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, 2021.

Third Quarter 2021 Financial Highlights

  • Revenues were $10.0 million, an increase of 5.3% from $9.5 million for the three months ended June 30, 2020.
  • Gross margin improved to 21.9% compared to 18.6% for the three months ended June 30, 2020.
  • Operating income was $0.3 million compared to an operating loss of $0.2 million for the three months ended June 30, 2020.
  • Net income was $0.2 million compared to a net loss of $0.2 million for the three months ended June 30, 2020.
  • Basic and diluted earnings/(loss) per share was $0.02 compared to $(0.02) for the three months ended June 30,2020.
  • Cash and cash equivalents totaled $1.6 million at June 30, 2021.

Terry Wise, Chief Executive Officer of Forward Industries, stated, “A very pleasing set of results for the quarter, showing a clear trend in improvement of Forward’s performance. Although we continue to be hampered by difficult trading conditions, we have grown across all divisions relative to the previous quarter. While the design division remains robust, with a strong pipeline, the expansion and diversification of products within our distribution division continues its momentum.

I am cautiously optimistic that during the final quarter, we will complete the fiscal year on solid footing with strong year on year performance.”

The tables below are derived from the Company’s condensed consolidated financial statements included in its Form 10-Q filed on August 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 quarter ended June 30, 2021 and 2020. 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 pipeline of work, trend in the improvement of our business and momentum of our expansion and diversification. 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, failure to commercialize products that we develop, a long delay in the re-opening of retail stores in the U.S, as a result of the pandemic, continued supply chain issues, inability of our design division’s customers to pay for our services, unanticipated issues with our affiliated sourcing agent, issues at Chinese factories that we source our products as a result of the pandemic or otherwise, 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, 2020 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 provider to top tier medical and technology customers worldwide. Through its acquisitions 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 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, medical and consumer industries.


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

          June 30,       September 30,  
          2021       2020  
Assets   (Unaudited)    
Current assets:      
  Cash   $ 1,604,649     $ 2,924,627  
  Accounts receivable, net   7,683,659       7,602,316  
  Inventories   1,907,137       1,275,694  
  Prepaid expenses and other current assets   500,893       419,472  
      Total current assets   11,696,338       12,222,109  
Property and equipment, net   183,740       215,323  
Intangible assets, net   1,371,847       1,531,415  
Goodwill   1,758,682       1,758,682  
Operating lease right of use assets, net   3,848,462       3,512,042  
Other assets   72,251       116,697  
      Total assets $ 18,931,320     $ 19,356,268  
Liabilities and shareholders' equity      
Current liabilities:      
  Line of credit $ -     $ 1,000,000  
  Current portion of note payable to Forward China   -       1,600,000  
  Accounts payable   234,644       197,022  
  Due to Forward China   4,439,838       3,622,401  
  Deferred income   444,445       485,078  
  Current portion of notes payable   29,159       983,395  
  Current portion of finance lease liability   4,050       18,411  
  Current portion of earnout consideration   -       45,000  
  Current portion of operating lease liability   348,914       259,658  
  Accrued expenses and other current liabilities   624,328       615,401  
      Total current liabilities   6,125,378       8,826,366  
Other liabilities:      
  Note payable to Forward China, less current portion   1,600,000       -  
  Notes payable, less current portion   -       529,973  
  Operating lease liability, less current portion   3,644,688       3,359,088  
  Finance lease liability, less current portion   -       12,769  
  Earnout consideration, less current portion   70,000       45,000  
    Total other liabilities   5,314,688       3,946,830  
      Total liabilities   11,440,066       12,773,196  
Commitments and contingencies      
Shareholders' equity:      
  Common stock, par value $0.01 per share; 40,000,000 shares authorized;      
    10,031,185 and 9,883,851 shares issued and outstanding at June 30, 2021    
    and September 30, 2020, respectively   100,312       98,838  
  Additional paid-in capital   19,878,497       19,579,684  
  Accumulated deficit   (12,487,555 )     (13,095,450 )
      Total shareholders' equity   7,491,254       6,583,072  
      Total liabilities and shareholders' equity $ 18,931,320     $ 19,356,268  
  For the Three Months Ended June 30,   For the Nine Months Ended June 30,
    2021       2020       2021       2020  
Revenues, net $ 9,964,514     $ 9,548,732     $ 28,077,496     $ 25,872,963  
Cost of sales   7,781,485       7,773,944       21,888,135       20,925,017  
Gross profit   2,183,029       1,774,788       6,189,361       4,947,946  
Sales and marketing expenses   620,737       464,247       1,802,134       1,478,880  
General and administrative expenses   1,293,941       1,485,447       5,102,545       4,324,798  
Goodwill impairment   -       -       -       1,015,000  
     Income/(loss) from operations   268,351       (174,906 )     (715,318 )     (1,870,732 )
Gain on forgiveness of note payable   -       -       (1,356,570 )     -  
Fair value adjustment of earnout consideration   10,000       -       (20,000 )     (350,000 )
Fair value adjustment of deferred cash consideration   -       3,000       -       12,000  
Interest income   (32,459 )     -       (88,760 )     -  
Interest expense   45,802       37,148       138,908       132,275  
Other expense, net   1,421       148       3,209       3,466  
     Income/(loss) before income taxes   243,587       (215,202 )     607,895       (1,668,473 )
Provision for/(benefit from) income taxes   -       -       -       -  
     Net income/(loss) $ 243,587     $ (215,202 )   $ 607,895     $ (1,668,473 )
Earnings/(loss) per share:              
     Basic $ 0.02     $ (0.02 )   $ 0.06     $ (0.18 )
     Diluted $ 0.02     $ (0.02 )   $ 0.06     $ (0.18 )
Weighted average common shares outstanding:              
     Basic   9,963,969       9,534,407       9,919,579       9,534,034  
     Diluted   10,512,893       9,534,407       10,423,108       9,534,034  
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