Forward Reports Fiscal 2020 Third Quarter Results
August 14 2020 - 4:15PM
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
Camardaacamarda@forwardindustries.com
(631) 547-3041
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FORWARD INDUSTRIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
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June 30, |
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September 30, |
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|
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2020 |
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2019 |
|
|
|
|
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(Unaudited) |
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Assets |
|
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Current assets: |
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|
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|
|
|
|
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Cash |
|
$ |
3,084,635 |
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|
$ |
3,092,813 |
|
|
Accounts receivable, net |
|
8,264,935 |
|
|
|
6,695,120 |
|
|
Inventories |
|
727,419 |
|
|
|
1,608,827 |
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|
Prepaid expenses and other current assets |
|
502,893 |
|
|
|
441,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
12,579,882 |
|
|
|
11,838,262 |
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|
|
|
|
|
|
|
|
|
|
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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 |
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|
|
|
|
|
|
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|
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Liabilities and shareholders' equity |
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Current liabilities: |
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|
|
|
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Line of credit |
$ |
1,000,000 |
|
|
$ |
1,300,000 |
|
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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 |
|
|
|
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Total current liabilities |
|
8,404,042 |
|
|
|
8,295,680 |
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|
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Other liabilities: |
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|
|
|
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Capital leases payable, less current portion |
|
15,402 |
|
|
|
26,438 |
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Deferred rent |
|
- |
|
|
|
60,935 |
|
|
Operating lease liability, less current portion |
|
3,278,908 |
|
|
|
- |
|
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Notes payable, less current portion |
|
759,949 |
|
|
|
- |
|
|
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Total other liabilities |
|
4,054,259 |
|
|
|
87,373 |
|
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|
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|
|
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|
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|
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Total liabilities |
|
12,458,301 |
|
|
|
8,383,053 |
|
|
|
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Commitments and contingencies |
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Shareholders' equity: |
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Common stock, par value $0.01 per share; 40,000,000 shares
authorized; |
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9,583,851 and 9,533,851 shares issued and outstanding at June 30,
2020 |
|
|
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|
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|
|
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and September 30, 2019, respectively |
|
95,838 |
|
|
|
95,338 |
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Additional paid-in capital |
|
19,074,747 |
|
|
|
18,936,130 |
|
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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 |
|
|
|
|
|
|
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FORWARD INDUSTRIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(UNAUDITED) |
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For the Three Months Ended June 30, |
|
For the Nine Months Ended June 30, |
|
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|
2020 |
|
|
|
2019 |
|
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|
2020 |
|
|
|
2019 |
|
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Revenues, net |
|
$ |
9,548,732 |
|
|
$ |
9,909,452 |
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|
$ |
25,872,963 |
|
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$ |
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 |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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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 |
|
|
|
- |
|
|
|
|
|
|
|
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|
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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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Net loss |
|
$ |
(215,202 |
) |
|
$ |
(104,062 |
) |
|
$ |
(1,668,473 |
) |
|
$ |
(1,765,494 |
) |
|
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Net loss per share: |
|
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Basic |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.19 |
) |
Diluted |
|
$ |
(0.02 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.19 |
) |
|
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|
|
|
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|
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 |
|
|
|
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