HAUPPAUGE, NY, May 12, 2022 (GLOBE NEWSWIRE) — Forward Industries, Inc. (NASDAQ: FORD), a single-source solution provider for the full range of hardware and software product design and engineering services, as well a designer and distributor of carrying and protection solutions, today announced its financial results for its second quarter ended March 31, 2022.
Second Quarter Fiscal 2022 Financial Highlights
- Revenue was $10.3 million, an increase of 22.6% from $8.4 million for the quarter ended March 31, 2021.
- Gross margin improved to 21.8% from 20.8% for the quarter ended March 31, 2021.
- Operating loss was $0.3 million, compared to $0.8 million for the quarter ended March 31, 2021.
- Net loss was $0.4 million compared to $0.8 million for the quarter ended March 31, 2021.
- Basic and diluted loss per share was $0.04 compared to $0.08 for the three months ended March 31, 2021.
- Cash balance of $1.5 million as of March 31, 2022, compared to $1.4 million as of September 30, 2021.
Terry Wise, President and Chief Executive Officer of Forward Industries, said, “I am pleased overall with the improvement in our results for the second quarter fiscal year 2022. The resilient performance of the business is largely due to results strong and continuous from our design division, mainly IPS. This has helped offset ongoing logistical challenges within retail and we are proactively seeking solutions to mitigate these challenges. Finally, the OEM distribution sector remains in line with expectations and we continue to focus our resources away from the declining diabetes sector. Based on our performance in the second quarter and our proactive internal efforts, I continue to remain cautiously optimistic for the remainder of the year. »
The tables below are derived from the Company’s consolidated financial statements included in its Form 10-Q filed on May 12, 2022 with the Securities and Exchange Commission. Please refer to Form 10-Q for complete financial statements and further information regarding the Company’s results of operations and financial condition for the fiscal quarters ended March 31, 2022 and 2021. Please also refer to Form 10 -K of the Company for a discussion of the risk factors applicable to the Company and its business.
Caution 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 pipeline of works and projects, the growth of sales in our retail business, looking for solutions to alleviate logistical challenges and growth in our design division. Forward has attempted 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 or implied by , these forward-looking statements. These risks include the inability to expand our customer base, pricing pressures, the lack of success of our vendors, the inability to develop products at a profit, the inability to commercialize the products we develop, persistent problems in the supply chain, the inability of customers of our design division to pay for our services, unforeseen problems with our affiliated sourcing agent, problems in the Chinese factories where we source our products as a result of the pandemic or otherwise, and the inability to obtain acceptance of our products by mass retail stores. There can be no assurance that actual results will be consistent with forward-looking statements. Investors should carefully read 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 fiscal year ended September 30, 2021 for information on the risk factors likely to affect the results of the Company. Except as 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, change circumstances or any other reason.
About Forward Industries
Forward is a provider of fully integrated design, development and manufacturing solutions for leading 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 customer base and expand beyond the range of diabetic products in 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 transport and protection solutions, primarily for portable electronic devices, we are now a one-stop-shop for design development and manufacturing solutions serving a wide range of customers in the industrial, commercial, medical and consumer sectors. .
For more information contact:
Anthony Camarda, Chief Financial Officer, Forward Industries, Inc.
(631) 547-3041, [email protected]
|FORWARD INDUSTRIES, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEET|
|March, 31st,||September 30,|
|Accounts receivable, net||8,685,896||8,760,715|
|Prepaid expenses and other current assets||816 250||561,072|
|Total current assets||14,940,817||12,794,709|
|Property and equipment, net||247 345||167,997|
|Intangible assets, net||1,212,279||1,318,658|
|Rights of use for operating leases, net||3,741,813||3,743,242|
|Liabilities and equity|
|Note payable to Forward China||$||1.5 million||$||–|
|Accounts payable||463,901||391 992|
|Due to Forward China||7,239,885||5,733,708|
|Deferred revenue||620 572||187,695|
|Current portion of earn-out consideration||25,000||25,000|
|Current portion of operating lease liability||405 811||340 151|
|Accrued expenses and other current liabilities||787,010||529 497|
|Total current liabilities||11,042,179||7,208,043|
|Note payable to Forward China||–||1,600,000|
|Operating lease liability, less current portion||3,514,064||3,559,053|
|Additional price, less the current part||45,000||45,000|
|Total other liabilities||3,559,064||5,204,053|
|Commitments and contingencies|
|Common shares, par value $0.01 per share; 40,000,000 shares authorized; 10,061,185 shares issued and outstanding as of March 31, 2022 and September 30, 2021||100,612||100,612|
|Total liabilities and equity||$||21,973,187||$||19,855,539|
|FORWARD INDUSTRIES, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF INCOME|
|For the three months ended March 31,||For the six months ended March 31,|
|Cost of sales||8,061,889||6,651,933||17,056,861||14,106,650|
|Sales and marketing expenses||704 102||578,436||1,441,780||1,181,397|
|General and administrative expenses||1 871 311||1,981,186||3,538,188||3,808,604|
|Operating loss||(322,739||)||(816 176||)||(108,525||)||(983,669||)|
|Gain on ticket discount payable||–||–||–||(1,356,570||)|
|Earnings fair value adjustment||–||–||–||(30,000||)|
|Interest expense||30,864||46,714||63,691||93 106|
|Other expenses, net||2,732||5,392||4,095||1,788|
|(Loss)/profit before income taxes||(356,335||)||(834,728||)||(176,311||)||364 308|
|Provision for income taxes||–||–||–||–|
|(Loss)/net income||$||(356,335||)||$||(834,728||)||$||(176,311||)||$||364 308|
|(Loss)/earnings per share:|
|Weighted average common shares outstanding:|