Forward Reports Fiscal 2019 Results
December 27 2019 - 4:01PM
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 the year ended September 30, 2019.
Included in the 2019 financial results are the
results of our consolidated entity, Intelligent Product Solutions
(IPS), our design and development business, which we acquired on
January 18, 2018.
Full Fiscal Year 2019 Financial
Highlights
- Revenues were $37.4 million compared to $34.5 million for 2018.
An increase of 8.4%.
- Loss from Operations was $3.1 million compared to income of
$261 thousand in 2018.
- Gross profit percentage decreased to 17.6% compared to 19% in
2018.
- Net loss was $3.6 million compared to net income of $632
thousand in 2018 (inclusive of a 510 thousand credit for a change
in fair value of the IPS earnout consideration in 2018).
- Net loss per share was $(0.38) compared to Net income per share
of $0.15 for 2018.
- Cash and cash equivalents totaled $3.1 million at September 30,
2019.
Terry Wise, Chief Executive Officer of Forward
Industries, stated, “The fiscal year results have been
disappointing. However, they are largely due to one off
non-recurring issues and additionally, relate to isolated customers
within our design division. Our underlying business remains
positive. During this first quarter, we have made strong progress
in establishing profitable and growth oriented new business lines.
Our range of smart enabled retail products is particularly
encouraging. The Mooni lighting product was featured in the Good
Morning America Holiday show and we have started to make notable
progress with US retailers with our new product offerings. I
therefore look to the new fiscal year with confidence for Forward’s
future.”
The tables below are derived from the Company’s
consolidated financial statements included in its Form 10-K filed
on December 27, 2019 with the Securities and Exchange Commission.
Please refer to the Form 10-K for complete financial statements and
further information regarding the Company’s results of operations
and financial condition relating to the fiscal years ended
September 30, 2019 and 2018. Please also refer to the Form 10-K for
a discussion of risk factors applicable to the Company and its
business.
Note Regarding Forward-Looking
Statements
This press release contains certain
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 including statements regarding progress from
retail and establishing profitable growing sectors opportunities
from new developments. Forward has tried to identify these
forward-looking statements by using words such as “may”, “should,”
“expect,” “hope,” “anticipate,” “believe,” “intend,” “plan,”
“estimate” and similar expressions. These forward-looking
statements are based on information currently available to the
Company and are subject to a number of risks, uncertainties and
other factors that could cause its actual results, performance,
prospects or opportunities to differ materially from those
expressed in, or implied by, these forward-looking statements.
These risks include the inability to expand our customer base,
pricing pressures, lack of success of our sales people, failure to
develop products at a profit, unanticipated issues with Mooni and
their relationship with retail outlets in the U.S., failure to
commercialize products that we develop and unanticipated issues
with our affiliated sourcing agent, failure to take advantage of
synergies between IPS and Forward and issues integrating with
IPS. No assurance can be given that the actual results will be
consistent with the forward-looking statements. Investors
should read carefully the factors described in the “Risk Factors”
section of the Company’s filings with the SEC, including the
Company’s Form 10-K for the year ended September 30, 2019 for
information regarding risk factors that could affect the Company’s
results. Except as otherwise required by Federal securities
laws, Forward undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events, changed circumstances or any other
reason.
About Forward
Industries
Forward is a fully integrated design,
development and manufacturing solution 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 designs and distribution of carry and
protective solutions, primarily for hand held electronic devices,
the company now provides one stop shopping for the design
development and manufacturing opportunities from a variety of
sources.
Contact:
Forward Industries,
Inc.
Michael Matte,
CFO
(561) 465-0031
|
FORWARD
INDUSTRIES, INC. AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
|
|
|
|
|
September 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
Cash |
$ |
3,092,813 |
|
|
$ |
4,369,866 |
|
Accounts receivable, net |
|
6,695,120 |
|
|
|
9,024,518 |
|
Inventories |
|
1,608,827 |
|
|
|
1,568,914 |
|
Prepaid expenses and other current assets |
|
441,502 |
|
|
|
248,434 |
|
|
|
|
|
Total current assets |
|
11,838,262 |
|
|
|
15,211,732 |
|
|
|
|
|
Property and
equipment, net |
|
243,002 |
|
|
|
358,975 |
|
Intangible
assets, net |
|
1,248,712 |
|
|
|
1,411,182 |
|
Goodwill |
|
2,182,427 |
|
|
|
2,182,427 |
|
Investment |
|
326,941 |
|
|
|
- |
|
Other
assets |
|
255,008 |
|
|
|
63,550 |
|
|
|
|
|
Total assets |
$ |
16,094,352 |
|
|
$ |
19,227,866 |
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
Line of credit |
$ |
1,300,000 |
|
|
$ |
350,000 |
|
Accounts payable |
|
315,444 |
|
|
|
329,967 |
|
Due to Forward China |
|
3,236,693 |
|
|
|
4,197,435 |
|
Deferred income |
|
219,831 |
|
|
|
125,013 |
|
Notes payable - short-term portion |
|
1,654,799 |
|
|
|
1,770,112 |
|
Capital leases payable - short-term portion |
|
39,941 |
|
|
|
56,876 |
|
Deferred consideration - short-term portion |
|
834,000 |
|
|
|
200,000 |
|
Accrued expenses and other current liabilities |
|
694,972 |
|
|
|
594,887 |
|
Total current liabilities |
|
8,295,680 |
|
|
|
7,624,290 |
|
|
|
|
|
Other
liabilities: |
|
|
|
Notes payable - long-term portion |
|
- |
|
|
|
54,335 |
|
Capital leases payable - long-term portion |
|
26,438 |
|
|
|
64,041 |
|
Deferred rent |
|
60,935 |
|
|
|
47,605 |
|
Deferred consideration - long-term portion |
|
- |
|
|
|
338,000 |
|
Total other liabilities |
|
87,373 |
|
|
|
503,981 |
|
|
|
|
|
Total liabilities |
|
8,383,053 |
|
|
|
8,128,271 |
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
Common stock, par value $0.01 per share; 40,000,000 shares
authorized; |
|
|
|
9,533,851 and 9,533,851 shares issued and outstanding,
respectively |
|
95,338 |
|
|
|
95,338 |
|
Additional paid-in capital |
|
18,936,130 |
|
|
|
18,720,396 |
|
Accumulated deficit |
|
(11,320,169 |
) |
|
|
(7,716,139 |
) |
|
|
|
|
Total shareholders' equity |
|
7,711,299 |
|
|
|
11,099,595 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
16,094,352 |
|
|
$ |
19,227,866 |
|
|
|
|
|
FORWARD
INDUSTRIES, INC. AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
|
|
|
For the Fiscal Years Ended September 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Net
Revenues |
$ |
37,409,030 |
|
|
$ |
34,499,503 |
|
Cost of sales |
|
30,828,148 |
|
|
|
27,931,427 |
|
Gross profit |
|
6,580,882 |
|
|
|
6,568,076 |
|
|
|
|
|
Operating expenses: |
|
|
|
Sales and marketing |
|
1,965,230 |
|
|
|
1,782,138 |
|
General and administrative |
|
7,713,035 |
|
|
|
4,525,286 |
|
Total operating expenses |
|
9,678,265 |
|
|
|
6,307,424 |
|
|
|
|
|
Income (loss) from operations |
|
(3,097,383 |
) |
|
|
260,652 |
|
|
|
|
|
Other income (expenses): |
|
|
|
Fair value adjustment of earn-out consideration |
|
(260,000 |
) |
|
|
510,000 |
|
Fair value adjustment of deferred cash consideration |
|
(36,000 |
) |
|
|
(12,000 |
) |
Interest expense |
|
(201,004 |
) |
|
|
(115,447 |
) |
Other expense |
|
(13,805 |
) |
|
|
(10,885 |
) |
Total other income (expense) |
|
(510,809 |
) |
|
|
371,668 |
|
|
|
|
|
Income (loss) before income taxes |
|
( 3,608,192 |
) |
|
|
632,320 |
|
|
|
|
|
Benefit from income taxes |
|
4,162 |
|
|
|
747,000 |
|
|
|
|
|
Net
income (loss) |
$ |
(3,604,030 |
) |
|
$ |
1,379,320 |
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
Basic |
$ |
(0.38 |
) |
|
$ |
0.15 |
|
Diluted |
$ |
(0.38 |
) |
|
$ |
0.15 |
|
|
|
|
|
Weighted average number of common and |
|
|
|
common equivalent shares outstanding: |
|
|
|
Basic |
|
9,532,034 |
|
|
|
9,264,670 |
|
Diluted |
|
9,532,034 |
|
|
|
9,354,669 |
|
|
|
|
|
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