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.

Contact:         Forward Industries, Inc.                Anthony Camarda, CFO                (631) 547-3041

 
 
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
             
        December 31,   September 30,
          2020       2020  
Assets   (Unaudited)    
             
Current assets:      
  Cash   $ 2,332,324     $ 2,924,627  
  Accounts receivable, net   7,729,140       7,602,316  
  Inventories   1,257,397       1,275,694  
  Prepaid expenses and other current assets   339,292       419,472  
      Total current assets   11,658,153       12,222,109  
                     
Property and equipment, net   205,057       215,323  
Intangible assets, net   1,478,227       1,531,415  
Goodwill   1,758,682       1,758,682  
Operating lease right of use assets, net   3,436,130       3,512,042  
Other assets   72,251       116,697  
      Total assets $ 18,608,500     $ 19,356,268  
                     
Liabilities and shareholders' equity              
                     
Current liabilities:              
  Line of credit $ 1,000,000     $ 1,000,000  
  Note payable to Forward China   1,600,000       1,600,000  
  Accounts payable   212,928       197,022  
  Due to Forward China   3,451,724       3,622,401  
  Deferred income   169,769       485,078  
  Current portion of notes payable   114,894       983,395  
  Current portion of finance lease liability   13,231       18,411  
  Current portion of deferred consideration   -       45,000  
  Current portion of operating lease liability   269,569       259,658  
  Accrued expenses and other current liabilities   594,647       615,401  
      Total current liabilities   7,426,762       8,826,366  
                     
Other liabilities:              
  Notes payable, less current portion   -       529,973  
  Operating lease liability, less current portion   3,288,938       3,359,088  
  Finance lease liability, less current portion   7,560       12,769  
  Deferred consideration, less current portion   60,000       45,000  
    Total other liabilities   3,356,498       3,946,830  
      Total liabilities   10,783,260       12,773,196  
                 
Commitments and contingencies          
                 
Shareholders' equity:          
  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   98,863       98,838  
  Additional paid-in capital   19,622,791       19,579,684  
  Accumulated deficit   (11,896,414 )     (13,095,450 )
      Total shareholders' equity   7,825,240       6,583,072  
      Total liabilities and shareholders' equity $ 18,608,500     $ 19,356,268  
             
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
   
  For the Three Months Ended December 31,
    2020       2019  
               
               
Revenues, net $ 9,717,603     $ 8,392,854  
Cost of sales   7,454,717       6,672,845  
Gross profit   2,262,886       1,720,009  
               
Sales and marketing expenses   602,961       535,172  
General and administrative expenses   1,827,418       1,213,966  
Loss from operations   (167,493 )     (29,129 )
               
Gain on forgiveness of note payable   (1,356,570 )     -  
Fair value adjustment of earn-out consideration   (30,000 )     -  
Interest income   (22,747 )     -  
Interest expense   46,392       50,949  
Other (income)/expense, net   (3,604 )     1,579  
Income/(loss) before income taxes   1,199,036       (81,657 )
Provision for/(benefit from) income taxes   -       -  
Net income/(loss) $ 1,199,036     $ (81,657 )
               
Earnings/(loss) per share:              
Basic $ 0.12     $ (0.01 )
Diluted $ 0.12     $ (0.01 )
               
Weighted average common shares outstanding:              
Basic   9,885,563       9,533,851  
Diluted   10,039,799       9,533,851  
               
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