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, 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