India Globalization Capital, Inc. (NYSE American: IGC) today
announced financial results for the quarter ended September 30,
2019, which is the second quarter of its 2020 fiscal year.
Revenue for the September 2019 quarter rose 125% to
approximately $1.8 million compared to approximately $0.81 million
reported in the September 2018 quarter. In the September 2019
quarter, the plant and cannabinoid business, consisting of the sale
of cannabinoid products under the brands Holi Hemp™ and Hyalolex™,
in accordance with applicable law and regulations, accounted for
20% of the quarter’s revenue versus zero a year ago.
The remaining 80% of the revenue was primarily derived from the
Company’s India-based infrastructure business which consists of (i)
rental of heavy equipment, (ii) execution of construction
contracts, and (iii) sale of infrastructure commodities.
SG&A expense, inclusive of R&D expenses for the
September 2019 quarter was approximately $1.31 million compared to
approximately $0.87 million for the September 2018 quarter. The
majority of the increase in SG&A was due to legal and
professional fees including those incurred in connection with
defending shareholder lawsuits.
Net loss for the September 2019 quarter was approximately $1.32
million or $0.03 per share, compared to approximately $1.19 million
or $0.03 per share for the September 2018 quarter. Increased
expenses from the plant and cannabinoid business and legal
expenses, as noted above, were the primary factors for the larger
loss.
During the three months ended September 30, 2019, the Company
took the following steps, among others:
- Pharmaceutical Trial for Hyalolex™: The Company
continued to diligently pursue its double-blind,
placebo-controlled, 100-person trial, for its proprietary patent
pending formulation based on IGC-AD1 that uses ultra-low doses of
THC with other natural compounds and is intended to assist in
management of the care of patients suffering from Alzheimer’s
disease. The Company’s efforts include investigating and securing a
site for patient interaction. During the September 2019 quarter,
the Company obtained Puerto Rico Institutional Review Board
approval to conduct the trial.
- Hyalolex™ in Puerto Rico: The Company expanded the
number of dispensaries in Puerto Rico where Hyalolex™ (the
Company’s flagship product) is sold and began the next phase of
marketing, including patient and doctor engagement.
- Team Expansion: IGC opened a marketing and research hub
in Bogota, Colombia. The Company’s beneficially-owned subsidiary,
Hamsa Biochem SAS, will focus on three goals – (1) expanding the
distribution of the Company’s products in Latin America, (2)
securing a low cost-basis for procuring raw materials like CBD
(cannabidiol) and hemp extracts, and (3) advancing the Company’s
research platform through medical trials and advanced natural
product chemistry. The Company also expanded its supply chain, for
the sale of Holi Hemp™ branded products such as hemp crude,
cannabidiol (“CBD”) distillate, tetrahydrocannabinol-free
(“T-free”) oil, and other hemp derivatives.
- New Product Launch: IGC is in the late stage of building
a patented pain relief brand and intends to begin test marketing
online in calendar year 2020.
- Hemp Crop: The Company’s subsidiary, Holi Hemp LLC,
started growing hemp on 100 acres in Arizona. The first harvest is
expected in calendar year 2020.
- Investments: The Company continues to invest in hemp
processing and growing facilities.
The Company operates both of its business lines in compliance
with applicable laws and regulations.
About IGC:
IGC currently has two lines of business: (i) infrastructure and
(ii) plant and cannabinoid-based products. The company is based in
Bethesda, Maryland, U.S.A. Its corporate website is 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 a number of 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 products or technologies of IGC,
including any new products identified herein, failure to obtain an
R&D license or any other applicable license or regulatory
approval necessary for conducting our trial protocol, any changes
in federal, state, or local law applicable to our businesses and
the locations where we operate, weather and/or climate events which
impact the Company’s ability to harvest its hemp crop, failure to
reach agreement on specific terms to resolve the shareholder and
shareholder derivative suits currently pending against the Company
as described in the Company’s public filings, general economic and
political conditions that are less favorable than expected, the
Federal Food and Drug Administration’s (FDA) general position
regarding hemp-based and related products in particular, and other
factors, many of which are discussed in our SEC filings. The Risk
Factors identified in the Company’s annual report, filed on Form
10-K with the SEC on June 14, 2019, and in the Company’s quarterly
report, filed on Form 10-Q with the SEC on August 9, 2019, and on
November 5, 2019, are incorporated herein by reference. 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.
< Financial Tables to Follow >
India Globalization Capital,
Inc.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
data)
(Unaudited)
September 30,
2019
(Unaudited)
($)
March 31,
2019
(Audited)
($)
ASSETS
Current assets:
Cash and cash equivalents
14,063
25,610
Accounts receivable, net of allowances of
$6 and $6
244
84
Inventory
3,108
248
Short-term investment
5,039
-
Deposits & advances
1,446
781
Total current assets
23,900
26,723
Intangible assets, net
203
184
Property, plant and equipment, net
7,123
5,886
Investments in unlisted securities
794
794
Claims and advances
867
878
Total non-current assets
8,987
7,742
Total assets
32,887
34,465
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
903
319
Accrued and other liabilities
677
509
Short-term loan
50
50
Total current liabilities
1,630
878
Other liabilities
15
15
Total non-current liabilities
15
15
Total liabilities
1,645
893
Commitments and Contingencies – See Note
10
Stockholders' equity:
Common stock and additional paid in
capital, $0.0001 par value: 150,000,000 shares authorized;
39,571,407 and 39,501,407 shares issued and outstanding as of
September 30, 2019 and March 31, 2019, respectively.
94,395
94,043
Accumulated other comprehensive loss
(2,543)
(2,419)
Accumulated deficit
(60,610)
(58,052)
Total stockholders' equity
31,242
33,572
Total liabilities and stockholders'
equity
32,887
34,465
See accompanying Notes to the Condensed
Consolidated Financial Statements in the Quarterly Report on Form
10-Q for the quarter ended September 30, 2019, as filed with the
SEC on November 5, 2019.
India Globalization Capital,
Inc.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
AND COMPREHENSIVE LOSS
(in thousands, except loss per
share)
(Unaudited)
Three months ended Sept. 30,
2019
($)
2018
($)
Revenue
1,821
811
Cost of revenue
(1,793
)
(793
)
Gross Profit
28
18
General and administrative expenses
(1,094
)
(595
)
Research and development expenses
(222
)
(278
)
Operating loss
(1,288
)
(855
)
Other income/(expense), net
109
(4
)
Loss before income taxes
(1,179
)
(859
)
Income taxes expense/benefit
-
-
Net loss attributable to common
stockholders
(1,179
)
(859
)
Foreign currency translation
adjustments
(143)
(334
)
Comprehensive loss
(1,322
)
(1,193
)
Loss per share attributable to common
stockholders:
Basic & Diluted
$
(0.03
)
$
(0.03
)
Weighted-average number of shares used in
computing loss per share amounts:
39,551
31,345
See accompanying Notes to the Condensed
Consolidated Financial Statements in the Quarterly Report on Form
10-Q for the quarter ended September 30, 2019, as filed with the
SEC on November 5, 2019.
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version on businesswire.com: https://www.businesswire.com/news/home/20191106005360/en/
Claudia Grimaldi 301-983-0998
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