Wed, May 14, 5:48 PM (40 days ago)
**Forward Industries, Inc. (FORD) Q1 2025 Financial Summary** Forward Industries, Inc. (FORD) reported a challenging quarter, with significant declines in revenue and increased losses. The company's financial health reflects ongoing operational and strategic shifts, including the discontinuation of its retail distribution segment and the planned sale of its OEM distribution segment. **Key Financial Metrics:** - **Revenue:** Net revenue for Q1 2025 was $3,123,000, a 38.4% decrease from $5,071,000 in Q1 2024. For the six months ended March 31, 2025, revenue was $7,747,000, down 24.1% from $10,213,000 in the same period last year. - **Profit Margins:** Gross profit margin declined significantly to -5.7% in Q1 2025 from 26.2% in Q1 2024. For the six months, the gross margin decreased to 12.3% from 27.1%. - **Operating Loss:** The operating loss for Q1 2025 was $1,822,000, compared to $627,000 in Q1 2024. For the six months, the operating loss was $2,720,000, up from $992,000 in the same period last year. - **Net Loss:** The net loss for Q1 2025 was $1,452,000, compared to $553,000 in Q1 2024. For the six months, the net loss was $2,160,000, up from $907,000 in the same period last year. - **Cash Flow:** Cash used in operating activities was $972,000 for the six months ended March 31, 2025, compared to $383,000 in the same period last year. - **Earnings Per Share (EPS):** Basic and diluted loss per share from continuing operations were $1.65 and $0.57 for Q1 2025 and Q1 2024, respectively. For the six months, the loss per share was $2.47 and $0.90, respectively. **Trends and Uncertainties:** - **Revenue Decline:** The significant decline in revenue is attributed to the loss of a major customer and reduced volume from continuing customers, partially offset by new customer projects. - **Cost Reduction Efforts:** The company is implementing cost reduction measures to mitigate the impact of revenue declines. - **Goodwill Impairment:** A goodwill impairment charge of $225,000 was recorded in Q1 2025 due to the loss of a significant customer and market uncertainties. - **Liquidity Concerns:** The company faces substantial doubt about its ability to continue as a going concern for the next 12 months due to accumulated deficits and working capital issues. - **Strategic Shifts:** The discontinuation of the retail segment and the planned sale of the OEM segment are strategic moves to focus on the design segment. **Future Operations Impact:** - **OEM Segment Sale:** The company is in discussions to sell the OEM segment, which could provide a framework for repayment of outstanding debts and payables. - **Equity Financing:** The company is exploring potential equity financing and an equity line of credit to improve liquidity. - **Cost Management:** Continued focus on cost reduction and operational efficiency to manage financial challenges. **Conclusion:** Forward Industries, Inc. is navigating a period of significant operational and financial challenges. The company's strategic shifts and cost reduction efforts aim to stabilize its financial position, but substantial uncertainties remain regarding its future operations and liquidity.