IGC Announces Financial Results for Fiscal Year Ended March 31, 2015

  • Expands electronics business on strong revenue growth
  • Files preliminary patents for phytocannabinoid based therapies

BETHESDA, Md., July 13, 2015 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT:IGC) announces financial results for fiscal year ended March 31, 2015.

Fiscal 2015 revenue was about $7.68 million compared to about $2.27 million for fiscal 2014; a growth of 238%.

"We are happy to report that we have successfully transitioned away from iron ore and dependency on the growth of the Chinese economy to electronics supply chain for original equipment manufacturers (OEMs). We focused on supplying electronic components for the Internet of Things to OEMs in Asia, Europe, and the Americas. We expect to grow this business by leveraging our international presence and pursuing higher margin distribution agreements with some of the large component manufacturers. We are also driving cost synergies in lighting, control systems and other technologies for building out vertical farm infrastructure that can eventually be used to grow medical grade cannabis for phytocannabinoid based nutraceuticals and pharmaceuticals," said Ram Mukunda CEO of IGC.

Fiscal 2015 selling, general and administrative expenses were about $4.14 million compared to $2.18 million for fiscal 2014; an increase of 88%. For fiscal 2015, the non-GAAP SG&A after adjusting for non-cash items and one-time charges was about $1.86 million.

About $2.24 million of the increase in G&A for fiscal 2015, is attributable to (a) non-cash expenses associated with employee stock grants approved by the shareholders, (b) one-time expenses associated with a write down of bad debt from the iron ore trading business, (c) one-time expenses associated with the settlement of two law suits, (d) one-time expenses associated with the acquisitions of Golden Gate and Midtown Partners, and (e) non-cash expenses associated with research and development (R&D) in phytocannabinoid based therapies.

In fiscal 2015, the Company reported a GAAP (loss) of about ($4.61) million and EPS loss of ($0.31) as compared to a GAAP (loss) of ($3.02) million and EPS loss of ($0.37) for fiscal 2014. The non-GAAP loss after adjusting for one-time and non-cash items is a loss of ($2.36) million for fiscal 2015.

At March 31, 2015, our working capital was about $2.03 million with about $0.8 million of cash.

"Our strategy is fairly simple: drive revenue and profit from the electronic supply chain business and infrastructure build out and drive long term shareholder value through phytocannabinoid based therapies. Our operating subsidiaries are at close to breakeven with most of the consolidated loss attributable to overheads associated with public market expenses. We expect to close some of that gap in fiscal 2016," continued Mukunda.

The Company reported total liabilities of $5.58 million in fiscal 2015 versus $3.59 million for fiscal 2014. The majority of the increase in total liability came from the electronic supply chain business.

As at March 31, 2015, stockholders' equity was about $14.75 million compared to about $14.15 million at March 31, 2014.

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, 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.

All amounts in USD except share data
As of
March 31, 2015 March 31, 2014
(Audited) (Audited)
Current assets:
Cash and cash equivalents $ 824,492 $ 1,026,565
Accounts receivable, net of allowances 993,296 566,252
Inventories 709,649 611,702
Prepaid expenses and other current assets 1,950,295 1,553,936
Total current assets $ 4,477,732 $ 3,758,455
Goodwill 982,782 --
Intangible Assets 306,131 468,091
Property, plant and equipment, net 7,784,447 7,586,844
Investments in affiliates 5,997,058 5,109,058
Investments-others 30,477 31,650
Deferred acquisition costs -- --
Deferred Income taxes 318,548 321,676
Other non-current assets 434,284 458,578
Total long-term assets $ 15,853,727 $ 13,975,897
Total assets $ 20,331,459 $ 17,734,352
Current liabilities:
Short -term borrowings 1,280,356 --
Trade payables 174,584 133,365
Accrued expenses 422,252 418,480
Loans - others 73,707 424,845
Other current liabilities 496,985 53,987
Total current liabilities $ 2,447,884 $ 1,030,677
Long -term borrowings 323,904 --
Notes payable 1,800,000 1,800,000
Other non-current liabilities 1,009,889 758,379
$ 3,133,793 $ 2,558,379
Total liabilities $ 5,581,677 $ 3,589,056
Stockholders' equity:
Common stock — $.0001 par value; 150,000,000 shares authorized; 14,766,333 issued and outstanding as of March 31, 2015 and 9,373,569 issued and outstanding as of March 31, 2014. $ 1,477 $ 937
Additional paid-in capital 63,479,918 58,362,834
Accumulated other comprehensive income (1,913,585) (2,016,815)
Retained earnings (Deficit) (47,333,955) (42,719,772)
Total equity attributable to Parent $ 14,233,855 $ 13,627,184
Non-controlling interest $ 515,927 $ 518,112
Total stockholders' equity $ 14,749,782 $ 14,145,296
Total liabilities and stockholders' equity $ 20,331,459 $ 17,734,352

These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2015 filed with the SEC on July 13, 2015.

All amounts in USD except share data
Year ended March 31,
2015 2014
Revenues $ 7,680,257 $ 2,273,155
Cost of revenues (excluding depreciation) (7,100,568) (1,891,559)
Selling, general and administrative expenses (4,140,434) (2,178,740)
Depreciation (781,546) (712,314)
Impairment loss - Investment others -- (18,244)
Operating income (loss) $ (4,342,291) $ (2,527,702)
Interest expense (286,332) (291,520)
Interest income 6,799 12,712
Other income, net (56,367) (236,071)
Income before income taxes and minority interest attributable to non-controlling interest $ (4,678,191) $ (3,042,581)
Income taxes benefit/ (expense) (5,157) --
Net income/(loss) $ (4,683,348) $ (3,042,581)
Non-controlling interests in earnings of subsidiaries (69,165) (19,988)
Net income / (loss) attributable to common stockholders $ (4,614,183) $ (3,022,593)
Earnings/(loss) per share attributable to common stockholders:
Basic $ (0.31) $ (0.37)
Diluted $ (0.31) $ (0.37)
Weighted-average number of shares used in computing earnings per share amounts:
Basic 14,755,893 8,205,684
Diluted 14,755,893 8,205,684

These financial statements should be read in connection with the accompanying notes on Form 10-K for fiscal 2015 filed with the SEC on July 13, 2015.

CONTACT: Broker Relations AMP- Ryan Congo 678-736-5673

Source:India Globalization Capital