Financial Results for Quarter Ended June 30, 2017
August 21 2017 - 7:00AM
India Globalization Capital, Inc. (NYSE AMERICAN:IGC) announces
financial results for the quarter ended June 30, 2017.
“During the quarter, we secured an IP licensing agreement from
the University of South Florida addressing a potential treatment
for Alzheimer’s disease. This patent filing claims discovery
of a new pathway: low doses of THC bind to amyloid beta plaques and
prevent those plaques from aggregating on neurons, which is what
occurs in Alzheimer’s disease and causes cognitive decline.
IGC expects to release mouse data showing that this pathway
and therapy have possible blockbuster potential in treating
Alzheimer’s disease. We expect to take this exciting
treatment to human medical trials as soon as possible,” stated Ram
Mukunda, CEO of IGC.
Total revenue was $52,926 for the three months ended June 30,
2017, as compared to $288,493 for the three months ended June 30,
2016. The decrease in revenue is attributable to the corporate
mandate to extricate IGC from the electronic and iron ore trading
businesses and focus management on medical cannabis therapies. The
revenue in the three months ended June 30, 2017 is all from the
rental of heavy equipment and real estate management.
Selling, general and administrative expenses were $436,351 for
the quarter ended June 30, 2017 as compared to $307,772 for the
quarter ended June 30, 2016. Most of these expenses are a
result of public-company expenses, including legal fees.
The Company reported a consolidated GAAP net income loss of
$432,141 and a GAAP EPS loss of $0.02 compared to a GAAP net income
loss of $383,566 and a GAAP EPS loss of $0.02 for the three months
ended June 30, 2016. The increase in loss is due to increased
SG&A related to marketing programs that the company
initiated.
For the quarter ended June 30, 2017, our non-GAAP cash burn was
approximately $389,577.
At the end of June 30, 2017, our cash and cash equivalents along
with restricted cash was $345,610 with working capital of $623,984.
We anticipate securing additional capital to further our patent
portfolio and commence medical trials on our Alzheimer’s
product.
About IGC
IGC develops cannabis-based combination therapies to treat
Alzheimer’s, pain, nausea, eating disorders, several end points of
Parkinson’s, and epilepsy in humans, dogs and cats. In
support of this effort, IGC has assembled a portfolio of patent
filings and four lead product candidates addressing these
conditions. We are based in Bethesda, Maryland.
Our website: www.igcinc.us. Twitter @IGCIR
Facebook.com/IGCIR/
Forward-looking Statements
Please see forward-looking statements as discussed in detail in
IGC's Form 10-K for fiscal year ended March 31, 2017, and in other
reports filed with the U.S. Securities and Exchange Commission.
FINANCIAL STATEMENTS TO
FOLLOW
| INDIA GLOBALIZATION CAPITAL, INC. AND
SUBSIDIARIES |
|
| CONSOLIDATED BALANCE SHEETS |
|
| |
|
| (All amounts in USD, except number of shares and per
share amounts) |
|
| |
|
| |
|
As of |
|
| |
|
30-June-17 |
|
|
31-Mar-17 |
|
| |
|
(unaudited) |
|
|
(audited) |
|
|
ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and
cash equivalents |
|
$ |
345,610 |
|
|
$ |
538,029 |
|
| Accounts
receivable, net of allowances |
|
|
839,462 |
|
|
|
752,926 |
|
| Prepaid
expenses and other current assets |
|
|
416,160 |
|
|
|
410,408 |
|
|
Short-term investments |
|
|
- |
|
|
|
1,880,000 |
|
|
Total current assets |
|
$ |
1,601,232 |
|
|
$ |
3,581,363 |
|
| Goodwill |
|
|
198,169 |
|
|
|
198,169 |
|
| Property, plant and
equipment, net |
|
|
952,009 |
|
|
|
953,936 |
|
| Investments in
affiliates |
|
|
773,111 |
|
|
|
773,111 |
|
| Investments-others |
|
|
5,239,778 |
|
|
|
5,238,003 |
|
| Other non-current
assets |
|
|
672,142 |
|
|
|
539,720 |
|
|
Total long-term assets |
|
$ |
7,835,209 |
|
|
$ |
7,702,939 |
|
|
Total assets |
|
$ |
9,436,441 |
|
|
$ |
11,284,302 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
| Current
liabilities: |
|
|
|
|
|
|
|
|
| Trade
payables |
|
|
427,079 |
|
|
|
416,532 |
|
| Accrued
expenses |
|
|
143,000 |
|
|
|
181,465 |
|
| Other
current liabilities |
|
|
407,169 |
|
|
|
691,714 |
|
|
Total current liabilities |
|
$ |
977,248 |
|
|
$ |
1,289,711 |
|
| Long
-term borrowings |
|
|
175,991 |
|
|
|
452,080 |
|
| Loans –
others |
|
|
388,476 |
|
|
|
392,226 |
|
| Notes
payable |
|
|
1,800,000 |
|
|
|
1,800,000 |
|
|
Total non-current liabilities |
|
$ |
2,364,467 |
|
|
$ |
2,644,306 |
|
|
Total liabilities |
|
$ |
3,341,715 |
|
|
$ |
3,934,017 |
|
| Stockholders'
equity: |
|
|
|
|
|
|
|
|
| Common stock — $.0001
par value; 150,000,000 shares authorized; 23,265,531 issued and
outstanding as of March 31, 2017 and 26,803,020 issued and
outstanding as of June 30, 2017. |
|
$ |
2,680 |
|
|
$ |
2,827 |
|
|
Additional paid-in capital |
|
|
60,588,461 |
|
|
|
61,413,533 |
|
|
Accumulated other comprehensive income |
|
|
(2,046,023 |
) |
|
|
(2,047,780 |
) |
| Retained
earnings (Deficit) |
|
|
(52,441,602 |
) |
|
|
(52,009,459 |
) |
| Total equity
attributable to Parent |
|
$ |
6,103,516 |
|
|
$ |
7,359,121 |
|
|
Non-controlling interest |
|
$ |
(8,790 |
) |
|
$ |
(8,836 |
) |
| Total
stockholders' equity |
|
$ |
6,094,726 |
|
|
$ |
7,350,285 |
|
|
Total liabilities and stockholders' equity |
|
$ |
9,436,441 |
|
|
$ |
11,284,302 |
|
| |
|
| See accompanying Notes to Consolidated Financial
Statements below in this report and Notes to the Audited
Consolidated Financial Statements contained in the Company’s Annual
Report on Form 10-K for the fiscal year ended March 31, 2017 filed
with the SEC on July 14, 2017. |
|
| |
|
| INDIA GLOBALIZATION CAPITAL, INC. AND
SUBSIDIARIES |
|
| CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
| (Unaudited) |
|
| |
|
| (All amounts in USD, except number of shares and per
share amounts) |
|
| |
|
| |
|
As of |
|
| |
|
Three months ended June 30, |
|
|
|
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
|
|
Revenues |
|
$ |
52,926 |
|
|
$ |
288,493 |
|
| Cost of
revenues (excluding depreciation) |
|
|
(6,880 |
) |
|
|
(201,854 |
) |
| Selling,
general and administrative expenses |
|
|
(436,351 |
) |
|
|
(307,772 |
) |
|
Depreciation |
|
|
(5,964 |
) |
|
|
(97,672 |
) |
|
Operating income (loss) |
|
$ |
(396,269 |
) |
|
$ |
(318,805 |
) |
| Interest
expense |
|
|
(44,546 |
) |
|
|
(43,278 |
) |
| Other
income, net |
|
|
8,355 |
|
|
|
1,755 |
|
| Income before
income taxes and minority interest attributable to non-controlling
interest |
|
$ |
(432,460 |
) |
|
$ |
(360,328 |
) |
| Income
taxes benefit/ (expense) |
|
|
- |
|
|
|
- |
|
|
Net income/(loss) |
|
$ |
(432,460 |
) |
|
$ |
(360,328 |
) |
|
Non-controlling interests in earnings of subsidiaries |
|
|
(319 |
) |
|
|
23,238 |
|
|
Net income / (loss) attributable to common
stockholders |
|
$ |
(432,141 |
) |
|
$ |
(383,566 |
) |
|
Earnings/(loss) per share attributable to common stockholders: |
|
|
|
|
|
|
Basic |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
Diluted |
|
$ |
(0.02 |
) |
|
$ |
(0.02 |
) |
|
Weighted-average number of shares used in computing earnings per
share amounts: |
|
|
Basic |
|
|
25,865,307 |
|
|
|
23,312,056 |
|
|
Diluted |
|
|
25,865,307 |
|
|
|
23,312,056 |
|
| |
|
| See accompanying Notes to Consolidated Financial
Statements below in this report and Notes to the Audited
Consolidated Financial Statements contained in the Company’s Annual
Report on Form 10-K for the fiscal year ended March 31, 2017 filed
with the SEC on July 14, 2017. |
|
Contact
Claudia Grimaldi
301-983-0998