Forward Reports Fiscal 2021 First Quarter Results

Revenues of $9.7 million and operating loss of $0.2 million for the quarter

Hauppauge, New York, UNITED STATES

HAUPPAUGE, N.Y., Feb. 12, 2021 (GLOBE NEWSWIRE) -- 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.

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

    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 

 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