BETHESDA, Md., Feb. 21, 2017 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announced financial results for the third quarter ended December 31, 2016 for the fiscal year that ends March 31, 2017 (the “Q3 2017”).
Revenue for fiscal Q3 2017 was $250,000 compared to $1,085,000 for fiscal Q3 2016. Q3 2017 revenue was primarily generated by renting heavy equipment and managing the construction of the hotel in Genting, Malaysia. Revenue decreased because we curtailed trading activity so Management can focus on developing cannabis-based therapies.
Selling, general and administrative expenses were $323,000 for Q3 2017 as compared to $438,000 for Q3 2016. The Q3 2017 SG&A primarily reflects expense reduction initiatives, expenses associated with cannabis-based therapies development, and public company expenses.
In Q3 2017, the Company reported a GAAP net loss of $111,000 and a GAAP EPS loss of $0.00, compared to a GAAP net loss of $403,000 and a GAAP EPS loss of $0.02 for Q3 2016. The improved quarterly performance is attributable to Management’s efforts to focus on developing cannabis-based therapies, and by realization of cumulative previously deferred foreign exchange gains related to Ironman.
For the period ended December 31, 2016, our cash and cash equivalents along with restricted cash was approximately $744,000 and our stockholders’ equity was approximately $7,540,000 compared with approximately $13,948,000 for the period ended March 31, 2016. In Q3 2017 the reduction in stockholders’ equity was attributable to giving up control over Ironman assets. This was previously reported by IGC on Form 8-K on January 6, 2017. On a proforma basis IGC’s stockholders’ equity as of March 31, 2016, was approximately $6,203,000 versus actual as of December 31, 2016 of approximately $7,540,000, an increase of $1,337,000.
“In 2017 our goal is to accelerate the development of our cannabis-based therapy portfolio to support key indications such as Pain, Seizures, Cachexia, PTSD and Depression. In tandem, we expect to initiate pre-clinical trials on IGC-501-Pain, IGC-502-Seizures and IGC-504-Cachexia," stated Ram Mukunda, CEO.
About IGC
In the United States, we develop cannabis-based therapies. IGC has assembled a portfolio of patent filings that encompasses the indications of Pain, Seizures, Epilepsy, and Cachexia using phytocannabinoids. We are based in Bethesda, Maryland.
Our website: www.igcinc.us. Follow us at: Twitter @IGCIR and Facebook.com/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 our business, our acquisition and diversification strategy, our competitive environment, and governmental, regulatory, political, economic, legal and social conditions. 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, 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, 2016, and in subsequent reports filed with the U.S. SEC.
FINANCIAL STATEMENTS TO FOLLOW
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands, except number of shares and per share amounts) | ||||||||
| As of | ||||||||
| 31-December-16 | 31-March - 16 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 744 | $ | 1,491 | ||||
| Accounts receivable, net of allowances | 663 | 963 | ||||||
| Inventories | - | 162 | ||||||
| Prepaid expenses and other current assets | 430 | 1,226 | ||||||
| Total current assets | $ | 1,837 | $ | 3,842 | ||||
| Long term assets: | ||||||||
| Goodwill | $ | 198 | $ | 1,181 | ||||
| Intangible Assets | - | 113 | ||||||
| Property, plant and equipment, net | 942 | 7,074 | ||||||
| Investments in affiliates | 2,453 | 610 | ||||||
| Investments-others | 5,230 | 5,175 | ||||||
| Deferred Income taxes | 19 | 357 | ||||||
| Other non-current assets | 491 | 507 | ||||||
| Total long-term assets | $ | 9,333 | $ | 15,017 | ||||
| Total assets | $ | 11,170 | $ | 18,859 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short -term borrowings | $ | - | $ | 28 | ||||
| Trade payables | 379 | 331 | ||||||
| Accrued expenses | 81 | 300 | ||||||
| Loans – others | - | 189 | ||||||
| Notes payable | - | 1,800 | ||||||
| Other current liabilities | 301 | 551 | ||||||
| Total current liabilities | $ | 761 | $ | 3,199 | ||||
| Long-term liabilities: | ||||||||
| Long - term borrowings | $ | 446 | $ | 801 | ||||
| Notes payable | 1,800 | - | ||||||
| Loans – others | 623 | - | ||||||
| Other non-current liabilities | - | 911 | ||||||
| Total long-term liabilities | $ | 2,869 | $ | 1,712 | ||||
| Total liabilities | $ | 3,630 | $ | 4,911 | ||||
| Stockholders’ equity: | ||||||||
| Common stock — $.0001 par value; 150,000,000 shares authorized; 23,265,531 issued and outstanding as of March 31, 2016, and 29,842,287 issued and outstanding as of December 31, 2016. | $ | 3 | $ | 2 | ||||
| Additional paid-in capital | 60,939 | 65,885 | ||||||
| Accumulated other comprehensive income (loss) | (2,141 | ) | (2,269 | ) | ||||
| Retained earnings (Deficit) | (51,252 | ) | (50,142 | ) | ||||
| Total equity attributable to Parent | $ | 7,549 | $ | 13,476 | ||||
| Non-controlling interest | $ | (9 | ) | $ | 472 | |||
| Total stockholders’ equity | $ | 7,540 | $ | 13,948 | ||||
| Total liabilities and stockholders’ equity | $ | 11,170 | $ | 18,859 | ||||
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands, except number of shares and per share amounts) | ||||||||||||||||
| Three months ended December 31, | Nine months ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 250 | $ | 1,085 | $ | 487 | $ | 4,999 | ||||||||
| Cost of revenues (excluding depreciation) | (122 | ) | (879 | ) | (276 | ) | (4,423 | ) | ||||||||
| Selling, general and administrative expenses | (323 | ) | (438 | ) | (960 | ) | (1,268 | ) | ||||||||
| Depreciation | (196 | ) | (143 | ) | (392 | ) | (448 | ) | ||||||||
| Gain (Loss) on investments/associates / joint ventures | 5 | - | (179 | ) | - | |||||||||||
| Operating income (loss) | $ | (386 | ) | $ | (375 | ) | $ | (1,320 | ) | $ | (1,140 | ) | ||||
| Interest expense | (46 | ) | (51 | ) | (136 | ) | (180 | ) | ||||||||
| Other income, net (loss) | 359 | (19 | ) | 373 | (119 | ) | ||||||||||
| Income (loss) before income taxes and minority interest attributable to non-controlling interest | $ | (73 | ) | $ | (445 | ) | $ | (1,083 | ) | $ | (1,439 | ) | ||||
| Net income/(loss) | $ | (73 | ) | $ | (445 | ) | $ | (1,083 | ) | $ | (1,439 | ) | ||||
| Non-controlling interest in earnings of subsidiaries | 38 | (42 | ) | 27 | (54 | ) | ||||||||||
| Net income / (loss) attributable to common stockholders | $ | (111 | ) | $ | (403 | ) | $ | (1,110 | ) | $ | (1,385 | ) | ||||
| Earnings/(loss) per share attributable to common stockholders: | ||||||||||||||||
| Basic | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.09 | ) | ||||
| Diluted | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.09 | ) | ||||
| Weighted-average number of shares used in computing earnings per share amounts: | ||||||||||||||||
| Basic | 27,446,095 | 16,224,906 | 27,446,095 | 16,224,906 | ||||||||||||
| Diluted | 27,446,095 | 16,224,906 | 27,446,095 | 16,224,906 | ||||||||||||
These interim financial statements should be read in conjunction with the financial statements and notes included in the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016 and Annual Report on Form 10-K for the fiscal year ended March 31, 2016. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.