Forward Reports Fiscal 2024 Second Quarter Results

HAUPPAUGE, N.Y., May 10, 2024 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (NASDAQ:FORD), a global design, sourcing and distribution group, today announced financial results for its second quarter ended March 31, 2024.

Second Quarter Fiscal Year 2024 Financial Highlights   

• Revenues were $7.8 million, a decrease of 19.6% from $9.7 million for 2023.
  
  
• Gross margin increased to 20.5% compared to 19.8% for 2023.
  
  
• Loss from continuing operations was $0.5 million compared to $0.1 million in 2023 and net loss was $0.6 million compared to $0.9 million in 2023.
  
  
• Basic and diluted loss per share from continuing operations was $0.05 compared to $0.01 for 2023.
  
  
• Cash balance of $2.3 million at March 31, 2024 compared to $3.2 million at September 30, 2023.
  

Terry Wise, Chief Executive Officer of Forward Industries, stated “The business continues to focus on proactively taking measures to return the group to profitability. Costs from our discontinued retail division have largely come to a conclusion. While this is pleasing, we will need a prolonged sustained effort from all our divisions to fulfill our objective of robust growth and profitability.”

The tables below are derived from the Company’s condensed consolidated financial statements included in its Form 10-Q filed on May 10, 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 March 31, 2024 and 2023. 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 profitability and growth. 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.                
[phone], [e-mail]

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
				March 31,				September 30,
					2024				2023
Assets				(Unaudited)
Current assets:
	Cash			$	2,261,853			$	3,180,468
	Accounts receivable, net of allowances for credit losses of $771,189 and
		$955,965 as of March 31, 2024 and September 30, 2023, respectively			6,484,427				6,968,778
	Inventories, net				308,895				334,384
	Discontinued assets held for sale				-				508,077
	Prepaid expenses and other current assets				457,071				378,512
			Total current assets		9,512,246				11,370,219
Property and equipment, net					254,971				274,046
Intangible assets, net					786,765				893,143
Goodwill					1,758,682				1,758,682
Operating lease right-of-use assets, net					2,810,059				3,021,315
Other assets					68,737				68,737
			Total assets	$	15,191,460			$	17,386,142
Liabilities and shareholders' equity
Current liabilities:
	Note payable to Forward China			$	750,000			$	-
	Accounts payable				147,518				518,892
	Due to Forward China				8,687,898				8,246,015
	Deferred income				228,827				297,407
	Current portion of operating lease liability				423,042				416,042
	Accrued expenses and other current liabilities				560,494				1,357,743
			Total current liabilities		10,797,779				10,836,099
Other liabilities:
	Note payable to Forward China				-				1,100,000
	Operating lease liability, less current portion				2,623,814				2,833,782
		Total other liabilities			2,623,814				3,933,782
			Total liabilities		13,421,593				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 March 31, 2024
		and September 30, 2023			100,612				100,612
	Additional paid-in capital				20,263,242				20,202,202
	Accumulated deficit				(18,593,987	)			(17,686,553	)
			Total shareholders' equity		1,769,867				2,616,261
			Total liabilities and shareholders' equity	$	15,191,460			$	17,386,142

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
	For the Three Months Ended March 31,								For the Six Months Ended March 31,
		2024				2023				2024				2023
Revenues, net	$	7,830,130			$	9,738,804			$	14,982,080			$	19,491,488
Cost of sales		6,222,432				7,813,696				11,731,897				15,600,310
Gross profit		1,607,698				1,925,108				3,250,183				3,891,178
Sales and marketing expenses		370,839				450,380				739,575				861,554
General and administrative expenses		1,776,491				1,566,549				3,430,561				3,249,360
Operating loss		(539,632	)			(91,821	)			(919,953	)			(219,736	)
Fair value adjustment of earnout consideration		-				-				-				(40,000	)
Interest income		(18,712	)			(856	)			(36,180	)			(856	)
Interest expense		16,971				26,781				35,981				54,739
Other income, net		7,846				965				7,158				(23,595	)
Loss from continuing operations before income taxes		(545,737	)			(118,711	)			(926,912	)			(210,024	)
Provision for income taxes		-				-				-				-
Loss from continuing operations		(545,737	)			(118,711	)			(926,912	)			(210,024	)
(Loss) / income from discontinued operations, net of tax		(7,477	)			(752,237	)			19,478				(1,091,199	)
Net loss	$	(553,214	)		$	(870,948	)		$	(907,434	)		$	(1,301,223	)
Basic loss per share :
Basic loss per share from continuing operations	$	(0.05	)		$	(0.01	)		$	(0.09	)		$	(0.02	)
Basic loss per share from discontinued operations		(0.00	)			(0.07	)			0.00				(0.11	)
Basic loss per share	$	(0.05	)		$	(0.09	)		$	(0.09	)		$	(0.13	)
Diluted loss per share:
Diluted loss per share from continuing operations	$	(0.05	)		$	(0.01	)		$	(0.09	)		$	(0.02	)
Diluted loss per share from discontinued operations		(0.00	)			(0.07	)			0.00				(0.11	)
Diluted loss per share	$	(0.05	)		$	(0.09	)		$	(0.09	)		$	(0.13	)
Weighted average common shares outstanding:
Basic		10,061,185				10,061,185				10,061,185				10,061,185
Diluted		10,061,185				10,061,185				10,061,185				10,061,185