Forward Reports Preliminary Fiscal 2023 Results: Record Revenues for Design Division Drive Profitability From Continuing Operations

HAUPPAUGE, N.Y., Dec. 20, 2023 (GLOBE NEWSWIRE) — Forward Industries, Inc. (NASDAQ:FORD), a global design, sourcing and distribution group, today announced preliminary financial results for the fiscal year ended September 30, 2023.

Preliminary Fiscal Year 2023 Financial Highlights

  • Revenues were $36.7 million, a decrease of 3.9% from $38.2 million for 2022 with IPS from the design division recording record revenues in 2023.
  • Gross margin declined to 22.8% compared to 23.0% for 2022.
  • Income from continuing operations was $0.2 million compared to $0.4 million in 2022 and net loss was $3.7 million compared to $1.4 million in 2022.
  • Basic and diluted earnings per share from continuing operations was $0.02 compared to $0.04 for 2022.
  • Cash balance of $3.2 million at September 30, 2023 compared to $2.6 million at September 30, 2022, an increase of 23%.

Terry Wise, Chief Executive Officer of Forward Industries, stated “Having discontinued retail operations, the company’s continuing operations were profitable in fiscal 2023, cash positive and on a path of substantive growth. I am particularly pleased to report that our subsidiary within our design division, IPS, achieved historically high revenues and profitability. Having completed the turnaround of the business, during the next fiscal year we will seek to grow our organic businesses significantly. We will also pursue suitable acquisition/venture opportunities. Thus, I am excited for the Company’s prospects over the next fiscal year as I am optimistic it will be profitable and one of noteworthy growth.”

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, profitability and growth in our organic businesses, and pursuing acquisition/venture 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 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, 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, 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, [email protected]

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
      September 30,
        2023       2022  
Assets      
           
Current assets:      
  Cash $ 3,180,468     $ 2,575,522  
  Accounts receivable, net   6,968,778       7,542,666  
  Inventories, net   334,384       650,853  
  Discontinued assets held for sale   508,077       3,150,177  
  Prepaid expenses and other current assets   378,512       417,605  
           
    Total current assets   11,370,219       14,336,823  
           
Property and equipment, net   274,046       241,146  
Intangible assets, net   893,143       1,105,901  
Goodwill   1,758,682       1,758,682  
Operating lease right-of-use assets, net   3,021,315       3,427,726  
Other assets   68,737       68,737  
           
    Total assets $ 17,386,142     $ 20,939,015  
           
Liabilities and shareholders’ equity      
           
Current liabilities:      
  Accounts payable $ 518,892     $ 268,160  
  Due to Forward China   8,246,015       7,713,880  
  Deferred income   297,407       438,878  
  Current portion of earnout consideration         25,000  
  Current portion of operating lease liability   416,042       377,940  
  Accrued expenses and other current liabilities   1,357,743       1,153,906  
    Total current liabilities   10,836,099       9,977,764  
           
Other liabilities:      
  Note payable to Forward China   1,100,000       1,400,000  
  Operating lease liability, less current portion   2,833,782       3,249,824  
  Earnout consideration, less current portion         45,000  
           
    Total liabilities   14,769,881       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 September 30, 2023 and 2022   100,612       100,612  
  Additional paid-in capital   20,202,202       20,115,711  
  Accumulated deficit   (17,686,553 )     (13,949,896 )
           
    Total shareholders’ equity   2,616,261       6,266,427  
           
    Total liabilities and shareholders’ equity $ 17,386,142     $ 20,939,015  
           
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
  For the Fiscal Years Ended September 30,
    2023       2022  
       
       
Revenues, net $ 36,688,307     $ 38,206,958  
Cost of sales   28,323,822       29,407,009  
Gross profit   8,364,485       8,799,949  
       
Sales and marketing expenses   1,663,791       1,477,936  
General and administrative expenses   6,541,036       6,733,543  
       
Operating income   159,658       588,470  
       
Fair value adjustment of earnout consideration   (70,000 )      
Interest income   (23,188 )      
Interest expense   104,201       123,411  
Other (income)/expense, net   (30,019 )     12,612  
Income from continuing operations before income taxes   178,664       452,447  
       
Provision for income taxes   20,006       2,554  
Income from continuing operations   158,658       449,893  
 Loss from discontinued operations, net of tax   (3,895,315 )     (1,828,144 )
Net loss $ (3,736,657 )   $ (1,378,251 )
       
       
Basic earnings/(loss) per share :      
Basic earnings per share from continuing operations $ 0.02     $ 0.04  
Basic loss per share from discontinued operations   (0.39 )     (0.18 )
Basic loss per share $ (0.37 )   $ (0.14 )
       
Diluted earnings/(loss) per share:      
Diluted earnings per share from continuing operations $ 0.02     $ 0.04  
Diluted loss per share from discontinued operations   (0.39 )     (0.18 )
Diluted loss per share $ (0.37 )   $ (0.14 )
       
Weighted average common shares outstanding:      
Basic   10,061,185       10,061,185  
Diluted   10,061,185       10,200,792  
       

 

 


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