BETHESDA, Md., July 18, 2016 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announces financial results for the fiscal year ended March 31, 2016.
Total revenue was approximately $6.37 million for the year ended March 31, 2016, as compared to approximately $7.68 million for the year ended March 31, 2015, a decrease of about 17.4%. In both fiscal years our main revenue driver was electronic component trading with revenue performance based on volume and product diversity.
Selling, general and administrative expenses were approximately $2.7 million for fiscal 2016 as compared to approximately $4.14 million for fiscal 2015, an improvement of 34.8%. The overall SG&A for fiscal 2016 consists primarily of (i) non-cash charges associated with ESOP and other share issuances; (ii) one-time expenses associated with the acquisition of Ultima; and (iii) R&D expenses for the development of phytocannabinoid-based therapies. Adjusted for these events, the SG&A for fiscal 2016 reflects a steep cut in expenses associated with a further realignment of resources with the current business plan
Loss from operations was approximately $2.9 million in fiscal year 2016, as compared to approximately $4.34 million in fiscal year 2015. The improvement in operating loss year over year is attributed to lower SG&A.
In fiscal year 2016, our investment in others was approximately $5.17 million and at March 31, 2015 it was about $0.031 million. The increase in investment stems from the acquisition of land in Nagpur India that was part of the settlement with Sricon. This is a reclassification from Investment in affiliates.
At the end of fiscal year 2016, the Company has approximately $1.49 million in cash and cash equivalents. In fiscal 2016, the non-GAAP total cash burn after adjusting for non-cash items that include ESOPs, interest payments paid in stock, foreign exchange losses, one time acquisition related expenses, and other miscellaneous non-cash items, was approximately $0.856 million. This is attributable largely to public company related expenses as our operating business was marginally profitable.
Our strategy in fiscal 2016 and fiscal 2017 is: (i) to develop an addressable market product portfolio of phytocannabinoid-based therapies for end of care and compassionate use; (ii) wind down the low margin electronic parts supply business; and (iii) re-focus on infrastructure and real estate development.
Financial Tables to Follow
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Audited) | ||||||||
| All amounts in USD except share data | As of | |||||||
| 31-March - 16 | 31-March - 15 | |||||||
| (audited) | (audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,490,693 | $ | 824,492 | ||||
| Accounts receivable, net of allowances | 962,658 | 993,296 | ||||||
| Inventories | 162,091 | 709,649 | ||||||
| Prepaid expenses and other current assets | 1,226,507 | 1,950,295 | ||||||
| Total current assets | $ | 3,841,949 | $ | 4,477,732 | ||||
| Goodwill | 1,180,951 | 982,782 | ||||||
| Intangible Assets | 113,321 | 306,131 | ||||||
| Property, plant and equipment, net | 7,074,437 | 7,784,447 | ||||||
| Investments in affiliates | 609,148 | 5,997,058 | ||||||
| Investments-others | 5,175,392 | 30,477 | ||||||
| Deferred Income taxes | 356,684 | 318,548 | ||||||
| Other non-current assets | 507,300 | 434,284 | ||||||
| Total long-term assets | $ | 15,017,233 | $ | 15,853,727 | ||||
| Total assets | $ | 18,859,182 | $ | 20,331,459 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short -term borrowings | 27,762 | 1,280,356 | ||||||
| Trade payables | 330,631 | 174,584 | ||||||
| Accrued expenses | 300,111 | 422,252 | ||||||
| Loans - others | 189,680 | 73,707 | ||||||
| Notes payable | 1,800,000 | - | ||||||
| Other current liabilities | 550,877 | 496,985 | ||||||
| Total current liabilities | $ | 3,199,061 | $ | 2,447,884 | ||||
| Long -term borrowings | 801,467 | 323,904 | ||||||
| Notes payable | - | 1,800,000 | ||||||
| Other non-current liabilities | 910,583 | 1,009,889 | ||||||
| $ | 1,712,050 | $ | 3,133,793 | |||||
| Total liabilities | $ | 4,911,111 | $ | 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 23,265,531 issued and outstanding as of March 31, 2016. | $ | 2,327 | $ | 1,477 | ||||
| Additional paid-in capital | 65,885,243 | 63,479,918 | ||||||
| Accumulated other comprehensive income | (2,269,357 | ) | (1,913,585 | ) | ||||
| Retained earnings (Deficit) | (50,142,199 | ) | (47,333,955 | ) | ||||
| Total equity attributable to Parent | $ | 13,476,014 | $ | 14,233,855 | ||||
| Non-controlling interest | $ | 472,057 | $ | 515,927 | ||||
| Total stockholders' equity | $ | 13,948,071 | $ | 14,749,782 | ||||
| Total liabilities and stockholders' equity | $ | 18,859,182 | $ | 20,331,459 | ||||
| These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2016 filed with the SEC on July 14, 2016. | ||||||||
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Audited) | ||||||||
| All amounts in USD except share data | ||||||||
| Year ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Revenues | $ | 6,366,550 | $ | 7,680,257 | ||||
| Cost of revenues (excluding depreciation) | (5,523,256 | ) | (7,100,568 | ) | ||||
| Selling, general and administrative expenses | (2,702,753 | ) | (4,140,434 | ) | ||||
| Depreciation | (728,741 | ) | (781,546 | ) | ||||
| Loss on investments / associates /joint ventures | (317,510 | ) | - | |||||
| Operating income (loss) | $ | (2,905,710 | ) | $ | (4,342,291 | ) | ||
| Interest expense | (213,928 | ) | (286,332 | ) | ||||
| Interest income | 2,085 | 6,799 | ||||||
| Other income, net | 284,186 | (56,367 | ) | |||||
| Income before income taxes and minority interest attributable to non-controlling interest | $ | (2,833,367 | ) | $ | (4,678,191 | ) | ||
| Income taxes benefit/ (expense) | (579 | ) | (5,157 | ) | ||||
| Net income/(loss) | $ | (2,833,946 | ) | $ | (4,683,348 | ) | ||
| Non-controlling interests in earnings of subsidiaries | (25,702 | ) | (69,165 | ) | ||||
| Net income / (loss) attributable to common stockholders | $ | (2,808,244 | ) | $ | (4,614,183 | ) | ||
| Earnings/(loss) per share attributable to common stockholders: | ||||||||
| Basic | $ | (0.17 | ) | $ | (0.31 | ) | ||
| Diluted | $ | (0.17 | ) | $ | (0.31 | ) | ||
| Weighted-average number of shares used in computing earnings per share amounts: | ||||||||
| Basic | 16,387,290 | 14,755,893 | ||||||
| Diluted | 16,387,290 | 14,755,893 | ||||||
| These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2016 filed with the SEC on July 14, 2016. | ||||||||
About IGC
In the United States, we develop phytocannabinoid-based therapies. We have several patent filings for the indications of Pain, Medical Refractory Epilepsy and Cachexia using phytocannabinoids. In addition, we engage in leasing, trading, developing and managing infrastructure, and real estate projects. We are based in Bethesda, Maryland.
Our website: www.igcinc.us. Twitter @IGCIR 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 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, 2016, and in subsequent reports filed with the U.S. Securities and Exchange Commission.