Forward Reports Fiscal 2022 Second Quarter Results
May 12 2022 - 4:30PM
Forward Industries, Inc. (NASDAQ:FORD), a single source solution
provider for the full spectrum of hardware and software product
design and engineering services as well as a designer and
distributor of carry and protective solutions, today announced
financial results for its second quarter ended March 31, 2022.
Second Quarter Fiscal 2022 Financial
Highlights
- Revenues were $10.3 million, an
increase of 22.6% from $8.4 million for the three months ended
March 31, 2021.
- Gross margin improved to 21.8%
compared to 20.8% for the three months ended March 31, 2021.
- Operating loss was $0.3 million
compared to $0.8 million for the three months ended March 31,
2021.
- Net loss was $0.4 million compared
to $0.8 million for the three months 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 at
March 31, 2022 as compared to $1.4 million at September 30,
2021.
Terry Wise, Chief Executive Officer of Forward
Industries, stated “I am overall pleased with our improved Q2 2022
fiscal year results. The resilient performance of the business is
largely due to continued strong results within our design division,
principally IPS. This has helped offset the ongoing logistical
difficulties within retail and we are proactively seeking solutions
to mitigate these challenges. Finally, the OEM distribution sector
remains as per expectations, and we continue to focus our resources
away from the declining diabetic sector. Based on our
second quarter performance, and our internal proactive efforts, I
continue to remain cautiously optimistic for the remainder fiscal
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 the Form 10-Q for complete financial statements and
further information regarding the Company’s results of operations
and financial condition relating to the fiscal quarters ended March
31, 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 pipeline of
work and projects, growth in sales for our retail business, seeking
solutions to mitigate logistical difficulties and growth in our
design division. 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 by
big box retail stores. 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, 2021 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 fully integrated design,
development and manufacturing solution provider to 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 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
March 31, |
|
September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
Assets |
(Unaudited) |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
Cash |
$ |
1,541,192 |
|
|
$ |
1,410,365 |
|
|
Accounts receivable, net |
|
8,685,896 |
|
|
|
8,760,715 |
|
|
Inventories, net |
|
3,897,479 |
|
|
|
2,062,557 |
|
|
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 |
|
|
Goodwill |
|
1,758,682 |
|
|
|
1,758,682 |
|
|
Operating lease right of use assets, net |
|
3,741,813 |
|
|
|
3,743,242 |
|
|
Other assets |
|
72,251 |
|
|
|
72,251 |
|
|
|
|
|
|
|
Total assets |
$ |
21,973,187 |
|
|
$ |
19,855,539 |
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
Note payable to Forward China |
$ |
1,500,000 |
|
|
$ |
- |
|
|
Accounts payable |
|
463,901 |
|
|
|
391,992 |
|
|
Due to Forward China |
|
7,239,885 |
|
|
|
5,733,708 |
|
|
Deferred income |
|
620,572 |
|
|
|
187,695 |
|
|
Current portion of earnout 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 |
|
|
|
|
|
|
|
Other liabilities: |
|
|
|
|
Note payable to Forward China |
|
- |
|
|
|
1,600,000 |
|
|
Operating lease liability, less current portion |
|
3,514,064 |
|
|
|
3,559,053 |
|
|
Earnout consideration, less current portion |
|
45,000 |
|
|
|
45,000 |
|
|
Total other liabilities |
|
3,559,064 |
|
|
|
5,204,053 |
|
|
|
|
|
|
|
Total liabilities |
|
14,601,243 |
|
|
|
12,412,096 |
|
|
|
|
|
|
|
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 March
31, 2022 and September 30, 2021 |
|
100,612 |
|
|
|
100,612 |
|
|
Additional paid-in capital |
|
20,019,288 |
|
|
|
19,914,476 |
|
|
Accumulated deficit |
|
(12,747,956 |
) |
|
|
(12,571,645 |
) |
|
|
|
|
|
|
Total shareholders' equity |
|
7,371,944 |
|
|
|
7,443,443 |
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
21,973,187 |
|
|
$ |
19,855,539 |
|
|
|
|
|
|
|
FORWARD INDUSTRIES, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(UNAUDITED) |
|
|
|
|
|
|
|
For the Three Months Ended March 31, |
|
For the Six Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Revenues, net |
$ |
10,314,563 |
|
|
$ |
8,395,379 |
|
|
$ |
21,928,304 |
|
|
$ |
18,112,982 |
|
Cost of sales |
|
8,061,889 |
|
|
|
6,651,933 |
|
|
|
17,056,861 |
|
|
|
14,106,650 |
|
Gross profit |
|
2,252,674 |
|
|
|
1,743,446 |
|
|
|
4,871,443 |
|
|
|
4,006,332 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(322,739 |
) |
|
|
(816,176 |
) |
|
|
(108,525 |
) |
|
|
(983,669 |
) |
|
|
|
|
|
|
|
|
Gain on forgiveness of note payable |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,356,570 |
) |
Fair value adjustment of earn-out consideration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(30,000 |
) |
Interest income |
|
- |
|
|
|
(33,554 |
) |
|
|
- |
|
|
|
(56,301 |
) |
Interest expense |
|
30,864 |
|
|
|
46,714 |
|
|
|
63,691 |
|
|
|
93,106 |
|
Other expense, net |
|
2,732 |
|
|
|
5,392 |
|
|
|
4,095 |
|
|
|
1,788 |
|
(Loss)/income before income taxes |
|
(356,335 |
) |
|
|
(834,728 |
) |
|
|
(176,311 |
) |
|
|
364,308 |
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Net (loss)/income |
$ |
(356,335 |
) |
|
$ |
(834,728 |
) |
|
$ |
(176,311 |
) |
|
$ |
364,308 |
|
|
|
|
|
|
|
|
|
(Loss)/earnings per share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.04 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.02 |
) |
|
$ |
0.04 |
|
Diluted |
$ |
(0.04 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.02 |
) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
10,061,185 |
|
|
|
9,909,497 |
|
|
|
10,061,185 |
|
|
|
9,897,385 |
|
Diluted |
|
10,061,185 |
|
|
|
9,909,497 |
|
|
|
10,061,185 |
|
|
|
10,378,733 |
|
|
|
|
|
|
|
|
|
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