Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document Information Line Items | ||
Entity Registrant Name | India Globalization Capital, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 39,511,407 | |
Amendment Flag | false | |
Entity Central Index Key | 0001326205 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
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 |
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 |
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 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Accounts receivable, allowances (in Dollars) | $ 6 | $ 6 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 39,511,407 | 39,501,407 |
Common stock, shares outstanding | 39,511,407 | 39,501,407 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 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 tax expense/benefit | 0 | 0 |
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 (in Dollars per share) | $ (0.03) | $ (0.02) |
Weighted-average number of shares used in computing loss per share amounts: (in Shares) | 39,508 | 30,981 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances at Mar. 31, 2018 | $ 30,764 | $ 63,917 | $ (53,796) | $ (2,057) | $ 8,064 |
Bricoleur Note penalty shares | 30 | 18 | 18 | ||
Common stock issued through public offering, net | 244 | 134 | 134 | ||
Share based compensation & other expenses | 179 | 179 | |||
Net loss | (512) | (512) | |||
Gain (Loss) on foreign currency translation | (307) | (307) | |||
Balances at Jun. 30, 2018 | 31,038 | 64,248 | (54,308) | (2,364) | 7,576 |
Balances at Mar. 31, 2019 | 39,502 | 94,043 | (58,052) | (2,419) | 33,572 |
Share based compensation & other expenses | 10 | 208 | 208 | ||
Net loss | (1,379) | (1,379) | |||
Gain (Loss) on foreign currency translation | 19 | 19 | |||
Balances at Jun. 30, 2019 | $ 39,512 | $ 94,251 | $ (59,431) | $ (2,400) | $ 32,420 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net loss | $ (1,379) | $ (512) |
Adjustment to reconcile net loss to net cash: | ||
Depreciation | 17 | 15 |
Share based compensation and other expenses | 208 | 162 |
Changes in: | ||
Accounts receivables | (105) | (1,431) |
Inventory | (1,717) | (128) |
Deposits and advances | (71) | 7 |
Other prepaid expenses | (17) | 0 |
Trade payables and accrued liabilities | 192 | 1,352 |
Net cash (used in) operating activities | (2,872) | (535) |
Investing activities: | ||
Purchase of property, plant and equipment | (1,173) | (3) |
Short-term investment | (5,009) | 0 |
Acquisition and filing cost of patents and rights | (4) | (5) |
Net cash (used in) investing activities | (6,186) | (8) |
Financing activities: | ||
Issuance of equity stock through public offering (net of expenses) | 0 | 134 |
Repayment of loan | 0 | (201) |
Net cash (used in) financing activities | 0 | (67) |
Effects of exchange rate changes on cash and cash equivalents | 2 | (28) |
Net decrease in cash and cash equivalents | (9,056) | (638) |
Cash and cash equivalents at the beginning of the period | 25,610 | 1,659 |
Cash and cash equivalents at the end of the period | 16,554 | 1,021 |
Supplementary information: | ||
Cash paid for interest | 2 | 5 |
Non-cash items: | ||
Common stock issued including ESOP, consultancy and patent acquisition | 15 | 179 |
Common stock issued as penalty on notes payable | $ 0 | $ 18 |
NOTE 1 - BUSINESS DESCRIPTION
NOTE 1 - BUSINESS DESCRIPTION | 3 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | NOTE 1 – BUSINESS DESCRIPTION Business IGC has two lines of business: 1) Infrastructure Business and 2) Plant and Cannabinoid Business. The Company’s Infrastructure Business, managed from India, involves: (a) the rental of heavy construction equipment; (b) execution of construction contracts; and (c) the purchase and resale of physical commodities used in infrastructure. Our second line of business, Plant and Cannabinoid Business, stems from plant material and cannabinoids produced by the cannabis plant. It involves several brands that the Company develops and expects to commercialize as alternative plant and cannabinoid-based products and therapies. The Company’s flagship branded, patent pending, product is Hyalolex™. Further information is available at www.igcpharma.com and www.hyalolex.com. In addition, the Company, under the brand name Holi Hemp™, sells hemp crude extract, hemp isolate, and hemp distillate. Further information is available at www.holihemp.com. Corporate and Product Update 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. Business Organization As of June 30, 2019, the Company had the following direct operating subsidiaries: TBL, IGCare LLC, Holi Hemp LLC and IGC Pharma LLC. The Company’s fiscal year is the 52- or 53-week period that ends on March 31. The Company is a Maryland corporation established in 2005. We have employees, contract workers and advisors in the United States of America (“U.S.”), India, and Hong Kong. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited condensed consolidated financial statements (“interim statements”) of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) as determined by Financial Accounting Standards Board (the “FASB”) within its Accounting Standards Codification (“ASC”) and under the rules and regulations of the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of Management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended March 31, 2019 contained in the Company’s Form 10-K for the Fiscal 2019, filed with the SEC on June 14, 2019, specifically in Note 2 to the consolidated financial statements. Principles of consolidation The interim statements include the consolidated accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s Management, the interim statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Management believes that the estimates and assumptions used in the preparation of the interim statements are prudent and reasonable. Significant estimates and assumptions are generally used for, but not limited to: allowance for uncollectible accounts receivable; future obligations under employee benefit plans; the useful lives of property, plant, equipment; intangible assets; valuations; impairment of goodwill and investments; recoverability of advances; the valuation of options granted and warrants issued; and income tax and deferred tax valuation allowances, if any. Actual results could differ from those estimates. Appropriate changes in estimates are made as Management becomes aware of changes in circumstances surrounding the estimates. Critical accounting estimates could change from period to period and could have a material impact on IGC’s results, operations, financial position and cash flows. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the consolidated financial statements. Presentation and functional currencies IGC operates in India, U.S., and Hong Kong and a substantial portion of the Company’s revenues are denominated in the Indian Rupee (“INR”) or the Hong Kong Dollar (“HKD”). The local currency is the functional currency for the operations outside the U.S. Changes in the exchange rates between this currency and the Company’s reporting currency, are partially responsible for some of the periodic changes in the consolidated financial statements. Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars (“USD”) at the spot rate in effect at the applicable reporting date. Revenues and expenses of the Company’s foreign operations are translated at the average exchange rate during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive income/(loss) in stockholders’ equity. Transaction gains and losses are recognized in the consolidated statements of operations. Impairment No impairment has been recorded for the three-month periods ended June 30, 2019 and 2018. Inventory Inventory is valued at the lower of cost or market, or at sales price (fair value) less costs of disposal when certain conditions are met. The term market means current replacement cost, provided that it meets both the following conditions: a) market shall not exceed the net realizable value, and b) market shall not be less than net realizable value reduced by an allowance for an approximately normal profit margin. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. These assumptions about future disposition of inventory are inherently uncertain and changes in our estimates and assumptions may cause us to realize material write-downs in the future. Inventory consists of raw materials, finished goods and work-in progress such as extracted crude oil, growing crops and crude oil in process. The costs of growing cannabis including but not limited to labor, utilities, fertilizers and irrigation, are capitalized into inventory until the time of harvest. It is primarily accounted for using the weighted average cost method. Primary costs include raw materials, packaging, direct labor, overhead, shipping and the depreciation of manufacturing equipment. Manufacturing overhead and related expenses include salaries, wages, employee benefits, utilities, maintenance and property taxes. Crops are segregated into “growing crops” and “harvested crops”. Growing crops are valued at the lower of cost or market value. Direct and indirect development costs of groves, orchards and vineyards are required to be capitalized during the development period and depreciated over the estimated useful life of the particular asset. Harvested crops are measured at sales price less costs of disposal, with changes recognized in profit or loss only when the harvested crop: - has a reliable, readily determinable and realizable market value; - has relatively insignificant and predictable costs of disposal; and - is available for immediate delivery. See Note 3, Inventory of this report for further information. Fair value of financial instruments FASB ASC No. 820, “Fair Value Measurement” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of the Company’s financial instruments includes cash and cash equivalents, accounts receivable, accounts payable and accrued and other liabilities, which is approximate to their fair values due to the nature of the items. As of June 30, 2019, the Company’s short-term investment consists of mutual fund, which have been classified as Level 1 of the fair value hierarchy because they have been valued using quoted prices in active markets. Company’s cash and cash equivalents have also been classified as Level 1 on the same principle. Financial instruments are classified as current if they are expected to be liquidated within the next twelve months. Company’s remaining investments have been classified as Level 3 instruments as there is little or no market data. Level 3 investments are valued using cost-method. For further information refer Note 7 – Investments in Unlisted Securities, which is classified as non-current asset. The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of June 30, 2019 and March 31, 2019, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value: Level 1 ($) Level 2 ($) Level 3 ($) Total ($) June 30, 2019 Cash and cash equivalents: 16,554 - - 16,554 Total cash and cash equivalents 16,554 - - 16,554 Investments: -Short-term investment in mutual fund 5,009 - - 5,009 -Investment in unlisted securities - - 794 794 Total Investment s 5,009 - 794 5,803 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) March 31, 2019 Cash and cash equivalents: 25,610 - - 25,610 Total cash and cash equivalents 25,610 - - 25,610 Investments: - Short-term investment in mutual fund - - - - -Investment in unlisted securities - - 794 794 Total Investment - - 794 794 Earnings / (Loss) per Share The computation of basic loss per share for the three months ended June 30, 2019, excludes potentially dilutive securities of 3.4 million shares which includes share options, unvested shares granted to employees, warrants, and shares from the conversion of outstanding units, if any, because their inclusion would be antidilutive. The weighted average number of shares outstanding as of June 30, 2019 and 2018, used for the computation of basic earnings per share (“EPS”) is 39,508,110 and 30,981,422, respectively. Due to the loss incurred during the three-month periods ended June 30, 2019, and 2018, all the potential equity shares are anti-dilutive and accordingly, the fully diluted EPS is equal to the basic EPS. Leases Lessor For leases that are accounted for as operating leases, income is recognized on a straight-line basis over the term of the lease contract. Generally, when a lease is more than 180 days delinquent (where more than three monthly payments are owed), the lease is classified as being on nonaccrual and the Company stops recognizing leasing income on that date. Payments received on leases in nonaccrual status generally reduce the lease receivable. Leases on nonaccrual status remain classified as such until there is sustained payment performance that, in the Company’s judgment, would indicate that all contractual amounts will be collected in full. Lessee The Company categorizes leases at their inception as either operating or capital leases. On certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. The Company has operating leases primarily consisting of office spaces with the remaining lease term being less than 12 months, subject to certain renewal options as applicable. The total operating lease expense and cash paid for operating leases for the three months ended June 30, 2019 and June 30, 2018 are $39 thousand and $37 thousand respectively. Recent Accounting Pronouncements Recently adopted ASC 842, Leases In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02 (“ASU 2016-02”), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2018-20, Narrow-Scope Improvements for Lessors. Lessor Accounting For lessors, however, the accounting remains largely unchanged from the current model, changes have been made to align certain lessor and lessee accounting guidance and the key aspects of the lessor accounting model with new revenue recognition standard. Under the new guidance, contract consideration will be allocated to its lease components and non-lease components (such as maintenance). For the Company as a lessor, any non-lease components will be accounted for under ASC Topic 606, Revenue from Contracts with Customers, unless the Company elects a lessor practical expedient to not separate the non-lease components from the associated lease component. The amendments in ASU 2018-11 also provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (“Topic 606”). To elect the practical expedient, the timing and pattern of transfer of the lease and non-lease components must be the same and the lease component must meet the criteria to be classified as an operating lease if accounted for separately. If these criteria are met, the single component will be accounted for under either under Topic 842 or Topic 606 depending on which component(s) are predominant. The lessor practical expedient to not separate non-lease components from the associated component must be elected for all existing and new leases. As lessor, the Company expects that post-adoption substantially all existing leases will have no change in the timing of revenue recognition until their expiration or termination. The Company expects to elect the lessor practical expedient to not separate non-lease components such as maintenance from the associated lease for all existing and new leases and to account for the combined component as a single lease component. The timing of revenue recognition is expected to be the same for the majority of the Company’s new leases as compared to similar existing leases; however, certain categories of new leases could have different revenue recognition patterns as compared to similar existing leases. Lessee Accounting The Company will adopt ASU 2016-02 effective April 1, 2019 using the modified retrospective approach. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. In connection with the adoption, the Company will elect to utilize the modified retrospective presentation whereby the Company will continue to present prior period financial statements and disclosures under ASC 840. In addition, the Company will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Further, the Company will adopt a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The Company has concluded that all lease arrangements would be classified as short-term in nature and as such, not recorded on the balance sheet. The standard did not materially affect the Company's consolidated net earnings or have any impact on cash flows. The Company adopted the guidance as of April 1, 2019, and the adoption did not have a material effect on the financial statements. Additional information and disclosures required by this new standard for the Company as a lessor are contained above. Not yet adopted Not yet adopted Credit Losses: Disclosures: Collaborative Arrangement: Clarifying the Interaction Between Topic 808 and Topic 606 Intangibles-Goodwill and Other-Internal-Use Software : |
NOTE 3 - INVENTORY
NOTE 3 - INVENTORY | 3 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 3 – INVENTORY As of June 30, 2019 ($) As of March 31, 2019 ($) Raw Materials 828 - Work in Progress 1,142 248 Finished Goods - - Total 1,970 248 Inventory as of June 30, 2019 is comprised of raw materials such as crude oil, work-in-progress such as growing crops and crude oil in process. |
NOTE 4 -DEPOSITS AND ADVANCES
NOTE 4 -DEPOSITS AND ADVANCES | 3 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Other Current Assets [Text Block] | NOTE 4 – DEPOSITS AND ADVANCES As of June 30, 2019 ($) As of March 31, 2019 ($) Advance to suppliers and consultants 715 720 Statutory advances 45 43 Prepaid Expense and other current assets 92 18 Total 852 781 The advance to suppliers and consultants primarily relates to retainers given to lawyers as well as advance to suppliers in our trading business. |
NOTE 5 - INTANGIBLE ASSETS
NOTE 5 - INTANGIBLE ASSETS | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 5 – INTANGIBLE ASSETS As of June 30, 2019 ($) As of March 31, 2019 ($) Patent & other intangible assets at the beginning of the period 184 128 Patent acquisition and filing expenses for the three months ended June 30, 2019 5 56 Amortization (2 ) - Total 187 184 The value of intangible assets includes the cost of acquiring patent rights, supporting data, and the expense associated with filing patents. The amortization of acquired patent rights is 13 years commencing in Fiscal 2020. The Company uses the straight-line method to determine the amortization expense for its definite lived intangible assets. |
NOTE 6 - PROPERTY, PLANT AND EQ
NOTE 6 - PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET Category Useful Life (years) As of June 30, 2019 ($) As of March 31, 2019 ($) Land N/A 4,889 4,872 Buildings & facilities 25 2,304 1,268 Plant and machinery 20 1,609 1,603 Computer equipment 3 169 165 Office equipment 5 109 109 Furniture and fixtures 5 62 61 Vehicles 5 280 279 Equipment 5 134 - Total Gross Value 9,556 8,357 Less: Accumulated depreciation (2,501 ) (2,471 ) Total Property, plant and equipment, net 7,055 5,886 Depreciation expense in the three months ended June 30, 2019 and June 30, 2018, amounted to approximately $17 thousand and $15 thousand respectively. The net increase in total Property, Plant & Equipment as well as the accumulated depreciation is primarily due to purchase of building and equipment in the U.S. subsidiaries. For more information, please refer to Note 15 – Segment Information for the long-term assets other than financial instruments held in the country of domicile and foreign countries. |
NOTE 7 - INVESTMENTS IN UNLISTE
NOTE 7 - INVESTMENTS IN UNLISTED SECURITIES | 3 Months Ended |
Jun. 30, 2019 | |
ASU 2016-01 Transition [Abstract] | |
Cost-method Investments, Description [Text Block] | NOTE 7 – INVESTMENTS IN UNLISTED SECURITIES As of June 30, 2019 ($) As of March 31, 2019 ($) Investment in equity shares of unlisted company 21 21 Investment in affiliate (i) 773 773 Total 794 794 (i) Pursuant to the December 18, 2014 Purchase Agreement with Apogee, we issued Apogee 1.2 million shares of IGC’s common stock valued at $888 thousand for the purchase of a 24.9% ownership interest in Midtown Partners & Co., LLC (“MTP”). During Fiscal 2018, after considering several factors, the Company concluded that it no longer had significant influence over MTP. Hence, we do not record any impact from MTP’s earnings/(losses) and instead we maintain the same value of approximately $773 thousand since Fiscal 2018. The Company regularly reviews its investment portfolio to determine if any security is other-than-temporarily impaired, which would require the Company to record an impairment charge in the period. We concluded that, as of June 30, 2019, no impairment provision was required against the carrying value of investments. |
NOTE 8 - CLAIMS AND ADVANCES_
NOTE 8 - CLAIMS AND ADVANCES: | 3 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Other Assets Disclosure [Text Block] | NOTE 8 – CLAIMS AND ADVANCES As of June 30, 2019 ($) As of March 31, 2019 ($) Claims receivable (1) 405 404 Non-current deposits 22 18 Other advances (2) 468 456 Total 895 878 (1) The claims receivable is due from the Cochin International Airport (“CIA”) that is partially owned by the State Government of Kerala. As of June 30, 2019, the receivable is due for over one year. The Company continues to carry the full value of the receivables without interest and without any impairment, because it believes that there is minimal risk that CIA will become insolvent and unable to make the payment. However, the Company currently believes it will be difficult to receive the amount in the next 12 months because of the time required for legal collection proceedings. The Company has initiated such proceedings. (2) Includes a loan of $200 thousand, to one of our manufacturers, for the purchase of equipment, at an annual interest rate of three percent (3%), due on April 1, 2021. |
NOTE 9 - ACCRUED AND OTHER LIAB
NOTE 9 - ACCRUED AND OTHER LIABILITIES | 3 Months Ended |
Jun. 30, 2019 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities Disclosure [Text Block] | NOTE 9 – ACCRUED AND OTHER LIABILITIES Particulars As of June 30, 2019 ($) As of March 31, 2019 ($) Salaries and other contribution 127 115 Provision for expenses 238 355 Other current liability 87 39 Total 452 509 Salaries and other contribution related liabilities consist of accrued salary to employees. Provision for expenses include provision for legal, professional, and marketing expenses. Other current liability also includes statutory payables of approximately $3 thousand and $4 thousand as of June 30, 2019 and March 31, 2019 respectively. |
NOTE 10 - COMMITMENTS AND CONTI
NOTE 10 - COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 1 0 – COMMITMENTS AND CONTINGENCIES The Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. There are no such matters that are deemed material to the condensed consolidated financial statements as of June 30, 2019. As of June 30, 2019, several law firms have filed shareholder lawsuits, including two derivative suits, citing, among other things, the NYSE American delisting proceedings and subsequent fall in share price. The Company has reached a preliminary agreement to resolve the derivative suits and intends to vigorously defend all other actions. However, the exact amount of liability, if any, arising from such lawsuits cannot be determined at this stage. No provision has been made in the consolidated financial statements as of June 30, 2019. See Part II – Other Information. For the current state of affairs regarding these Shareholder Class Action Litigation, please refer to Note 16 - Subsequent Events. In the U.S., we provide health insurance, life insurance, and a 401(k) plan wherein the Company matches up to 6% of the employee’s pretax contribution up to a maximum annual amount determined by the IRS. In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (“Gratuity Plan”) covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, an amount based on the respective employee’s last drawn salary and the years of employment with the Company. In addition, employees receive benefits from a provident fund, a defined contribution plan. The employee and employer each make monthly contributions to the plan equal to 12% of the covered employee’s salary. The contribution is made to the Government’s provident fund. |
NOTE 11 - SECURITIES
NOTE 11 - SECURITIES | 3 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 1 1 – SECURITIES We have one security listed on the NYSE American: common stock, $.0001 par value (ticker symbol: IGC). This security is also available for trading on the Frankfurt, Stuttgart, and Berlin stock exchanges (ticker symbol: IGS1). We have redeemable warrants quoted on the OTC markets (ticker symbol: IGC.IW, CUSIP number 45408X118 expiring on March 8, 2021) to purchase common stock. As of June 30, 2019, the Company was authorized to issue up to 150,000,000 shares of common stock, par value $0.0001, and has 91,472 units and 39,511,407 shares of common stock issued and outstanding. The Company has 11,672,178 outstanding public warrants (IGC: IW) to purchase 1,167,217 shares of common stock by surrendering 10 warrants and a payment of $5.00 in exchange for each share of common stock. We have 91,472 units outstanding that can be separated into common stock and warrants. The Units are not listed on an exchange. Ten units may be separated into one share of common stock and 20 warrants (IGC: IW). |
NOTE 12- RELATED PARTY TRANSACT
NOTE 12- RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 1 2 – RELATED PARTY TRANSACTIONS We pay an affiliate of our CEO approximately $10.5 thousand per month for office space and certain general and administrative services rendered in Maryland. In addition, we pay another affiliate of our CEO approximately $6.1 thousand per month for office and facilities in Washington State. As of June 30, 2019, the Company had one secured loan of $50 thousand due to related party that carries prepaid interest at an annual interest rate of 15%. |
NOTE 13 - STOCK-BASED COMPENSAT
NOTE 13 - STOCK-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | NOTE 1 3 – STOCK-BASED COMPENSATION During the three months ended June 30, 2019, under the combined 2008 and renewed 2018 Omnibus Incentive Plans (“IGC ESOP Plan”), no share options have been granted. During the three months ended June 30, 2019, 92 thousand shares, vesting over three years, have been granted as inducement shares to employees. Under the IGC ESOP Plan, as of June 30, 2019, a total of 6,372,127 shares of common stock have been issued to employees, and 1.77 million shares fair valued at $667 thousand with a weighted average value of $0.38 per share are granted but are yet to be issued. As of June 30, 2019, we also have options held by Advisors to purchase 270 thousand shares of common stock, vesting between Fiscal 2020 and Fiscal 2024, with a weighted average exercise price of $0.45 per share. The options are fair valued at $121 thousand. The options are fair valued using a Black-Scholes Pricing Model with the following assumptions: Granted in Fiscal 20 20 Granted in Fiscal 20 19 Expected life of options 5 years 5 years Vested options 100 % 100 % Risk free interest rate 2.57 % 0.70 % Expected volatility 249 % 119.5 % Expected dividend yield Nil Nil The expense associated with share-based payments to employees, directors, advisors and contractors is allocated over the vesting or service period and recognized in the Common Stock and Additional Paid in Capital. For the three months ended June 30, 2019, the Company’s share-based expense and option-based expense shown in General and administrative expenses (including research and development) are $202 thousand and $6 thousand respectively. For the three months ended June 30, 2018 the share-based expense and option-based expense for employees and advisors are $162 thousand and $16 thousand respectively, of which $147 thousand share-based expense and $6 thousand option-based expense related to General and administrative expenses (including research and development). Summary of Options Number of O ptions as of June 30, 2019 (in thousands) Number of O ptions as of March 31, 2019 (in thousands) Opening balance 270 650 Option granted during the period - 110 Option exercised during the period - (490 ) Closing balance 270 270 |
NOTE 14 - REVENUE RECOGNITION
NOTE 14 - REVENUE RECOGNITION | 3 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 1 4 – REVENUE RECOGNITION Revenue in the Infrastructure Business is recognized for the renting and contracting business once the performance obligation as per the agreement has been satisfied by the Company. In the Plant and Cannabinoid Business, the revenue from the cannabinoid-based products is recognized in Holi Hemp once control of the goods has been transferred to the customer and the performance obligation has been completed. With IGCare, we license our products to processors. The revenue from the cannabinoid-based products and therapies is recognized once goods have been sold by the processor to its customer and the performance obligation is completed as per the agreement. Net sales disaggregated by significant products and services for the three months ended June 30, 2019 and the three months ended June 30, 2018 were as follows (in thousands): Three M onth s Ended June 30, 2019 ($) 2018 ($) Infrastructure Business Rental income (1) 3 16 Purchase and resale of infrastructure commodities (2) 1,542 1,462 Plant and Cannabinoid Business Plant and Cannabinoid products and therapies (3) 104 - Total 1,649 1,478 (1) Rental income consists of income from short-term rental of heavy construction equipment. There is no revenue from construction contracts during the three months ended June 30, 2019. (2) Relates to the income from purchase and resale of physical commodities used in infrastructure, such as steel, marble and tiles. (3) Relates to revenue from plant and cannabinoid-based products and therapies such as Hyalolex TM |
NOTE 15 - SEGMENT INFORMATION
NOTE 15 - SEGMENT INFORMATION | 3 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 1 5 – SEGMENT INFORMATION FASB ASC No. 280, “Segment Reporting” establishes standards for reporting information about reportable segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group (“CODM”), in deciding how to allocate resources and in assessing performance. The CODM evaluates revenues and gross profits based on product lines and routes to market. Based on our integration and Management strategies, we operate in two reportable segments: (i) Infrastructure Business and (ii) Plant and Cannabinoids Business. The Company’s CODM is considered to be the Company’s chief executive officer (“CEO”). The CEO reviews financial information presented on an operating segment basis for purposes of making operating decisions and assessing financial performance. Therefore, and before our Plant and Cannabinoid Business started, the Company had determined that it operated in a single operating and reportable segment. As of the date of this report and in preparation for the new and different source of revenue, the Company has determined that it operates in two operating and reportable segments: a) Infrastructure Business and b) Plant and Cannabinoid Business. The following provides information required by ASC 280-10-50-38 “Entity-wide Information”: 1) The table below shows revenue reported by product and service: Product & Service Segments Three M onths E nded June 30, 2019 ($) Percentage of Total Revenue Infrastructure Business 1,545 94 % Plant and Cannabinoid Business 104 6 % Total 1,649 100 % Segments Three M onths E nded June 30, 2018 ($) Percentage of Total Revenue Infrastructure Business 1,478 100 % Plant and Cannabinoid Business - - Total 1,478 100 % 2) The table below shows the revenue attributed to the country of domicile (U.S.) and foreign countries. Revenue is generally attributed to the geographic location of customers: Segments Country Three M onths E nded June 30, 2019 ($) Percentage of Total Revenue Asia (1) India 3 0 % (2) Hong Kong 1,542 94 % North America U.S. 104 6 % Total 1,649 100 % Country Three M onths E nded June 30, 2018 ($) Percentage of Total Revenue Asia (1) India 16 1 % (2) Hong Kong 1,462 99 % North America U.S. - - Total 1,478 100 % 3) The table below shows the non-current assets other than financial instruments held in the country of domicile and foreign countries. Nature of Assets USA (Country of Domicile) ($) Foreign Countries (India) ($) Total as of June 30 , 2019 ($) Intangible assets, net 187 - 187 Property, plant and equipment, net 2,110 4,945 7,055 Investments in unlisted securities 773 21 794 Claims and advances 457 438 895 Total long-term assets 3,527 5,404 8,931 Nature of Assets USA (Country of Domicile) ($) Foreign Countries (India) ($) Total as of March 3 1 , 201 9 ($) Intangible assets, net 184 - 184 Property, plant and equipment, net 958 4,928 5,886 Investments in unlisted securities 773 21 794 Claims and advances 440 438 878 Total long-term assets 2,355 5,387 7,742 |
NOTE 16 - SUBSEQUENT EVENTS
NOTE 16 - SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 16 On July 18, 2019, the Company incorporated SAN Holdings LLC (“SAN”) as a wholly owned subsidiary of IGC. SAN is expected to own all U.S. based real-estate assets. On July 31, 2019, the Company incorporated Hamsa BioChem SAS (“Hamsa”) as a wholly owned subsidiary of IGC. Hamsa, headquartered in Bogota, Colombia, is expected to be the hub for handling all business operations related with the cultivation, processing and distribution of legal cannabis products in Latin America and Europe; only in countries where it is legal to do so under applicable law and regulation. On July 31, 2019, the Company and its directors and officers executed a memorandum of understanding on the preliminary terms of a full settlement of each of the derivative lawsuits currently pending against them, identified in Part II – Other Information as Erny v. Mukunda, et al., Hamdan v. Mukunda, et al., and Patel v. Mukunda, et al. The settlement is subject to final negotiation of specific terms and approval by the court. Upon the court’s approval of the settlement, it is anticipated that the cases will be dismissed with prejudice. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation The accompanying unaudited condensed consolidated financial statements (“interim statements”) of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) as determined by Financial Accounting Standards Board (the “FASB”) within its Accounting Standards Codification (“ASC”) and under the rules and regulations of the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of Management, all adjustments and disclosures necessary for a fair presentation of these interim statements have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year. These interim statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended March 31, 2019 contained in the Company’s Form 10-K for the Fiscal 2019, filed with the SEC on June 14, 2019, specifically in Note 2 to the consolidated financial statements. |
Consolidation, Policy [Policy Text Block] | Principles of consolidation The interim statements include the consolidated accounts of the Company and its subsidiaries. Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s Management, the interim statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. |
Use of Estimates, Policy [Policy Text Block] | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Management believes that the estimates and assumptions used in the preparation of the interim statements are prudent and reasonable. Significant estimates and assumptions are generally used for, but not limited to: allowance for uncollectible accounts receivable; future obligations under employee benefit plans; the useful lives of property, plant, equipment; intangible assets; valuations; impairment of goodwill and investments; recoverability of advances; the valuation of options granted and warrants issued; and income tax and deferred tax valuation allowances, if any. Actual results could differ from those estimates. Appropriate changes in estimates are made as Management becomes aware of changes in circumstances surrounding the estimates. Critical accounting estimates could change from period to period and could have a material impact on IGC’s results, operations, financial position and cash flows. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the consolidated financial statements. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Presentation and functional currencies IGC operates in India, U.S., and Hong Kong and a substantial portion of the Company’s revenues are denominated in the Indian Rupee (“INR”) or the Hong Kong Dollar (“HKD”). The local currency is the functional currency for the operations outside the U.S. Changes in the exchange rates between this currency and the Company’s reporting currency, are partially responsible for some of the periodic changes in the consolidated financial statements. Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars (“USD”) at the spot rate in effect at the applicable reporting date. Revenues and expenses of the Company’s foreign operations are translated at the average exchange rate during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive income/(loss) in stockholders’ equity. Transaction gains and losses are recognized in the consolidated statements of operations. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment No impairment has been recorded for the three-month periods ended June 30, 2019 and 2018. |
Inventory, Policy [Policy Text Block] | Inventory Inventory is valued at the lower of cost or market, or at sales price (fair value) less costs of disposal when certain conditions are met. The term market means current replacement cost, provided that it meets both the following conditions: a) market shall not exceed the net realizable value, and b) market shall not be less than net realizable value reduced by an allowance for an approximately normal profit margin. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. These assumptions about future disposition of inventory are inherently uncertain and changes in our estimates and assumptions may cause us to realize material write-downs in the future. Inventory consists of raw materials, finished goods and work-in progress such as extracted crude oil, growing crops and crude oil in process. The costs of growing cannabis including but not limited to labor, utilities, fertilizers and irrigation, are capitalized into inventory until the time of harvest. It is primarily accounted for using the weighted average cost method. Primary costs include raw materials, packaging, direct labor, overhead, shipping and the depreciation of manufacturing equipment. Manufacturing overhead and related expenses include salaries, wages, employee benefits, utilities, maintenance and property taxes. Crops are segregated into “growing crops” and “harvested crops”. Growing crops are valued at the lower of cost or market value. Direct and indirect development costs of groves, orchards and vineyards are required to be capitalized during the development period and depreciated over the estimated useful life of the particular asset. Harvested crops are measured at sales price less costs of disposal, with changes recognized in profit or loss only when the harvested crop: - has a reliable, readily determinable and realizable market value; - has relatively insignificant and predictable costs of disposal; and - is available for immediate delivery. See Note 3, Inventory of this report for further information. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value of financial instruments FASB ASC No. 820, “Fair Value Measurement” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of the Company’s financial instruments includes cash and cash equivalents, accounts receivable, accounts payable and accrued and other liabilities, which is approximate to their fair values due to the nature of the items. As of June 30, 2019, the Company’s short-term investment consists of mutual fund, which have been classified as Level 1 of the fair value hierarchy because they have been valued using quoted prices in active markets. Company’s cash and cash equivalents have also been classified as Level 1 on the same principle. Financial instruments are classified as current if they are expected to be liquidated within the next twelve months. Company’s remaining investments have been classified as Level 3 instruments as there is little or no market data. Level 3 investments are valued using cost-method. For further information refer Note 7 – Investments in Unlisted Securities, which is classified as non-current asset. The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of June 30, 2019 and March 31, 2019, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value: Level 1 ($) Level 2 ($) Level 3 ($) Total ($) June 30, 2019 Cash and cash equivalents: 16,554 - - 16,554 Total cash and cash equivalents 16,554 - - 16,554 Investments: -Short-term investment in mutual fund 5,009 - - 5,009 -Investment in unlisted securities - - 794 794 Total Investment s 5,009 - 794 5,803 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) March 31, 2019 Cash and cash equivalents: 25,610 - - 25,610 Total cash and cash equivalents 25,610 - - 25,610 Investments: - Short-term investment in mutual fund - - - - -Investment in unlisted securities - - 794 794 Total Investment - - 794 794 |
Earnings Per Share, Policy [Policy Text Block] | Earnings / (Loss) per Share The computation of basic loss per share for the three months ended June 30, 2019, excludes potentially dilutive securities of 3.4 million shares which includes share options, unvested shares granted to employees, warrants, and shares from the conversion of outstanding units, if any, because their inclusion would be antidilutive. The weighted average number of shares outstanding as of June 30, 2019 and 2018, used for the computation of basic earnings per share (“EPS”) is 39,508,110 and 30,981,422, respectively. Due to the loss incurred during the three-month periods ended June 30, 2019, and 2018, all the potential equity shares are anti-dilutive and accordingly, the fully diluted EPS is equal to the basic EPS. |
Lessee, Leases [Policy Text Block] | Leases Lessor For leases that are accounted for as operating leases, income is recognized on a straight-line basis over the term of the lease contract. Generally, when a lease is more than 180 days delinquent (where more than three monthly payments are owed), the lease is classified as being on nonaccrual and the Company stops recognizing leasing income on that date. Payments received on leases in nonaccrual status generally reduce the lease receivable. Leases on nonaccrual status remain classified as such until there is sustained payment performance that, in the Company’s judgment, would indicate that all contractual amounts will be collected in full. Lessee The Company categorizes leases at their inception as either operating or capital leases. On certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. The Company has operating leases primarily consisting of office spaces with the remaining lease term being less than 12 months, subject to certain renewal options as applicable. The total operating lease expense and cash paid for operating leases for the three months ended June 30, 2019 and June 30, 2018 are $39 thousand and $37 thousand respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Recently adopted ASC 842, Leases In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02 (“ASU 2016-02”), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2018-20, Narrow-Scope Improvements for Lessors. Lessor Accounting For lessors, however, the accounting remains largely unchanged from the current model, changes have been made to align certain lessor and lessee accounting guidance and the key aspects of the lessor accounting model with new revenue recognition standard. Under the new guidance, contract consideration will be allocated to its lease components and non-lease components (such as maintenance). For the Company as a lessor, any non-lease components will be accounted for under ASC Topic 606, Revenue from Contracts with Customers, unless the Company elects a lessor practical expedient to not separate the non-lease components from the associated lease component. The amendments in ASU 2018-11 also provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (“Topic 606”). To elect the practical expedient, the timing and pattern of transfer of the lease and non-lease components must be the same and the lease component must meet the criteria to be classified as an operating lease if accounted for separately. If these criteria are met, the single component will be accounted for under either under Topic 842 or Topic 606 depending on which component(s) are predominant. The lessor practical expedient to not separate non-lease components from the associated component must be elected for all existing and new leases. As lessor, the Company expects that post-adoption substantially all existing leases will have no change in the timing of revenue recognition until their expiration or termination. The Company expects to elect the lessor practical expedient to not separate non-lease components such as maintenance from the associated lease for all existing and new leases and to account for the combined component as a single lease component. The timing of revenue recognition is expected to be the same for the majority of the Company’s new leases as compared to similar existing leases; however, certain categories of new leases could have different revenue recognition patterns as compared to similar existing leases. Lessee Accounting The Company will adopt ASU 2016-02 effective April 1, 2019 using the modified retrospective approach. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. In connection with the adoption, the Company will elect to utilize the modified retrospective presentation whereby the Company will continue to present prior period financial statements and disclosures under ASC 840. In addition, the Company will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Further, the Company will adopt a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The Company has concluded that all lease arrangements would be classified as short-term in nature and as such, not recorded on the balance sheet. The standard did not materially affect the Company's consolidated net earnings or have any impact on cash flows. The Company adopted the guidance as of April 1, 2019, and the adoption did not have a material effect on the financial statements. Additional information and disclosures required by this new standard for the Company as a lessor are contained above. Not yet adopted Not yet adopted Credit Losses: Disclosures: Collaborative Arrangement: Clarifying the Interaction Between Topic 808 and Topic 606 Intangibles-Goodwill and Other-Internal-Use Software : |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of June 30, 2019 and March 31, 2019, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value: Level 1 ($) Level 2 ($) Level 3 ($) Total ($) June 30, 2019 Cash and cash equivalents: 16,554 - - 16,554 Total cash and cash equivalents 16,554 - - 16,554 Investments: -Short-term investment in mutual fund 5,009 - - 5,009 -Investment in unlisted securities - - 794 794 Total Investment s 5,009 - 794 5,803 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) March 31, 2019 Cash and cash equivalents: 25,610 - - 25,610 Total cash and cash equivalents 25,610 - - 25,610 Investments: - Short-term investment in mutual fund - - - - -Investment in unlisted securities - - 794 794 Total Investment - - 794 794 |
NOTE 3 - INVENTORY (Tables)
NOTE 3 - INVENTORY (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | As of June 30, 2019 ($) As of March 31, 2019 ($) Raw Materials 828 - Work in Progress 1,142 248 Finished Goods - - Total 1,970 248 |
NOTE 4 -DEPOSITS AND ADVANCES (
NOTE 4 -DEPOSITS AND ADVANCES (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | As of June 30, 2019 ($) As of March 31, 2019 ($) Advance to suppliers and consultants 715 720 Statutory advances 45 43 Prepaid Expense and other current assets 92 18 Total 852 781 |
NOTE 5 - INTANGIBLE ASSETS (Tab
NOTE 5 - INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | As of June 30, 2019 ($) As of March 31, 2019 ($) Patent & other intangible assets at the beginning of the period 184 128 Patent acquisition and filing expenses for the three months ended June 30, 2019 5 56 Amortization (2 ) - Total 187 184 |
NOTE 6 - PROPERTY, PLANT AND _2
NOTE 6 - PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Property Plant and Equipment Table [Member] | |
NOTE 6 - PROPERTY, PLANT AND EQUIPMENT, NET (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Category Useful Life (years) As of June 30, 2019 ($) As of March 31, 2019 ($) Land N/A 4,889 4,872 Buildings & facilities 25 2,304 1,268 Plant and machinery 20 1,609 1,603 Computer equipment 3 169 165 Office equipment 5 109 109 Furniture and fixtures 5 62 61 Vehicles 5 280 279 Equipment 5 134 - Total Gross Value 9,556 8,357 Less: Accumulated depreciation (2,501 ) (2,471 ) Total Property, plant and equipment, net 7,055 5,886 |
NOTE 7 - INVESTMENTS IN UNLIS_2
NOTE 7 - INVESTMENTS IN UNLISTED SECURITIES (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
ASU 2016-01 Transition [Abstract] | |
Investment [Table Text Block] | As of June 30, 2019 ($) As of March 31, 2019 ($) Investment in equity shares of unlisted company 21 21 Investment in affiliate (i) 773 773 Total 794 794 (i) Pursuant to the December 18, 2014 Purchase Agreement with Apogee, we issued Apogee 1.2 million shares of IGC’s common stock valued at $888 thousand for the purchase of a 24.9% ownership interest in Midtown Partners & Co., LLC (“MTP”). During Fiscal 2018, after considering several factors, the Company concluded that it no longer had significant influence over MTP. Hence, we do not record any impact from MTP’s earnings/(losses) and instead we maintain the same value of approximately $773 thousand since Fiscal 2018. |
NOTE 8 - CLAIMS AND ADVANCES_ (
NOTE 8 - CLAIMS AND ADVANCES: (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Other Assets, Noncurrent [Table Text Block] | As of June 30, 2019 ($) As of March 31, 2019 ($) Claims receivable (1) 405 404 Non-current deposits 22 18 Other advances (2) 468 456 Total 895 878 (1) The claims receivable is due from the Cochin International Airport (“CIA”) that is partially owned by the State Government of Kerala. As of June 30, 2019, the receivable is due for over one year. The Company continues to carry the full value of the receivables without interest and without any impairment, because it believes that there is minimal risk that CIA will become insolvent and unable to make the payment. However, the Company currently believes it will be difficult to receive the amount in the next 12 months because of the time required for legal collection proceedings. The Company has initiated such proceedings. (2) Includes a loan of $200 thousand, to one of our manufacturers, for the purchase of equipment, at an annual interest rate of three percent (3%), due on April 1, 2021. |
NOTE 9 - ACCRUED AND OTHER LI_2
NOTE 9 - ACCRUED AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Particulars As of June 30, 2019 ($) As of March 31, 2019 ($) Salaries and other contribution 127 115 Provision for expenses 238 355 Other current liability 87 39 Total 452 509 |
NOTE 13 - STOCK-BASED COMPENS_2
NOTE 13 - STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The options are fair valued using a Black-Scholes Pricing Model with the following assumptions: Granted in Fiscal 20 20 Granted in Fiscal 20 19 Expected life of options 5 years 5 years Vested options 100 % 100 % Risk free interest rate 2.57 % 0.70 % Expected volatility 249 % 119.5 % Expected dividend yield Nil Nil |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Summary of Options Number of O ptions as of June 30, 2019 (in thousands) Number of O ptions as of March 31, 2019 (in thousands) Opening balance 270 650 Option granted during the period - 110 Option exercised during the period - (490 ) Closing balance 270 270 |
NOTE 14 - REVENUE RECOGNITION (
NOTE 14 - REVENUE RECOGNITION (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Net sales disaggregated by significant products and services for the three months ended June 30, 2019 and the three months ended June 30, 2018 were as follows (in thousands): Three M onth s Ended June 30, 2019 ($) 2018 ($) Infrastructure Business Rental income (1) 3 16 Purchase and resale of infrastructure commodities (2) 1,542 1,462 Plant and Cannabinoid Business Plant and Cannabinoid products and therapies (3) 104 - Total 1,649 1,478 (1) Rental income consists of income from short-term rental of heavy construction equipment. There is no revenue from construction contracts during the three months ended June 30, 2019. (2) Relates to the income from purchase and resale of physical commodities used in infrastructure, such as steel, marble and tiles. (3) Relates to revenue from plant and cannabinoid-based products and therapies such as Hyalolex TM |
NOTE 15 - SEGMENT INFORMATION (
NOTE 15 - SEGMENT INFORMATION (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | 1) The table below shows revenue reported by product and service: Segments Three M onths E nded June 30, 2019 ($) Percentage of Total Revenue Infrastructure Business 1,545 94 % Plant and Cannabinoid Business 104 6 % Total 1,649 100 % Segments Three M onths E nded June 30, 2018 ($) Percentage of Total Revenue Infrastructure Business 1,478 100 % Plant and Cannabinoid Business - - Total 1,478 100 % |
Revenue from External Customers by Geographic Areas [Table Text Block] | Revenue is generally attributed to the geographic location of customers: Segments Country Three M onths E nded June 30, 2019 ($) Percentage of Total Revenue Asia (1) India 3 0 % (2) Hong Kong 1,542 94 % North America U.S. 104 6 % Total 1,649 100 % Country Three M onths E nded June 30, 2018 ($) Percentage of Total Revenue Asia (1) India 16 1 % (2) Hong Kong 1,462 99 % North America U.S. - - Total 1,478 100 % |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The table below shows the non-current assets other than financial instruments held in the country of domicile and foreign countries. Nature of Assets USA (Country of Domicile) ($) Foreign Countries (India) ($) Total as of June 30 , 2019 ($) Intangible assets, net 187 - 187 Property, plant and equipment, net 2,110 4,945 7,055 Investments in unlisted securities 773 21 794 Claims and advances 457 438 895 Total long-term assets 3,527 5,404 8,931 Nature of Assets USA (Country of Domicile) ($) Foreign Countries (India) ($) Total as of March 3 1 , 201 9 ($) Intangible assets, net 184 - 184 Property, plant and equipment, net 958 4,928 5,886 Investments in unlisted securities 773 21 794 Claims and advances 440 438 878 Total long-term assets 2,355 5,387 7,742 |
NOTE 2 - SUMMARY OF SIGNIFICA_3
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||
Earnings Per Share, Potentially Dilutive Securities | 3.4 | |
Weighted Average Number of Shares Outstanding, Basic | 39,508,110 | 30,981,422 |
Operating Leases, Rent Expense | $ 39 | $ 37 |
NOTE 2 - SUMMARY OF SIGNIFICA_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Fair Value, by Balance Sheet Grouping - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents: | $ 16,554 | $ 25,610 | $ 1,021 | $ 1,659 |
Total cash and cash equivalents | 16,554 | 25,610 | ||
-Short-term investment | 5,009 | 0 | ||
-Investment in unlisted securities | 794 | 794 | ||
Total Investment | 5,803 | 794 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents: | 16,554 | 25,610 | ||
Total cash and cash equivalents | 16,554 | 25,610 | ||
-Short-term investment | 5,009 | 0 | ||
-Investment in unlisted securities | 0 | 0 | ||
Total Investment | 5,009 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents: | 0 | 0 | ||
Total cash and cash equivalents | 0 | 0 | ||
-Short-term investment | 0 | 0 | ||
-Investment in unlisted securities | 0 | 0 | ||
Total Investment | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents: | 0 | 0 | ||
Total cash and cash equivalents | 0 | 0 | ||
-Short-term investment | 0 | 0 | ||
-Investment in unlisted securities | 794 | 794 | ||
Total Investment | $ 794 | $ 794 |
NOTE 3 - INVENTORY (Details) -
NOTE 3 - INVENTORY (Details) - Schedule of Inventory, Current - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Schedule of Inventory, Current [Abstract] | ||
Raw Materials | $ 828 | $ 0 |
Work in Progress | 1,142 | 248 |
Finished Goods | 0 | 0 |
Total | $ 1,970 | $ 248 |
NOTE 4 -DEPOSITS AND ADVANCES
NOTE 4 -DEPOSITS AND ADVANCES (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Advance to suppliers and consultants | $ 715 | $ 720 |
Statutory advances | 45 | 43 |
Prepaid Expense and other current assets | 92 | 18 |
Total | $ 852 | $ 781 |
NOTE 5 - INTANGIBLE ASSETS (Det
NOTE 5 - INTANGIBLE ASSETS (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Asset, Useful Life | 13 years |
NOTE 5 - INTANGIBLE ASSETS (D_2
NOTE 5 - INTANGIBLE ASSETS (Details) - Schedule of Intangible Assets And Goodwill - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
NOTE 5 - INTANGIBLE ASSETS (Details) - Schedule of Intangible Assets And Goodwill [Line Items] | ||
Patent & other intangible assets at the beginning of the period | $ 184 | $ 128 |
Total | 187 | 184 |
Patents [Member] | ||
NOTE 5 - INTANGIBLE ASSETS (Details) - Schedule of Intangible Assets And Goodwill [Line Items] | ||
Patent acquisition and filing expenses for the three months ended June 30, 2019 | 5 | 56 |
Distribution Rights [Member] | ||
NOTE 5 - INTANGIBLE ASSETS (Details) - Schedule of Intangible Assets And Goodwill [Line Items] | ||
Acquisition | $ (2) | $ 0 |
NOTE 6 - PROPERTY, PLANT AND _3
NOTE 6 - PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation, Depletion and Amortization | $ 17 | $ 15 |
NOTE 6 - PROPERTY, PLANT AND _4
NOTE 6 - PROPERTY, PLANT AND EQUIPMENT, NET (Details) - Property, Plant and Equipment - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,556 | $ 8,357 |
Less: Accumulated depreciation | (2,501) | (2,471) |
Net Assets | $ 7,055 | 5,886 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | ||
Property, plant and equipment, gross | $ 4,889 | 4,872 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 25 years | |
Property, plant and equipment, gross | $ 2,304 | 1,268 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 20 years | |
Property, plant and equipment, gross | $ 1,609 | 1,603 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Property, plant and equipment, gross | $ 169 | 165 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Property, plant and equipment, gross | $ 109 | 109 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Property, plant and equipment, gross | $ 62 | 61 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Property, plant and equipment, gross | $ 280 | 279 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Property, plant and equipment, gross | $ 134 | $ 0 |
NOTE 7 - INVESTMENTS IN UNLIS_3
NOTE 7 - INVESTMENTS IN UNLISTED SECURITIES (Details) - Middle Town Partners Co [Member] - USD ($) $ in Thousands, shares in Millions | Dec. 18, 2014 | Jun. 30, 2019 | Mar. 31, 2019 | |
NOTE 7 - INVESTMENTS IN UNLISTED SECURITIES (Details) [Line Items] | ||||
Stock Issued During Period, Shares, Acquisitions (in Shares) | 1.2 | |||
Stock Issued During Period, Value, Acquisitions | $ 888 | |||
Cost Method Investment, Ownership Percentage | 24.90% | |||
Cost Method Investments | [1] | $ 773 | $ 773 | |
[1] | Pursuant to the December 18, 2014 Purchase Agreement with Apogee, we issued Apogee 1.2 million shares of IGC's common stock valued at $888 thousand for the purchase of a 24.9% ownership interest in Midtown Partners & Co., LLC ("MTP"). During Fiscal 2018, after considering several factors, the Company concluded that it no longer had significant influence over MTP. Hence, we do not record any impact from MTP's earnings/(losses) and instead we maintain the same value of approximately $773 thousand since Fiscal 2018. |
NOTE 7 - INVESTMENTS IN UNLIST
NOTE 7 - INVESTMENTS IN UNLISTED SECURITIES (Details) - Schedule of Investments - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | |
NOTE 7 - INVESTMENTS IN UNLISTED SECURITIES (Details) - Schedule of Investments [Line Items] | |||
Investment | $ 794 | $ 794 | |
Investment in Equity Shares of Unlisted Company Associates [Member] | |||
NOTE 7 - INVESTMENTS IN UNLISTED SECURITIES (Details) - Schedule of Investments [Line Items] | |||
Investment | 21 | 21 | |
Middle Town Partners Co [Member] | |||
NOTE 7 - INVESTMENTS IN UNLISTED SECURITIES (Details) - Schedule of Investments [Line Items] | |||
Investment | [1] | $ 773 | $ 773 |
[1] | Pursuant to the December 18, 2014 Purchase Agreement with Apogee, we issued Apogee 1.2 million shares of IGC's common stock valued at $888 thousand for the purchase of a 24.9% ownership interest in Midtown Partners & Co., LLC ("MTP"). During Fiscal 2018, after considering several factors, the Company concluded that it no longer had significant influence over MTP. Hence, we do not record any impact from MTP's earnings/(losses) and instead we maintain the same value of approximately $773 thousand since Fiscal 2018. |
NOTE 8 - CLAIMS AND ADVANCES__2
NOTE 8 - CLAIMS AND ADVANCES: (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Disclosure Text Block Supplement [Abstract] | |
Payments to Acquire Notes Receivable | $ 200 |
Debt Instrument, Interest Rate During Period | 3.00% |
NOTE 8 - CLAIMS AND ADVANCES__3
NOTE 8 - CLAIMS AND ADVANCES: (Details) - Schedule of Other Assets, Noncurrent - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | |
Schedule of Other Assets, Noncurrent [Abstract] | |||
Claims receivable | [1] | $ 405 | $ 404 |
Non-current deposits | 22 | 18 | |
Other advances | [2] | 468 | 456 |
Total | $ 895 | $ 878 | |
[1] | The claims receivable is due from the Cochin International Airport ("CIA") that is partially owned by the State Government of Kerala. As of June 30, 2019, the receivable is due for over one year. The Company continues to carry the full value of the receivables without interest and without any impairment, because it believes that there is minimal risk that CIA will become insolvent and unable to make the payment. However, the Company currently believes it will be difficult to receive the amount in the next 12 months because of the time required for legal collection proceedings. The Company has initiated such proceedings. | ||
[2] | Includes a loan of $200 thousand, to one of our manufacturers, for the purchase of equipment, at an annual interest rate of three percent (3%), due on April 1, 2021. |
NOTE 9 - ACCRUED AND OTHER LI_3
NOTE 9 - ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ||
Accounts Payable, Other, Current | $ 3 | $ 4 |
NOTE 9 - ACCRUED AND OTHER LI_4
NOTE 9 - ACCRUED AND OTHER LIABILITIES (Details) - Schedule of Accounts Payable and Accrued Liabilities - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Schedule of Accounts Payable and Accrued Liabilities [Abstract] | ||
Salaries and other contribution | $ 127 | $ 115 |
Provision for expenses | 238 | 355 |
Other current liability | 87 | 39 |
Total | $ 452 | $ 509 |
NOTE 10 - COMMITMENTS AND CON_2
NOTE 10 - COMMITMENTS AND CONTINGENCIES (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 6.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 12.00% |
NOTE 11 - SECURITIES (Details)
NOTE 11 - SECURITIES (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | ||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Units Issued | 91,472 | |
Common Stock, Shares, Issued | 39,511,407 | 39,501,407 |
Common Stock, Shares, Outstanding | 39,511,407 | 39,501,407 |
Class of Warrant or Right, Outstanding | 11,672,178 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,167,217 | |
Warrant Description of Call Feature | 10 warrants and a payment of $5.00 in exchange for each share | |
Units Outstanding | 91,472 | |
Unit, Call Feature | Ten units may be separated into one share of common stock and 20 warrants |
NOTE 12- RELATED PARTY TRANSA_2
NOTE 12- RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Monthly Payment for Office Space and Certain General and Administrative Services [Member] | Affiliated Entity [Member] | |
NOTE 12- RELATED PARTY TRANSACTIONS (Details) [Line Items] | |
Related Party Transaction, Amounts of Transaction | $ 10.5 |
Monthly Payment for Office and Facilities [Member] | Affiliated Entity [Member] | |
NOTE 12- RELATED PARTY TRANSACTIONS (Details) [Line Items] | |
Related Party Transaction, Amounts of Transaction | 6.1 |
Notes Payable, Other Payables [Member] | |
NOTE 12- RELATED PARTY TRANSACTIONS (Details) [Line Items] | |
Notes Payable, Related Parties | $ 50 |
Debt Instrument, Interest Rate, Stated Percentage | 15.00% |
NOTE 13 - STOCK-BASED COMPENS_3
NOTE 13 - STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
NOTE 13 - STOCK-BASED COMPENSATION (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | 110,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 270,000 | 270,000 | 650,000 | |
Share-based Payment Arrangement, Expense | $ 208 | $ 162 | ||
Share-based Payment Arrangement, Noncash Expense | 16 | |||
General and Administrative Expense [Member] | ||||
NOTE 13 - STOCK-BASED COMPENSATION (Details) [Line Items] | ||||
Share-based Payment Arrangement, Expense | 202 | 147 | ||
Share-based Payment Arrangement, Noncash Expense | $ 6 | $ 6 | ||
2018 Omnibus Incentive Plan [Member] | ||||
NOTE 13 - STOCK-BASED COMPENSATION (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 92,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 6,372,127 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures (in Shares) | 1,770,000 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $ 667,000 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 0.38 | |||
ESOP 2008 Omnibus Plan [Member] | ||||
NOTE 13 - STOCK-BASED COMPENSATION (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 270,000 | |||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 0.45 | |||
Fair Value of Options | $ 121 |
NOTE 13 - STOCK-BASED COMPENS_4
NOTE 13 - STOCK-BASED COMPENSATION (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Abstract] | ||
Expected life of options | 5 years | 5 years |
Vested options | 100.00% | 100.00% |
Risk free interest rate | 2.57% | 0.70% |
Expected volatility | 249.00% | 119.50% |
Expected dividend yield |
NOTE 13 - STOCK-BASED COMPENS_5
NOTE 13 - STOCK-BASED COMPENSATION (Details) - Share-based Compensation, Stock Options, Activity - shares shares in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2019 | |
Share-based Compensation, Stock Options, Activity [Abstract] | ||
Opening balance | 270 | 650 |
Option granted during the period | 0 | 110 |
Option exercised during the period | 0 | (490) |
Closing balance | 270 | 270 |
NOTE 14 - REVENUE RECOGNITION_2
NOTE 14 - REVENUE RECOGNITION (Details) - Disaggregation of Revenue - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Infrastructure Business | |||
Revenues | $ 1,649 | $ 1,478 | |
Rental Income [Member] | Legacy Infrastructure [Member] | |||
Infrastructure Business | |||
Revenues | [1] | 3 | 16 |
Purchase and resale of infrastructure commodities [Member] | Legacy Infrastructure [Member] | |||
Infrastructure Business | |||
Revenues | [2] | 1,542 | 1,462 |
Plant and Cannabinoid products and therapies [Member] | Plant and Cannabinoid Business [Member] | |||
Infrastructure Business | |||
Revenues | [3] | $ 104 | $ 0 |
[1] | Rental income consists of income from short-term rental of heavy construction equipment. There is no revenue from construction contracts during the three months ended June 30, 2019. | ||
[2] | Relates to the income from purchase and resale of physical commodities used in infrastructure, such as steel, marble and tiles. | ||
[3] | Relates to revenue from plant and cannabinoid-based products and therapies such as HyalolexTM and hemp crude extract. |
NOTE 15 - SEGMENT INFORMATION_2
NOTE 15 - SEGMENT INFORMATION (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Number of Operating Segments | 2 |
NOTE 15 - SEGMENT INFORMATION_3
NOTE 15 - SEGMENT INFORMATION (Details) - Revenue from External Customers by Products and Services - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | ||
Total Revenue | $ 1,649 | $ 1,478 |
Percentage of Total Revenue | 100.00% | 100.00% |
Legacy Infrastructure [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenue | $ 1,545 | $ 1,478 |
Percentage of Total Revenue | 94.00% | 100.00% |
Alternative Therapies [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenue | $ 104 | $ 0 |
Percentage of Total Revenue | 6.00% | 0.00% |
NOTE 15 - SEGMENT INFORMATION_4
NOTE 15 - SEGMENT INFORMATION (Details) - Revenue from External Customers by Geographic Areas - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
NOTE 15 - SEGMENT INFORMATION (Details) - Revenue from External Customers by Geographic Areas [Line Items] | ||
Revenue | $ 1,649 | $ 1,478 |
Percentage of Total Revenue | 100.00% | 100.00% |
INDIA | ||
NOTE 15 - SEGMENT INFORMATION (Details) - Revenue from External Customers by Geographic Areas [Line Items] | ||
Revenue | $ 3 | $ 16 |
Percentage of Total Revenue | 0.00% | 1.00% |
HONG KONG | ||
NOTE 15 - SEGMENT INFORMATION (Details) - Revenue from External Customers by Geographic Areas [Line Items] | ||
Revenue | $ 1,542 | $ 1,462 |
Percentage of Total Revenue | 94.00% | 99.00% |
UNITED STATES | ||
NOTE 15 - SEGMENT INFORMATION (Details) - Revenue from External Customers by Geographic Areas [Line Items] | ||
Revenue | $ 104 | $ 0 |
Percentage of Total Revenue | 6.00% | 0.00% |
NOTE 15 - SEGMENT INFORMATION_5
NOTE 15 - SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Intangible assets, net | $ 187 | $ 184 | $ 128 |
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 | |
Geographic Distribution, Domestic [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Intangible assets, net | 187 | 184 | |
Property, plant and equipment, net | 2,110 | 958 | |
Investments in unlisted securities | 773 | 773 | |
Claims and advances | 457 | 440 | |
Total long-term assets | 3,527 | 2,355 | |
Geographic Distribution, Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Intangible assets, net | 0 | 0 | |
Property, plant and equipment, net | 4,945 | 4,928 | |
Investments in unlisted securities | 21 | 21 | |
Claims and advances | 438 | 438 | |
Total long-term assets | $ 5,404 | $ 5,387 |