IGC Announces Financial Results for Fiscal Year Ended March 31, 2017
Core Operations Transitioned to Phytocannabinoid-Based Therapy Development Targeting Large Market Indications
BETHESDA, Md., July 14, 2017 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announces financial results for the fiscal year ended March 31, 2017.
“In fiscal 2017, our major accomplishments include the advancement of our phytocannabinoid patent filing portfolio to large market indications. And in order to keep this focus on the medical cannabis industry, we disposed of our low-margin iron ore and electronic trading businesses, and retired about 10% of our outstanding common stock; thus reducing revenue, PP&E, and stockholder’s equity. We firmly believe that this planned strategic move positions our Company for growth in one of the fastest growing industries in America,” said Ram Mukunda, CEO.
Total revenue was approximately $0.58 million for FYE 2017, as compared to approximately $6.37 million for the FYE 2016. Exiting the electronic business contributed to the decrease in revenue.
As a result of our decision to exit the iron ore business segment, our FYE 2017 Property, Plant and Equipment, net of depreciation decreased by approximately $6.1 million to approximately $0.95 million, and that also largely led to the decrease in stockholder’s equity to about $7.3 million from about $13.9 million in fiscal 2016.
Selling, general and administrative expenses were about $1.88 million for fiscal 2017, inclusive of one time expenses associated with the disposition of businesses lines, and non-cash expenses, as compared to about $2.70 million for fiscal 2016, an improvement of 30.6%. Fiscal 2017 reflects a steep cut in expenses associated with a further aligning of resources to focus on phytocannabinoid therapies.
Loss from operations was approximately $2.05 million in fiscal year 2017, as compared to approximately $2.91 million in fiscal year 2016. The improvement in operating loss year over year is mostly attributed to lower SG&A. At the end of fiscal year 2017, the Company has approximately $0.54 million in cash and cash equivalents and working capital of approximately $2.30 million.
Financial Tables to Follow
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Audited) | ||||||||
|
(All amounts in USD, except number of shares and per share amounts) | ||||||||
| 31-March-17 | 31-March-16 | |||||||
| (audited) | (audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 538,029 | $ | 1,490,693 | ||||
| Accounts receivable, net of allowances | 752,926 | 962,658 | ||||||
| Inventories | - | 162,091 | ||||||
| Prepaid expenses and other current assets | 410,408 | 1,226,507 | ||||||
| Short-term investments | 1,880,000 | - | ||||||
| Total current assets | $ | 3,581,363 | $ | 3,841,949 | ||||
| Goodwill | 198,169 | 1,180,951 | ||||||
| Intangible Assets | - | 113,321 | ||||||
| Property, plant and equipment, net | 953,936 | 7,074,437 | ||||||
| Investments in affiliates | 773,111 | 609,148 | ||||||
| Investments-others | 5,238,003 | 5,175,392 | ||||||
| Deferred Income taxes | - | 356,684 | ||||||
| Other non-current assets | 539,720 | 507,300 | ||||||
| Total long-term assets | $ | 7,702,939 | $ | 15,017,233 | ||||
| Total assets | $ | 11,284,302 | $ | 18,859,182 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short -term borrowings | - | 27,762 | ||||||
| Trade payables | 416,532 | 330,631 | ||||||
| Accrued expenses | 181,465 | 300,111 | ||||||
| Loans - others | - | 189,680 | ||||||
| Notes payable | - | 1,800,000 | ||||||
| Other current liabilities | 691,714 | 550,877 | ||||||
| Total current liabilities | $ | 1,289,711 | $ | 3,199,061 | ||||
| Long -term borrowings | 452,080 | 801,467 | ||||||
| Loans - others | 392,226 | - | ||||||
| Notes payable | 1,800,000 | - | ||||||
| Other non-current liabilities | - | 910,583 | ||||||
| Total long-term liabilities | $ | 2,644,306 | $ | 1,712,050 | ||||
| Total liabilities | $ | 3,934,017 | $ | 4,911,111 | ||||
| Stockholders' equity: | ||||||||
| Common stock — $.0001 par value; 150,000,000 shares authorized; 23,265,531 issued and outstanding as of March 31, 2016 and 28,272,667 issued and outstanding as of March 31, 2017. | $ | 2,827 | $ | 2,327 | ||||
| Additional paid-in capital | 61,413,533 | 65,885,243 | ||||||
| Accumulated other comprehensive income | (2,047,780 | ) | (2,269,357 | ) | ||||
| Retained earnings (Deficit) | (52,009,459 | ) | (50,142,199 | ) | ||||
| Total equity attributable to Parent | $ | 7,359,121 | $ | 13,476,014 | ||||
| Non-controlling interest | $ | (8,836 | ) | $ | 472,057 | |||
| Total stockholders' equity | $ | 7,350,285 | $ | 13,948,071 | ||||
| Total liabilities and stockholders' equity | $ | 11,284,302 | $ | 18,859,182 | ||||
These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2017
filed with the SEC on July 13, 2017.
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Audited) | ||||||||
|
(All amounts in USD, except number of shares and per share amounts) | ||||||||
| Year ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Revenues | $ | 580,372 | $ | 6,366,550 | ||||
| Cost of revenues (excluding depreciation) | (362,135 | ) | (5,523,256 | ) | ||||
| Selling, general and administrative expenses | (1,875,344 | ) | (2,702,753 | ) | ||||
| Depreciation | (396,346 | ) | (728,741 | ) | ||||
| Loss on investments / associates /joint ventures | (932 | ) | (317,510 | ) | ||||
| Operating income (loss) | $ | (2,054,385 | ) | $ | (2,905,710 | ) | ||
| Interest expense | (223,464 | ) | (213,928 | ) | ||||
| Interest income | 1,744 | 2,085 | ||||||
| Profit on investments/associates and Joint Ventures | 317,742 | - | ||||||
| Other income, net | 119,933 | 284,186 | ||||||
| Income before income taxes and minority interest attributable to non-controlling interest | $ | (1,838,430 | ) | $ | (2,833,367 | ) | ||
| Income taxes benefit/ (expense) | (14,431 | ) | (579 | ) | ||||
| Net income/(loss) | $ | (1,852,861 | ) | $ | (2,833,946 | ) | ||
| Non-controlling interests in earnings of subsidiaries | 14,399 | (25,702 | ) | |||||
| Net income / (loss) attributable to common stockholders | $ | (1,867,260 | ) | $ | (2,808,244 | ) | ||
| Earnings/(loss) per share attributable to common stockholders: | ||||||||
| Basic | $ | (0.07 | ) | $ | (0.17 | ) | ||
| Diluted | $ | (0.07 | ) | $ | (0.17 | ) | ||
| Weighted-average number of shares used in computing earnings per share amounts: | ||||||||
| Basic | 25,658,544 | 16,387,290 | ||||||
| Diluted | 25,658,544 | 16,387,290 | ||||||
These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2017
filed with the SEC on July 13, 2017.
About IGC
India Globalization Capital is engaged in the development of 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. The company is based in Bethesda, Maryland.
For more information visit www.igcinc.us
Follow us on Twitter @IGCIR and 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.
Contact Info: Claudia Grimaldi 301-983-0998
