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Forward Industries Inc. (FORD+0.89%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $6,616,000 from $7,152,000 in the same quarter the previous year. The decrease is attributed to a decline in the design segment revenue.
Cost of sales for the quarter was $5,115,000, compared to $5,509,000 in the same quarter of the previous year. Gross profit decreased to $1,501,000 from $1,643,000, primarily due to lower utilization rates in the design segment.
Sales and marketing expenses decreased to $305,000 from $369,000, primarily due to lower personnel costs. General and administrative expenses increased slightly to $1,679,000 from $1,654,000, mainly due to higher corporate professional fees.
The company reported a goodwill impairment charge of $225,000 related to the IPS reporting unit, driven by the expected reduction in revenues following the loss of a significant customer.
Net loss for the quarter was $708,000, compared to $354,000 in the previous year. The loss from continuing operations was $708,000, up from $381,000 in the previous year.
Cash used in operating activities was $410,000, while cash used in investing activities was $5,000. There were no financing activities during the quarter.
Forward Industries had a working capital deficit of $162,000 as of December 31, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details related party transactions, including agreements with Forward China, a related party owned by the company's CEO, for sourcing and supply of products.
Forward Industries does not anticipate cash dividend payments to common stockholders in the near future.
The company identified substantial doubt about its ability to continue as a going concern due to the loss of its largest design customer and the resulting expected decrease in revenues.
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. quarterly 10-Q report dated February 13, 2025. To report an error, please email earnings@qz.com.