FORD Forward Industries Inc.

Forward Reports Fiscal 2020 First Quarter Results

Forward Reports Fiscal 2020 First Quarter Results

WEST PALM BEACH, Fla., Feb. 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 distributor of carry and protective solutions, today announced financial results for the first quarter of fiscal year ended September 30, 2020.

First Quarter 2020 Financial Highlights

  • Loss from Operations was $29 thousand compared to loss from operations of $481 thousand for the first quarter of 2019. 

     
  • Revenues were $8.4 million compared to $10.2 million compared to the first quarter of 2019.

     
  • Gross profit percentage increased to 20.5% compared to 12.8% in the first quarter of 2019.

     
  • Net loss for the quarter was $82 thousand compared to net loss of $531 thousand in the first quarter of 2019.

     
  • Loss per share was $.01 per share compared to $.06 per share for the first quarter of 2019.

Terry Wise, Chief Executive Officer of Forward Industries, stated, “During this first quarter, we believe we have made solid progress in diversifying into profitable and growing sectors. Our range of smart enabled retail products has gained solid traction– the response to Mooni lighting product featured on TV in the Good Morning America Christmas gift program was strong - and we are testing our smart range of lighting with a major retailer.  In light of these achievements, together with the healthy profitability attained within our design division, I am hugely encouraged at the start of our fiscal year and very much look forward to the rest of the year with confidence."

The tables below are derived from the Company’s condensed consolidated financial statements included in its Form 10-Q filed on February 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 quarter ended December 31, 2019 and 2018. 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 belief regarding our progress from retail and establishing profitable growing sectors opportunities from new business lines.  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, unanticipated issues with Mooni and their relationship with retail outlets in the U.S., failure to commercialize products that we develop and unanticipated issues with our affiliated sourcing agent, issues at Chinese factories that we source our products as a result of coronavirus,  failure to take advantage of synergies between IPS and Forward 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, 2019 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 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 designs and distribution of carry and protective solutions, primarily for handheld electronic devices.  The company now provides one stop shopping for the design development and manufacturing opportunities from a variety of sources.

Contact:                                               

Forward Industries, Inc.                                        

Michael Matte, CFO                                              

(561) 465-0031





FORWARD INDUSTRIES, INC. AND SUBSIDIARIES  
CONDENSED CONSOLIDATED BALANCE SHEETS  
      
 December 31, September 30, 
  2019   2019   
 (Unaudited)    
Assets     
      
Current assets:     
Cash$2,068,809  $3,092,813   
Accounts receivable, net 7,320,670   6,695,120   
Inventories 1,100,467   1,608,827   
Prepaid expenses and other current assets 489,545   441,502   
Total current assets 10,979,491   11,838,262   
      
Property and equipment, net 221,362   243,002   
Intangible assets, net 1,207,648   1,248,712   
Goodwill 2,182,427   2,182,427   
Investment 326,941   326,941   
Operating lease right of use assets, net 3,569,815   -   
Other assets 217,486   255,008   
      
Total assets$18,705,170  $16,094,352   
      
Liabilities and shareholders' equity     
      
Current liabilities:     
Line of credit$1,300,000  $1,300,000   
Accounts payable 279,258   315,444   
Due to Forward China 2,726,818   3,236,693   
Deferred income 58,883   219,831   
Notes payable - short-term portion 1,630,022   1,654,799   
Capital leases payable - short-term portion 39,598   39,941   
Deferred consideration - short-term portion 634,000   834,000   
Operating lease liability - short-term portion 271,680   -   
Accrued expenses and other current liabilities 695,505   694,972   
Total current liabilities 7,635,764   8,295,680   
      
Other liabilities:     
Capital leases payable - long-term portion 18,010   26,438   
Deferred rent -   60,935   
Operating lease liability - long-term portion 3,388,575   -   
Total other liabilities 3,406,585   87,373   
      
Total liabilities 11,042,349   8,383,053   
      
Commitments and contingencies     
      
Shareholders' equity:     
      
Common stock, par value $0.01 per share; 40,000,000 shares authorized;     
9,533,851 shares issued and outstanding 95,338   95,338   
Additional paid-in capital 18,969,309   18,936,130   
Accumulated deficit (11,401,826)  (11,320,169)  
      
Total shareholders' equity 7,662,821   7,711,299   
      
Total liabilities and shareholders' equity$18,705,170  $16,094,352   
      





FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 For the Three Months Ended December 31,
  2019   2018 
    
    
Net Revenues:$8,392,854  $10,183,283 
Cost of sales 6,672,845   8,880,242 
Gross profit 1,720,009   1,303,041 
    
Operating expenses:   
Sales and marketing 535,172   469,599 
General and administrative 1,213,966   1,313,969 
Total operating expenses 1,749,138   1,783,568 
    
Loss from operations (29,129)  (480,527)
    
Other expenses:   
Interest expense (50,949)  (45,037)
Other expense (1,579)  (4,963)
Total other expenses (52,528)  (50,000)
    
Loss before income taxes (81,657)  (530,527)
    
Provision for income taxes -   - 
    
Net loss$(81,657) $(530,527)
    
Loss per share:   
Basic$(0.01) $(0.06)
Diluted$(0.01) $(0.06)
    
Weighted average number of common and   
common equivalent shares outstanding:   
Basic 9,533,851   9,527,823 
Diluted 9,533,851   9,527,823 
    













EN
14/02/2020

Underlying

To request access to management, click here to engage with our
partner Phoenix-IR's CorporateAccessNetwork.com

Reports by Forward Industries Inc.

ResearchPool Subscriptions

Get the most out of your insights

Get in touch