Forward Industries Reports Q3 Sales Jump

TL;DR

Forward Industries sales up big time in Q3! 🚀

AI Summary

Forward Industries, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported net sales of $13.0 million for the three months ended June 30, 2024, compared to $7.2 million for the same period in 2023. For the nine months ended June 30, 2024, net sales were $38.3 million, an increase from $30.4 million in the prior year period. The company's fiscal year ends on September 30.

Why It Matters

The significant increase in net sales suggests improved market demand or successful business strategies for Forward Industries, potentially impacting investor confidence and future stock performance.

Risk Assessment

Risk Level: medium — The filing is a routine quarterly report, but the significant sales increase warrants attention to understand the drivers and sustainability.

Key Numbers

• $13.0M — Q3 Net Sales (2024) (Significant increase from $7.2M in Q3 2023)
• $38.3M — Nine Months Net Sales (2024) (Up from $30.4M in the prior year period)
• 0930 — Fiscal Year End (Standard reporting cycle)

Key Players & Entities

• Forward Industries, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• $13.0 million (dollar_amount) — Net sales for the three months ended June 30, 2024
• $7.2 million (dollar_amount) — Net sales for the three months ended June 30, 2023
• $38.3 million (dollar_amount) — Net sales for the nine months ended June 30, 2024
• $30.4 million (dollar_amount) — Net sales for the nine months ended June 30, 2023
• 0930 (date) — Fiscal year end

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 FORD The Nasdaq Stock Market (The N
• $500,000 — uld seek to collect from the Company to $500,000 in any 12-month period, which the Compa
• $7,365,000 — ng at October 30, 2023 of approximately $7,365,000. Purchases from Forward China made afte

Filing Documents

• forward_i10q-063024.htm (10-Q) — 820KB
• forward_ex3101.htm (EX-31.1) — 8KB
• forward_ex3102.htm (EX-31.2) — 8KB
• forward_ex3201.htm (EX-32.1) — 7KB
• 0001683168-24-005693.txt ( ) — 4591KB
• ford-20240630.xsd (EX-101.SCH) — 32KB
• ford-20240630_cal.xml (EX-101.CAL) — 52KB
• ford-20240630_def.xml (EX-101.DEF) — 113KB
• ford-20240630_lab.xml (EX-101.LAB) — 306KB
• ford-20240630_pre.xml (EX-101.PRE) — 254KB
• forward_i10q-063024_htm.xml (XML) — 646KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets at June 30, 2024 (Unaudited) and September 30, 2023 3 Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Shareholders' Equity (Unaudited) for the Three and Nine Months Ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended June 30, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3. Defaults Upon Senior Securities 32 Item 4. Mine Safety Disclosures 32 Item 5. Other Information 32 Item 6. Exhibits 32 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS FORWARD INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, September 30, 2024 2023 Assets (Unaudited) (See Note 2) Current assets: Cash $ 2,558,703 $ 3,180,468 Accounts receivable, net of allowances for credit losses of $ 773,917 and $ 955,965 as of June 30, 2024 and September 30, 2023, respectively 6,486,292 6,968,778 Inventories, net 243,315 334,384 Discontinued assets held for sale – 508,077 Prepaid expenses and other current assets 440,037 378,512 Total current assets 9,728,347 11,370,219 Property and equipment, net 234,710 274,046 Intangible assets, net 733,575 893,143 Goodwill 1,758,682 1,758,682 Operating lease right-of-use assets, net 2,702,315 3,021,315 Other assets 68,737 68,737 Total assets $ 15,226,366 $ 17,386,142 Liabilities and shareholders' equity Current liabilities: Note payable to Forward China (related party) $ 600,000 $ – Accounts payable 144,549 518,892 Due to Forward China (related party) 9,301,030 8,246,015 Deferred income 204,995 297,407 Current portion of operating lease liability 410,813 416,042 Accrued expenses and other current liabilities 642,479 1,357,743 Total current liabilities 11,303,866 10,836,099 Other liabilities: Note payable to Forward China (related party) – 1,100,000 Operating lease liability, less current portion 2,531,959 2,833,782 Total other liabilities 2,531,959 3,933,782 Total liabilities 13,835,825 14,769,881 Commitments and contingencies – Shareholders' equity: Common stock, par value $ 0.01 per share; 40,000,000 shares authorized; 1,101,069 shares issued and outstanding at June 30, 2024 and September 30, 2023, respectively 11,011 11,011 Additional paid-in capital 20,373,102 20,291,803 Accumulated deficit ( 18,993,572 ) ( 17,686,553 ) Total shareholders' equity 1,390,541 2,616,261 Total liabilities and shareholders' equity $ 1

Business

Business Forward Industries, Inc. ("Forward", "we", "our" or the "Company") is a global design, sourcing and distribution company serving top tier medical and technology customers worldwide. The Company's design division provides hardware and software product design and engineering services to customers predominantly located in the U.S. The Company's original equipment manufacturing ("OEM") distribution division sources and sells carrying cases and other accessories for medical monitoring and diagnostic kits as well as a variety of other portable electronic and non-electronic devices to OEMs or their contract manufacturers worldwide, that either package our products as accessories "in box" together with their branded product offerings or sell them through their retail distribution channels. The Company does not manufacture any of its OEM products and sources substantially all of these products from independent suppliers in China, through Forward Industries Asia-Pacific Corporation, a British Virgin Islands corporation, a related party owned by the Company's CEO ("Forward China"). See Note 8. The Company's shareholders authorized, and the Board of Directors approved, a 1-for-10 reverse stock split, which became effective on June 18, 2024. See Note 6. Discontinued Operations In July 2023, the Company decided to cease operations of its retail distribution segment ("Retail Exit") and is presenting the results of operations for this segment within discontinued operations in the current and prior periods presented herein. Our retail distribution business sourced and sold smart-enabled furniture, hot tubs and saunas and a variety of other products through various online retailer websites to customers predominantly located in the U.S. and Canada. The inventory of the retail segment is presented as discontinued assets held for sale on the balance sheets at June 30, 2024 and September 30, 2023. Where applicable, certain footnotes exclude the discontinued operations un

View Full Filing

View this 10-Q filing on SEC EDGAR