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IGC Reports Financial Results for the Quarter Ended September 30, 2019

November 6, 2019

BETHESDA, Md.--(BUSINESS WIRE)--Nov 6, 2019--

India Globalization Capital, Inc. (NYSE American: IGC) today announced financial results for the quarter ended September 30, 2019, which is the second quarter of its 2020 fiscal year.

Revenue for the September 2019 quarter rose 125% to approximately $1.8 million compared to approximately $0.81 million reported in the September 2018 quarter. In the September 2019 quarter, the plant and cannabinoid business, consisting of the sale of cannabinoid products under the brands Holi Hemp™ and Hyalolex™, in accordance with applicable law and regulations, accounted for 20% of the quarter’s revenue versus zero a year ago.

The remaining 80% of the revenue was primarily derived from the Company’s India-based infrastructure business which consists of (i) rental of heavy equipment, (ii) execution of construction contracts, and (iii) sale of infrastructure commodities.

SG&A expense, inclusive of R&D expenses for the September 2019 quarter was approximately $1.31 million compared to approximately $0.87 million for the September 2018 quarter. The majority of the increase in SG&A was due to legal and professional fees including those incurred in connection with defending shareholder lawsuits.

Net loss for the September 2019 quarter was approximately $1.32 million or $0.03 per share, compared to approximately $1.19 million or $0.03 per share for the September 2018 quarter. Increased expenses from the plant and cannabinoid business and legal expenses, as noted above, were the primary factors for the larger loss.

During the three months ended September 30, 2019, the Company took the following steps, among others:

The Company operates both of its business lines in compliance with applicable laws and regulations.

About IGC:

IGC currently has two lines of business: (i) infrastructure and (ii) plant and cannabinoid-based products. The company is based in Bethesda, Maryland, U.S.A. Its corporate website is 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 products or technologies of IGC, including any new products identified herein, failure to obtain an R&D license or any other applicable license or regulatory approval necessary for conducting our trial protocol, any changes in federal, state, or local law applicable to our businesses and the locations where we operate, weather and/or climate events which impact the Company’s ability to harvest its hemp crop, failure to reach agreement on specific terms to resolve the shareholder and shareholder derivative suits currently pending against the Company as described in the Company’s public filings, general economic and political conditions that are less favorable than expected, the Federal Food and Drug Administration’s (FDA) general position regarding hemp-based and related products in particular, and other factors, many of which are discussed in our SEC filings. The Risk Factors identified in the Company’s annual report, filed on Form 10-K with the SEC on June 14, 2019, and in the Company’s quarterly report, filed on Form 10-Q with the SEC on August 9, 2019, and on November 5, 2019, are incorporated herein by reference. 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.

< Financial Tables to Follow >

India Globalization Capital, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(Unaudited)

 

 

 

September 30,

2019

(Unaudited)

($)

 

 

March 31,

2019

(Audited)

($)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

14,063

 

 

 

25,610

 

Accounts receivable, net of allowances of $6 and $6

 

 

244

 

 

 

84

 

Inventory

 

 

3,108

 

 

 

248

 

Short-term investment

 

 

5,039

 

 

 

-

 

Deposits &amp; advances

 

 

1,446

 

 

 

781

 

Total current assets

 

 

23,900

 

 

 

26,723

 

 

 

 

 

 

 

 

 

 

Intangible assets, net

 

 

203

 

 

 

184

 

Property, plant and equipment, net

 

 

7,123

 

 

 

5,886

 

Investments in unlisted securities

 

 

794

 

 

 

794

 

Claims and advances

 

 

867

 

 

 

878

 

Total non-current assets

 

 

8,987

 

 

 

7,742

 

Total assets

 

 

32,887

 

 

 

34,465

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 

903

 

 

 

319

 

Accrued and other liabilities

 

 

677

 

 

 

509

 

Short-term loan

 

 

50

 

 

 

50

 

Total current liabilities

 

 

1,630

 

 

 

878

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

15

 

 

 

15

 

Total non-current liabilities

 

 

15

 

 

 

15

 

Total liabilities

 

 

1,645

 

 

 

893

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies – See Note 10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock and additional paid in capital, $0.0001 par value: 150,000,000 shares authorized; 39,571,407 and 39,501,407 shares issued and outstanding as of September 30, 2019 and March 31, 2019, respectively.

 

 

94,395

 

 

 

94,043

 

Accumulated other comprehensive loss

 

 

(2,543)

 

 

(2,419)

Accumulated deficit

 

 

(60,610)

 

 

(58,052)

Total stockholders' equity

 

 

31,242

 

 

 

33,572

 

Total liabilities and stockholders' equity

 

 

32,887

 

 

 

34,465

 

See accompanying Notes to the Condensed Consolidated Financial Statements in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, as filed with the SEC on November 5, 2019.

India Globalization Capital, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(in thousands, except loss per share)

(Unaudited)

 

 

 

Three months ended Sept. 30,

 

 

 

2019

($)

 

 

2018

($)

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

1,821

 

 

 

811

 

Cost of revenue

 

 

(1,793

)

 

 

(793

)

Gross Profit

 

 

28

 

 

 

18

 

General and administrative expenses

 

 

(1,094

)

 

 

(595

)

Research and development expenses

 

 

(222

)

 

 

(278

)

Operating loss

 

 

(1,288

)

 

 

(855

)

Other income/(expense), net

 

 

109

 

 

 

(4

)

Loss before income taxes

 

 

(1,179

)

 

 

(859

)

Income taxes expense/benefit

 

 

-

 

 

 

-

 

Net loss attributable to common stockholders

 

 

(1,179

)

 

 

(859

)

Foreign currency translation adjustments

 

 

(143)

 

 

 

(334

)

Comprehensive loss

 

 

(1,322

)

 

 

(1,193

)

 

 

 

 

 

 

 

 

 

Loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

Basic &amp; Diluted

 

$

(0.03

)

 

$

(0.03

)

Weighted-average number of shares used in computing loss per share amounts:

 

 

39,551

 

 

 

31,345

 

See accompanying Notes to the Condensed Consolidated Financial Statements in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, as filed with the SEC on November 5, 2019.

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SOURCE: India Globalization Capital, Inc.

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PUB: 11/06/2019 07:00 AM/DISC: 11/06/2019 07:01 AM

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