Forward Industries (FORD) 10-Q 9 Feb 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 08, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	FORWARD INDUSTRIES INC
Entity Central Index Key	38,264
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	FORD
Entity Common Stock, Shares Outstanding		8,658,179
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 3,324,565	$ 4,042,124
Accounts receivable	6,523,579	5,454,129
Inventories	2,884,299	2,866,464
Prepaid expenses and other current assets	377,036	296,012
Total current assets	13,109,479	12,658,729
Property and equipment, net	109,492	78,733
Other assets	40,962	40,962
Total Assets	13,259,933	12,778,424
Current liabilities:
Accounts payable	280,049	122,803
Due to Forward China	4,285,854	4,168,021
Accrued expenses and other current liabilities	925,974	1,039,085
Total current liabilities	5,491,877	5,329,909
Other liabilities	111,173	115,202
Total Liabilities	$ 5,603,050	$ 5,445,111
Commitments and contingencies
Shareholders' equity:
Common stock, par value $0.01 per share; 40,000,000 shares authorized; 8,658,179 and 8,641,755 shares issued; 8,658,179 and 8,641,755 shares outstanding; at December 31, 2015 and September 30, 2015, respectively	$ 86,582	$ 86,418
Additional paid-in capital	17,629,809	17,550,047
Accumulated deficit	(10,037,287)	(10,281,367)
Accumulated other comprehensive loss	(22,221)	(21,785)
Total shareholders' equity	7,656,883	7,333,313
Total liabilities and shareholders' equity	$ 13,259,933	$ 12,778,424

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Dec. 31, 2015	Sep. 30, 2015
Statement of Financial Position [Abstract]
Common stock, par or stated value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	8,658,179	8,641,755
Common stock, shares outstanding (in shares)	8,658,179	8,641,755

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Net sales	$ 7,137,883	$ 7,943,860
Cost of goods sold	5,615,518	6,381,439
Gross profit	1,522,365	1,562,421
Operating expenses:
Sales and marketing	432,888	682,457
General and administrative	841,666	2,470,424
Total operating expenses	1,274,554	3,152,881
Income (loss) from operations	$ 247,811	(1,590,460)
Other (income) expense:
Interest income		(3,015)
Loss on marketable securities, net		110,001
Other (income) expense, net	$ 3,731	3,308
Total other (income) expense, net	3,731	110,294
Income (loss) from continuing operations	$ 244,080	(1,700,754)
Income from discontinued operations, net		198,963
Net income (loss)	$ 244,080	(1,501,791)
Preferred stock dividends and accretion		(473,694)
Net income (loss) applicable to common equity	$ 244,080	(1,975,485)
Net income (loss)	244,080	(1,501,791)
Other comprehensive loss:
Translation adjustments	(436)	(867)
Comprehensive income (loss)	$ 243,644	$ (1,502,658)
Net income (loss) per basic common share:
Income (loss) from continuing operations	$ 0.03	$ (0.25)
Income (loss) from discontinued operations	0	0.02
Net income (loss) per basic common share	0.03	(0.23)
Net income (loss) per diluted common share:
Income (loss) from continuing operations	0.03	(0.25)
Income (loss) from discontinued operations	0	0.02
Net income (loss) per diluted common share	$ 0.03	$ (0.23)
Weighted average number of common and common equivalent shares outstanding:
Basic	8,387,501	8,443,391
Diluted	8,621,524	8,443,391

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities:
Net income (loss)	$ 244,080	$ (1,501,791)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Realized and unrealized loss on marketable securities		110,001
Share-based compensation	$ 81,593	11,579
Depreciation and amortization	13,085	16,963
Deferred rent	(4,029)	11,305
Changes in operating assets and liabilities:
Accounts receivable	(1,069,450)	(29,378)
Inventories	(17,835)	(220,213)
Prepaid expenses and other current assets	(81,024)	(43,568)
Accounts payable, due to Forward China, accrued expenses and other current liabilities	161,532	(735,960)
Net cash used in operating activities	$ (672,048)	(2,381,062)
Cash Flows From Investing Activities:
Proceeds from sales of marketable securities		952,127
Purchases of marketable securities		(10,898)
Purchases of property and equipment	$ (43,844)	(23,206)
Net cash (used in) provided by investing activities	$ (43,844)	918,023
Cash Flows From Financing Activities:
Dividends paid		(19,322)
Restricted stock repurchased and retired	$ (1,667)	(12,199)
Net cash used in financing activities	(1,667)	(31,521)
Net decrease in cash and cash equivalents	(717,559)	(1,494,560)
Cash and cash equivalents at beginning of period	4,042,124	6,477,132
Cash and cash equivalents at end of period	$ 3,324,565	4,982,572
Supplemental disclosure of non-cash investing and financing activities:
Preferred stock accretion		454,372
Reclassification of warrant liability, net		$ 1,260,057

OVERVIEW

OVERVIEW	3 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
OVERVIEW	NOTE 1 OVERVIEW Forward Industries, Inc. (“Forward” or the “Company”) was incorporated under the laws of the State of New York and began operations in 1961 as a manufacturer and distributor of specialty and promotional products. The Company designs, markets, and distributes carry and protective solutions, primarily for hand held electronic devices. The Company’s principal customer market is original equipment manufacturers, or “OEMs” (or the contract manufacturing firms of these OEM customers), that either package their products as accessories “in box” together with their branded product offerings, or sell them through their retail distribution channels. The Company’s OEM products include carrying cases and other accessories for medical monitoring and diagnostic kits and a variety of other portable electronic and non-electronic products (such as sporting & recreational products, bar code scanners, smartphones, GPS location devices, tablets, and firearms). The Company’s OEM customers are located in the Americas, the EMEA Region, and the APAC Region. The Company does not manufacture any of its OEM products and sources substantially all of its OEM products from independent suppliers in China (refer to Note 8 – Buying Agency and Supply Agreement). On June 21, 2012, the Company determined to exit its global retail business and focus solely on growing its OEM business. The decision to eliminate the Retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong top line growth and cost rationalizations in the OEM business. The Retail business is presented as discontinued operations. In the opinion of management, the accompanying condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q reflect all normal recurring adjustments necessary to present fairly the financial position and results of operations and cash flows for the interim periods presented herein, but are not necessarily indicative of the results of operations for the year ending September 30, 2016. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2015, and with the disclosures and risk factors presented herein and therein, respectively. The September 30, 2015 condensed consolidated balance sheet has been derived from the audited consolidated financial statements.

ACCOUNTING POLICIES

ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
ACCOUNTING POLICIES	NOTE 2 ACCOUNTING POLICIES Accounting Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly owned subsidiaries (Forward US, Forward Switzerland, Forward HK (inactive) and Forward UK (inactive)). All significant intercompany transactions and balances have been eliminated in consolidation. Income Taxes The Company accounts for its income taxes in accordance with U.S. GAAP, which requires, among other things, recognition of future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carry-forwards to the extent that realization of these benefits is more likely than not. As of December 31, 2015, there was no change to our assessment that a full valuation allowance was required against all net deferred tax assets. Accordingly, any deferred tax provision or benefit was offset by an equal and opposite change to the valuation allowance. No current book tax provision was recorded against book net income due to the existence of significant net operating loss carryforwards. Revenue Recognition The Company generally recognizes revenue from product sales to its customers when: (1) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (2) persuasive evidence of an arrangement exists; (3) the Company has no continuing obligations to the customer; and (4) collection of the related accounts receivable is reasonably assured. Share-Based Payment Expense The Company recognizes employee and director share-based compensation in its condensed consolidated statements of operations and comprehensive income (loss) at the grant-date fair value of stock options and other equity-based compensation. The determination of stock option grant-date fair value is estimated using the Black-Scholes option-pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in-substance, multiple awards. Refer to Note 5 - Share-Based Compensation. In addition, the Company recognizes share-based compensation to non-employees based upon the fair value, using the Black-Scholes option pricing model, determined at the deemed measurement dates over the related contract service period. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605 -Revenue Recognition and most industry-specific guidance throughout the ASC. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 was further amended and is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which applies to inventory that is measured using first- in, first-out ("FIFO") or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out ("LIFO"). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which applies to the classification of deferred tax assets and liabilities. The update eliminates the requirement to classify deferred tax assets and liabilities as noncurrent or current within a classified statement of financial position. This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	NOTE 3 DISCONTINUED OPERATIONS On June 21, 2012, the Company determined to exit its global retail business and focus solely on growing its OEM business. The decision to eliminate the Retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong net sales growth and cost rationalizations in the OEM business. Accordingly, the results of operations for the Retail division have been recorded as discontinued operations in the accompanying condensed consolidated financial statements for the periods presented. The Company has completed its exit of its Retail business. Summarized operating results of discontinued operations are presented in the following table: For the Three Months Ended December 31, 2015 2014 Net sales $ - $ - Gross loss - - Operating (expenses) - (1,082 ) Other income - 200,045 Income from discontinued operations, net $ - $ 198,963 The Company had $280,000 of accounts receivable relating to overdue payments pursuant to a Settlement Agreement and General Release (“Settlement Agreement”) executed on July 3, 2013 between the Company and G-Form LLC (“G-Form”) in exchange for certain retail inventories, the Company’s cooperation with certain administrative matters, and a mutual general release. Due to the age of the accounts receivable and G-Form’s non-responsiveness to the Company’s communication related to the matter, the Company established a full reserve for this receivable as of September 30, 2014. In December 2014, the Company recovered $200,000 from a third party, which was recognized as other income during the three months ended December 31, 2014. There was no activity in discontinued operations for the three months ended December 31, 2015.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	NOTE 4 SHAREHOLDERS’ EQUITY 6% Senior Convertible Preferred Stock As of the 6% Senior Convertible Preferred Stock issuance date, the carrying amount was less than the redemption value. As a result of the Company’s determination that redemption was probable, the carrying value was being increased by periodic accretions so that the carrying value would equal the redemption amount at the earliest redemption date. Such accretion is recorded as a preferred stock dividend. Dividends on the 6% Senior Convertible Preferred Stock totaled approximately $0 and $19,000 for the three months ended December 31, 2015 and 2014, respectively. These dividends, in addition to the accretion, totaled approximately $0 and $474,000 for the three months ended December 31, 2015 and 2014, respectively. At the December 30, 2014 Annual Meeting, the shareholder vote resulted in the turnover of a majority of the Board members, which represented a Change of Control pursuant to the terms of the Convertible Preferred Stock. On December 31, 2014, the Company determined to recognize the balance of the accretion and bring the Convertible Preferred Stock carrying value up to its redemption value due to the likelihood of the holders requesting redemption. On January 9, 2015, the Company received a notice of deemed liquidation from a majority of the outstanding Convertible Preferred Stockholders in which they requested redemption of their Convertible Preferred Stock. On February 23, 2015 the Company paid an aggregate of $1,287,737 to the Convertible Preferred Stockholders, in order to redeem all of the outstanding shares of Convertible Preferred Stock. Stock Repurchase In September 2002 and January 2004, the Board authorized the repurchase of up to an aggregate of 486,200 shares of outstanding common stock. Under those authorizations, through December 31, 2015, the Company repurchased an aggregate of 224,690 shares at a cost of approximately $487,000. During the three months ended December 31, 2015, the Company repurchased and retired an aggregate of 1,076 shares of its outstanding restricted common stock at a cost of approximately $2,000 in connection with the vesting of employee restricted stock awards, wherein certain employees surrendered a portion of their award in order to fund certain tax withholding obligations. Changes in Shareholders’ Equity Changes in shareholders’ equity for the three months ended December 31, 2015 are summarized below: Accumulated Additional Other Common Stock Paid-In Accumulated Comprehensive Shares Amount Capital Deficit Loss Total Balance - September 30, 2015 8,641,755 $ 86,418 $ 17,550,047 $ (10,281,367 ) $ (21,785 ) $ 7,333,313 Restricted stock award issuances 17,500 175 (175) - - - Restricted stock repurchased and retired (1,076) (11) (1,656) - - (1,667) Share-based compensation - - 81,593 - - 81,593 Foreign currency translation - - - - (436) (436) Net loss - - - 244,080 - 244,080 Balance - December 31, 2015 8,658,179 $ 86,582 $ 17,629,809 $ (10,037,287) $ (22,221) $ 7,656,883 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	NOTE 5 SHARE-BASED COMPENSATION Stock Option Awards There were no options granted during the three months ended December 31, 2015 and 2014. The Company recognized compensation expense of approximately $4,000 and $12,000 in continuing operations for stock option awards in its condensed consolidated statements of operations and comprehensive income (loss) for the three month periods ended December 31, 2015 and 2014, respectively. As of December 31, 2015, there was approximately $25,000 of total unrecognized compensation cost related to unvested stock option awards, which is expected to be recognized over the remainder of the weighted average vesting period of 1.6 years. The following table summarizes stock option activity during the three months ended December 31, 2015: Weighted Weighted Average Average Remaining Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, September 30, 2015 311,000 $ 2.39 Granted - - Exercised - - Forfeited - - Outstanding, December 31, 2015 311,000 $ 2.39 5.5 $ 73,325 Exercisable, December 31, 2015 235,125 $ 2.84 4.3 $ 17,600 The following table provides additional information regarding stock option awards that were outstanding and exercisable at December 31, 2015: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Options Price In Years Options $0.64 to $1.99 $ 0.93 122,500 $ 1.28 6.2 55,000 $2.00 to $2.99 2.46 96,000 2.46 3.6 95,750 $3.00 to $3.99 3.74 72,500 3.74 5.1 64,375 $4.00 to $6.02 6.02 20,000 6.02 0.3 20,000 311,000 4.3 235,125 Restricted Stock Awards On October 26, 2015, the Company granted 17,500 shares of restricted stock, pursuant to the 2007 Plan, to a director of the Company. The shares vested on December 31, 2015. The grant date value of $19,775 was recognized over the service period. On October 26, 2015, the Company accelerated the vesting date of 35,000 shares of restricted stock that were previously granted to a director of the Company from February 23, 2016 to December 31, 2015. The Company analyzed the modification as of the modification date and determined that the modification did not result in any incremental compensation expense, however, the remaining unamortized compensation expense attributable to the original award was recognized over the modified remaining service period. The Company recognized compensation expense of approximately $78,000 and $0 in continuing operations for restricted stock awards in its condensed consolidated statements of operations and comprehensive income (loss) for the three months ended December 31, 2015 and 2014, respectively. As of December 31, 2015, there was approximately $53,000 of unrecognized compensation cost related to shares of unvested restricted stock, which is expected to be recognized over the remainder of the weighted average vesting period of 1 year. The following table summarizes restricted stock activity during the three months ended December 31, 2015: Weighted Average Total Number of Grant Date Grant Date Shares Fair Value Fair Value Non-vested, September 30, 2015 263,332 $ 0.87 $ 230,165 Granted 17,500 1.13 19,775 Vested (69,166 ) 1.04 (72,158 ) Forfeited - - - Non-vested, December 31, 2015 211,666 $ 0.84 $ 177,782

INCOME (LOSS) PER SHARE

INCOME (LOSS) PER SHARE	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
INCOME (LOSS) PER SHARE	NOTE 6 INCOME (LOSS) PER SHARE Basic income (loss) per share data for each period presented is computed using the weighted-average number of shares of common stock outstanding during each such period. Diluted income (loss) per share data is computed using the weighted-average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of (a) shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method, (b) shares that would be issued upon the conversion of convertible preferred stock and (c) shares of non-vested restricted stock. Net income (loss) from continuing operations per basic and diluted share for the three months ended December 31, 2015 and 2014 is net of preferred stock cash dividends and accretion. For the three months ended December 31, 2014, the Company did not have any effects of dilutive securities. For the three months ended December 31, 2015, the Company calculated the potential diluted earnings per share in accordance with ASC 260, as follows: For the Three Months Ended December 31, 2015 2014 Numerator: Net income (loss) from continuing operations applicable to common equity (numerator for basic and diluted earnings per share) $ 244,080 $ (1,975,485 ) Weighted average shares outstanding (denominator for basic earnings per share) 8,387,501 8,443,391 Effective of dilutive securities Assumed exercise of stock options, treasury stock method 30,271 - Assumed exercise of warrants, treasury stock method - - Assumed vesting of restricted stock, treasury stock method 203,752 - Dilutive potential common shares 234,023 - Denominator for diluted earnings per share - weighted average shares and assumed potential common shares 8,621,524 8,443,391 Basic earnings (loss) from continuing operations per share $ 0.03 $ (0.23 ) Diluted earnings (loss) from continuing operations per share $ 0.03 $ (0.23 ) The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: As of December 31, 2015 2014 Options 208,500 618,500 Warrants 723,846 723,846 Convertible preferred stock - 692,919 Non-vested restricted stock - 114,623 Total potentially dilutive shares 932,346 2,149,888

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 7 COMMITMENTS AND CONTINGENCIES Former CFO Agreement On February 16, 2015, the Company entered into a settlement agreement and mutual release with the Company’s former Chief Financial Officer (“Former CFO”), James McKenna, in connection with a lawsuit filed by Mr. McKenna on August 26, 2014 in the U.S. District Court for the Southern District of New York against the Company and then-directors Frank LaGrange Johnson, Robert Garrett, John F. Chiste, Timothy Gordon and Owen P.J. King (the “SDNY Lawsuit”), alleging purported claims of retaliation for whistleblowing under the Dodd-Frank Act, breach of contract and breach of the covenant of good faith and fair dealing all as against the Company, and a single claim for tortious interference with contract as against the individual defendants. The complaint sought an unspecified amount of monetary consequential damages and punitive damages. Pursuant to the agreement, Mr. McKenna and the Company have agreed to settle and release all disputes or claims against the other party related to the SDNY Lawsuit and any such disputes or claims arising out of Mr. McKenna’s employment with the Company, without an admission of liability or wrongdoing. Under the Agreement, Mr. McKenna received a cash payment of $315,000, representing 18 months' salary at the rate specified in Mr. McKenna’s Amended Employment Agreement, signed between the Company and Mr. McKenna and dated October 26, 2012. Mr. McKenna also received approximately $375,000 in legal fees, back pay, prior out-of-pocket benefits, taxes and penalties on Mr. McKenna’s 401(k) loan, and accrued paid time off, in addition to 35,000 restricted stock units vesting immediately. The Agreement includes customary non-disparagement and release provisions. As of December 31, 2015, the remaining obligation to the Former CFO of approximately $30,000 is reflected as an accrual in the condensed consolidated balance sheet.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 RELATED PARTY TRANSACTIONS New York Office Services Agreement On February 1, 2014, the Company began leasing office space in New York, New York for its then Chief Executive Officer at a rate of $2,500 per month from LaGrange Capital Administration, L.L.C. (“LCA”). Frank LaGrange Johnson, the Company’s former Chairman of the Board, serves as the Managing Member of LCA. This lease was month-to-month and was cancellable by either the Company or LCA at any time. Effective April 1, 2014, LCA increased the monthly rental charge (inclusive of rent, allocable share of office assistant, and equipment leases) from $2,500 to approximately $12,700 per month. On January 16, 2015, the Company provided notice to LCA that it was immediately terminating the New York Office Services Agreement. During the three months ended December 31, 2015 and 2014, the Company recognized $0 and approximately $38,000, respectively, of rent expense related to the New York office. Buying Agency and Supply Agreement On March 12, 2012, the Company, entered into a Buying Agency and Supply Agreement (the “Agreement”) with Forward Industries Asia-Pacific Corporation (f/k/a Seaton Global Corporation), a British Virgin Islands corporation (“Forward China”). On March 13, 2014 and March 11, 2015, the Company entered into amendments to the Agreement with Forward China. The Agreement, as amended, provides that, upon the terms and subject to the conditions set forth therein, Forward China will act as the Company’s exclusive buying agent and supplier of Products (as defined in the Agreement) in the Asia Pacific region. The Company purchases products at Forward China’s cost and pays a service fee to Forward China. The service fee is calculated at $100K monthly plus 4% of “Adjusted Gross Profit.” “Adjusted Gross Profit” is defined as the selling price less the cost from Forward China. The amended Agreement was terminated on September 11, 2015 and the Company entered into a new Supply Agreement on substantially similar terms on September 9, 2015 which will expire on September 8, 2016, subject to renewal. Terence Bernard Wise, a director of the Company, is a principal of Forward China. In addition, Jenny P. Yu, a Managing Director of Forward China, beneficially owns more than 5% of the Company’s shares of common stock. The Company recognized approximately $373,000 and $287,000, respectively, during the three months ended December 31, 2015 and 2014 in service fees paid to Forward China, which are included as a component of costs of goods sold in continuing operations in the accompanying condensed consolidated statements of operations and comprehensive income (loss). Investment Management Agreement On April 16, 2013, the Company entered into an Investment Management Agreement (the “Investment Management Agreement”) with LCA, pursuant to which the Company retained LCA to manage certain investment accounts funded by the Company (collectively, the “Account”). Operations ceased just prior to December 31, 2014 and the Investment Management Agreement formally terminated effective February 1, 2015. There were no new funds invested with LCA during the three months ended December 31, 2014. During the three months ended December 31, 2014, the Company purchased approximately $11,000 of marketable securities and sold approximately $952,000 of marketable securities. As a result of these activities, the Company recognized approximately $110,000 of net investment losses during the three months ended December 31, 2014. The Company didn’t recognize any advisory fee or performance fee expense during the three months ended December 31, 2014,

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	3 Months Ended
	Dec. 31, 2015
Legal Matters and Contingencies [Abstract]
LEGAL PROCEEDINGS	NOTE 9 LEGAL PROCEEDINGS From time to time, the Company may become a party to legal actions or proceedings in the ordinary course of its business. As of December 31, 2015, there were no such actions or proceedings, either individually or in the aggregate, that, if decided adversely to the Company’s interests, the Company believes would be material to its business.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Accounting Estimates	Accounting Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly owned subsidiaries (Forward US, Forward Switzerland, Forward HK (inactive) and Forward UK (inactive)). All significant intercompany transactions and balances have been eliminated in consolidation.
Income Taxes	Income Taxes The Company accounts for its income taxes in accordance with U.S. GAAP, which requires, among other things, recognition of future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carry-forwards to the extent that realization of these benefits is more likely than not. As of December 31, 2015, there was no change to our assessment that a full valuation allowance was required against all net deferred tax assets. Accordingly, any deferred tax provision or benefit was offset by an equal and opposite change to the valuation allowance. No current book tax provision was recorded against book net income due to the existence of significant net operating loss carryforwards.
Revenue Recognition	Revenue Recognition The Company generally recognizes revenue from product sales to its customers when: (1) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (2) persuasive evidence of an arrangement exists; (3) the Company has no continuing obligations to the customer; and (4) collection of the related accounts receivable is reasonably assured.
Share-Based Payment Expense	Share-Based Payment Expense The Company recognizes employee and director share-based compensation in its condensed consolidated statements of operations and comprehensive income (loss) at the grant-date fair value of stock options and other equity-based compensation. The determination of stock option grant-date fair value is estimated using the Black-Scholes option-pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in-substance, multiple awards. Refer to Note 5 - Share-Based Compensation. In addition, the Company recognizes share-based compensation to non-employees based upon the fair value, using the Black-Scholes option pricing model, determined at the deemed measurement dates over the related contract service period.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605 -Revenue Recognition and most industry-specific guidance throughout the ASC. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 was further amended and is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which applies to inventory that is measured using first- in, first-out ("FIFO") or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out ("LIFO"). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which applies to the classification of deferred tax assets and liabilities. The update eliminates the requirement to classify deferred tax assets and liabilities as noncurrent or current within a classified statement of financial position. This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adopting this guidance.

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Schedule of summarized operating results of discontinued operations	Summarized operating results of discontinued operations are presented in the following table: For the Three Months Ended December 31, 2015 2014 Net sales $ - $ - Gross loss - - Operating (expenses) - (1,082 ) Other income - 200,045 Income from discontinued operations, net $ - $ 198,963

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Schedule of changes in shareholders' equity	Changes in shareholders’ equity for the three months ended December 31, 2015 are summarized below: Accumulated Additional Other Common Stock Paid-In Accumulated Comprehensive Shares Amount Capital Deficit Loss Total Balance - September 30, 2015 8,641,755 $ 86,418 $ 17,550,047 $ (10,281,367 ) $ (21,785 ) $ 7,333,313 Restricted stock award issuances 17,500 175 (175) - - - Restricted stock repurchased and retired (1,076) (11) (1,656) - - (1,667) Share-based compensation - - 81,593 - - 81,593 Foreign currency translation - - - - (436) (436) Net loss - - - 244,080 - 244,080 Balance - December 31, 2015 8,658,179 $ 86,582 $ 17,629,809 $ (10,037,287) $ (22,221) $ 7,656,883

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	The following table summarizes stock option activity during the three months ended December 31, 2015: Weighted Weighted Average Average Remaining Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, September 30, 2015 311,000 $ 2.39 Granted - - Exercised - - Forfeited - - Outstanding, December 31, 2015 311,000 $ 2.39 5.5 $ 73,325 Exercisable, December 31, 2015 235,125 $ 2.84 4.3 $ 17,600
Schedule of additional information regarding stock option awards	The following table provides additional information regarding stock option awards that were outstanding and exercisable at December 31, 2015: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Options Price In Years Options $0.64 to $1.99 $ 0.93 122,500 $ 1.28 6.2 55,000 $2.00 to $2.99 2.46 96,000 2.46 3.6 95,750 $3.00 to $3.99 3.74 72,500 3.74 5.1 64,375 $4.00 to $6.02 6.02 20,000 6.02 0.3 20,000 311,000 4.3 235,125
Schedule Of summarizes restricted stock activity	The following table summarizes restricted stock activity during the three months ended December 31, 2015: Weighted Average Total Number of Grant Date Grant Date Shares Fair Value Fair Value Non-vested, September 30, 2015 263,332 $ 0.87 $ 230,165 Granted 17,500 1.13 19,775 Vested (69,166 ) 1.04 (72,158 ) Forfeited - - - Non-vested, December 31, 2015 211,666 $ 0.84 $ 177,782

INCOME (LOSS) PER SHARE (Tables

INCOME (LOSS) PER SHARE (Tables)	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Schedule of calculated potential diluted earnings per share	For the three months ended December 31, 2015, the Company calculated the potential diluted earnings per share in accordance with ASC 260, as follows: For the Three Months Ended December 31, 2015 2014 Numerator: Net income (loss) from continuing operations applicable to common equity (numerator for basic and diluted earnings per share) $ 244,080 $ (1,975,485 ) Weighted average shares outstanding (denominator for basic earnings per share) 8,387,501 8,443,391 Effective of dilutive securities Assumed exercise of stock options, treasury stock method 30,271 - Assumed exercise of warrants, treasury stock method - - Assumed vesting of restricted stock, treasury stock method 203,752 - Dilutive potential common shares 234,023 - Denominator for diluted earnings per share - weighted average shares and assumed potential common shares 8,621,524 8,443,391 Basic earnings (loss) from continuing operations per share $ 0.03 $ (0.23 ) Diluted earnings (loss) from continuing operations per share $ 0.03 $ (0.23 )
Schedule of securities are excluded from the calculation of weighted average dilutive common shares	The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: As of December 31, 2015 2014 Options 208,500 618,500 Warrants 723,846 723,846 Convertible preferred stock - 692,919 Non-vested restricted stock - 114,623 Total potentially dilutive shares 932,346 2,149,888

DISCONTINUED OPERATIONS - Summa

DISCONTINUED OPERATIONS - Summary of operating results of discontinued operations (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]
Net sales
Gross loss
Operating (expenses)		$ (1,082)
Other income		200,045
Income from discontinued operations, net		$ 198,963

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details Narrative) - USD ($)	3 Months Ended
	Dec. 31, 2014	Jul. 03, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Other income	$ 200,000
G Form LLC [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accounts Receivable		$ 280,000

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details)	3 Months Ended
	Dec. 31, 2015USD ($)shares
Common Stock
Balance	$ 86,418
Balance, Shares | shares	8,641,755
Restricted stock award issuances	$ 175
Restricted stock award issuances, Shares | shares	17,500
Restricted stock repurchased and retired	$ (11)
Restricted stock repurchased and retired, Shares | shares	(1,076)
Share-based compensation
Foreign currency translation
Net loss
Balance	$ 86,582
Balance, Shares | shares	8,658,179
Additional Paid-in Capital
Balance	$ 17,550,047
Restricted stock award issuances	(175)
Restricted stock repurchased and retired	(1,656)
Share-based compensation	$ 81,593
Foreign currency translation
Net loss
Balance	$ 17,629,809
Accumulated Deficit
Balance	$ (10,281,367)
Restricted stock award issuances
Restricted stock repurchased and retired
Share-based compensation
Foreign currency translation
Net loss	$ 244,080
Balance	(10,037,287)
Accumulated Other Comprehensive Loss
Balance	$ (21,785)
Restricted stock award issuances
Restricted stock repurchased and retired
Share-based compensation
Foreign currency translation	$ (436)
Net loss
Balance	$ (22,221)
Balance	$ 7,333,313
Restricted stock award issuances
Restricted stock repurchased and retired	$ (1,667)
Share-based compensation	81,593
Foreign currency translation	(436)
Net loss	244,080
Balance	$ 7,656,883

SHAREHOLDERS' EQUITY (Details N

SHAREHOLDERS' EQUITY (Details Narratives) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Feb. 23, 2015	Jan. 31, 2004	Sep. 30, 2002
Temporary Equity [Line Items]
Payment for redemption of outstanding shares of Convertible Preferred Stock			$ 1,287,737
Stock Repurchased and Retired During Period, Value	$ (1,667)
Convertible Preferred Stock [Member]
Temporary Equity [Line Items]
Dividends, Preferred Stock	$ 0	$ 19,000
Preferred Stock, Dividend Rate, Percentage	6.00%
Dividends Preferred Stock Including Accretion	$ 0	$ 474,000
Common Stock
Temporary Equity [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased				486,200	486,200
Stock Repurchased During Period, Shares	224,690
Stock Repurchased During Period, Value	$ 487,000
Stock Repurchased and Retired During Period, Shares	(1,076)
Stock Repurchased and Retired During Period, Value	$ (11)
Restricted Stock [Member]
Temporary Equity [Line Items]
Stock Repurchased and Retired During Period, Shares	1,076
Stock Repurchased and Retired During Period, Value	$ 2,000

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - Employee Stock Option [Member]	3 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Number of Options
Shares, Outstanding at Beginning | shares	311,000
Shares, Granted | shares	0
Shares, Exercised | shares	0
Shares, Forfeited | shares	0
Shares, Outstanding at Ending | shares	311,000
Shares, Exercisable | shares	235,125
Weighted Average Exercise Price
Weighted average exercise price, Outstanding at Beginning | $ / shares	$ 2.39
Weighted average exercise price, Granted | $ / shares	0
Weighted average exercise price, Exercised | $ / shares	0
Weighted average exercise price, Forfeited | $ / shares	0
Weighted average exercise price, Outstanding at Ending | $ / shares	2.39
Weighted average exercise price, Exercisable | $ / shares	$ 2.84
Weighted Average Remaining life In Years
Weighted average remaining contractual term (Years), Outstanding	5 years 6 months
Weighted average remaining contractual term (Years), Exercisable	4 years 3 months 18 days
Intrinsic Value
Intrinsic value, Outstanding | $	$ 73,325
Intrinsic value, Exercisable | $	$ 17,600

SHARE-BASED COMPENSATION (Det25

SHARE-BASED COMPENSATION (Details 1)	3 Months Ended
	Dec. 31, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding, Outstanding Number of Options | shares	311,000
Options Exercisable, Weighted Average Remaining Life In Years	4 years 3 months 18 days
Options Exercisable, Exercisable Number of Options | shares	235,125
Exercise Price One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit	$ 0.64
Exercise price upper limit	1.99
Options Outstanding, Weighted average exercise price	$ 0.93
Options Outstanding, Outstanding Number of Options | shares	122,500
Options Exercisable, Weighted average exercise price	$ 1.28
Options Exercisable, Weighted Average Remaining Life In Years	6 years 2 months 12 days
Options Exercisable, Exercisable Number of Options | shares	55,000
Exercise Price Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit	$ 2
Exercise price upper limit	2.99
Options Outstanding, Weighted average exercise price	$ 2.46
Options Outstanding, Outstanding Number of Options | shares	96,000
Options Exercisable, Weighted average exercise price	$ 2.46
Options Exercisable, Weighted Average Remaining Life In Years	3 years 7 months 6 days
Options Exercisable, Exercisable Number of Options | shares	95,750
Exercise Price Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit	$ 3
Exercise price upper limit	3.99
Options Outstanding, Weighted average exercise price	$ 3.74
Options Outstanding, Outstanding Number of Options | shares	72,500
Options Exercisable, Weighted average exercise price	$ 3.74
Options Exercisable, Weighted Average Remaining Life In Years	5 years 1 month 6 days
Options Exercisable, Exercisable Number of Options | shares	64,375
Exercise Price Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit	$ 4
Exercise price upper limit	6.02
Options Outstanding, Weighted average exercise price	$ 6.02
Options Outstanding, Outstanding Number of Options | shares	20,000
Options Exercisable, Weighted average exercise price	$ 6.02
Options Exercisable, Weighted Average Remaining Life In Years	3 months 18 days
Options Exercisable, Exercisable Number of Options | shares	20,000

SHARE-BASED COMPENSATION (Det26

SHARE-BASED COMPENSATION (Details 2) - Restricted Stock [Member]	3 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Number of Shares
Shares, Non-vested balance | shares	263,332
Shares granted | shares	17,500
Shares vested | shares	(69,166)
Shares forfeited | shares	0
Shares, Non-vested balance | shares	211,666
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, Non-vested balance | $ / shares	$ 0.87
Weighted average grant date fair value, granted | $ / shares	1.13
Weighted average grant date fair value, vested | $ / shares	1.04
Weighted average grant date fair value, forfeited | $ / shares	0
Weighted average grant date fair value, Non-vested balance | $ / shares	$ 0.84
Total Grant Date Fair Value
Total grant date fair value, Non-vested balance | $	$ 230,165
Total grant date fair value, granted | $	19,775
Total grant date fair value, vested | $	(72,158)
Total grant date fair value, forfeited | $	0
Total grant date fair value, Non-vested balance | $	$ 177,782

SHARE-BASED COMPENSATION (Det27

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		10 Months Ended
	Oct. 26, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		$ 4,000	$ 12,000
Unrecognized compensation expense		$ 25,000		$ 25,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		1 year 7 months 6 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares				35,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value		$ 72,158
Allocated Share-based Compensation Expense		78,000	$ 0
Unrecognized compensation expense		$ 53,000		$ 53,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		1 year
Restricted Stock [Member] | 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	17,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 19,775

INCOME (LOSS) PER SHARE (Detail

INCOME (LOSS) PER SHARE (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Net income (loss) from continuing operations applicable to common equity (numerator for basic and diluted earnings per share)	$ 244,080	$ (1,975,485)
Weighted average shares outstanding (denominator for basic earnings per share)	8,387,501	8,443,391
Effective of dilutive securities
Assumed exercise of stock options, treasury stock method	30,271
Assumed exercise of warrants, treasury stock method
Assumed vesting of restricted stock, treasury stock method	203,752
Dilutive potential common shares	234,023
Denominator for diluted earnings per share - weighted average shares and assumed potential common shares	8,621,524	8,443,391
Basic earnings (loss) from continuing operations per share	$ 0.03	$ (0.23)
Diluted earnings (loss) from continuing operations per share	$ 0.03	$ (0.23)

INCOME (LOSS) PER SHARE (Deta29

INCOME (LOSS) PER SHARE (Details 1) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	932,346	2,149,888
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	0	692,919
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	208,500	618,500
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	723,846	723,846
Non-Vested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	0	114,623

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - Former Chief Financial Officer [Member] - USD ($)	1 Months Ended
	Feb. 16, 2015	Dec. 31, 2015
Remaining obligation		$ 30,000
Cash payment lieu of salary	$ 315,000
Number of shares vested immediately	35,000
Paid litigation settlement	$ 375,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Apr. 02, 2014	Feb. 02, 2014	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Service Fees Paid Expenses Related Parties				$ 373,000	$ 287,000
Payments to Acquire Marketable Securities, Total					10,898
Proceeds from Sale and Maturity of Marketable Securities, Total					952,127
Marketable Securities, Realized Gain (Loss), Total					110,001
Buying Agency and Supply Agreement [Member]
Related Party Transaction [Line Items]
Service Fees Paid Expenses Related Parties			$ 100,000
Adjusted groos profit percentage			4.00%
LaGrange Capital Administration, L.L.C. [Member] | Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense, Net		$ 2,500
New York office [Member] | LaGrange Capital Administration, L.L.C. [Member]
Related Party Transaction [Line Items]
Operating Leases, Rent Expense, Net	$ 2,500			$ 0	$ 38,000
Operating Leases, Rent Expense, Contingent Rentals	$ 12,700