FORD - 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, kweisberg@forwardindustries.com
| 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 |