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Market Overview

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.

Forward Industries, Inc.                                        
Michael Matte, CFO                                              
(561) 465-0031

  December 31,   September 30,  
    2019       2019      
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      

  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  

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