BETHESDA, Md., June 21, 2018 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE American:IGC) announces financial results for the fiscal year ended March 31, 2018.
“In fiscal 2018, the Company’s focus was to develop, manufacture, and lay the foundation to commercialize our lead product Hyalolex, an alternative oral cannabinoid-based therapy for the treatment of symptoms associated with Alzheimer’s. The commercialization of Hyalolex through medical dispensaries in select states is expected to commence in the second half of calendar 2018. We expect to roll-out our product via licensing arrangements in Puerto Rico and other U.S. states. In the meantime, all our revenue in fiscal 2018 is from our legacy trading business, said Ram Mukunda, CEO.
Alternative Therapy Overview:
We focus on the development and commercialization of cannabinoid-based combination therapies. Cannabinoids are chemical compounds that exert a range of effects on the body, including impacting the immune response, gastrointestinal maintenance and motility, muscle functioning, and nervous system response and functioning. Phytocannabinoids are cannabinoids that occur naturally in the cannabis plant. In medical applications, cannabinoids are extracted from the cannabis plant using a variety of well-established technologies, including using CO2, butane, and alcohol, among others, as solvents. The refined extracted material is isolated for specific active ingredients like THC and CBD, among others, and used in formulations as the primary or secondary active ingredient.
Our work, based on our strategy, is to use cannabinoids synergistically with other active ingredients that in some cases have been established to treat specific medical conditions. We seek, through these synergies, for our combination therapies, to decrease side effects, increase bio-availability of active ingredients, and enhance efficacy.
We have filed eight provisional patents with the United States Patent and Trademark Office (“USPTO”), in the phytocannabinoid-based combination therapy space, for the indications of pain, medical refractory epilepsy, and cachexia. In addition, in May 2017, we acquired an exclusive license to a patent filed by the University of South Florida Research Foundation entitled “Cannabidiol and Synthetic Dronabinol for treatment of Alzheimer’s Disease.” Hyalolex is based on this work.
Blockchain Overview:
The Company has developed and deployed a QR code-based system that allows patients to access a website with specific information on Hyalolex. Each QR code is specific to a state and displays information specific to that state. We are in the process of creating a mobile optimized version that will expand the product information available to patients to include location of dispensaries that carry our products, based on zip code, and in turn also allow us to gather information through surveys and obtain feedback from patients.
As the number of states in which the product is available increases, we expect to expand the backend to a blockchain that allows for inputs directly from growers, processors, and dispensaries. This information will collectively display product identification, and product origination, by providing the patient with information regarding the origin, chemicals, and processes used to manufacture the product. We expect to expand the QR code-based system in several phases over fiscal 2019.
Total revenue is approximately $2.19 million for FYE 2018, as compared to approximately $580 thousand for the FYE 2017. This revenue is generated from our legacy business that includes trading of steel and iron ore and rental of heavy equipment. The increase year-over year is attributable to an increase in the volume of trading commodities. Our plan for the legacy business is to maintain annual trading revenue between $3 and $5 million and work on increased margins. In the second half of calendar 2018 we expect to add revenue from Hyalolex with a goal of introducing the product into 10 states by the end of 2018.
Selling, general and administrative expenses are about $1.87 million for fiscal 2018, as compared to about $2.27 million for fiscal 2017. The decrease in SG&A is attributable to decreased depreciation and other SG&A expenses.
Net loss is approximately $1.79 million in fiscal year 2018, as compared to approximately $1.85 million in fiscal year 2017. The deceased loss is attributed to lower SG&A.
At the end of fiscal year 2018, the Company reported approximately $1.65 million in cash and cash equivalents and working capital of approximately $860 thousand.
Contact:
Claudia Grimaldi
301-983-0998
Financial Tables to Follow
| India Globalization Capital, Inc. | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (All amounts in USD, except number of shares) | |||||||
| Years Ended March 31, | |||||||
| 2018 | 2017 | ||||||
| Revenues | $ | 2,192,590 | $ | 580,372 | |||
| Cost of revenues | (2,111,066 | ) | (362,135 | ) | |||
| Gross profit/(loss) | 81,524 | 218,237 | |||||
| Selling, general and administrative expenses | (1,870,477 | ) | (2,271,690 | ) | |||
| Loss on investments / associates /joint ventures | - | (932 | ) | ||||
| Operating income/(loss) | $ | (1,788,953 | ) | $ | (2,054,385 | ) | |
| Other Income (Net) | 3,143 | 215,955 | |||||
| Income before income taxes and minority interest attributable to non-controlling interest | $ | (1,785,810 | ) | $ | (1,838,430 | ) | |
| Income taxes benefit/(expense) | (464 | ) | (14,431 | ) | |||
| Net income/(loss) | $ | (1,786,274 | ) | $ | (1,852,861 | ) | |
| Non-controlling interests in earnings of subsidiaries | - | 14,399 | |||||
| Net income/(loss) attributable to common stockholders | $ | (1,786,274 | ) | $ | (1,867,260 | ) | |
| Earnings/(loss) per share attributable to common stockholders: | |||||||
| Basic and Diluted | $ | (0.06 | ) | $ | (0.07 | ) | |
| Weighted-average number of shares used in computing earnings per share amounts: | |||||||
| Basic and Diluted | 27,937,287 | 25,658,544 | |||||
| These financial statements should be read in connection with the accompanying notes on Form 10-K for the fiscal year ending March 31, 2018 filed with the SEC on June 21, 2018. | |||||||
| India Globalization Capital, Inc. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (All amounts in USD, except share data) | ||||||||
| March 31, 2018 | March 31, 2017 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,658,496 | $ | 538,029 | ||||
| Accounts receivable, net of allowances | 557,813 | 752,926 | ||||||
| Inventories | 486,497 | - | ||||||
| Investments held for sale | 147,500 | - | ||||||
| Other current assets | 354,641 | 410,408 | ||||||
| Short -term investments | - | 1,880,000 | ||||||
| Total current assets | $ | 3,204,947 | $ | 3,581,363 | ||||
| Long-term assets: | ||||||||
| Goodwill | - | 198,169 | ||||||
| Intangible Assets | 127,826 | - | ||||||
| Property, plant and equipment, net | 6,236,839 | 953,936 | ||||||
| Investments | 798,922 | 6,011,114 | ||||||
| Other non-current assets | 484,562 | 539,720 | ||||||
| Total long-term assets | $ | 7,648,149 | $ | 7,702,939 | ||||
| Total assets | $ | 10,853,096 | $ | 11,284,302 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Trade payables | 52,270 | 416,532 | ||||||
| Other current liabilities | 493,684 | 873,179 | ||||||
| Notes payable | 1,800,000 | - | ||||||
| Total current liabilities | $ | 2,345,954 | $ | 1,289,711 | ||||
| Non-current liabilities: | ||||||||
| Loans - others | 427,500 | 844,306 | ||||||
| Notes payable | - | 1,800,000 | ||||||
| Other liabilities | 14,896 | - | ||||||
| Total non-current liabilities | $ | 442,396 | $ | 2,644,306 | ||||
| Total liabilities | $ | 2,788,350 | $ | 3,934,017 | ||||
| Stockholders' equity: | ||||||||
| Common stock and additional paid-in capital, $0.0001 par value: 150,000,000 shares authorized; 28,272,667 and 30,764,192 shares issued and outstanding, respectively. | $ | 63,917,035 | $ | 61,416,360 | ||||
| Accumulated other comprehensive income/(loss) | (2,056,556 | ) | (2,047,780 | ) | ||||
| Retained earnings /(deficit) | (53,795,733 | ) | (52,009,459 | ) | ||||
| Total equity attributable to Parent | $ | 8,064,746 | $ | 7,359,121 | ||||
| Non-controlling interest | $ | - | $ | (8,836 | ) | |||
| Total stockholders' equity | $ | 8,064,746 | $ | 7,350,285 | ||||
| Total liabilities and stockholders' equity | $ | 10,853,096 | $ | 11,284,302 | ||||
| These financial statements should be read in connection with the accompanying notes on Form 10-K for the fiscal year ending March 31, 2018 filed with the SEC on June 21, 2018. | ||||||||