GlobeNewswire Inc | Dec 17, 2020 04:42PM EST

December 17, 2020

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 thepredictable decline inour historical core business, I am strongly encouraged by Forwards 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 Companys 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 Companys 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 Companys filings with the SEC, including the Companys Form 10-K for the year ended September 30, 2020 for information regarding risk factors that could affect the Companys 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 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 SUBSIDIARIESCONSOLIDATED 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 419,472 441,502 assets 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 18,411 39,941 payableCurrent portion of deferred 45,000 834,000 considerationCurrent portion of operating lease 259,658 - liabilityAccrued expenses and other current 615,401 694,972 liabilitiesTotal current liabilities 8,826,366 8,295,680 Other liabilities: Notes payable, less current portion 529,973 - Operating lease liability, less current 3,359,088 - portionCapital lease liability, less current 12,769 26,438 portionDeferred rent - 60,935 Deferred consideration, less current 45,000 - portionTotal 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, 2020and 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' $ 19,356,268 $ 16,094,352 equity

FORWARD INDUSTRIES, INC. AND SUBSIDIARIESCONSOLIDATED 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 (350,000 ) 260,000 considerationFair value adjustment of deferred cash 16,000 36,000 considerationInterest 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