Forward Reports Fiscal 2022 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,
| 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 | ||||||
