GlobeNewswire Inc | Feb 12, 2021 04:15PM EST

February 12, 2021

HAUPPAUGE, N.Y., Feb. 12, 2021 (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 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 Companys 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 Companys results of operations and financial condition relating to the fiscal quarters ended December 31, 2020 and 2019. Please also refer to the Companys 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



FORWARD INDUSTRIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS 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 339,292 419,472 assets 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 Liabilities and shareholders' equity Current liabilities: 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 13,231 18,411 liability Current portion of deferred - 45,000 consideration Current portion of operating lease 269,569 259,658 liability Accrued expenses and other current 594,647 615,401 liabilities Total current liabilities 7,426,762 8,826,366 Other liabilities: Notes payable, less current portion - 529,973 Operating lease liability, less 3,288,938 3,359,088 current portion Finance lease liability, less current 7,560 12,769 portion Deferred consideration, less current 60,000 45,000 portion Total other liabilities 3,356,498 3,946,830 Total liabilities 10,783,260 12,773,196 Commitments and contingencies 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, 98,863 98,838 respectively 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 $ 18,608,500 $ 19,356,268 shareholders' equity

FORWARD INDUSTRIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED) For the Three Months Ended December 31, 2020 2019 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 (30,000 ) - considerationInterest 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