Bookmark and Share

$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  — 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
Friday, July 14th, 2017 Uncategorized