BETHESDA, Md., Nov. 16, 2015 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announced financial results for the quarter ended September 30, 2015.
IGC's fiscal year ends on March 31, 2016. Therefore the quarter being reported is the second quarter of the fiscal year ending on March 31, 2016 ("Q2 2016") and the corresponding quarter for the previous fiscal year is Q2 2015.
Revenue for Q2 2016 was $2,055,585 compared to $2,117,816 for Q2 2015. The revenue was primarily generated through the trading of electronics and rental of heavy equipment. The revenue for the quarter was slightly down as we are shifting our focus to building value in the phytocannabinoid –based IP initiatives.
"The second quarter marked a significant milestone for our phytocannabinoid-based IP initiatives as we applied for a provisional patent for the treatment of cachexia. IGC is currently developing a nationwide brand leveraging a novel therapy that harnesses cannabinoid extracts to treat pain in large market indications and believe that we are uniquely positioned to move forward and market our formulation, through licensing agreements in 23 states where cannabinoid based therapies are legal. The Company expects to record revenues from licensing agreements by early next year."
"In parallel, we intend to pursue a formalized strategy to further detail product efficacy through a vigorous testing pathway. We are proud to work on developing an alternative to popular opioid-based drugs to treat chronic pain in order to help reduce or eliminate the occurrence of common opioid side-effects such as constipation, nausea and respiratory depression among others," said Ram Mukunda, IGC's CEO.
Selling, general and administrative expenses were $525,353 for Q2 2016 as compared to $791,428 for Q2 2015. After adjustment for ESOP shares and other non-cash expenses, the improvement in SG&A on a year over year basis is due to the successful implementation of cost management measures. In Q2 2016, the Company reported a smaller GAAP net loss of $623,373 and a GAAP EPS loss of $0.04, compared to a GAAP loss of $887,399 and a GAAP EPS loss of $0.07 for Q2 2015.
For Q2 2016, our cash and cash equivalents along with restricted cash was approximately $637,923 and our stockholders' equity was approximately $14,093,713 compared with about $14,749,782 for Q2 2015.
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, iron ore availability in its existing business 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 | ||
| All amounts in USD except share data | ||
| As of | ||
| 30-Sep-15 | 31-Mar-15 | |
| (unaudited) | (audited) | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 637,923 | $ 824,492 |
| Accounts receivable, net of allowances | 1,095,412 | 993,296 |
| Inventories | 390,262 | 709,649 |
| Prepaid expenses and other current assets | 1,423,840 | 1,950,295 |
| Total current assets | $ 3,547,437 | $ 4,477,732 |
| Long-term assets: | ||
| Goodwill | 982,782 | 982,782 |
| Intangible assets | 283,688 | 306,131 |
| Property, plant and equipment, net | 7,258,899 | 7,784,447 |
| Investments in affiliates | 5,997,058 | 5,997,058 |
| Investments-others | 28,992 | 30,477 |
| Deferred Income taxes | 311,509 | 318,548 |
| Other non-current assets | 414,483 | 434,284 |
| Total long-term assets | $ 15,277,411 | $ 15,853,727 |
| Total assets | $ 18,824,848 | $ 20,331,459 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Short-term borrowings | 510,909 | 1,280,356 |
| Trade payables | 167,078 | 174,584 |
| Accrued expenses | 197,989 | 422,252 |
| Loans - others | 166,236 | 73,707 |
| Other current liabilities | 243,046 | 496,985 |
| Total current liabilities | $ 1,285,258 | $ 2,447,884 |
| Long-term liabilities: | ||
| Long-term borrowings | 294,650 | 323,904 |
| Notes payable | 2,135,000 | 1,800,000 |
| Other non-current liabilities | 1,016,227 | 1,009,889 |
| Total long-term liabilities | $ 3,445,877 | $ 3,133,793 |
| Total liabilities | $ 4,731,135 | $ 5,581,677 |
| Stockholders' equity: | ||
| Common stock — $.0001 par value; 150,000,000 shares authorized; 14,766,333 issued and outstanding as of March 31, 2015 and 16,223,350 issued and outstanding as of September 30, 2015. | $ 1,622 | $ 1,477 |
| Additional paid-in capital | 63,972,660 | 63,479,918 |
| Accumulated other comprehensive income | (2,068,490) | (1,913,585) |
| Retained earnings (Deficit) | (48,340,033) | (47,333,955) |
| Total equity attributable to parent | $13,565,759 | $ 14,233,855 |
| Non-controlling interest | $ 527,954 | $ 515,927 |
| Total stockholders' equity | $ 14,093,713 | $ 14,749,782 |
| Total liabilities and stockholders' equity | $ 18,824,848 | $ 20,331,459 |
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 September 30, 2015 and Annual Report on Form 10-K for the fiscal year ended March 31, 2015. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| All amounts in USD except share data | ||||
|
Three months ended September 30, |
Six months ended September 30, |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Revenues | $ 2,055,585 | $ 2,117,816 | $ 3,914,394 | $ 2,881,680 |
| Cost of revenues (excluding depreciation) | (1,889,598) | (1,936,513) | (3,544,367) | (2,623,801) |
| Selling, general and administrative expenses | (525,353) | (791,428) | (830,756) | (1,869,114) |
| Depreciation | (148,855) | (155,154) | (304,829) | (304,043) |
| Operating income (loss) | $ (508,221) | $ (765,279) | $ (765,558) | $ (1,915,278) |
| Interest expense | (66,768) | (79,749) | (128,682) | (140,919) |
| Interest income | (692) | 136 | 2 | 2,474 |
| Other income, net | (64,671) | (70,961) | (99,728) | (71,848) |
| Income before income taxes and minority interest attributable to non-controlling interest | $ (640,352) | $ (915,853) | $ (993,966) | $ (2,125,571) |
| Income taxes benefit/ (expense) | -- | -- | -- | -- |
| Net income/(loss) | $ (640,352) | $ (915,853) | $ (993,966) | $ (2,125,571) |
| Non-controlling interests in earnings of subsidiaries | (16,979) | (28,454) | 12,106 | (20,165) |
| Net income / (loss) attributable to common stockholders | $ (623,373) | $ (887,399) | $ (1,006,072) | $ (2,105,406) |
| Earnings/(loss) per share attributable to common stockholders: | ||||
| Basic | $ (0.04) | $ (0.07) | $ (0.07) | $ (0.17) |
| Diluted | $ (0.04) | $ (0.07) | $ (0.07) | $ (0.17) |
| Weighted-average number of shares used in computing earnings per share amounts: | ||||
| Basic | 14,995,130 | 12,227,529 | 14,995,130 | 12,227,529 |
| Diluted | 14,995,130 | 12,227,529 | 14,995,130 | 12,227,529 |
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 September 30, 2015 and Annual Report on Form 10-K for the fiscal year ended March 31, 2015. Quarterly financial results may not be indicative of the financial results for the entire fiscal year.