Forward Industries Inc FWDI Stock Analysis

About Forward Industries Inc

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 CONDENSED CONSOLIDATED BALANCE SHEETS March 31, September 30, 2024 2023 Assets (Unaudited) Current assets: Cash $ 2,261,853 $ 3,180,468 Accounts receivable, net of allowances for credit losses of $771,189 and $955,965 as of March 31, 2024 and September 30, 2023, respectively 6,484,427 6,968,778 Inventories, net 308,895 334,384 Discontinued assets held for sale - 508,077 Prepaid expenses and other current assets 457,071 378,512 Total current assets 9,512,246 11,370,219 Property and equipment, net 254,971 274,046 Intangible assets, net 786,765 893,143 Goodwill 1,758,682 1,758,682 Operating lease right-of-use assets, net 2,810,059 3,021,315 Other assets 68,737 68,737 Total assets $ 15,191,460 $ 17,386,142 Liabilities and shareholders' equity Current liabilities: Note payable to Forward China $ 750,000 $ - Accounts payable 147,518 518,892 Due to Forward China 8,687,898 8,246,015 Deferred income 228,827 297,407 Current portion of operating lease liability 423,042 416,042 Accrued expenses and other current liabilities 560,494 1,357,743 Total current liabilities 10,797,779 10,836,099 Other liabilities: Note payable to Forward China - 1,100,000 Operating lease liability, less current portion 2,623,814 2,833,782 Total other liabilities 2,623,814 3,933,782 Total liabilities 13,421,593 14,769,881 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, 2024 and September 30, 2023 100,612 100,612 Additional paid-in capital 20,263,242 20,202,202 Accumulated deficit (18,593,987 ) (17,686,553 ) Total shareholders' equity 1,769,867 2,616,261 Total liabilities and shareholders' equity $ 15,191,460 $ 17,386,142 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, 2024 2023 2024 2023 Revenues, net $ 7,830,130 $ 9,738,804 $ 14,982,080 $ 19,491,488 Cost of sales 6,222,432 7,813,696 11,731,897 15,600,310 Gross profit 1,607,698 1,925,108 3,250,183 3,891,178 Sales and marketing expenses 370,839 450,380 739,575 861,554 General and administrative expenses 1,776,491 1,566,549 3,430,561 3,249,360 Operating loss (539,632 ) (91,821 ) (919,953 ) (219,736 ) Fair value adjustment of earnout consideration - - - (40,000 ) Interest income (18,712 ) (856 ) (36,180 ) (856 ) Interest expense 16,971 26,781 35,981 54,739 Other income, net 7,846 965 7,158 (23,595 ) Loss from continuing operations before income taxes (545,737 ) (118,711 ) (926,912 ) (210,024 ) Provision for income taxes - - - - Loss from continuing operations (545,737 ) (118,711 ) (926,912 ) (210,024 ) (Loss) / income from discontinued operations, net of tax (7,477 ) (752,237 ) 19,478 (1,091,199 ) Net loss $ (553,214 ) $ (870,948 ) $ (907,434 ) $ (1,301,223 ) Basic loss per share : Basic loss per share from continuing operations $ (0.05 ) $ (0.01 ) $ (0.09 ) $ (0.02 ) Basic loss per share from discontinued operations (0.00 ) (0.07 ) 0.00 (0.11 ) Basic loss per share $ (0.05 ) $ (0.09 ) $ (0.09 ) $ (0.13 ) Diluted loss per share: Diluted loss per share from continuing operations $ (0.05 ) $ (0.01 ) $ (0.09 ) $ (0.02 ) Diluted loss per share from discontinued operations (0.00 ) (0.07 ) 0.00 (0.11 ) Diluted loss per share $…