- Expands electronics business on strong revenue growth
- Files preliminary patents for phytocannabinoid based therapies
BETHESDA, Md., July 13, 2015 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announces financial results for fiscal year ended March 31, 2015.
Fiscal 2015 revenue was about $7.68 million compared to about $2.27 million for fiscal 2014; a growth of 238%.
"We are happy to report that we have successfully transitioned away from iron ore and dependency on the growth of the Chinese economy to electronics supply chain for original equipment manufacturers (OEMs). We focused on supplying electronic components for the Internet of Things to OEMs in Asia, Europe, and the Americas. We expect to grow this business by leveraging our international presence and pursuing higher margin distribution agreements with some of the large component manufacturers. We are also driving cost synergies in lighting, control systems and other technologies for building out vertical farm infrastructure that can eventually be used to grow medical grade cannabis for phytocannabinoid based nutraceuticals and pharmaceuticals," said Ram Mukunda CEO of IGC.
Fiscal 2015 selling, general and administrative expenses were about $4.14 million compared to $2.18 million for fiscal 2014; an increase of 88%. For fiscal 2015, the non-GAAP SG&A after adjusting for non-cash items and one-time charges was about $1.86 million.
About $2.24 million of the increase in G&A for fiscal 2015, is attributable to (a) non-cash expenses associated with employee stock grants approved by the shareholders, (b) one-time expenses associated with a write down of bad debt from the iron ore trading business, (c) one-time expenses associated with the settlement of two law suits, (d) one-time expenses associated with the acquisitions of Golden Gate and Midtown Partners, and (e) non-cash expenses associated with research and development (R&D) in phytocannabinoid based therapies.
In fiscal 2015, the Company reported a GAAP (loss) of about ($4.61) million and EPS loss of ($0.31) as compared to a GAAP (loss) of ($3.02) million and EPS loss of ($0.37) for fiscal 2014. The non-GAAP loss after adjusting for one-time and non-cash items is a loss of ($2.36) million for fiscal 2015.
At March 31, 2015, our working capital was about $2.03 million with about $0.8 million of cash.
"Our strategy is fairly simple: drive revenue and profit from the electronic supply chain business and infrastructure build out and drive long term shareholder value through phytocannabinoid based therapies. Our operating subsidiaries are at close to breakeven with most of the consolidated loss attributable to overheads associated with public market expenses. We expect to close some of that gap in fiscal 2016," continued Mukunda.
The Company reported total liabilities of $5.58 million in fiscal 2015 versus $3.59 million for fiscal 2014. The majority of the increase in total liability came from the electronic supply chain business.
As at March 31, 2015, stockholders' equity was about $14.75 million compared to about $14.15 million at March 31, 2014.
About IGC:
Based in Bethesda, Maryland, IGC, Inc. is positioning itself in two of the world's fastest growing industries -- phytocannabinoid-based biopharmaceuticals and the Internet of Things ("IoT"). We supply electronic and health monitoring components to original equipment manufacturers (OEMs), and develop phytocannabinoid-based therapies for the treatment of a wide range of life altering conditions. In addition, we build leading edge facilities that can be used to grow and extract pharmaceutical grade phytocannabinoids. Our website: www.igcinc.us. Twitter @IGCIR
Forward-looking Statements:
Some of the statements contained in this press release that are not historical facts constitute forward-looking statements under the federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed" or the negative of those terms. These statements are not a guarantee of future developments and are subject to risks, uncertainties, and other factors, some of which are beyond IGC's control and are difficult to predict. Consequently, actual results may differ materially from information contained in the forward-looking statements as a result of future changes or developments in IGC's business and acquisition and diversification strategy, competitive environment, infrastructure demands, and governmental, regulatory, political, economic, legal and social conditions in, among other places, China and India.
Except as required by federal securities laws, IGC undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or future events, or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward-looking statements have been discussed in greater detail in IGC's Form 10-K for fiscal year ended March 31, 2015, and in subsequent reports filed with the U.S. Securities and Exchange Commission.
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (Audited) | ||
| All amounts in USD except share data | ||
| As of | ||
| March 31, 2015 | March 31, 2014 | |
| (Audited) | (Audited) | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 824,492 | $ 1,026,565 |
| Accounts receivable, net of allowances | 993,296 | 566,252 |
| Inventories | 709,649 | 611,702 |
| Prepaid expenses and other current assets | 1,950,295 | 1,553,936 |
| Total current assets | $ 4,477,732 | $ 3,758,455 |
| Goodwill | 982,782 | -- |
| Intangible Assets | 306,131 | 468,091 |
| Property, plant and equipment, net | 7,784,447 | 7,586,844 |
| Investments in affiliates | 5,997,058 | 5,109,058 |
| Investments-others | 30,477 | 31,650 |
| Deferred acquisition costs | -- | -- |
| Deferred Income taxes | 318,548 | 321,676 |
| Other non-current assets | 434,284 | 458,578 |
| Total long-term assets | $ 15,853,727 | $ 13,975,897 |
| Total assets | $ 20,331,459 | $ 17,734,352 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Short -term borrowings | 1,280,356 | -- |
| Trade payables | 174,584 | 133,365 |
| Accrued expenses | 422,252 | 418,480 |
| Loans - others | 73,707 | 424,845 |
| Other current liabilities | 496,985 | 53,987 |
| Total current liabilities | $ 2,447,884 | $ 1,030,677 |
| Long -term borrowings | 323,904 | -- |
| Notes payable | 1,800,000 | 1,800,000 |
| Other non-current liabilities | 1,009,889 | 758,379 |
| $ 3,133,793 | $ 2,558,379 | |
| Total liabilities | $ 5,581,677 | $ 3,589,056 |
| Stockholders' equity: | ||
| Common stock — $.0001 par value; 150,000,000 shares authorized; 14,766,333 issued and outstanding as of March 31, 2015 and 9,373,569 issued and outstanding as of March 31, 2014. | $ 1,477 | $ 937 |
| Additional paid-in capital | 63,479,918 | 58,362,834 |
| Accumulated other comprehensive income | (1,913,585) | (2,016,815) |
| Retained earnings (Deficit) | (47,333,955) | (42,719,772) |
| Total equity attributable to Parent | $ 14,233,855 | $ 13,627,184 |
| Non-controlling interest | $ 515,927 | $ 518,112 |
| Total stockholders' equity | $ 14,749,782 | $ 14,145,296 |
| Total liabilities and stockholders' equity | $ 20,331,459 | $ 17,734,352 |
These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2015 filed with the SEC on July 13, 2015.
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (Audited) | ||
| All amounts in USD except share data | ||
| Year ended March 31, | ||
| 2015 | 2014 | |
| Revenues | $ 7,680,257 | $ 2,273,155 |
| Cost of revenues (excluding depreciation) | (7,100,568) | (1,891,559) |
| Selling, general and administrative expenses | (4,140,434) | (2,178,740) |
| Depreciation | (781,546) | (712,314) |
| Impairment loss - Investment others | -- | (18,244) |
| Operating income (loss) | $ (4,342,291) | $ (2,527,702) |
| Interest expense | (286,332) | (291,520) |
| Interest income | 6,799 | 12,712 |
| Other income, net | (56,367) | (236,071) |
| Income before income taxes and minority interest attributable to non-controlling interest | $ (4,678,191) | $ (3,042,581) |
| Income taxes benefit/ (expense) | (5,157) | -- |
| Net income/(loss) | $ (4,683,348) | $ (3,042,581) |
| Non-controlling interests in earnings of subsidiaries | (69,165) | (19,988) |
| Net income / (loss) attributable to common stockholders | $ (4,614,183) | $ (3,022,593) |
| Earnings/(loss) per share attributable to common stockholders: | ||
| Basic | $ (0.31) | $ (0.37) |
| Diluted | $ (0.31) | $ (0.37) |
| Weighted-average number of shares used in computing earnings per share amounts: | ||
| Basic | 14,755,893 | 8,205,684 |
| Diluted | 14,755,893 | 8,205,684 |
These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2015 filed with the SEC on July 13, 2015.