Forward-looking reports on the results of the financial year 2021


HAUPPAUGE, NY, December 16, 2021 (GLOBE NEWSWIRE) – Forward Industries, Inc. (NASDAQ: FORD), a single-source solution provider for the full range of design and engineering services from hardware and software products, as well that a designer and distributor of carrying and protection solutions, today announced its financial results for the fiscal year ended September 30, 2021.

Full fiscal year 2021 Financial Highlights

  • Revenue was $ 39.0 million, an increase of 13.0% from $ 34.5 million from 2020.
  • The gross margin improved to 20.8% from 19.3% in 2020.
  • The operating loss amounted to $ 0.8 million, compared to $ 2.0 million in 2020.
  • Net income was $ 0.5 million (which included a gain of $ 1.4 million from the cancellation of a PPP loan) compared to a net loss of $ 1.8 million in 2020.
  • Basic and diluted earnings / (loss) per share was $ 0.05 compared to ($ 0.19) in 2020.
  • Cash was $ 1.4 million as of September 30, 2021.

Terry Wise, President and CEO of Forward Industries, said: “I am pleased to end the year profitably in terms of bottom line despite continuing difficult market conditions. Following the successful integration of Kablooe, our design division continued to show strong financial performance, with a strong portfolio of projects. In accordance with our strategy, we have invested in our retail division which is continuing its strong growth. Finally, within the OEM distribution division, we continued to focus on diversifying our products away from the declining diabetic sector.

“Building on this progress, I view the coming year with extremely encouraging prospects and remain cautiously optimistic. “

The tables below are derived from the Company’s consolidated financial statements included in its Form 10-K filed December 16, 2021 with the Securities and Exchange Commission. Please refer to Form 10-K for complete financial statements and further information regarding the Company’s results of operations and financial condition for the years ended September 30, 2021 and 2020. Please also refer to Form 10 -K for a discussion on risk factors applicable to the Company and its activities.

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 portfolio of works and projects, and the substantial growth in our retail business. . Forward has attempted to identify these forward-looking statements by using words such as “may”, “should”, “expect”, “expect”, “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. substantially from those expressed or implied by, these forward-looking statements. These risks include the inability to expand our customer base, pricing pressures, unsuccessful salespeople, inability to develop products at profit, inability to market the products we develop, persistent problems. supply chain, the inability of customers in our design division to pay for our services, unforeseen issues with our affiliate sourcing agent, issues in Chinese factories where we source products as a result of pandemic or otherwise, and the inability to gain acceptance of our products by big box retail stores. No assurance can be given that actual results will be consistent with forward-looking statements. Investors should carefully read the factors described in the “Risk Factors” section of the documents filed by the Company with the SEC, including the Company’s Form 10-K for the fiscal year ended September 30, 2021 for information. on the risk factors that could affect the Company’s results. Except as otherwise provided by federal securities laws, Forward assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changes in circumstances or to any other reason.

Aabout Forward Industries

Forward is a fully integrated design, development and manufacturing solutions provider for leading 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 its existing multinational customer base and to expand beyond the range of diabetic products in 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 transport and protection solutions, primarily for portable electronic devices, we are now a one-stop-shop for the development of design and manufacturing solutions serving a wide range of customers. in the industrial, commercial, medical and general public sectors. .

For more information, contact:
Anthony Camarda, Chief Financial Officer, Forward Industries, Inc.
(631) 547-3041, [email protected]

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS
September 30
2021 2020
Assets
Current assets:
Cash $ 1,410,365 $ 2 924 627
Accounts receivable, net 8,760,715 7,602,316
Net stocks 2,062,557 1,275,694
Prepaid expenses and other current assets 561,072 419,472
Total current assets 12,794,709 12,222,109
Property and equipment, net 167,997 215,323
Net intangible assets 1 318 658 1,531,415
Good will 1,758,682 1,758,682
Operating right of use assets in operating leases, net 3,743,242 3,512,042
other assets 72,251 116,697
Total assets $ 19 855 539 $ 19 356 268
Liabilities and equity
Current liabilities :
Credit line $ $ 1,000,000
Note payable to Forward China 1,600,000
Accounts payable 391,992 197,022
Due to shipping from China 5,733,708 3,622,401
Deferred income 187,695 485,078
Current portion of bills payable 983,395
Current portion of finance lease liabilities 1,523 18 411
Current part of the consideration for the earn-out 25,000 45,000
Current portion of operating lease liabilities 340,151 259,658
Accounts payable and other current liabilities 527,974 615,401
Total current liabilities 7,208,043 8 826 366
Other liabilities:
Note payable to Forward China 1,600,000
Notes payable, less the current portion 529,973
Operating lease liability, less the current portion 3,559,053 3 359 088
Finance lease liability, less current portion 12 769
Consideration of earnings, less the current portion 45,000 45,000
Total other liabilities 5.204.053 3,946,830
Total responsibilities 12,412,096 12,773,196
Commitments and contingencies
Equity:
Common shares, par value $ 0.01 per share; 40,000,000 authorized shares;
10,061,185 and 9,883,851 shares issued and outstanding as of September 30, 2021
and 2020, respectively 100 612 98 838
Premium 19 914 476 19 579 684
Accumulated deficit (12,571,645 ) (13 095 450 )
Total equity 7,443,443 6,583,072
Total liabilities and equity $ 19 855 539 $ 19 356 268
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the years ended September 30,
2021 2020
Income, net $ 39,021,996 $ 34,478,358
Cost of sales 30 887 577 27 839 851
Gross profit 8 134 419 6 638 507
Sales and marketing costs 2,503,518 1,950,704
General and administrative expenses 6,395,900 5 655 186
Goodwill impairment 1,015,000
Operating loss (764,999 ) (1 982 383 )
Gain on instrument discount payable (1,356,570 )
Adjustment of the fair value of the earn-out (20,000 ) (350,000 )
Adjustment to the fair value of the deferred cash consideration 16,000
Interest income (88,760 ) (60 932 )
Interest charges 171,957 174,962
Other expenses, net 4,569 3,701
Income / (loss) before tax 523,805 (1,766,114 )
Provision for income taxes 9,167
Net income / (loss) $ 523,805 $ (1,775,281 )
Earnings / (loss) per share:
Basic $ 0.05 $ (0.19 )
Diluted $ 0.05 $ (0.19 )
Weighted average of common shares outstanding:
Basic 9,950,094 9 583 441
Diluted 10 443 018 9 583 441


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