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Forward Industries Inc. (FORD+1.48%) has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing details Forward Industries' operations, which include a design division providing hardware and software product design and engineering services, and an OEM distribution division sourcing and selling carrying cases and other accessories for medical and technology customers worldwide.
The company reported net revenues of $30.2 million for the fiscal year 2024, a decrease from $36.7 million in the previous year. This decline was attributed to lower sales volume in both the OEM distribution and design segments.
Gross profit for the year was $6.2 million, down from $8.4 million in the prior year, with the gross margin declining from 22.8% to 20.6%. The decrease in gross margin was primarily due to lower utilization rates in the design segment and changes in the revenue mix of the OEM distribution segment.
Operating expenses included sales and marketing expenses of $1.4 million and general and administrative expenses of $6.5 million. The company also recorded a goodwill impairment charge of $200,000 related to its Kablooe reporting unit.
Forward Industries reported a net loss of $1.95 million for fiscal 2024, compared to a net loss of $3.74 million in fiscal 2023. The net loss from continuing operations was $1.95 million, while the loss from discontinued operations was $3,000.
The company disclosed that its largest design customer plans to discontinue their insulin patch program, which is expected to result in a material decrease in revenues beginning in the second quarter of fiscal 2025.
Forward Industries' liquidity position includes a cash balance of approximately $2.3 million as of November 30, 2024, and a working capital of $273,000. The company has a promissory note payable to Forward China, its largest vendor, with a remaining balance of $600,000 due on June 30, 2025.
The filing also highlights the company's dependence on Forward China for sourcing products and the associated risks, including potential impacts from geopolitical tensions and tariffs between the U.S. and China.
Forward Industries continues to focus on cost reduction measures and exploring additional financing options to address liquidity concerns and support ongoing operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Forward Industries Inc. annual 10-K report dated December 27, 2024. To report an error, please email earnings@qz.com.