IGC
$1.14
India Globalization Capital
($.03)
(2.56%)
Earnings Details
Quarter June 2019
Friday, August 9, 2019 7:00:00 AM
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Summary

India Globalization Capital (IGC) Recent Earnings

India Globalization Capital (IGC) reported a Quarter June 2019 loss of $0.03 per share on revenue of $1.6 million.. Revenue grew 11.6% on a year-over-year basis.

India Globalization Capital Inc is engaged in acquiring, incubating, financing and growing companies in multiple industries & locations. The Company trades iron ore & lease construction equipment in India; and operates iron ore plants in China.

Results
Reported Earnings
($0.03)
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$1.6 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

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

Fiscal 2020 First Quarter Sees Multiple Steps

BETHESDA, Md.--(BUSINESS WIRE)--India Globalization Capital, Inc. (NYSE American: IGC) today announced its financial results for the quarter ended June 30, 2019, which is the first quarter of its 2020 fiscal year.

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

  • The Company’s subsidiary, Holi Hemp LLC, was awarded a license to grow and process hemp in the State of Arizona.
  • The Company established a business-to-business sales team, and a raw materials supply chain, for the sale of Holi Hemp™ branded products such as hemp crude, cannabinol (“CBD”) distillate, tetrahydrocannabinol-free (“T-free”) oil, and other hemp derivatives, in compliance with applicable laws and regulations.
  • The Company significantly expanded the number of dispensaries in Puerto Rico where Hyalolex™ (the Company’s flagship product) is sold, to about 34 at the end of June 2019.
  • The Company contracted with a medical center in Puerto Rico to run a double-blind, placebo-controlled clinical trial with IGC-AD1 on 60 Alzheimer’s patients. The protocol has been submitted to the Institutional Review Board (“IRB”) in Puerto Rico and approval is pending. Following approval from the IRB, the Company plans to submit an Investigational New Drug Application (“INDA”) to the FDA.
  • The Company’s subsidiary, Techni Bharathi Private Limited (“TBL”), commenced the execution of a National Highway Authority of India (“NHAI”) sponsored local highway construction contract in Kerala, India.

Revenue for the June 2019 quarter rose 11.5% to approximately $1.65 million compared to approximately $1.48 million reported in the June 2018 quarter. In both years, 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. With respect to the Company’s plant and cannabinoid business, the revenue contribution for the June 2019 quarter was approximately $104,000 derived from the Company’s sales in hemp-based cannabidiol (CBD) under the brand Holi Hemp™ and from Hyalolex™, the Company’s flagship product designed to help improve the quality of life for elderly patients suffering from Alzheimer’s, available now through an expanded network of dispensaries in Puerto Rico.

SG&A expense for the June 2019 quarter was approximately $1.25 million compared to approximately $0.52 million for the June 2018 quarter. Approximately $0.4 million of the increase was due to legal and professional fees including those incurred in connection with shareholder lawsuits.

Research and development (R&D) expense for the June 2019 quarter was approximately $0.25 million compared to approximately $36,000 for the June 2018 quarter. R&D expenses were incurred entirely by the Company’s plant and cannabinoid business.

Net loss for the June 2019 quarter was approximately $1.38 million or $0.03 per share, compared to approximately $0.51 million or $0.02 per share for the June 2018 quarter. Increased expenses from the plant and cannabinoid business and legal expenses, as noted above, were the primary factors for the larger loss.

As discussed in prior SEC filings, as of June 30, 2019, several law firms have filed shareholder lawsuits, including two pending derivative suits, citing, among other things, the NYSE American delisting proceedings and subsequent fall in share price. The Company and its officers and directors have entered into a memorandum of understanding as to preliminary terms to resolve all pending derivative suits, subject to agreement on specific terms and approval by the court in which the matters are pending. The Company intends to vigorously defend all other pending actions.

 

 

 

India Globalization Capital, Inc.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(in thousands, except share data)

 

(Unaudited)

 
 

 

 

June 30,
2019
(Unaudited)
($)

 

 

March 31,
2019
(Audited)
($)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

16,554

 

 

 

25,610

 

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

 

 

189

 

 

 

84

 

Inventory

 

 

1,970

 

 

 

248

 

Short-term investment

 

 

5,009

 

 

 

-

 

Deposits & advances

 

 

852

 

 

 

781

 

Total current assets

 

 

24,574

 

 

 

26,723

 

 

 

 

 

 

 

 

 

 

Intangible assets, net

 

 

187

 

 

 

184

 

Property, plant and equipment, net

 

 

7,055

 

 

 

5,886

 

Investments in unlisted securities

 

 

794

 

 

 

794

 

Claims and advances

 

 

895

 

 

 

878

 

Total long-term assets

 

 

8,931

 

 

 

7,742

 

Total assets

 

 

33,505

 

 

 

34,465

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 

568

 

 

 

319

 

Accrued and other liabilities

 

 

452

 

 

 

509

 

Short-term loan

 

 

50

 

 

 

50

 

Total current liabilities

 

 

1,070

 

 

 

878

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

15

 

 

 

15

 

Total liabilities

 

 

1,085

 

 

 

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; 39,511,407 and 39,501,407 shares issued and outstanding as of June 30,
2019 and March 31, 2019, respectively.

 

 

94,251

 

 

 

94,043

 

Accumulated other comprehensive loss

 

 

(2,400

)

 

 

(2,419

)

Accumulated deficit

 

 

(59,431

)

 

 

(58,052

)

Total stockholders' equity

 

 

32,420

 

 

 

33,572

 

Total liabilities and stockholders' equity

 

 

33,505

 

 

 

34,465

 

 

 

India Globalization Capital, Inc.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except loss per share)

(Unaudited)

 

 

 

Three months ended June 30,

 

 

 

2019
($)

 

 

2018
($)

 

 

 

 

 

 

 

 

 

Revenue

 

 

1,649

 

 

 

1,478

 

Cost of revenue

 

 

(1,608

)

 

 

(1,436

)

Gross Profit

 

 

41

 

 

 

42

 

General and administrative expenses

 

 

(1,249

)

 

 

(517

)

Research and development expenses

 

 

(247

)

 

 

(36

)

Operating loss

 

 

(1,455

)

 

 

(511

)

Other income/(expense), net

 

 

76

 

 

 

(1

)

Loss before income taxes

 

 

(1,379

)

 

 

(512

)

Income taxes expense/benefit

 

 

-

 

 

 

-

 

Net loss attributable to common stockholders

 

 

(1,379

)

 

 

(512

)

Foreign currency translation adjustments

 

 

19

 

 

 

(307

)

Comprehensive loss

 

 

(1,360

)

 

 

(819

)

 

 

 

 

 

 

 

 

 

Loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

Basic & Diluted

 

$

 

 

(0.03

)

 

$

 

 

(0.02

)

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

 

 

39,508

 

 

 

30,981

 

About India Globalization Capital (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 technologies of IGC, failure to obtain approval for our trial protocol from the IRB, changes in federal, state, or local law applicable to our businesses and the locations where we operate, failure to reach agreement on specific terms to resolve the shareholder derivative suits, general economic and political conditions that are less favorable than expected, the Federal Food and Drug Administration’s (FDA) general position regarding hemp-based products and related 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.

Claudia Grimaldi, PFO
(301) 983-0998

Source: India Globalization Capital, Inc.