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