Forward Reports Fiscal 2019 First Quarter Results
February 14 2019 - 5:04PM
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 first quarter of fiscal year ended
September 30, 2019.
First Quarter 2019 Financial
Highlights
- Loss from Operations was $481 thousand compared to income from
operations of $51 thousand for the first quarter of 2018.
- Revenues were $10.2 million vs $6.3 million compared to the
first quarter of 2018.
- Gross profit percentage declined to 12.8% in the first quarter
of 2018 compared to 15.8% in the first quarter of 2018.
- Net loss for the quarter was $531 thousand compared to net
income of $47 thousand in the first quarter of 2018.
- Loss per share was $.06 per share compared to $.01 per share
for the first quarter of 2018.
Terry Wise, Chief Executive Officer of Forward
Industries, stated, “During the first quarter of 2019 we have been
engaged in earnest discussions relating to a strategic
collaboration with a Swedish company, Mooni AB International, to
secure a portfolio of smart enabled products distributed and sold
to retail outlets in the US. The terms of this collaboration have
been now agreed. This enhanced product and retail capability will
significantly augment our strategy in establishing new routes to
market. For the quarter, our organic business continued in line
with our expectations. In the design division, due to unexpected
overruns on two design and development projects, some substantial
costs were incurred without related revenues. We continue to
develop a promising pipeline. We are extremely excited about the
potential 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 14, 2019 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, 2018 and 2017. 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 opportunities
from our investment in products, anticipated outcome from our
collaboration with Mooni and promising pipeline of future
opportunities. 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, 2018 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
Incorporated in 1962, and headquartered in West
Palm Beach, Florida, Forward is a fully integrated design,
development and manufacturing solution to top tier medical and
technology customers worldwide. Through its recent 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 |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
|
2018 |
|
2018 |
|
|
(Unaudited) |
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
Cash |
$ |
4,417,281 |
|
|
$ |
4,369,866 |
|
|
Accounts
receivable, net |
|
9,303,933 |
|
|
|
9,024,518 |
|
|
Inventories |
|
1,427,412 |
|
|
|
1,568,914 |
|
|
Prepaid
expenses and other current assets |
|
275,614 |
|
|
|
248,434 |
|
|
Total
current assets |
|
15,424,240 |
|
|
|
15,211,732 |
|
|
|
|
|
|
|
Property and equipment,
net |
|
327,712 |
|
|
|
358,975 |
|
|
Intangible assets,
net |
|
1,370,564 |
|
|
|
1,411,182 |
|
|
Goodwill |
|
2,182,427 |
|
|
|
2,182,427 |
|
|
Other assets |
|
63,550 |
|
|
|
63,550 |
|
|
Total
assets |
$ |
19,368,493 |
|
|
$ |
19,227,866 |
|
|
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
Line of
credit |
$ |
1,300,000 |
|
|
$ |
350,000 |
|
|
Accounts
payable |
|
724,226 |
|
|
|
329,967 |
|
|
Due to
Forward China |
|
3,772,364 |
|
|
|
4,197,435 |
|
|
Deferred
income |
|
85,793 |
|
|
|
125,013 |
|
|
Notes
payable - short-term portion |
|
1,715,063 |
|
|
|
1,770,112 |
|
|
Capital
leases payable - short-term portion |
|
52,681 |
|
|
|
56,876 |
|
|
Deferred
consideration - short-term portion |
|
221,000 |
|
|
|
200,000 |
|
|
Accrued
expenses and other current liabilities |
|
463,652 |
|
|
|
594,887 |
|
|
Total
current liabilities |
|
8,334,779 |
|
|
|
7,624,290 |
|
|
|
|
|
|
|
Other liabilities: |
|
|
|
|
Notes
payable - long-term portion |
|
30,442 |
|
|
|
54,335 |
|
|
Capital
leases payable - long-term portion |
|
53,987 |
|
|
|
64,041 |
|
|
Deferred
rent |
|
51,423 |
|
|
|
47,605 |
|
|
Deferred
consideration - long-term portion |
|
317,000 |
|
|
|
338,000 |
|
|
Total
other liabilities |
|
452,852 |
|
|
|
503,981 |
|
|
Total
liabilities |
|
8,787,631 |
|
|
|
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 |
|
18,732,190 |
|
|
|
18,720,396 |
|
|
Accumulated deficit |
|
(8,246,666 |
) |
|
|
(7,716,139 |
) |
|
Total
shareholders' equity |
|
10,580,862 |
|
|
|
11,099,595 |
|
|
Total
liabilities and shareholders' equity |
$ |
19,368,493 |
|
|
$ |
19,227,866 |
|
|
FORWARD INDUSTRIES, INC. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS) |
(UNAUDITED) |
|
For the Three Months
Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
Net
Revenues |
$ |
10,183,283 |
|
|
$ |
6,336,467 |
|
Cost of
sales |
|
8,880,242 |
|
|
|
5,333,871 |
|
Gross
profit |
|
1,303,041 |
|
|
|
1,002,596 |
|
|
|
|
|
Operating
expenses: |
|
|
|
Sales and
marketing |
|
469,599 |
|
|
|
278,062 |
|
General
and administrative |
|
1,313,969 |
|
|
|
673,461 |
|
Total
operating expenses |
|
1,783,568 |
|
|
|
951,523 |
|
|
|
|
|
Income (loss)
from operations |
|
(480,527 |
) |
|
|
51,073 |
|
|
|
|
|
Other
expenses: |
|
|
|
Interest
expense |
|
(45,037 |
) |
|
|
- |
|
Other
expense |
|
(4,963 |
) |
|
|
(4,422 |
) |
Total
other expense |
|
(50,000 |
) |
|
|
(4,422 |
) |
|
|
|
|
Income (loss) before income taxes |
|
(530,527 |
) |
|
|
46,651 |
|
|
|
|
|
Provision for income taxes |
|
- |
|
|
|
- |
|
Net income
(loss) |
$ |
(530,527 |
) |
|
$ |
46,651 |
|
|
|
|
|
Net income
(loss) |
$ |
(530,527 |
) |
|
$ |
46,651 |
|
Other
comprehensive income: |
|
|
|
Translation adjustments |
|
- |
|
|
|
600 |
|
Comprehensive
income (loss) |
$ |
(530,527 |
) |
|
$ |
47,251 |
|
|
|
|
|
Earnings (loss)
per share: |
|
|
|
Basic |
$ |
(0.06 |
) |
|
$ |
0.01 |
|
Diluted |
$ |
(0.06 |
) |
|
$ |
0.01 |
|
|
|
|
|
Weighted
average number of common and common equivalent shares
outstanding: |
|
|
|
Basic |
|
9,527,823 |
|
|
|
8,760,830 |
|
Diluted |
|
9,527,823 |
|
|
|
8,895,456 |
|
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