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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.
Forward Industries, Inc.
Anthony Camarda, CFO
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, net
Prepaid expenses and other current assets
Total current assets
Property and equipment, net
Intangible assets, net
Operating lease right of use assets, net
Liabilities and shareholders' equity
Line of credit
Note payable to Forward China
Due to Forward China
Current portion of notes payable
Current portion of finance lease liability
Current portion of deferred consideration
Current portion of operating lease liability
Accrued expenses and other current liabilities
Total current liabilities
Notes payable, less current portion
Operating lease liability, less current portion
Finance lease liability, less current portion
Deferred consideration, less current portion
Total other liabilities
Commitments and contingencies
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
Additional paid-in capital
Total shareholders' equity
Total liabilities and shareholders' equity
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended December 31,
Cost of sales
Sales and marketing expenses
General and administrative expenses
Loss from operations
Gain on forgiveness of note payable
Fair value adjustment of earn-out consideration
Other (income)/expense, net
Income/(loss) before income taxes
Provision for/(benefit from) income taxes
Earnings/(loss) per share:
Weighted average common shares outstanding: