FORD Forward Industries Inc

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