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IGC Announces Financial Results for Fiscal Year Ended March 31, 2018


Posted on: 21 Jun 18

BETHESDA, Md., June 21, 2018 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE American:IGC) announces financial results for the fiscal year ended March 31, 2018.

“In fiscal 2018, the Company’s focus was to develop, manufacture, and lay the foundation to commercialize our lead product Hyalolex, an alternative oral cannabinoid-based therapy for the treatment of symptoms associated with Alzheimer’s.  The commercialization of Hyalolex through medical dispensaries in select states is expected to commence in the second half of calendar 2018. We expect to roll-out our product via licensing arrangements in Puerto Rico and other U.S. states. In the meantime, all our revenue in fiscal 2018 is from our legacy trading business, said Ram Mukunda, CEO.

Alternative Therapy Overview:
We focus on the development and commercialization of cannabinoid-based combination therapies.  Cannabinoids are chemical compounds that exert a range of effects on the body, including impacting the immune response, gastrointestinal maintenance and motility, muscle functioning, and nervous system response and functioning. Phytocannabinoids are cannabinoids that occur naturally in the cannabis plant. In medical applications, cannabinoids are extracted from the cannabis plant using a variety of well-established technologies, including using CO2, butane, and alcohol, among others, as solvents. The refined extracted material is isolated for specific active ingredients like THC and CBD, among others, and used in formulations as the primary or secondary active ingredient.

Our work, based on our strategy, is to use cannabinoids synergistically with other active ingredients that in some cases have been established to treat specific medical conditions. We seek, through these synergies, for our combination therapies, to decrease side effects, increase bio-availability of active ingredients, and enhance efficacy.

We have filed eight provisional patents with the United States Patent and Trademark Office (“USPTO”), in the phytocannabinoid-based combination therapy space, for the indications of pain, medical refractory epilepsy, and cachexia. In addition, in May 2017, we acquired an exclusive license to a patent filed by the University of South Florida Research Foundation entitled “Cannabidiol and Synthetic Dronabinol for treatment of Alzheimer’s Disease.”  Hyalolex is based on this work.

Blockchain Overview:
The Company has developed and deployed a QR code-based system that allows patients to access a website with specific information on Hyalolex.  Each QR code is specific to a state and displays information specific to that state.  We are in the process of creating a mobile optimized version that will expand the product information available to patients to include location of dispensaries that carry our products, based on zip code, and in turn also allow us to gather information through surveys and obtain feedback from patients.

As the number of states in which the product is available increases, we expect to expand the backend to a blockchain that allows for inputs directly from growers, processors, and dispensaries.  This information will collectively display product identification, and product origination, by providing the patient with information regarding the origin, chemicals, and processes used to manufacture the product.  We expect to expand the QR code-based system in several phases over fiscal 2019.

Total revenue is approximately $2.19 million for FYE 2018, as compared to approximately $580 thousand for the FYE 2017.  This revenue is generated from our legacy business that includes trading of steel and iron ore and rental of heavy equipment. The increase year-over year is attributable to an increase in the volume of trading commodities.  Our plan for the legacy business is to maintain annual trading revenue between $3 and $5 million and work on increased margins.  In the second half of calendar 2018 we expect to add revenue from Hyalolex with a goal of introducing the product into 10 states by the end of 2018.

Selling, general and administrative expenses are about $1.87 million for fiscal 2018, as compared to about $2.27 million for fiscal 2017.  The decrease in SG&A is attributable to decreased depreciation and other SG&A expenses.

Net loss is approximately $1.79 million in fiscal year 2018, as compared to approximately $1.85 million in fiscal year 2017.  The deceased loss is attributed to lower SG&A.

At the end of fiscal year 2018, the Company reported approximately $1.65 million in cash and cash equivalents and working capital of approximately $860 thousand.

Contact:
Claudia Grimaldi
301-983-0998

Financial Tables to Follow

India Globalization Capital, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in USD, except number of shares)
 
 Years Ended March 31, 
 2018  2017 
Revenues$2,192,590  $580,372 
Cost of revenues (2,111,066)  (362,135)
Gross profit/(loss) 81,524   218,237 
Selling, general and administrative expenses (1,870,477)  (2,271,690)
Loss on investments / associates /joint ventures -   (932)
Operating income/(loss)$(1,788,953) $(2,054,385)
Other Income (Net) 3,143   215,955 
Income before income taxes and minority interest attributable to non-controlling interest$(1,785,810) $(1,838,430)
Income taxes benefit/(expense) (464)  (14,431)
Net income/(loss)$(1,786,274) $(1,852,861)
Non-controlling interests in earnings of subsidiaries -   14,399 
Net income/(loss) attributable to common stockholders$(1,786,274) $(1,867,260)
Earnings/(loss) per share attributable to common stockholders:       
Basic and Diluted$(0.06) $(0.07)
Weighted-average number of shares used in computing earnings per share amounts:       
Basic and Diluted 27,937,287   25,658,544 
        
These financial statements should be read in connection with the accompanying notes on Form 10-K for the
fiscal year ending March 31, 2018 filed with the SEC on June 21, 2018.




India Globalization Capital, Inc. 
CONSOLIDATED BALANCE SHEETS 
(All amounts in USD, except share data) 
  
  March 31,
2018
  March 31,
2017
 
ASSETS      
Current assets:      
Cash and cash equivalents $1,658,496  $538,029 
Accounts receivable, net of allowances  557,813   752,926 
Inventories  486,497   - 
Investments held for sale  147,500   - 
Other current assets  354,641   410,408 
Short -term investments  -   1,880,000 
Total current assets $3,204,947  $3,581,363 
Long-term assets:        
Goodwill  -   198,169 
Intangible Assets  127,826   - 
Property, plant and equipment, net  6,236,839   953,936 
Investments  798,922   6,011,114 
Other non-current assets  484,562   539,720 
Total long-term assets $7,648,149  $7,702,939 
Total assets $10,853,096  $11,284,302 
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Trade payables  52,270   416,532 
Other current liabilities  493,684   873,179 
Notes payable  1,800,000   - 
Total current liabilities $2,345,954  $1,289,711 
Non-current liabilities:        
Loans - others  427,500   844,306 
Notes payable  -   1,800,000 
Other liabilities  14,896   - 
Total non-current liabilities $442,396  $2,644,306 
Total liabilities $2,788,350  $3,934,017 
Stockholders' equity:        
Common stock and additional paid-in capital, $0.0001 par value: 150,000,000 shares authorized; 28,272,667 and 30,764,192 shares issued and outstanding, respectively. $63,917,035  $61,416,360 
Accumulated other comprehensive income/(loss)  (2,056,556)  (2,047,780)
Retained earnings /(deficit)  (53,795,733)  (52,009,459)
Total equity attributable to Parent $8,064,746  $7,359,121 
Non-controlling interest $-  $(8,836)
Total stockholders' equity $8,064,746  $7,350,285 
Total liabilities and stockholders' equity $10,853,096  $11,284,302 
  
These financial statements should be read in connection with the accompanying notes on Form 10-K for the
fiscal year ending March 31, 2018 filed with the SEC on June 21, 2018.
 


GlobeNewswire
globenewswire.com

Last updated on: 22/06/2018

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