UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): August 11, 2015
Forward Industries, Inc. (Exact Name of Registrant as Specified in Its Charter)
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New York |
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000-6669 |
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13-1950672 |
(State or other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
477 Rosemary Ave. Ste. 219 West Palm Beach, FL |
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33401 |
(Address of Principal Executive Offices) |
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(Zip Code) |
Registrants telephone number, including area code: (561) 465-0030
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(Former name or former address if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the follow provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On Tuesday, August 11, 2015, Forward Industries, Inc. (the Company) issued a press release, announcing its results of operations for the three and nine month periods ended June 30, 2015, a copy of which is attached hereto as Exhibit 99.1.
More complete information relating to the Companys results of operations and financial condition for such periods is contained in the Companys Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on August 11, 2015.
The foregoing description is qualified in its entirety by reference to the above-referenced press release, which is incorporated herein by reference, and the above-referenced Form 10-Q.
The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, is being furnished and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities thereof, nor shall it be deemed to be incorporated by reference into future filings by the Company under the Exchange Act or under the Securities Act of 1933, as amended, regardless of any incorporation by reference language in any such filing, unless the Company expressly sets forth in such future filing that such information is to be considered filed or incorporated by reference therein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit No. Description
99.1 |
Press Release (filed herewith). |
Forward Looking Statements
This Current Report on Form 8-K contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are subject to risks and uncertainties. Actual results may differ substantially from those expressed or implied in such forward-looking statements due to a number of factors. Readers are cautioned that all forward-looking statements are based on managements present expectations, estimates and projections, but involve risks and uncertainty. Please refer to the Companys report on Form 10-K for the year ended September 30, 2014, as filed with the Securities and Exchange Commission, for additional information. The Company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 11, 2015 |
By: |
FORWARD INDUSTRIES, INC.
/s/ Michael Matte |
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Name: |
Michael Matte |
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Title: |
Chief Financial Officer |
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Exhibit 99.1
FOR IMMEDIATE RELEASE
FORWARD REPORTS FISCAL 2015 THIRD QUARTER RESULTS
West Palm Beach, FL August 11, 2015 Forward Industries, Inc. (NASDAQ:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its third fiscal quarter ended June 30, 2015.
Third Quarter 2015 Financial Highlights
Revenues were $7.2 Million.
Gross profit percentage increased to 18.6% from 18.3% in the third quarter of 2014.
Income from Operations was $494 thousand up from $32 thousand from the third quarter of 2014.
Net Income was $496 thousand up from $20 thousand from the third quarter of 2014.
Earnings per share were $0.06 per share compared to $0.00 per share for the third quarter of 2014.
Cash and cash equivalents totaled $4.3 million at June 30, 2015.
Terry Wise, Chief Executive Officer of Forward Industries, stated, Over the last two quarters we've cleaned up all the legacy legal issues, right sized the company and are clearly focused on rebuilding the business to success. While we experienced a decline in revenues, we are encouraged that we were able to increase our gross profit margin in an industry that sees significant cost pressure daily. Our cash balance increased $1.5 million during the quarter, which reflects the impact of our right sizing of the company and strict cash controls. Going forward, our focus is now to expand our customer base and broaden our product offering to both new and existing customers.
The tables below are derived from the Companys unaudited condensed consolidated financial statements included in its Quarterly Report on Form 10-Q filed today 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, 2014 and 2013. 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
In addition to the historical information contained herein, this press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect Forwards current expectations and projections about its future results, performance, prospects and opportunities. 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 in the 2015 quarter and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. 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, 2014 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.
Incorporated in 1962, and headquartered West Palm Beach, Florida, Forward Industries is a global designer and distributor of mobile device cases and accessories. Forwards products can be viewed online at www.forwardindustries.com.
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(UNAUDITED)
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net sales | $ | 7,230,953 | $ | 9,065,568 | $ | 22,422,152 | $ | 24,180,926 | ||||||||
Cost of goods sold | 5,883,174 | 7,399,430 | 18,160,131 | 19,265,957 | ||||||||||||
Gross profit | 1,347,779 | 1,666,138 | 4,262,021 | 4,914,969 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 497,961 | 708,793 | 1,876,046 | 2,050,740 | ||||||||||||
General and administrative | 355,661 | 925,659 | 4,163,344 | 2,594,382 | ||||||||||||
Total operating expenses | 853,622 | 1,634,452 | 6,039,390 | 4,645,122 | ||||||||||||
Income (loss) from operations | 494,157 | 31,686 | (1,777,369 | ) | 269,847 | |||||||||||
Other (income) expense: | ||||||||||||||||
Interest income | - | (8,037 | ) | (3,022 | ) | (25,767 | ) | |||||||||
(Gain) loss on marketable securities, net | - | (8,904 | ) | 110,001 | 30,528 | |||||||||||
Loss on change in fair value of warrant liability | - | - | - | 136,258 | ||||||||||||
Other (income) expense, net | (953 | ) | 7,401 | 8,994 | 23,403 | |||||||||||
Total other (income) expense, net | (953 | ) | (9,540 | ) | 115,973 | 164,422 | ||||||||||
Income (loss) from continuing operations | 495,110 | 41,226 | (1,893,342 | ) | 105,425 | |||||||||||
Income (loss) from discontinued operations, net | - | (21,317 | ) | 198,963 | (35,103 | ) | ||||||||||
Net income (loss) | 495,110 | 19,909 | (1,694,379 | ) | 70,322 | |||||||||||
Preferred stock dividends and accretion | - | (48,100 | ) | (475,580 | ) | (144,571 | ) | |||||||||
Net income (loss) applicable to common equity | $ | 495,110 | $ | (28,191 | ) | $ | (2,169,959 | ) | $ | (74,249 | ) | |||||
Net income (loss) | $ | 495,110 | $ | 19,909 | $ | (1,694,379 | ) | $ | 70,322 | |||||||
Other comprehensive income (loss): | ||||||||||||||||
Translation adjustments | 1,091 | 111 | (615 | ) | 1,144 | |||||||||||
Comprehensive income (loss) | $ | 496,201 | $ | 20,020 | $ | (1,694,994 | ) | $ | 71,466 | |||||||
Net income (loss) per basic common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.06 | $ | (0.00 | ) | $ | (0.28 | ) | $ | (0.01 | ) | |||||
Income (loss) from discontinued operations | 0.00 | (0.00 | ) | 0.02 | (0.00 | ) | ||||||||||
Net income (loss) per basic common share | $ | 0.06 | $ | (0.00 | ) | $ | (0.26 | ) | $ | (0.01 | ) | |||||
Net income (loss) per diluted common share: | ||||||||||||||||
Income (loss) from continuing operations | $ | 0.06 | $ | (0.00 | ) | $ | (0.28 | ) | $ | (0.01 | ) | |||||
Income (loss) from discontinued operations | 0.00 | (0.00 | ) | 0.02 | (0.00 | ) | ||||||||||
Net income (loss) per diluted common share | $ | 0.06 | $ | (0.00 | ) | $ | (0.26 | ) | $ | (0.01 | ) | |||||
Weighted average number of common and common equivalent shares outstanding: | ||||||||||||||||
Basic | 8,364,247 | 8,195,808 | 8,329,950 | 8,183,933 | ||||||||||||
Diluted | 8,373,336 | 8,195,808 | 8,329,950 | 8,183,933 |
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, | September 30, | |||||||
2015 | 2014 | |||||||
(Unaudited) | (Note 1) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 4,287,166 | $ | 6,477,132 | ||||
Marketable securities | - | 1,051,230 | ||||||
Accounts receivable | 5,327,398 | 6,124,871 | ||||||
Inventories | 2,883,835 | 2,374,837 | ||||||
Prepaid expenses and other current assets | 369,210 | 401,549 | ||||||
Total current assets | 12,867,609 | 16,429,619 | ||||||
Property and equipment, net | 90,284 | 98,990 | ||||||
Other assets | 40,962 | 40,962 | ||||||
Total assets | $ | 12,998,855 | $ | 16,569,571 | ||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable, accrued expenses and other current liabilities | $ | 1,365,977 | $ | 1,218,541 | ||||
Due to Forward China | 4,506,660 | 5,215,768 | ||||||
Total current liabilities | 5,872,637 | 6,434,309 | ||||||
Other liabilities | 119,231 | 115,202 | ||||||
Total liabilities | 5,991,868 | 6,549,511 | ||||||
6% Senior Convertible Preferred Stock, par value $0.01 per share; 1,500,000 shares authorized; 851,154 shares available; 0 and 648,846 shares issued and outstanding; aggregate liquidation value of $0 and $1,275,000; as of June 30, 2015 and September 30, 2014, respectively | - | 833,365 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, par value $0.01 per share; 4,000,000 shares authorized; 2,400,000 undesignated at June 30, 2015 and September 30, 2014 | ||||||||
Series A Participating Preferred stock, par value $0.01; 100,000 shares authorized; no shares issued and outstanding | - | - | ||||||
Common stock, par value $0.01 per share; 40,000,000 shares authorized; 8,606,755 and 9,159,796 shares issued; 8,606,755 and 8,453,386 shares outstanding; at June 30, 2015 and September 30, 2014, respectively | 86,068 | 91,598 | ||||||
Additional paid-in capital | 17,483,710 | 18,747,371 | ||||||
Treasury stock, 0 and 706,410 shares at cost at June 30, 2015 and September 30, 2014, respectively | - | (1,260,057 | ) | |||||
Accumulated deficit | (10,541,765 | ) | (8,371,806 | ) | ||||
Accumulated other comprehensive loss | (21,026 | ) | (20,411 | ) | ||||
Total shareholders’ equity | 7,006,987 | 9,186,695 | ||||||
Total liabilities and shareholders’ equity | $ | 12,998,855 | $ | 16,569,571 |