India Globalization Capital, Inc. (NYSEAM: IGC) announces its financial results for the Fiscal Year Ended March 31, 2019.
Fiscal 2019 revenue was approximately $5.12 million compared to approximately $2.19 million for Fiscal 2018. In both years, revenue was primarily derived from our India based Infrastructure Business which consists of a) rental of heavy equipment; b) execution of construction contracts; and c) the sale of infrastructure commodities.
During the two last weeks of Fiscal 2019, sales commenced in the Plant and Cannabinoid Business. Specifically, on March 22, 2019, the Company began offering hemp-based cannabidiol (CBD) under the brand Holi HempTM and that contributed $25 thousand to total revenue. On March 27, 2019 HyalolexTM, the Company’s flagship product for helping improve the quality of life for elderly patients suffering from Alzheimer’s, became available through select dispensaries in Puerto Rico.
SG&A expense for Fiscal 2019 was approximately $3.52 million as compared to approximately $1.73 million for Fiscal 2018. Approximately $1.1 million of the increase is due to legal and professional fees.
Research and Development (R&D) expense for Fiscal 2019 was approximately $1.3 million compared to approximately $137 thousand for the Fiscal 2018. R&D expenses are entirely from our Plant and Cannabinoid Business and relate primarily to a) HyalolexTM, SerosapseTM, NatrinolTM, and Holi HempTM products; b) costs associated with the preparation of FDA filings, and preparation for medical trials; and c) inventory that was shown as work in progress in Fiscal 2018.
Net loss for Fiscal 2019 was approximately $4.1 million or $0.13 per share, compared to approximately $1.79 million or $0.06 per share for Fiscal 2018. Increased expenses outlined above were primarily the cause of the larger loss.
About IGC:
IGC has two lines of business: a) infrastructure, and b) plant and cannabinoid-based products. The company is based in Maryland, U.S.A. Our website: www.igcinc.us.Twitter @IGCIR
Forward-looking Statements:
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based largely on IGC’s expectations and are subject to a number of risks and uncertainties, certain of which are beyond IGC’s control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, competitive conditions in the industries in which IGC operates, failure to commercialize one or more of the technologies of IGC, general economic conditions that are less favorable than expected, the Federal Food and Drug Administration’s (FDA) general position regarding hemp based products and our products in particular, and other factors, many of which are discussed in our SEC filings. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this release will in fact occur.
India Globalization Capital, Inc. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | ||||||||
| March 31, 2019 ($) | March 31, 2018 ($) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 25,610 | 1,658 | ||||||
| Accounts receivable, net of allowances | 84 | 558 | ||||||
| Inventory | 248 | 486 | ||||||
| Investment held for sale | - | 148 | ||||||
| Deposits and advances | 781 | 355 | ||||||
| Total current assets | 26,723 | 3,205 | ||||||
| Intangible assets, net | 184 | 128 | ||||||
| Property, plant and equipment, net | 5,886 | 6,237 | ||||||
| Investments in unlisted securities | 794 | 799 | ||||||
| Claims and advances | 878 | 484 | ||||||
| Total long-term assets | 7,742 | 7,648 | ||||||
| Total assets | 34,465 | 10,853 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 319 | 258 | ||||||
| Accrued liabilities and others | 509 | 288 | ||||||
| Short-term loan | 50 | - | ||||||
| Notes payable | - | 1,800 | ||||||
| Total current liabilities | 878 | 2,346 | ||||||
| Loan | - | 427 | ||||||
| Other liabilities | 15 | 15 | ||||||
Total non-current liabilities | 15 | 442 | ||||||
| Total liabilities | 893 | 2,788 | ||||||
| Commitments and Contingencies – See Note 11 | ||||||||
| Stockholders' equity: | ||||||||
Common stock and additional paid-in capital, $0.0001 par value: 150,000,000 shares authorized; 39,501,407 and 30,764,192 shares issued and outstanding as on March 31, 2019 and March 31, 2018 respectively. | 94,043 | 63,917 | ||||||
| Accumulated other comprehensive loss | (2,419 | ) | (2,057 | ) | ||||
| Accumulated deficit | (58,052 | ) | (53,795 | ) | ||||
| Total stockholders' equity | 33,572 | 8,065 | ||||||
| Total liabilities and stockholders' equity | 34,465 | 10,853 | ||||||
These financial statements should be read in connection with the
accompanying notes on Form 10-K for the
fiscal year ending March
31, 2019, filed with the SEC on June 14, 2019.
India Globalization Capital, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except loss per share) | ||||||||
| Years Ended March 31, | ||||||||
| 2019 ($) | 2018 ($) | |||||||
| Revenues | 5,116 | 2,193 | ||||||
| Cost of revenues | (4,984 | ) | (2,111 | ) | ||||
| Gross profit | 132 | 82 | ||||||
| General and administrative expenses | (3,519 | ) | (1,734 | ) | ||||
| Research and development expenses | (1,256 | ) | (137 | ) | ||||
| Operating loss | (4,643 | ) | (1,789 | ) | ||||
| Other income – net | 548 | 3 | ||||||
| Loss before income taxes | (4,095 | ) | (1,786 | ) | ||||
| Income taxes expense | (2 | ) | - | |||||
| Net loss attributable to common stockholders | (4,097 | ) | (1,786 | ) | ||||
| Foreign currency translation adjustments | (362 | ) | (9 | ) | ||||
| Comprehensive loss | (4,459 | ) | (1,795 | ) | ||||
| Loss per share attributable to common stockholders: | ||||||||
| Basic & diluted | $ | (0.13 | ) | $ | (0.06 | ) | ||
| Weighted-average number of shares used in computing loss per share amounts: | 35,393 | 27,937 | ||||||
These financial statements should be read in connection with the
accompanying notes on Form 10-K for the
fiscal year ending March
31, 2019, filed with the SEC on June 14, 2019.
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