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Forward Reports Fiscal 2022 Results

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Forward Industries reported its financial results for the fiscal year ending September 30, 2022, showing revenues of $42.3 million, an increase of 8.5% from $39.0 million in 2021. However, the company faced challenges as gross margin fell to 19.8% from 20.8% the previous year, resulting in an operating loss of $1.2 million compared to $0.8 million in 2021. The net loss was reported at $1.4 million, down from net income of $0.5 million in 2021. The company ended the period with a cash balance of $2.6 million.

Positive
  • Revenues increased by 8.5% to $42.3 million.
  • Design division, IPS, achieved best results since acquisition.
Negative
  • Gross margin declined to 19.8% from 20.8%.
  • Reported an operating loss of $1.2 million compared to $0.8 million last year.
  • Net loss reached $1.4 million, down from net income of $0.5 million in 2021.
  • Basic and diluted loss per share of $(0.14) compared to earnings of $0.05 in 2021.

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 
     



FAQ

What were Forward Industries' financial results for 2022?

Forward Industries reported revenues of $42.3 million for the year ended September 30, 2022, an 8.5% increase from 2021.

How did Forward Industries' gross margin change in 2022?

The gross margin for Forward Industries declined to 19.8% in 2022 from 20.8% in 2021.

What was Forward Industries' net loss for the fiscal year 2022?

Forward Industries reported a net loss of $1.4 million for the fiscal year ended September 30, 2022.

What is the basic and diluted EPS for Forward Industries in 2022?

The basic and diluted loss per share for Forward Industries was $(0.14) in 2022.

What is the cash balance of Forward Industries as of September 30, 2022?

Forward Industries had a cash balance of $2.6 million at September 30, 2022.

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