IGC Announces Financial Results for Quarter Ended June 30, 2018

Aug. 2, 2018 23:00 UTC

BETHESDA, Md.--(BUSINESS WIRE)-- India Globalization Capital, Inc. (NYSE AMERICAN: IGC) today announces financial results for the quarter ended June 30, 2018, which is the first quarter of its 2019 fiscal year.

Total revenue was approximately $1.48 million for the three months ended June 30, 2018, as compared to approximately $53 thousand for the three months ended June 30, 2017. The increase and all quarterly revenue was attributable to the legacy trading business. The consolidated GAAP net income loss for the period was approximately ($512,000), which is a GAAP EPS loss of ($0.02), compared to a GAAP net loss of ($432,000) and a GAAP EPS loss of ($0.02) for the same three months last fiscal year. The increase in loss is attributable to an increase in SG&A stemming primarily from the issuance of ESOP shares.

According to CEO Ram Mukunda, “We are focused on bringing Hyalolextm, our lead cannabinoid based alternative therapy, to market and laying the foundation to position IGC as a leader in the commercialization of cannabinoid based alternative supplements for indications such as Alzheimer’s disease, Parkinson’s disease and pain.”

“In the first quarter, we built a marketing plan to launch Hyalolextm, which is our non-FDA approved alternative cannabinoid-based product for treating the symptoms of Alzheimer’s. It comes in a liquid form and will be branded as ‘Drops of Clarity,'” he said.

Alzheimer’s disease (AD) is a form of dementia, known for being especially devastating over time to both the patient and the caregiver. In addition, it is America’s most expensive disease, with an estimated cost to the U.S. economy of $236 billion. AD currently affects more than 5.3 million Americans and over 60% of AD patients are women. The Company intends to enter into licensing arrangements with manufacturers, to expand its reach into multiple U.S. markets and Canada.

About IGC:

IGC has two lines of business, a legacy infrastructure business and a cannabis supplement/pharmaceutical business that has developed a lead product for treating Alzheimer’s patients. The Company recently announced that it is working on using blockchain to address issues specific to the cannabis industry that address transactional difficulties, product labeling, product identification assurance (PIA), and product origin assurance (POA). The company is based in Maryland, USA.
Our website: www.igcinc.us. Twitter @IGCIR

Forward-looking Statements:

Please see forward looking statements as discussed in detail in IGC's Form 10K for fiscal year ended March 31, 2018, and in other reports filed with the U.S. Securities and Exchange Commission.

FINANCIAL STATEMENTS TO FOLLOW

 
India Globalization Capital, Inc.

CONSOLIDATED BALANCE SHEETS

(in USD, except share data)

             
   

June 30,
2018
(Unaudited)

   

March 31, 2018
(Audited)

 
ASSETS                
Current assets:                
Cash and cash equivalents   $ 1,020,859     $ 1,658,496  
Accounts receivable, net of allowances     1,988,204       557,813  
Inventories     649,603       486,497  
Investments held for sale     147,500       147,500  
Other current assets     352,942       354,641  
Total current assets   $ 4,159,108     $ 3,204,947  
Long-term assets:                
Intangible Assets     132,647       127,826  
Property, plant and equipment, net     5,968,896       6,236,839  
Investments     795,275       798,922  
Other non-current assets     460,412       484,562  
Total long-term assets   $ 7,357,230     $ 7,648,149  
Total assets   $ 11,516,338     $ 10,853,096  
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
Trade payables     1,472,536       52,270  
Other current liabilities     426,199       493,684  
Notes payable     1,800,000       1,800,000  
Total current liabilities   $ 3,698,735     $ 2,345,954  
Non-current liabilities:                
Loans – others     226,375       427,500  
Other liabilities     14,169       14,896  
Total non-current liabilities   $ 240,544     $ 442,396  
Total liabilities   $ 3,939,279     $ 2,788,350  
Stockholders' equity:                

Common stock and additional paid-in capital, $0.0001 par value: 150,000,000 shares authorized; and 30,764,192 and 31,038,473 shares issued and outstanding as of March 31, 2018 and June 30, 2018, respectively.

  $ 64,248,109     $ 63,917,035  
Accumulated other comprehensive loss     (2,363,020 )     (2,056,556 )
Retained deficit     (54,308,030 )     (53,795,733 )
Total equity attributable to Parent   $ 7,577,059     $ 8,064,746  
Non-controlling interest    

-

   

 

-

 
Total stockholders' equity   $ 7,577,059     $ 8,064,746  
Total liabilities and stockholders' equity   $ 11,516,338     $ 10,853,096  
                 

See accompanying Notes to Consolidated Financial Statements in our quarterly report on Form 10Q.

 
     

India Globalization Capital, Inc.

     

CONSOLIDATED STATEMENTS OF OPERATIONS

(in USD, except number of shares)

(unaudited)

       
   

Three Months Ended

June 30,

 
    2018     2017  
                 
Revenues   $ 1,477,540     $ 52,926  
Cost of revenues (excluding depreciation)     (1,435,598 )     (6,880 )
Selling, general and administrative expenses     (553,645 )     (442,315 )
Operating loss   $ (511,703 )   $ (396,269 )
Other expense, net     (593 )     (36,191 )

Loss before income taxes and minority interest attributable to non-controlling interest

  $ (512,296 )   $ (432,460 )
Income taxes benefit/(expense)     -       -  
Net loss   $ (512,296 )   $ (432,460 )
Non-controlling interests in earnings of subsidiaries     -       (319 )
Net loss attributable to common stockholders   $ (512,296 )   $ (432,141 )
Loss per share attributable to common stockholders:              
Basic and Diluted   $ (0.02 )   $ (0.02 )

Weighted-average number of shares used in computing earnings per share amounts:

     
Basic and Diluted     30,981,422       25,865,307  
                 

See accompanying Notes to Consolidated Financial Statements in our quarterly report on Form 10Q.

 

 

Contacts

India Globalization Capital, Inc.
Claudia Grimaldi, 301-983-0998

 
 

Source: India Globalization Capital, Inc.

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