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Forward Reports Fiscal 2021 First Quarter Results

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Forward Industries
·5 min read
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Revenues of $9.7 million and operating loss of $0.2 million for the quarter

HAUPPAUGE, N.Y., Feb. 12, 2021 (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 first quarter ended December 31, 2020.

First Quarter Fiscal 2021 Financial Highlights

  • Revenues were $9.7 million, an increase of 15.5% from $8.4 million for the three months ended December 31, 2019.

  • Gross margin improved to 23.3% compared to 20.5% for the three months ended December 31, 2019.

  • Loss from operations was $167 thousand compared to $29 thousand for the three months ended December 31, 2019.

  • Net income was $1.2 million compared to a net loss of $82 thousand for the three months ended December 31, 2019, the increase primarily resulting from the $1.4 million of other income recognized on the forgiveness of our PPP loan in December 2020.

  • Basic and diluted earnings/(loss) per share were $0.12 compared to $(0.01) in the three months ended December 31, 2019, the increase also resulting from the aforementioned PPP loan forgiveness.

  • Cash and cash equivalents totaled $2.3 million at December 31, 2020.

Terry Wise, Chief Executive Officer of Forward Industries, stated, “In spite of the ongoing trading challenges, I am pleased to report a robust financial performance with year over year increases in both revenues and gross margin for the quarter. We continue to build momentum throughout retail and our design division remains solid in terms of performance, with both IPS and Kablooe collaborating to forge a strong pipeline.

As we progress through the fiscal year, and the trading environment progressively eases, I continue to be hopeful for the future.”

The tables below are derived from the Company’s condensed consolidated financial statements included in its Form 10-Q filed on February 12, 2021 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 December 31, 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, Inc. and Kablooe Design, Inc., the Company has expanded its ability to design and develop solutions for our existing multinational client base and expand beyond the diabetic product line into 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 hand-held 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, medical and consumer industries.

Contact:
Forward Industries, Inc.
Anthony Camarda, CFO
(631) 547-3041

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31,

September 30,

2020

2020

Assets

(Unaudited)

Current assets:

Cash

$

2,332,324

$

2,924,627

Accounts receivable, net

7,729,140

7,602,316

Inventories

1,257,397

1,275,694

Prepaid expenses and other current assets

339,292

419,472

Total current assets

11,658,153

12,222,109

Property and equipment, net

205,057

215,323

Intangible assets, net

1,478,227

1,531,415

Goodwill

1,758,682

1,758,682

Operating lease right of use assets, net

3,436,130

3,512,042

Other assets

72,251

116,697

Total assets

$

18,608,500

$

19,356,268

Liabilities and shareholders' equity

Current liabilities:

Line of credit

$

1,000,000

$

1,000,000

Note payable to Forward China

1,600,000

1,600,000

Accounts payable

212,928

197,022

Due to Forward China

3,451,724

3,622,401

Deferred income

169,769

485,078

Current portion of notes payable

114,894

983,395

Current portion of finance lease liability

13,231

18,411

Current portion of deferred consideration

-

45,000

Current portion of operating lease liability

269,569

259,658

Accrued expenses and other current liabilities

594,647

615,401

Total current liabilities

7,426,762

8,826,366

Other liabilities:

Notes payable, less current portion

-

529,973

Operating lease liability, less current portion

3,288,938

3,359,088

Finance lease liability, less current portion

7,560

12,769

Deferred consideration, less current portion

60,000

45,000

Total other liabilities

3,356,498

3,946,830

Total liabilities

10,783,260

12,773,196

Commitments and contingencies

Shareholders' equity:

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

9,886,351 and 9,883,851 shares issued and outstanding at December 31, 2020

and September 30, 2020, respectively

98,863

98,838

Additional paid-in capital

19,622,791

19,579,684

Accumulated deficit

(11,896,414

)

(13,095,450

)

Total shareholders' equity

7,825,240

6,583,072

Total liabilities and shareholders' equity

$

18,608,500

$

19,356,268


FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

For the Three Months Ended December 31,

2020

2019

Revenues, net

$

9,717,603

$

8,392,854

Cost of sales

7,454,717

6,672,845

Gross profit

2,262,886

1,720,009

Sales and marketing expenses

602,961

535,172

General and administrative expenses

1,827,418

1,213,966

Loss from operations

(167,493

)

(29,129

)

Gain on forgiveness of note payable

(1,356,570

)

-

Fair value adjustment of earn-out consideration

(30,000

)

-

Interest income

(22,747

)

-

Interest expense

46,392

50,949

Other (income)/expense, net

(3,604

)

1,579

Income/(loss) before income taxes

1,199,036

(81,657

)

Provision for/(benefit from) income taxes

-

-

Net income/(loss)

$

1,199,036

$

(81,657

)

Earnings/(loss) per share:

Basic

$

0.12

$

(0.01

)

Diluted

$

0.12

$

(0.01

)

Weighted average common shares outstanding:

Basic

9,885,563

9,533,851

Diluted

10,039,799

9,533,851