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Forward Reports Fiscal 2020 Third Quarter Results

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Revenues of $9.5 million and Net loss of $215 thousand for the quarter

HAUPPAUGE, N.Y., Aug. 14, 2020 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (NASDAQ:FORD), a single source solution provider for the full spectrum of hardware and software product design and engineering services as well as a designer and distributer of carry and protective solutions, today announced financial results for its third fiscal quarter ended June 30, 2020.

Third Quarter 2020 Financial Highlights

  • Revenues were $9.5 million compared to $9.9 million from the third quarter of 2019 a decrease of 3.6%.

  • Gross margin decreased to 18.6% compared to 19.1% in the third quarter of 2019.

  • Net loss was $215 thousand compared to a net loss of $104 thousand in the third quarter of 2019.

  • Net loss per share was $0.02 compared to net loss per share of $0.01 for the third quarter of 2019.

  • Cash and cash equivalents totaled $3.1 million at June 30, 2020.

Terry Wise, Chief Executive Officer of Forward Industries, stated, “Like most other companies, this was a challenging quarter with our business continuing to be adversely impacted by delays within the retail sector and uncertainty which has slowed the growth of our design business. However, overall, I am pleased at the Company’s resilience and performance in spite of these extraordinary trading conditions and am encouraged by recent developments. I continue to have confidence in the future.”

The tables below are derived from the Company’s condensed consolidated financial statements included in its Form 10-Q filed on August 14, 2020 with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements and further information regarding the Company’s results of operations and financial condition relating to the fiscal quarters ended June 30, 2020 and 2019. Please also refer to the Company’s Form 10-K for a discussion of risk factors applicable to the Company and its business.

About Forward Industries

Forward is a fully integrated design, development and manufacturing solution provider to top tier medical and technology customers worldwide. Through its acquisition of Intelligent Product Solutions (“IPS”), the Company has expanded its ability to design and develop solutions for our existing multinational client base and expand beyond the diabetic product line in to a variety of industries with a full spectrum of hardware and software product design and engineering services. In addition to our existing design and distribution of carry and protective solutions, primarily for handheld electronic devices, we are now a one-stop shop for design, development and manufacturing solutions serving a wide range of clients in the industrial, commercial and consumer industries.

Contact:

Forward Industries, Inc.
Anthony Camarda
acamarda@forwardindustries.com
(631) 547-3041

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,

September 30,

2020

2019

(Unaudited)

Assets

Current assets:

Cash

$

3,084,635

$

3,092,813

Accounts receivable, net

8,264,935

6,695,120

Inventories

727,419

1,608,827

Prepaid expenses and other current assets

502,893

441,502

Total current assets

12,579,882

11,838,262

Property and equipment, net

219,375

243,002

Intangible assets, net

1,126,299

1,248,712

Goodwill

1,167,427

2,182,427

Investment

-

326,941

Operating lease right of use assets, net

3,409,259

-

Other assets

138,002

255,008

Total assets

$

18,640,244

$

16,094,352

Liabilities and shareholders' equity

Current liabilities:

Line of credit

$

1,000,000

$

1,300,000

Accounts payable

297,098

315,444

Due to Forward China

3,199,874

3,236,693

Deferred income

525,763

219,831

Current portion of notes payable

2,196,621

1,654,799

Current portion of capital leases payable

24,733

39,941

Deferred consideration

296,000

834,000

Current portion of operating lease liability

238,413

-

Accrued expenses and other current liabilities

625,540

694,972

Total current liabilities

8,404,042

8,295,680

Other liabilities:

Capital leases payable, less current portion

15,402

26,438

Deferred rent

-

60,935

Operating lease liability, less current portion

3,278,908

-

Notes payable, less current portion

759,949

-

Total other liabilities

4,054,259

87,373

Total liabilities

12,458,301

8,383,053

Commitments and contingencies

Shareholders' equity:

Common stock, par value $0.01 per share; 40,000,000 shares authorized;

9,583,851 and 9,533,851 shares issued and outstanding at June 30, 2020

and September 30, 2019, respectively

95,838

95,338

Additional paid-in capital

19,074,747

18,936,130

Accumulated deficit

(12,988,642

)

(11,320,169

)

Total shareholders' equity

6,181,943

7,711,299

Total liabilities and shareholders' equity

$

18,640,244

$

16,094,352


FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

For the Three Months Ended June 30,

For the Nine Months Ended June 30,

2020

2019

2020

2019

Revenues, net

$

9,548,732

$

9,909,452

$

25,872,963

$

28,265,202

Cost of sales

7,773,944

8,014,998

20,925,017

23,756,862

Gross profit

1,774,788

1,894,454

4,947,946

4,508,340

Sales and marketing

464,247

539,072

1,478,880

1,437,047

General and administrative

1,485,447

1,405,249

4,324,798

4,676,748

Goodwill impairment

-

-

1,015,000

-

Loss from operations

(174,906

)

(49,867

)

(1,870,732

)

(1,605,455

)

Fair value adjustment of earn-out consideration

-

-

350,000

-

Fair value adjustment of deferred cash consideration

(3,000

)

-

(12,000

)

-

Interest expense

(37,148

)

(52,216

)

(132,275

)

(150,304

)

Other expense, net

(148

)

(1,979

)

(3,466

)

(9,735

)

Net loss

$

(215,202

)

$

(104,062

)

$

(1,668,473

)

$

(1,765,494

)

Net loss per share:

Basic

$

(0.02

)

$

(0.01

)

$

(0.18

)

$

(0.19

)

Diluted

$

(0.02

)

$

(0.01

)

$

(0.18

)

$

(0.19

)

Weighted average common shares outstanding:

Basic

9,534,407

9,533,851

9,534,034

9,531,422

Diluted

9,534,407

9,533,851

9,534,034

9,531,422