BETHESDA, Md., Aug. 21, 2017 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE AMERICAN:IGC) announces financial results for the quarter ended June 30, 2017.
“During the quarter, we secured an IP licensing agreement from the University of South Florida addressing a potential treatment for Alzheimer’s disease. This patent filing claims discovery of a new pathway: low doses of THC bind to amyloid beta plaques and prevent those plaques from aggregating on neurons, which is what occurs in Alzheimer’s disease and causes cognitive decline. IGC expects to release mouse data showing that this pathway and therapy have possible blockbuster potential in treating Alzheimer’s disease. We expect to take this exciting treatment to human medical trials as soon as possible,” stated Ram Mukunda, CEO of IGC.
Total revenue was $52,926 for the three months ended June 30, 2017, as compared to $288,493 for the three months ended June 30, 2016. The decrease in revenue is attributable to the corporate mandate to extricate IGC from the electronic and iron ore trading businesses and focus management on medical cannabis therapies. The revenue in the three months ended June 30, 2017 is all from the rental of heavy equipment and real estate management.
Selling, general and administrative expenses were $436,351 for the quarter ended June 30, 2017 as compared to $307,772 for the quarter ended June 30, 2016. Most of these expenses are a result of public-company expenses, including legal fees.
The Company reported a consolidated GAAP net income loss of $432,141 and a GAAP EPS loss of $0.02 compared to a GAAP net income loss of $383,566 and a GAAP EPS loss of $0.02 for the three months ended June 30, 2016. The increase in loss is due to increased SG&A related to marketing programs that the company initiated.
For the quarter ended June 30, 2017, our non-GAAP cash burn was approximately $389,577.
At the end of June 30, 2017, our cash and cash equivalents along with restricted cash was $345,610 with working capital of $623,984. We anticipate securing additional capital to further our patent portfolio and commence medical trials on our Alzheimer’s product.
About IGC
IGC develops 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. We are based in Bethesda, Maryland.
Our website: www.igcinc.us. Twitter @IGCIR 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.
FINANCIAL STATEMENTS TO FOLLOW
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (All amounts in USD, except number of shares and per share amounts) | ||||||||||
| As of | ||||||||||
| 30-June-17 | 31-Mar-17 | |||||||||
| (unaudited) | (audited) | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 345,610 | $ | 538,029 | ||||||
| Accounts receivable, net of allowances | 839,462 | 752,926 | ||||||||
| Prepaid expenses and other current assets | 416,160 | 410,408 | ||||||||
| Short-term investments | - | 1,880,000 | ||||||||
| Total current assets | $ | 1,601,232 | $ | 3,581,363 | ||||||
| Goodwill | 198,169 | 198,169 | ||||||||
| Property, plant and equipment, net | 952,009 | 953,936 | ||||||||
| Investments in affiliates | 773,111 | 773,111 | ||||||||
| Investments-others | 5,239,778 | 5,238,003 | ||||||||
| Other non-current assets | 672,142 | 539,720 | ||||||||
| Total long-term assets | $ | 7,835,209 | $ | 7,702,939 | ||||||
| Total assets | $ | 9,436,441 | $ | 11,284,302 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Trade payables | 427,079 | 416,532 | ||||||||
| Accrued expenses | 143,000 | 181,465 | ||||||||
| Other current liabilities | 407,169 | 691,714 | ||||||||
| Total current liabilities | $ | 977,248 | $ | 1,289,711 | ||||||
| Long -term borrowings | 175,991 | 452,080 | ||||||||
| Loans – others | 388,476 | 392,226 | ||||||||
| Notes payable | 1,800,000 | 1,800,000 | ||||||||
| Total non-current liabilities | $ | 2,364,467 | $ | 2,644,306 | ||||||
| Total liabilities | $ | 3,341,715 | $ | 3,934,017 | ||||||
| Stockholders' equity: | ||||||||||
| Common stock — $.0001 par value; 150,000,000 shares authorized; 23,265,531 issued and outstanding as of March 31, 2017 and 26,803,020 issued and outstanding as of June 30, 2017. | $ | 2,680 | $ | 2,827 | ||||||
| Additional paid-in capital | 60,588,461 | 61,413,533 | ||||||||
| Accumulated other comprehensive income | (2,046,023 | ) | (2,047,780 | ) | ||||||
| Retained earnings (Deficit) | (52,441,602 | ) | (52,009,459 | ) | ||||||
| Total equity attributable to Parent | $ | 6,103,516 | $ | 7,359,121 | ||||||
| Non-controlling interest | $ | (8,790 | ) | $ | (8,836 | ) | ||||
| Total stockholders' equity | $ | 6,094,726 | $ | 7,350,285 | ||||||
| Total liabilities and stockholders' equity | $ | 9,436,441 | $ | 11,284,302 | ||||||
| See accompanying Notes to Consolidated Financial Statements below in this report and Notes to the Audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 filed with the SEC on July 14, 2017. | ||||||||||
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Unaudited) | ||||||||
| (All amounts in USD, except number of shares and per share amounts) | ||||||||
| As of | ||||||||
| Three months ended June 30, | ||||||||
| 2017 | 2016 | |||||||
| Revenues | $ | 52,926 | $ | 288,493 | ||||
| Cost of revenues (excluding depreciation) | (6,880 | ) | (201,854 | ) | ||||
| Selling, general and administrative expenses | (436,351 | ) | (307,772 | ) | ||||
| Depreciation | (5,964 | ) | (97,672 | ) | ||||
| Operating income (loss) | $ | (396,269 | ) | $ | (318,805 | ) | ||
| Interest expense | (44,546 | ) | (43,278 | ) | ||||
| Other income, net | 8,355 | 1,755 | ||||||
| Income before income taxes and minority interest attributable to non-controlling interest | $ | (432,460 | ) | $ | (360,328 | ) | ||
| Income taxes benefit/ (expense) | - | - | ||||||
| Net income/(loss) | $ | (432,460 | ) | $ | (360,328 | ) | ||
| Non-controlling interests in earnings of subsidiaries | (319 | ) | 23,238 | |||||
| Net income / (loss) attributable to common stockholders | $ | (432,141 | ) | $ | (383,566 | ) | ||
| Earnings/(loss) per share attributable to common stockholders: | ||||||||
| Basic | $ | (0.02 | ) | $ | (0.02 | ) | ||
| Diluted | $ | (0.02 | ) | $ | (0.02 | ) | ||
| Weighted-average number of shares used in computing earnings per share amounts: | ||||||||
| Basic | 25,865,307 | 23,312,056 | ||||||
| Diluted | 25,865,307 | 23,312,056 | ||||||
| See accompanying Notes to Consolidated Financial Statements below in this report and Notes to the Audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 filed with the SEC on July 14, 2017. | ||||||||