India Globalization Capital, Inc. (NYSE American: IGC) announces
its financial results for the Fiscal Year Ended March 31, 2020.
During Fiscal 2020, total revenue was approximately $4.1 million
compared to approximately $5.1 million for Fiscal 2019. In both
years, revenue was primarily derived from our India-based
Infrastructure Business. In Fiscal 2020, the Company generated
$411,000 revenue from its Life Sciences segment that was previously
referred to as the Plant and Cannabinoid segment. Revenue in Fiscal
2020 was lower than Fiscal 2019 primarily due to economic slowdown,
social distancing, travel and stay at home restrictions brought on
by Covid-19 in the last quarter of our fiscal year.
The highlights for Fiscal 2020 are:
- We filed a provisional patent, IGC 510, Compositions and
Methods using cannabidiol (“CBD”) for treating stammering and
symptoms of Tourette syndrome with the USPTO.
- We received notification that on March 24, 2020, the USPTO
issued a method and composition patent (#10,596,159 B2) for the
Company’s cannabinoid formulation for the treatment of cachexia and
eating disorders in humans and veterinary animals.
- The Company filed an Investigational New Drug Application with
the FDA for a double-blind, placebo-controlled, 100-person trial,
for its proprietary patent-pending formulation based on IGC-AD1
that uses ultra-low doses of cannabinoids with other natural
compounds intended to assist in the management of the care of
patients suffering from Alzheimer’s disease.
- We established a facility in San Juan, Puerto Rico to house and
conduct clinical trials.
- We established a production and manufacturing facility in
Washington State.
- The Company, in response to the Covid-19 pandemic, adapted the
manufacturing facilities to produce and package hand sanitizers
that are anticipated to go on sale in Fiscal 2021.
- We completed the development of several online and retail
brands, building out our “house of CBD brands” that we anticipate
will come to market in accordance with applicable law and
regulation in the future.
General and administrative expenses for Fiscal 2020 was
approximately $6 million as compared to approximately $3.5 million
for Fiscal 2019. The increase is largely attributed to increased
legal fees, and increased compensation expenses from an increased
employee and contractor head count. We anticipate legal fees will
abate over Fiscal 2021.
Research and Development (R&D) expense for Fiscal 2020 was
approximately $1 million compared to approximately $1.3 million for
the Fiscal 2019. The cost associated with this work is mostly
research comprising of plant extracts, data to support the efficacy
of extracts, and running FDA trials.
Net loss for Fiscal 2020 was approximately $7.3 million or $0.19
per share, compared to approximately $4.1 million or $0.13 per
share for Fiscal 2019. The larger loss is largely attributed to
increased legal and increased employee-related expenses.
On July 6, 2020, the United States District Court for the
District of Maryland entered an order formally and finally
approving a settlement that resolves all pending shareholder
derivative suits filed against the Company between November 2018
and the present. Details of the settlement were previously
disclosed on May 7, 2020 and in the Company’s public filings.
About IGC: IGC has two segments: Infrastructure and Life
Sciences. The company is based in Maryland, U.S.A. Our website:
www.igcinc.us.Twitter @IGCIR
Forward-looking Statements: This press release contains
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. These forward-looking statements
are based largely on IGC’s expectations and are subject to several
risks and uncertainties, certain of which are beyond IGC’s control.
Actual results could differ materially from these forward-looking
statements as a result of, among other factors, competitive
conditions in the industries in which IGC operates, failure to
commercialize one or more of the technologies of IGC, general
economic conditions that are less favorable than expected, the
Federal Food and Drug Administration’s (FDA) general position
regarding hemp based products and our products in particular, the
ongoing Covid-19 pandemic and its effect on the global and regional
economies in which the Company participates, and other factors,
many of which are discussed in our SEC filings. The Company
incorporates by reference the Risk Factors identified in its Fiscal
2020 annual report filed with the SEC on Form 10-K on July 13,
2020. In light of these risks and uncertainties, there can be no
assurance that the forward-looking information contained in this
release will in fact occur.
India Globalization Capital,
Inc.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
March 31, 2020
March 31, 2019
($)
($)
ASSETS
Current assets:
Cash and cash equivalents
7,258
25,610
Marketable Securities
5,081
-
Accounts receivable, net
133
84
Inventories
4,245
248
Deposits and advances
1,040
781
Total current assets
17,757
26,723
Intangible assets, net
252
184
Property, plant and equipment, net
9,780
5,886
Non-Marketable Securities
11
794
Claims and advances
610
878
Operating lease asset
574
-
Total long-term assets
11,227
7,742
Total assets
28,984
34,465
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
762
319
Accrued liabilities and others
1,134
509
Short-term loan
50
50
Total current liabilities
1,946
878
Other liabilities
16
15
Operating lease liability
485
-
Total non-current liabilities
501
15
Total liabilities
2,447
893
Commitments and Contingencies – See
Note 12
Stockholders' equity:
Preferred stock, $0.0001 per value:
authorized 1,000,000 shares, no share issued or outstanding as on
March 31, 2020 and March 31, 2019
-
-
Common stock and additional paid-in
capital, $0.0001 par value: 150,000,000 shares authorized;
39,320,116 and 39,501,407 shares issued and outstanding as on March
31, 2020 and March 31, 2019, respectively.
94,754
94,043
Accumulated other comprehensive loss
(2,850
)
(2,419
)
Accumulated deficit
(65,367
)
(58,052
)
Total stockholders' equity
26,537
33,572
Total liabilities and stockholders'
equity
28,984
34,465
These financial statements should be read in
connection with the accompanying notes on Form 10-K for the fiscal
year ending March 31, 2020, filed with the SEC on July 10,
2020.
India Globalization Capital,
Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except loss per
share)
Years Ended March 31,
2020 ($)
2019 ($)
Revenues
4,072
5,116
Cost of revenues
(3,957
)
(4,984
)
Gross profit
115
132
General and administrative expenses
(5,968
)
(3,519
)
Research and development expenses
(1,011
)
(1,256
)
Operating loss
(6,864
)
(4,643
)
Impairment of investment
(782
)
-
Other income – net
331
548
Loss before income taxes
(7,315
)
(4,095
)
Income taxes expense
-
(2
)
Net loss attributable to common
stockholders
(7,315
)
(4,097
)
Foreign currency translation
adjustments
(431
)
(362
)
Comprehensive loss
(7,746
)
(4,459
)
Loss per share attributable to common
stockholders:
Basic & diluted
$
(0.19
)
$
(0.13
)
Weighted-average number of shares used in
computing loss per share amounts:
39,490
35,393
These financial statements should be read in
connection with the accompanying notes on Form 10-K for the fiscal
year ending March 31, 2020, filed with the SEC on July 10,
2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200713005607/en/
Claudia Grimaldi. Phone: 301-983-0998
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