Forward Reports Fiscal 2022 Results

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

HAUPPAUGE, N.Y., Dec. 16, 2022 (GLOBE NEWSWIRE) — Forward Industries, Inc. (NASDAQ:FORD), a global design, manufacturing, sourcing and distribution group, today announced financial results for the year ended September 30, 2022.

Full Fiscal Year 2022 Financial Highlights

  • Revenues were $42.3 million, an increase of 8.5% from $39.0 million for 2021.
  • Gross margin declined to 19.8% compared to 20.8% for 2021.
  • Operating loss was $1.2 million compared to $0.8 million in 2021.
  • Net loss was $1.4 million compared to net income of $0.5 million in 2021 (which included a $1.4 million gain as a result of the forgiveness of a PPP loan).
  • Basic and diluted (loss)/earnings per share was $(0.14) compared to $0.05 for 2021.
  • Cash balance of $2.6 million at September 30, 2022 as compared to $1.4 million at September 30, 2021.

Terry Wise, Chief Executive Officer of Forward Industries, stated “As expected, this has been a challenging fiscal year. That said, our design division, in particular, IPS, has generated its best results since acquisition, which partially offset the disappointing results in our retail and OEM businesses. With our continued focus on mitigating the difficulties within these divisions, I am optimistic we will have a relatively improved performance in fiscal year 2023.”

The tables below are derived from the Company’s consolidated financial statements included in its Form 10-K filed on December 16, 2022 with the Securities and Exchange Commission. Please refer to the Form 10-K for complete financial statements and further information regarding the Company’s results of operations and financial condition relating to the fiscal years ended September 30, 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, 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, acamarda@forwardindustries.com

 
 
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
           
      September 30
        2022       2021  
Assets      
           
Current assets:      
  Cash $ 2,575,522     $ 1,410,365  
  Accounts receivable, net   7,542,666       8,760,715  
  Inventories, net   3,801,030       2,062,557  
  Prepaid expenses and other current assets   417,605       561,072  
           
    Total current assets   14,336,823       12,794,709  
           
Property and equipment, net   241,146       167,997  
Intangible assets, net   1,105,901       1,318,658  
Goodwill   1,758,682       1,758,682  
Operating lease right of use assets, net   3,427,726       3,743,242  
Other assets   68,737       72,251  
           
    Total assets $ 20,939,015     $ 19,855,539  
           
Liabilities and shareholders’ equity      
           
Current liabilities:      
  Accounts payable $ 268,160     $ 391,992  
  Due to Forward China   7,713,880       5,733,708  
  Deferred income   438,878       187,695  
  Current portion of earnout consideration   25,000       25,000  
  Current portion of operating lease liability   377,940       340,151  
  Accrued expenses and other current liabilities   1,153,906       529,497  
    Total current liabilities   9,977,764       7,208,043  
           
Other liabilities:      
  Note payable to Forward China   1,400,000       1,600,000  
  Operating lease liability, less current portion   3,249,824       3,559,053  
  Earnout consideration, less current portion   45,000       45,000  
           
    Total liabilities   14,672,588       12,412,096  
           
Commitments and contingencies (Note 11)      
           
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, 2022 and 2021   100,612       100,612  
  Additional paid-in capital   20,115,711       19,914,476  
  Accumulated deficit   (13,949,896 )     (12,571,645 )
           
    Total shareholders’ equity   6,266,427       7,443,443  
           
    Total liabilities and shareholders’ equity $ 20,939,015     $ 19,855,539  

 
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
     
    For the Fiscal Years Ended September 30,
      2022       2021  
         
         
Revenues, net $ 42,337,385     $ 39,021,996  
Cost of sales   33,969,115       30,887,577  
  Gross profit   8,368,270       8,134,419  
         
Sales and marketing expenses   2,854,664       2,503,518  
General and administrative expenses   6,753,280       6,395,900  
         
  Loss from operations   (1,239,674 )     (764,999 )
         
Gain on forgiveness of note payable   –       (1,356,570 )
Fair value adjustment of earnout consideration   –       (20,000 )
Interest income   –       (88,760 )
Interest expense   123,411       171,957  
Other expense, net   12,612       4,569  
  (Loss)/income before income taxes   (1,375,697 )     523,805  
         
Provision for income taxes   2,554       –  
         
  Net (loss)/income $ (1,378,251 )   $ 523,805  
         
(Loss)/earnings per share:      
  Basic $ (0.14 )   $ 0.05  
  Diluted $ (0.14 )   $ 0.05  
         
Weighted average common shares outstanding:      
  Basic   10,061,185       9,950,094  
  Diluted   10,061,185       10,443,018  
         

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