IGC Announces Financial Results for Fiscal Year Ended March 31, 2017

Core Operations Transitioned to Phytocannabinoid-Based Therapy Development Targeting Large Market Indications

Bethesda, Maryland, UNITED STATES


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.


        

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