Forward Reports Fiscal 2021 First Quarter Results
February 12 2021 - 3:15PM
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
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FORWARD
INDUSTRIES, INC. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
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|
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Liabilities and shareholders' equity |
|
|
|
|
|
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|
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Current liabilities: |
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
|
|
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Other liabilities: |
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|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
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Commitments and contingencies |
|
|
|
|
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|
|
|
|
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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 |
|
|
|
|
|
|
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FORWARD INDUSTRIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(UNAUDITED) |
|
|
|
For the Three Months Ended December 31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
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