Press Releases

Forward Reports Fiscal 2023 First Quarter Results

HAUPPAUGE, N.Y., Feb. 14, 2023 (GLOBE NEWSWIRE) — Forward Industries, Inc. (NASDAQ:FORD), a global design, manufacturing, sourcing and distribution group, today announced financial results for its first quarter ended December 31, 2022.

First Quarter Fiscal Year 2023 Financial Highlights  

  • Revenues were $10.8 million, a decrease of 6.9% from $11.6 million for the first quarter of fiscal year 2022.
  • Gross margin declined to 17.7% compared to 22.5% for the first quarter of fiscal year 2022.
  • Operating loss was $0.5 million compared to operating income of $0.2 million for the first quarter of fiscal year 2022.
  • Net loss was $0.4 million compared to net income of $0.2 million for the first quarter of fiscal year 2022.
  • Basic and diluted (loss)/earnings per share was $(0.04) compared to $0.02 for the first quarter of fiscal year 2022.
  • Cash balance of $2.3 million at December 31, 2022 as compared to $2.6 million at September 30, 2022.

Terry Wise, Chief Executive Officer of Forward Industries, stated, “This has clearly been a disappointing quarter and start to the fiscal year. Whilst the design division continued to grow, the legacy and logistical challenges within the retail and the OEM divisions have impacted the group’s performance. We are actively addressing these complex issues, and I am confident that in time these will be reflected in a positive performance.”

The tables below are derived from the Company’s consolidated financial statements included in its Form 10-Q filed on February 14, 2023 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, 2022 and 2021. 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 2023. 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, pricing pressures, lack of success of our sales people, failure to develop products at a profit, failure to commercialize products that we develop, continued supply chain issues, inability of our design division’s customers to pay for our services, unanticipated issues with our affiliated sourcing agent, issues at Chinese factories that we source our products as a result of the pandemic or otherwise, and failure to obtain acceptance of 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, 2022 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, manufacturing, 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. In addition to our existing design and distribution of carry and protective solutions, primarily for handheld 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.

For more information, contact:        
Anthony Camarda, CFO, Forward Industries, Inc.                
(631) 547-3041,

        December 31,   September 30,
        2022   2022
Assets (Unaudited)    
Current assets:      
  Cash $ 2,331,806     $ 2,575,522  
  Accounts receivable, net   8,523,079       7,542,666  
  Inventories, net   4,138,879       3,801,030  
  Prepaid expenses and other current assets   394,343       417,605  
      Total current assets   15,388,107       14,336,823  
Property and equipment, net   261,917       241,146  
Intangible assets, net   1,052,711       1,105,901  
Goodwill   1,758,682       1,758,682  
Operating lease right of use assets, net   3,328,047       3,427,726  
Other assets   68,737       68,737  
      Total assets $ 21,858,201     $ 20,939,015  
Liabilities and shareholders’ equity      
Current liabilities:      
  Accounts payable $ 576,449     $ 268,160  
  Due to Forward China   9,475,932       7,713,880  
  Deferred income   334,588       438,878  
  Current portion of earnout consideration         25,000  
  Current portion of operating lease liability   387,222       377,940  
  Accrued expenses and other current liabilities   694,644       1,153,906  
      Total current liabilities   11,468,835       9,977,764  
Other liabilities:      
  Note payable to Forward China   1,350,000       1,400,000  
  Operating lease liability, less current portion   3,149,279       3,249,824  
  Earnout consideration, less current portion   30,000       45,000  
    Total other liabilities   4,529,279       4,694,824  
      Total liabilities   15,998,114       14,672,588  
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, 2022      
    and September 30, 2022   100,612       100,612  
  Additional paid-in capital   20,139,646       20,115,711  
  Accumulated deficit   (14,380,171 )     (13,949,896 )
      Total shareholders’ equity   5,860,087       6,266,427  
      Total liabilities and shareholders’ equity $ 21,858,201     $ 20,939,015  

  For the Three Months Ended December 31,
  2022   2021
Revenues, net $ 10,809,679     $ 11,613,741  
Cost of sales   8,890,978       8,994,973  
Gross profit   1,918,701       2,618,768  
Sales and marketing expenses   690,300       737,677  
General and administrative expenses   1,695,278       1,666,877  
(Loss)/income from operations   (466,877 )     214,214  
Fair value adjustment of earnout consideration   (40,000 )      
Interest expense   27,958       32,828  
Other (income)/expense, net   (24,560 )     1,362  
(Loss)/income before income taxes   (430,275 )     180,024  
Provision for income taxes          
Net (loss)/income $ (430,275 )   $ 180,024  
(Loss)/earnings per share:      
Basic $ (0.04 )   $ 0.02  
Diluted $ (0.04 )   $ 0.02  
Weighted average common shares outstanding:      
Basic   10,061,185       10,061,185  
Diluted   10,061,185       10,337,113  

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