BETHESDA, Md., Nov. 20, 2017 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE American:IGC), today reported financial results for the second quarter ended September 30, 2017 and provided an overview of recent operational highlights.
“Our initial focus on the canna-pharmaceutical front is on Alzheimer’s, America’s most expensive disease. In 2017, the direct cost of treatment for Alzheimer’s and other dementias is projected to cost the U.S. approximately $259 billion. In the U.S., roughly 5.3 million individuals suffer from the disease and the number is expected to double over the next 20 years. Worldwide, approximately 43 million individuals suffer from the disease, and there is no cure. Independent of our longer-term FDA clinical trial process, our near-term goal is to commercialize our liquid formulation for Alzheimer’s as a Complimentary and Alternative Medicine (CAM) sold through licensed medical cannabis dispensaries in the U.S., and internationally in Canada and Germany,” stated Ram Mukunda, CEO of IGC.
In May 2017, we acquired exclusive rights to a patent filed by the University of South Florida Research Foundation entitled “THC as a Potential Therapeutic Agent for Alzheimer’s Disease”. It is believed that in Alzheimer’s disease two types of legions in the brain are implicated in the pathogenesis of the disease: (1) senile plaque composed of amyloid beta peptides (Aβ plaque), and (2) neurofibrillary tangles, composed of highly phosphorylated Tau protein. Amyloid Precursor Protein (APP), on the surface of neurons, is normally cleaved by enzymes to free up Aβ peptide composed of 36-43 amino acids that is then cleared by the body. In patients with Alzheimer’s, an imbalance causes Aβ to be unregulated, resulting in the abnormal buildup into insoluble fibrils depositing as senile plaques. Aβ monomers aggregate to form oligomers and then into fibril Aβ. It is believed that extracellular misfolded oligomers are toxic to nerve cells. IGC’s Alzheimer’s drug candidate, IGC-AD1, has been shown to work through a molecular pathway that allows IGC-AD1 to: 1) modulate Aβ protein production, 2) inhibit Aβ protein aggregation, 3) reduce Tau phosphorylation, 4) enhance mitochondria function, and 5) possibly help redirect the immune system, with none of the side effects commonly associated with cannabis. Based on these and other studies, we expect to bring IGC-AD1 to market in early 2018, with the hope of bringing much needed relief to Alzheimer’s patients.
In addition, we made progress on our six provisional patent filings in the phytocannabinoid-based combination therapy space for the indications of pain, medical refractory epilepsy, and cachexia. The table below provides a status of the patent filings:
| Indication | Provisional Filing | PCT Filing | Subsequent Activity | |||
| Pain (IGC-501) | 9/16/14 | 9/16/15 | US National Case Filed – 6/15/16 | |||
| Seizures (IGC-502) | 6/15/15 | 6/14/16 | US National Case Filed – 6/15/16 | |||
| Seizures (IGC-503) | 4/1/15 | 4/1/16 | PCT Application Published- 10/6/16 | |||
| Eating Disorders (IGC-504) | 8/12/15 | 8/11/16 | US and National Filing Anticipated 2/12/18 | |||
| Seizures (IGC-505) | 6/15/16 | 6/15/16 | US National Filing Anticipated 12/15/18 | |||
| Eating Disorders (IGC-506) | 2/28/17 | Anticipated- 2/28/18 | US and National Filing Anticipated 8/28/19 | |||
| Alzheimer’s (IGC-AD1) | 7/30/2015 | Anticipated -2018 | US and National Filing Anticipated in 2018 |
Results of Operations
Revenue - We have two lines of business: (a) “legacy”, consisting of rental of heavy equipment, commodities trading, and real estate management, and (b) “canna-pharmaceutical”. Total revenue from the legacy business was $235,648 for the three months ended September 30, 2017 as compared to $162,163 for the three months ended September 30, 2016. The increase was primarily driven by increased volume of business.
Cost of Revenue (excluding depreciation) – Cost of revenue for the three months ended September 30, 2017 was $163,170 as compared to $90,534 for the three months ended September 30, 2016. The increase in cost of revenue stems from an increase in the volume of the legacy business.
Selling, General and Administrative - Selling, general and administrative expenses were $331,146 for the three months ended September 30, 2017 as compared to $339,585 for the three months ended September 30, 2016.
Depreciation – The depreciation expense was approximately $4,344 in the three months ended September 30, 2017 as compared to $97,842 in the three months ended September 30, 2016. The decrease in depreciation is from the curtailment of the iron-ore mining business in China.
Interest and other financial expenses – The interest expense and other financial expenses for the three months ended September 30, 2017 were approximately $40,832 as compared to approximately $51,410 for the three months ended September 30, 2016. Most of the interest is paid with common shares of the Company and is therefore non-cash.
Other income/(loss) – Other income was $(144) for the three-month period ended September 30, 2017 as compared to $11,985 in September 30, 2016. Other income includes income from the supply of skilled operators for the legacy heavy equipment rental business.
Consolidated Net Income/(loss) – In the three months ended September 30, 2017, the Company reported a GAAP net income loss of $303,804 and a GAAP EPS loss of $0.01 compared to a GAAP net income loss of $583,871 and a GAAP EPS loss of $0.02 for the three months ended September 30, 2016.
At the end of September 30, 2017, our cash and cash equivalents along with restricted cash was $597,026 and working capital of $803,769. We expect to raise money for the canna-pharmaceutical business, specifically to immediately begin marketing IGC-AD1.
About IGC:
IGC is engaged in the development of cannabis based combination therapies to treat Alzheimer’s, pain, nausea, eating disorders, several end points of Parkinson’s, and epilepsy in dogs and cats. IGC has assembled a portfolio of patent filings and four lead product candidates addressing these conditions. The company is based in Maryland, USA.
For more information please visit www.igcinc.us
Follow us on Twitter @IGCIR and Facebook.com/IGCIR/
Forward-looking Statements:
Please see forward-looking statements and risk factors 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 TABLES TO FOLLOW
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (All amounts in USD, except number of shares and per share amounts) | ||||||||
| As of | ||||||||
| 30-Sept-17 | 31-March-17 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 597,026 | $ | 538,029 | ||||
| Accounts receivable, net of allowances | 1,033,608 | 752,926 | ||||||
| Prepaid expenses and other current assets | 393,579 | 410,408 | ||||||
| Short-term investments | - | 1,880,000 | ||||||
| Total current assets | $ | 2,024,213 | $ | 3,581,363 | ||||
| Goodwill | 198,169 | 198,169 | ||||||
| Intangible assets | 111,691 | - | ||||||
| Property, plant and equipment, net | 953,257 | 953,936 | ||||||
| Investments in affiliates | 773,111 | 773,111 | ||||||
| Investments-others | 5,240,166 | 5,238,003 | ||||||
| Other non-current assets | 691,745 | 539,720 | ||||||
| Total long-term assets | $ | 7,968,139 | $ | 7,702,939 | ||||
| Total assets | $ | 9,992,352 | $ | 11,284,302 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Trade payables | 613,131 | 416,532 | ||||||
| Accrued expenses | 197,716 | 181,465 | ||||||
| Other current liabilities | 409,597 | 691,714 | ||||||
| Total current liabilities | $ | 1,220,444 | $ | 1,289,711 | ||||
| Long-term borrowings | 350,794 | 452,080 | ||||||
| Loans – others | 399,726 | 392,226 | ||||||
| Notes payable | 1,800,000 | 1,800,000 | ||||||
| Total non-current liabilities | $ | 2,550,520 | $ | 2,644,306 | ||||
| Total liabilities | $ | 3,770,964 | $ | 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 28,005,272 issued and outstanding as of September 30, 2017. | $ | 2,801 | $ | 2,827 | ||||
| Additional paid-in capital | 60,974,013 | 61,413,533 | ||||||
| Accumulated other comprehensive income | (2,058,702 | ) | (2,047,780 | ) | ||||
| Retained earnings/(Deficit) | (52,687,870 | ) | (52,009,459 | ) | ||||
| Total equity attributable to Parent | $ | 6,230,242 | $ | 7,359,121 | ||||
| Non-controlling interest | $ | (8,854 | ) | $ | (8,836 | ) | ||
| Total stockholders’ equity | $ | 6,221,388 | $ | 7,350,285 | ||||
| Total liabilities and stockholders’ equity | $ | 9,992,352 | $ | 11,284,302 | ||||
See accompanying Notes to 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.
| INDIA GLOBALIZATION CAPITAL, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| All amounts in USD except share data | All amounts in USD except share data | |||||||||||||||
| Three months ended September 30, | Six months ended September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenues | $ | 235,648 | $ | 162,163 | $ | 288,573 | $ | 237,563 | ||||||||
| Cost of revenues (excluding depreciation) | (163,170 | ) | (90,534 | ) | (170,051 | ) | (154,589 | ) | ||||||||
| Selling, general and administrative expenses | (331,146 | ) | (339,585 | ) | (709,960 | ) | (636,802 | ) | ||||||||
| Depreciation | (4,344 | ) | (97,842 | ) | (10,309 | ) | (195,514 | ) | ||||||||
| Loss on investments/associates /joint ventures | - | (183,835 | ) | - | (183,835 | ) | ||||||||||
| Operating income (loss) | $ | (263,012 | ) | $ | (549,633 | ) | $ | (601,747 | ) | $ | (933,177 | ) | ||||
| Interest expense | (40,832 | ) | (51,410 | ) | (85,378 | ) | (89,956 | ) | ||||||||
| Interest income | 100 | 114 | 101 | 114 | ||||||||||||
| Other income, net/(loss) | (144 | ) | 11,985 | 8,210 | 13,740 | |||||||||||
| Income before income taxes and minority interest attributable to non-controlling interest | $ | (303,888 | ) | $ | (588,944 | ) | $ | (678,814 | ) | $ | (1,009,279 | ) | ||||
| Income taxes benefit/(expense) | - | - | - | - | ||||||||||||
| Net income/(loss) | $ | (303,888 | ) | $ | (588,944 | ) | $ | (678,814 | ) | $ | (1,009,279 | ) | ||||
| Non-controlling interests in earnings of subsidiaries | (84 | ) | (5,073 | ) | (403 | ) | (11,239 | ) | ||||||||
| Net income/(loss) attributable to common stockholders | $ | (303,804 | ) | $ | (583,871 | ) | $ | (678,411 | ) | $ | (998,040 | ) | ||||
| Earnings/(loss) per share attributable to common stockholders: | ||||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.04 | ) | ||||
| Diluted | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.04 | ) | ||||
| Weighted-average number of shares used in computing earnings per share amounts: | ||||||||||||||||
| Basic | 27,355,826 | 23,636,403 | 27,355,826 | 23,636,403 | ||||||||||||
| Diluted | 29,051,771 | 23,636,403 | 29,051,771 | 23,636,403 | ||||||||||||
See accompanying Notes to 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.