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Forward Reports Fiscal 2024 First Quarter Results

Provided by GlobeNewswire

HAUPPAUGE, N.Y., Feb. 14, 2024 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (NASDAQ:FORD), a global design, sourcing and distribution group, today announced financial results for its first quarter ended December 31, 2023.

First Quarter Fiscal Year 2024 Financial Highlights   

  • Revenues were $7.2 million, a decrease of 26.7% from $9.8 million for 2023.

  • Gross margin increased to 23.0% compared to 20.2% for 2023.

  • Loss from continuing operations was $0.4 million compared to $0.1 million in 2023 and net loss was $0.4 million compared to $0.4 million in 2023.

  • Basic and diluted loss per share from continuing operations was $0.04 compared to $0.01 for 2023.

  • Cash balance of $3.0 million at December 31, 2023 compared to $3.2 million at September 30, 2023, a decrease of 5%.

Terry Wise, Chief Executive Officer of Forward Industries, stated “A relatively static quarter with a pleasing improvement in gross margin. Our effort to turnaround the business into profitability continues with several initiatives now in place. We remain committed to the path of growth and recovery.”

The tables below are derived from the Company’s condensed consolidated financial statements included in its Form 10-Q filed on February 14, 2024 with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements and further information regarding the Company’s results of operations and financial condition relating to the fiscal quarters ended December 31, 2023 and 2022. Please also refer to the Company’s Form 10-K for a discussion of risk factors applicable to the Company and its business.  

Cautionary 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 optimism for improved performance in fiscal year 2024 and profitability and growth in our businesses. 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, loss of additional customers, competition, pricing pressures, supply chain issues, inability of our design division’s customers to pay for our services, loss of talented employees, unanticipated issues with our affiliated sourcing agent, and issues at Chinese factories that source our products. 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 Company’s filings with the SEC, including the Company’s Form 10-K for the year ended September 30, 2023 for information regarding risk factors that could affect the Company’s 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 global design, sourcing and distribution group serving top tier medical and technology customers worldwide. Through its acquisitions of Intelligent Product Solutions, Inc. and Kablooe Design, Inc., the Company has expanded its ability to design and develop solutions for its 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. 

For more information, contact:        
Kathleen Weisberg, CFO, Forward Industries, Inc.                
(631) 547-3055, kweisberg@forwardindustries.com


FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
    
 December 31, September 30,
 2023 2023
Assets(Unaudited)  
    
Current assets:   
Cash$3,026,786  $3,180,468 
Accounts receivable, net 6,534,702   6,968,778 
Inventories, net 405,229   334,384 
Discontinued assets held for sale 135,604   508,077 
Prepaid expenses and other current assets 392,282   378,512 
Total current assets 10,494,603   11,370,219 
Property and equipment, net 265,346   274,046 
Intangible assets, net 839,954   893,143 
Goodwill 1,758,682   1,758,682 
Operating lease right-of-use assets, net 2,916,385   3,021,315 
Other assets 68,737   68,737 
Total assets$16,343,707  $17,386,142 
    
Liabilities and shareholders' equity   
    
Current liabilities:   
Note payable to Forward China$850,000  $- 
Accounts payable 392,202   518,892 
Due to Forward China 8,894,245   8,246,015 
Deferred income 250,405   297,407 
Current portion of operating lease liability 425,998   416,042 
Accrued expenses and other current liabilities 494,724   1,357,743 
Total current liabilities 11,307,574   10,836,099 
Other liabilities:   
Note payable to Forward China -   1,100,000 
Operating lease liability, less current portion 2,723,281   2,833,782 
Total other liabilities 2,723,281   3,933,782 
Total liabilities 14,030,855   14,769,881 
    
Commitments and contingencies   
    
Shareholders' equity:   
Common stock, par value $0.01 per share; 40,000,000 shares authorized;   
10,061,185 shares issued and outstanding at December 31, 2023   
and September 30, 2023 100,612   100,612 
Additional paid-in capital 20,253,013   20,202,202 
Accumulated deficit (18,040,773)  (17,686,553)
Total shareholders' equity 2,312,852   2,616,261 
Total liabilities and shareholders' equity$16,343,707  $17,386,142 
    



FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 For the Three Months Ended December 31,
  2023   2022 
    
    
Revenues, net$7,151,951  $9,752,684 
Cost of sales 5,509,465   7,786,614 
Gross profit 1,642,486   1,966,070 
    
Sales and marketing expenses 368,736   411,174 
General and administrative expenses 1,654,071   1,682,812 
Operating loss (380,321)  (127,916)
    
Fair value adjustment of earnout consideration -   (40,000)
Interest income (17,469)  - 
Interest expense 19,010   27,958 
Other income, net (687)  (24,560)
Loss from continuing operations before income taxes (381,175)  (91,314)
Provision for income taxes -   - 
Loss from continuing operations (381,175)  (91,314)
Income / (loss) from discontinued operations, net of tax 26,955   (338,961)
Net loss$(354,220) $(430,275)
    
    
Basic earnings/(loss) per share :   
Basic loss per share from continuing operations$(0.04) $(0.01)
Basic earnings/(loss) per share from discontinued operations 0.00   (0.03)
Basic loss per share$(0.04) $(0.04)
    
Diluted earnings/(loss) per share:   
Diluted loss per share from continuing operations$(0.04) $(0.01)
Diluted earnings/(loss) per share from discontinued operations 0.00   (0.03)
Diluted loss per share$(0.04) $(0.04)
    
Weighted average common shares outstanding:   
Basic 10,061,185   10,061,185 
Diluted 10,061,185   10,061,185 

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