FORD - Forward Reports Fiscal 2020 Results
HAUPPAUGE, N.Y., Dec. 17, 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 the year ended September 30, 2020.
Full Fiscal Year 2020 Financial Highlights
- Revenues were $34.5 million compared to $37.4 million for 2019, a decrease of 7.8%.
- Loss from operations was $2.0 million compared to $3.1 million in 2019.
- Gross margin improved to 19.3% compared to 17.6% in 2019.
- Net loss was $1.8 million compared to $3.6 million in 2019.
- Net loss per share was $0.19 compared to $0.38 for 2019.
- Cash and cash equivalents totaled $2.9 million at September 30, 2020.
Terry Wise, Chief Executive Officer of Forward Industries, stated, “In spite of the very challenging trading circumstances, I am pleased that the fiscal year-end financial performance has improved relative to the previous year.
"Importantly, as trading conditions improve, particularly within the retail sector, we will continue to build momentum in terms of achieving profitability. Additionally, our underlying business within the design division remains robust, and with the addition of Kablooe Design, I am confident that will continue to strengthen. Thus, whilst there has continued to be the predictable decline in our historical core business, I am strongly encouraged by Forward’s progress this fiscal year.
"During this fiscal year, we will seek to build upon the considerable momentum we have been able to achieve despite the exceptional trading environment. It is for this very reason that I look forward to the future with cautious optimism."
The tables below are derived from the Company’s consolidated financial statements included in its Form 10-K filed on December 17, 2020 with the Securities and Exchange Commission. Please refer to the Form 10-K for complete financial statements and further information regarding the Company’s results of operations and financial condition relating to the fiscal years ended September 30, 2020 and 2019. Please also refer to the 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 momentum and growth in our business. 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 salespeople, failure to develop products at a profit, failure to commercialize products that we develop and unanticipated issues with our affiliated sourcing agent, failure to take advantage of synergies between Kablooe. 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, 2020 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.
A bout 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
| FORWARD INDUSTRIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| September 30, |
| 2020 |
| 2019 |
| Assets |
| Current assets: |
| Cash |
| $ |
| 2,924,627 |
| $ |
| 3,092,813 |
| Accounts receivable, net |
| 7,602,316 |
| 6,695,120 |
| Inventories |
| 1,275,694 |
| 1,608,827 |
| Prepaid expenses and other current assets |
| 419,472 |
| 441,502 |
| Total current assets |
| 12,222,109 |
| 11,838,262 |
| Property and equipment, net |
| 215,323 |
| 243,002 |
| Intangible assets, net |
| 1,531,415 |
| 1,248,712 |
| Goodwill |
| 1,758,682 |
| 2,182,427 |
| Investment |
| - |
| 326,941 |
| Operating lease right of use assets, net |
| 3,512,042 |
| - |
| Other assets |
| 116,697 |
| 255,008 |
| Total assets |
| $ |
| 19,356,268 |
| $ |
| 16,094,352 |
| Liabilities and shareholders' equity |
| Current liabilities: |
| Line of credit |
| $ |
| 1,000,000 |
| $ |
| 1,300,000 |
| Note payable to Forward China |
| 1,600,000 |
| 1,600,000 |
| Accounts payable |
| 197,022 |
| 315,444 |
| Due to Forward China |
| 3,622,401 |
| 3,236,693 |
| Deferred income |
| 485,078 |
| 219,831 |
| Current portion of notes payable |
| 983,395 |
| 54,799 |
| Current portion of capital leases payable |
| 18,411 |
| 39,941 |
| Current portion of deferred consideration |
| 45,000 |
| 834,000 |
| Current portion of operating lease liability |
| 259,658 |
| - |
| Accrued expenses and other current liabilities |
| 615,401 |
| 694,972 |
| Total current liabilities |
| 8,826,366 |
| 8,295,680 |
| Other liabilities: |
| Notes payable, less current portion |
| 529,973 |
| - |
| Operating lease liability, less current portion |
| 3,359,088 |
| - |
| Capital lease liability, less current portion |
| 12,769 |
| 26,438 |
| Deferred rent |
| - |
| 60,935 |
| Deferred consideration, less current portion |
| 45,000 |
| - |
| Total other liabilities |
| 3,946,830 |
| 87,373 |
| Total liabilities |
| 12,773,196 |
| 8,383,053 |
| Commitments and contingencies |
| Shareholders' equity: |
| Common stock, par value $0.01 per share; 40,000,000 shares authorized; |
| 9,883,851 and 9,533,851 shares issued and outstanding at September 30, 2020 |
| and 2019, respectively |
| 98,838 |
| 95,338 |
| Additional paid-in capital |
| 19,579,684 |
| 18,936,130 |
| Accumulated deficit |
| (13,095,450 |
| ) |
| (11,320,169 |
| ) |
| Total shareholders' equity |
| 6,583,072 |
| 7,711,299 |
| Total liabilities and shareholders' equity |
| $ |
| 19,356,268 |
| $ |
| 16,094,352 |
| FORWARD INDUSTRIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| For the Fiscal Years Ended September 30, |
| 2020 |
| 2019 |
| Revenues, net |
| $ |
| 34,478,358 |
| $ |
| 37,409,030 |
| Cost of sales |
| 27,839,851 |
| 30,828,148 |
| Gross profit |
| 6,638,507 |
| 6,580,882 |
| Sales and marketing |
| 1,950,704 |
| 1,965,230 |
| General and administrative |
| 5,655,186 |
| 7,713,035 |
| Goodwill impairment |
| 1,015,000 |
| - |
| Loss from operations |
| (1,982,383 |
| ) |
| (3,097,383 |
| ) |
| Fair value adjustment of earn-out consideration |
| (350,000 |
| ) |
| 260,000 |
| Fair value adjustment of deferred cash consideration |
| 16,000 |
| 36,000 |
| Interest income |
| (60,932 |
| ) |
| - |
| Interest expense |
| 174,962 |
| 201,004 |
| Other expense, net |
| 3,701 |
| 13,805 |
| Loss before income taxes |
| (1,766,114 |
| ) |
| (3,608,192 |
| ) |
| Provision for (benefit from) income taxes |
| 9,167 |
| (4,162 |
| ) |
| Net loss |
| $ |
| (1,775,281 |
| ) |
| $ |
| (3,604,030 |
| ) |
| Net loss per share: |
| Basic |
| $ |
| (0.19 |
| ) |
| $ |
| (0.38 |
| ) |
| Diluted |
| $ |
| (0.19 |
| ) |
| $ |
| (0.38 |
| ) |
| Weighted average common shares outstanding: |
| Basic |
| 9,583,441 |
| 9,532,034 |
| Diluted |
| 9,583,441 |
| 9,532,034 |