Forward Reports Fiscal 2020 First Quarter Results
February 14 2020 - 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
distributor of carry and protective solutions, today announced
financial results for the first quarter of fiscal year ended
September 30, 2020.
First Quarter 2020 Financial
Highlights
- Loss from Operations was $29 thousand compared to loss from
operations of $481 thousand for the first quarter of 2019.
- Revenues were $8.4 million compared to $10.2 million compared
to the first quarter of 2019.
- Gross profit percentage increased to 20.5% compared to 12.8% in
the first quarter of 2019.
- Net loss for the quarter was $82 thousand compared to net loss
of $531 thousand in the first quarter of 2019.
- Loss per share was $.01 per share compared to $.06 per share
for the first quarter of 2019.
Terry Wise, Chief Executive Officer of Forward
Industries, stated, “During this first quarter, we believe we have
made solid progress in diversifying into profitable and growing
sectors. Our range of smart enabled retail products has gained
solid traction– the response to Mooni lighting product featured on
TV in the Good Morning America Christmas gift program was strong -
and we are testing our smart range of lighting with a major
retailer. In light of these achievements, together with the
healthy profitability attained within our design division, I am
hugely encouraged at the start of our fiscal year and very much
look forward to the rest of the year with confidence."
The tables below are derived from the Company’s
condensed consolidated financial statements included in its Form
10-Q filed on February 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
quarter ended December 31, 2019 and 2018. Please also refer to the
Company’s 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 our belief
regarding our progress from retail and establishing profitable
growing sectors opportunities from new business lines.
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, issues at Chinese factories that we source our products as a
result of coronavirus, failure to take advantage of synergies
between IPS and Forward and failure to obtain acceptance of our
products by big box retail stores. 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 handheld 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 |
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
December
31, |
|
September
30, |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash |
$ |
2,068,809 |
|
|
$ |
3,092,813 |
|
|
|
Accounts receivable, net |
|
7,320,670 |
|
|
|
6,695,120 |
|
|
|
Inventories |
|
1,100,467 |
|
|
|
1,608,827 |
|
|
|
Prepaid expenses and other current assets |
|
489,545 |
|
|
|
441,502 |
|
|
|
Total current assets |
|
10,979,491 |
|
|
|
11,838,262 |
|
|
|
|
|
|
|
|
|
Property and
equipment, net |
|
221,362 |
|
|
|
243,002 |
|
|
|
Intangible
assets, net |
|
1,207,648 |
|
|
|
1,248,712 |
|
|
|
Goodwill |
|
2,182,427 |
|
|
|
2,182,427 |
|
|
|
Investment |
|
326,941 |
|
|
|
326,941 |
|
|
|
Operating
lease right of use assets, net |
|
3,569,815 |
|
|
|
- |
|
|
|
Other
assets |
|
217,486 |
|
|
|
255,008 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
18,705,170 |
|
|
$ |
16,094,352 |
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Line of credit |
$ |
1,300,000 |
|
|
$ |
1,300,000 |
|
|
|
Accounts payable |
|
279,258 |
|
|
|
315,444 |
|
|
|
Due to Forward China |
|
2,726,818 |
|
|
|
3,236,693 |
|
|
|
Deferred income |
|
58,883 |
|
|
|
219,831 |
|
|
|
Notes payable - short-term portion |
|
1,630,022 |
|
|
|
1,654,799 |
|
|
|
Capital leases payable - short-term portion |
|
39,598 |
|
|
|
39,941 |
|
|
|
Deferred consideration - short-term portion |
|
634,000 |
|
|
|
834,000 |
|
|
|
Operating lease liability - short-term portion |
|
271,680 |
|
|
|
- |
|
|
|
Accrued expenses and other current liabilities |
|
695,505 |
|
|
|
694,972 |
|
|
|
Total current liabilities |
|
7,635,764 |
|
|
|
8,295,680 |
|
|
|
|
|
|
|
|
|
Other
liabilities: |
|
|
|
|
|
Capital leases payable - long-term portion |
|
18,010 |
|
|
|
26,438 |
|
|
|
Deferred rent |
|
- |
|
|
|
60,935 |
|
|
|
Operating lease liability - long-term portion |
|
3,388,575 |
|
|
|
- |
|
|
|
Total other liabilities |
|
3,406,585 |
|
|
|
87,373 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
11,042,349 |
|
|
|
8,383,053 |
|
|
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
Common stock, par value $0.01 per share; 40,000,000 shares
authorized; |
|
|
|
|
|
9,533,851 shares issued and outstanding |
|
95,338 |
|
|
|
95,338 |
|
|
|
Additional paid-in capital |
|
18,969,309 |
|
|
|
18,936,130 |
|
|
|
Accumulated deficit |
|
(11,401,826 |
) |
|
|
(11,320,169 |
) |
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
7,662,821 |
|
|
|
7,711,299 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
18,705,170 |
|
|
$ |
16,094,352 |
|
|
|
|
|
|
|
|
|
FORWARD
INDUSTRIES, INC. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(UNAUDITED) |
|
For the Three Months Ended December 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Net
Revenues: |
$ |
8,392,854 |
|
|
$ |
10,183,283 |
|
Cost of sales |
|
6,672,845 |
|
|
|
8,880,242 |
|
Gross profit |
|
1,720,009 |
|
|
|
1,303,041 |
|
|
|
|
|
Operating expenses: |
|
|
|
Sales and marketing |
|
535,172 |
|
|
|
469,599 |
|
General and administrative |
|
1,213,966 |
|
|
|
1,313,969 |
|
Total operating expenses |
|
1,749,138 |
|
|
|
1,783,568 |
|
|
|
|
|
Loss
from operations |
|
(29,129 |
) |
|
|
(480,527 |
) |
|
|
|
|
Other expenses: |
|
|
|
Interest expense |
|
(50,949 |
) |
|
|
(45,037 |
) |
Other expense |
|
(1,579 |
) |
|
|
(4,963 |
) |
Total other expenses |
|
(52,528 |
) |
|
|
(50,000 |
) |
|
|
|
|
Loss
before income taxes |
|
(81,657 |
) |
|
|
(530,527 |
) |
|
|
|
|
Provision for income taxes |
|
- |
|
|
|
- |
|
|
|
|
|
Net
loss |
$ |
(81,657 |
) |
|
$ |
(530,527 |
) |
|
|
|
|
Loss
per share: |
|
|
|
Basic |
$ |
(0.01 |
) |
|
$ |
(0.06 |
) |
Diluted |
$ |
(0.01 |
) |
|
$ |
(0.06 |
) |
|
|
|
|
Weighted average number of common and |
|
|
|
common equivalent shares outstanding: |
|
|
|
Basic |
|
9,533,851 |
|
|
|
9,527,823 |
|
Diluted |
|
9,533,851 |
|
|
|
9,527,823 |
|
|
|
|
|
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