IGC Announces Third Quarter Financial Results Advances Hyalolex to Commercialization Stage

BETHESDA, Md., Feb. 20, 2018 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE:IGC) announced financial results for the third quarter ended December 31, 2017 for the fiscal year that ends March 31, 2018 (the “FYE2018 Q3”).

Revenue for fiscal Q3 2018 was $762,000 compared to $250,000 for fiscal Q3 2017. The increase in revenue is attributable to trading commodities related to infrastructure that is part of our legacy business.

Selling, general and administrative expenses were $507,000 for Q3 2018 as compared to $323,000 for Q3 2017. The majority of these expenses are associated with public company costs, and the increase is attributable largely to non-cash share grants to employees, directors, and advisors.

In Q3 2018, the Company reported a GAAP loss of $533,000 and a GAAP EPS loss of $0.02, compared to a GAAP net loss of $112,000 and a GAAP EPS loss of $0.00 for Q3 2017. The increase in loss is attributable to a one-time non-cash gain incurred in Q3 2017 and the accounting for non-cash share grants in Q3 2018. The non-GAAP cash loss in Q3 2018 is about $360 thousand.

For the period ended December 31, 2017, our cash and cash equivalents was approximately $1,691,000.

“We have three major goals for 2018 a) launch Hyalolex in 10 states, b) finalize and launch Serosapse for Parkinson’s, and c) substantially reduce or eliminate debt. Our Alzheimer’s product, Hyalolex, an industry first, is progressing as planned. Our work on formulation and packaging is complete and we expect initial commercialization as a Complementary Alternative Medicine sold via licensed medical dispensaries in select states in the near-term, as we strive to help those diagnosed with Alzheimer’s, a disease that effects over 5.5 million in the U.S, and along with associated dementia costs the economy around $260 billion. We remain confident in the value of our phytocannabinoid therapy portfolio as we look to address key indications in the emerging medical cannabis industry,” stated Ram Mukunda, CEO.

About IGC

IGC has two lines of business, a legacy infrastructure business and a cannabis pharmaceutical business that has developed a lead product for treating Alzheimer’s patients. The Company recently announced that it is working on using blockchain to address issues specific to the cannabis industry that address transactional difficulties, product labeling, product identification assurance (PIA), and product origin assurance (POA). The company is based in Maryland, USA.

Our website: www.igcinc.us. Twitter @IGCIR

Forward-looking Statements:

Please see forward looking statements as discussed in detail in IGC's Form 10K for fiscal year ended March 31, 2017, and in other reports filed with the U.S. Securities and Exchange Commission.

Contact:
Claudia Grimaldi
301-983-0998

FINANCIAL STATEMENTS TO FOLLOW

INDIA GLOBALIZATION CAPITAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in USD, except number of shares)
As of
31 December- 17 31- March - 17
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $1,690,792 $538,029
Accounts receivable, net of allowances 1,155,229 752,926
Prepaid expenses and other current assets 379,785 410,408
Short-term investments - 1,880,000
Total current assets $3,225,806 $3,581,363
Goodwill 198,169 198,169
Intangible assets 124,272 -
Property, plant and equipment, net 951,351 953,936
Investment 6,015,634 6,011,114
Other non-current assets 820,913 539,720
Total long-term assets $8,110,339 $7,702,939
Total assets $11,336,145 $11,284,302
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade payables 674,882 416,532
Accrued expenses 175,200 181,465
Other current liabilities 474,101 691,714
Total current liabilities $1,324,183 $1,289,711
Long-term borrowings - 452,080
Loans- others 737,097 392,226
Notes payable 1,800,000 1,800,000
Total non-current liabilities $2,537,097 $2,644,306
Total liabilities $3,861,280 $3,934,017
Stockholders’ equity:
Common stock — $.0001 par value; 150,000,000 shares authorized; 28,272,667 issued and outstanding as of March 31, 2017 and 29,499,790 issued and outstanding as of December 31, 2017. $2,950 $2,827
Additional paid-in capital 62,737,631 61,413,533
Accumulated other comprehensive income (2,037,529) (2,047,780)
Retained earnings/(deficit) (53,219,180) (52,009,459)
Total equity attributable to Parent $7,483,872 $7,359,121
Non-controlling interest $(9,007) $(8,836)
Total stockholders’ equity $7,474,865 $7,350,285
Total liabilities and stockholders’ equity $11,336,145 $11,284,302

See accompanying Notes to Condensed Consolidated Financial Statements below in this report and the 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(All amounts in USD, except number of shares)
Three months ended
December 31,
Nine months ended
December 31,
2017 2016 2017 2016
Revenues $762,009 $249,801 $1,050,582 $487,364
Cost of revenues (excluding depreciation) (723,062) (121,829) (893,113) (276,418)
Selling, general and administrative expenses (507,332) (322,891) (1,217,293) (959,693)
Depreciation (4,989) (196,103) (15,297) (391,617)
Loss on investments/associates /joint ventures - 4,910 - (178,925)
Operating income /(loss) $(473,374) $(386,112) $(1,075,121) $(1,319,289)
Interest expense (60,527) (46,465) (145,905) (136,421)
Interest income & other income (net) 1,090 359,104 9,401 372,957
Income before income taxes and minority interest attributable to non-controlling interest $(532,811) $(73,473) $(1,211,625) $(1,082,753)
Income Tax - - - -
Net income/(loss) $(532,811) $(73,473) $(1,211,625) $(1,082,753)
Non-controlling interests in earnings of subsidiaries (230) 38,088 (634) 26,848
Net income/(loss) attributable to common stockholders $(532,581) $(111,561) $(1,210,991) $(1,109,601)
Earnings/(loss) per share attributable to common stockholders:
Basic $(0.02) $(0.00) $(0.04) $(0.04)
Diluted $(0.02) $(0.00) $(0.04) $(0.04)
Weighted-average number of common shares used in computing earnings per share amounts:
Basic 28,169,292 27,446,095 27,126,208 27,446,095
Diluted 28,169,292 27,446,095 27,126,208 27,446,095

See accompanying Notes to Condensed 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.


Source:India Globalization Capital