Forward Reports Fiscal 2020 Third Quarter Results

HAUPPAUGE, N.Y., Aug. 14, 2020 (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 third fiscal quarter ended June 30, 2020. 

Third Quarter 2020 Financial Highlights 

  • Revenues were $9.5 million compared to $9.9 million from the third quarter of 2019 a decrease of 3.6%.
     
  • Gross margin decreased to 18.6% compared to 19.1% in the third quarter of 2019.
     
  • Net loss was $215 thousand compared to a net loss of $104 thousand in the third quarter of 2019. 
     
  • Net loss per share was $0.02 compared to net loss per share of $0.01 for the third quarter of 2019.
     
  • Cash and cash equivalents totaled $3.1 million at June 30, 2020.

Terry Wise, Chief Executive Officer of Forward Industries, stated, “Like most other companies, this was a challenging quarter with our business continuing to be adversely impacted by delays within the retail sector and uncertainty which has slowed the growth of our design business. However, overall, I am pleased at the Company’s resilience and performance in spite of these extraordinary trading conditions and am encouraged by recent developments. I continue to have confidence in the future.”

The tables below are derived from the Company’s condensed consolidated financial statements included in its Form 10-Q filed on August 14, 2020 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 June 30, 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 (“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 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 and consumer industries.

Contact:        

Forward Industries, Inc.                                        
Anthony Camarda
acamarda@forwardindustries.com                    
(631) 547-3041

 
 
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
       
    June 30, September 30,
     2020   2019 
    (Unaudited)    
Assets        
           
Current assets:       
 Cash $3,084,635  $3,092,813 
 Accounts receivable, net 8,264,935   6,695,120 
 Inventories 727,419   1,608,827 
 Prepaid expenses and other current assets 502,893   441,502 
           
   Total current assets 12,579,882   11,838,262 
           
Property and equipment, net 219,375   243,002 
Intangible assets, net 1,126,299   1,248,712 
Goodwill 1,167,427   2,182,427 
Investment -   326,941 
Operating lease right of use assets, net 3,409,259   - 
Other assets 138,002   255,008 
           
   Total assets$18,640,244  $16,094,352 
           
Liabilities and shareholders' equity       
           
Current liabilities:       
 Line of credit$1,000,000  $1,300,000 
 Accounts payable 297,098   315,444 
 Due to Forward China 3,199,874   3,236,693 
 Deferred income 525,763   219,831 
 Current portion of notes payable 2,196,621   1,654,799 
 Current portion of capital leases payable 24,733   39,941 
 Deferred consideration 296,000   834,000 
 Current portion of operating lease liability 238,413   - 
 Accrued expenses and other current liabilities 625,540   694,972 
   Total current liabilities 8,404,042   8,295,680 
           
Other liabilities:       
 Capital leases payable, less current portion 15,402   26,438 
 Deferred rent -   60,935 
 Operating lease liability, less current portion 3,278,908   - 
 Notes payable, less current portion 759,949   - 
  Total other liabilities 4,054,259   87,373 
           
   Total liabilities 12,458,301   8,383,053 
           
Commitments and contingencies       
           
Shareholders' equity:       
           
 Common stock, par value $0.01 per share; 40,000,000 shares authorized;       
  9,583,851 and 9,533,851 shares issued and outstanding at June 30, 2020       
  and September 30, 2019, respectively 95,838   95,338 
 Additional paid-in capital 19,074,747   18,936,130 
 Accumulated deficit (12,988,642)  (11,320,169)
           
   Total shareholders' equity 6,181,943   7,711,299 
           
   Total liabilities and shareholders' equity$18,640,244  $16,094,352 
           
           


FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
     
  For the Three Months Ended June 30,  For the Nine Months Ended June 30,
   2020   2019   2020   2019 
                 
                 
Revenues, net $9,548,732  $9,909,452  $25,872,963  $28,265,202 
Cost of sales  7,773,944   8,014,998   20,925,017   23,756,862 
Gross profit  1,774,788   1,894,454   4,947,946   4,508,340 
                 
Sales and marketing  464,247   539,072   1,478,880   1,437,047 
General and administrative  1,485,447   1,405,249   4,324,798   4,676,748 
Goodwill impairment  -   -   1,015,000   - 
                 
Loss from operations  (174,906)  (49,867)  (1,870,732)  (1,605,455)
                 
Fair value adjustment of earn-out consideration  -   -   350,000   - 
Fair value adjustment of deferred cash consideration  (3,000)  -   (12,000)  - 
Interest expense  (37,148)  (52,216)  (132,275)  (150,304)
Other expense, net  (148)  (1,979)  (3,466)  (9,735)
                 
Net loss $(215,202) $(104,062) $(1,668,473) $(1,765,494)
                 
Net loss per share:                
Basic $(0.02) $(0.01) $(0.18) $(0.19)
Diluted $(0.02) $(0.01) $(0.18) $(0.19)
                 
Weighted average common shares outstanding:                
Basic  9,534,407   9,533,851   9,534,034   9,531,422 
Diluted  9,534,407   9,533,851   9,534,034   9,531,422 
                 

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