Group 1 - The upcoming Annual Shareholders Meeting for Forward Industries, Inc. is scheduled for August 8, 2025, with a voting deadline of August 7, 2025, at 11:59 p.m. Eastern Time [1] - Important proposals for shareholder vote include the reincorporation of the Company from New York to Nevada, which the Board of Directors recommends voting FOR [2][3] - The Board believes that the reincorporation will enhance corporate governance and provide more modern, flexible corporate laws, and a majority vote of outstanding shares is required for approval [3] Group 2 - Shareholders are encouraged to read the proxy statement in its entirety before making voting decisions, as it contains crucial information regarding the proposals [4] - Record holders as of June 18, 2025, can vote their shares in advance through the provided online platform [5]

Group 1 - Multi-platinum Curb Records artist Dylan Scott has been named the newest national ambassador for Ford Trucks, highlighting a strategic partnership between the music and automotive industries [1][2] - Ford's Director of Integrated Marketing, Michael Cope, emphasized the alignment between Scott's persona and the brand's image, noting that both are built tough and exceed expectations [2] - Scott's upcoming third studio album, "Easy Does It," will be released on May 30, featuring 11 tracks that explore themes of heartbreak and love, reflecting his personal growth and appreciation for life [2] Group 2 - The collaboration with Scott is expected to enhance Ford's brand visibility and connect with a younger audience through music and lifestyle marketing [2] - Scott's personal history with Ford, having purchased his first vehicle from the brand in high school, adds authenticity to the partnership and resonates with the target demographic [2] - The album's themes and Scott's grounded approach may further strengthen his appeal as a relatable ambassador for Ford Trucks [2]

Financial Performance - Revenues for the three months ended March 31, 2025, were $3,123,000, a decrease of 38.4% compared to $5,071,000 for the same period in 2024[102] - Gross profit for the 2025 Quarter was a loss of $179,000, compared to a profit of $1,329,000 in the 2024 Quarter, representing a decline of 113.5%[102] - Loss from continuing operations increased to $1,822,000 in the 2025 Quarter, compared to a loss of $627,000 in the 2024 Quarter, marking a 190.6% increase[107] - For the six months ended March 31, 2025, revenues were $7,747,000, down 24.1% from $10,213,000 in the same period in 2024[108] - The company incurred a goodwill impairment charge of $225,000 in the 2025 Period, which was not present in the 2024 Period[108] - The company generated a loss from continuing operations of $2,720,000 in the 2025 Period compared to a loss of $992,000 in the 2024 Period, with basic and diluted loss per share from continuing operations at $2.47 and $0.90, respectively[114] - The company had an accumulated deficit of $21,797,000 and a net loss of $2,160,000 for the six months ended March 31, 2025[119] Revenue Decline Factors - The decline in revenues is primarily attributed to the loss of a major customer in December 2024, which is expected to continue impacting revenues in fiscal 2025[103] - Revenue from the largest design customer, which represented over 30% of consolidated net revenues in fiscal 2024, is expected to cause a material decrease in revenues in fiscal 2025[120] Cost Management - Sales and marketing expenses decreased to $148,000 in the 2025 Quarter, down 28.2% from $206,000 in the 2024 Quarter[102] - General and administrative expenses decreased to $1,495,000 in the 2025 Quarter, a reduction of 14.3% from $1,744,000 in the 2024 Quarter[102] Gross Margin and Profitability - The gross profit margin declined from 26.2% in the 2024 Quarter to (5.7%) in the 2025 Quarter, driven by lower staff utilization rates[104] - Gross margin decreased from 27.1% in the 2024 Period to 12.3% in the 2025 Period, primarily due to lower staff utilization rates, partially offset by an increase in the average bill rate[110] Working Capital and Cash Flow - Working capital decreased to $2,784,000 at March 31, 2025, down from $4,663,000 at September 30, 2024, primarily due to lower cash and accounts receivable balances[115] - Cash used in operating activities was $972,000 during the 2025 Period, resulting from a net loss of $2,160,000 and a decrease in accounts receivable of $912,000[123] - Cash used in investing activities was $7,000 in the 2025 Quarter, primarily for purchases of property and equipment[125] Strategic Initiatives - The company plans to sell its OEM segment, which is classified as assets and liabilities held for sale as of March 31, 2025[92] - The company is in preliminary discussions regarding a potential sale of equity securities and establishment of an equity line of credit facility with an institutional investor[118] Debt and Financial Obligations - Forward China holds a $1,600,000 promissory note, with an outstanding balance reduced to $600,000 following principal payments totaling $1,000,000 made through March 31, 2025[116]

Core Insights - Intelligent Product Solutions (IPS) has joined Zebra Technologies' PartnerConnect program as a Registered Alliance Partner, focusing on software solutions development and systems integration [1][2][3] - The partnership provides IPS with access to Zebra's innovative portfolio, training, and marketing benefits, enhancing collaboration opportunities within the Zebra ecosystem [2][3] Company Overview - IPS is a subsidiary of Forward Industries and is recognized for its expertise in product design and engineering, particularly in MedTech and wearable technology [4] - The company serves leading brands in consumer electronics and medical devices, including Neuvotion, Google, Verizon, and Zebra Technologies [4]

Core Insights - Intelligent Product Solutions (IPS) has joined Zebra Technologies' PartnerConnect program as a Registered Alliance Partner, focusing on software solutions development and systems integration [1][2][3] - The partnership provides IPS with access to Zebra's innovative portfolio, training, and marketing benefits, enhancing collaboration within the Zebra ecosystem [2][3] - The PartnerConnect program aims to support various partners, including distributors and independent software vendors, to meet market demands and foster growth [3] Company Overview - IPS is a subsidiary of Forward Industries and specializes in product design and engineering, particularly in MedTech and wearable technology [4] - The company serves leading brands in consumer electronics and medical devices, including Neuvotion, Google, Verizon, and Zebra Technologies [4]

Core Insights - Intelligent Product Solutions (IPS) has joined Zebra Technologies' PartnerConnect program as a Registered Alliance Partner, focusing on software solutions development and systems integration [1][2][3] - The partnership provides IPS with access to Zebra's innovative portfolio, training, and marketing benefits, enhancing collaboration opportunities within the Zebra ecosystem [2][3] Company Overview - IPS is a subsidiary of Forward Industries (NASDAQ: FORD) and specializes in product design and engineering, particularly in MedTech and wearable technology [4] - The company serves leading brands in consumer electronics and medical devices, including Neuvotion, Google, Verizon, and Zebra Technologies [4]

Financial Performance - Consolidated net revenues for the 2025 Quarter were $6,616,000, a decrease of $536,000 or 7.5% compared to the 2024 Quarter [103]. - The OEM distribution segment generated revenues of $1,991,000, down $19,000 or 0.9% from the previous year, while the design segment saw a decline of $517,000 [112]. - Gross profit decreased to $1,501,000 in the 2025 Quarter, reflecting a gross margin of 22.7%, slightly down from 23.0% in the 2024 Quarter [103]. - The loss from continuing operations was $708,000 in the 2025 Quarter, compared to a loss of $381,000 in the 2024 Quarter, resulting in a basic and diluted loss per share of $0.64 [110]. - The company reported an accumulated deficit of $20,345,000 and a net loss of $708,000 for the three months ended December 31, 2024 [124]. Segment Performance - Revenues from diabetic products in the OEM distribution segment increased by $192,000 or 13.5% to $1,616,000, representing 81% of net revenues for the segment [114][116]. - Operating income for the OEM distribution segment improved to $223,000, with an operating income margin of 11.2%, up from 2.0% in the 2024 Quarter [119]. - The design segment experienced a decrease in net revenues, primarily due to a decline of approximately $470,000 from one customer and a net decrease in project volume, partially offset by new customer projects [120]. - Operating income for the design segment decreased, with the operating income margin dropping from 5.2% in Q4 2024 to (5.6%) in Q1 2025, driven by a decline in billable project hours and a goodwill impairment charge [121]. Expenses and Cash Flow - Sales and marketing expenses decreased by $64,000 or 17.3% to $305,000, primarily due to lower personnel costs [106]. - General and administrative expenses increased by $25,000 or 1.5% to $1,679,000, driven by higher corporate professional fees [107]. - Cash used in operating activities during Q1 2025 was $410,000, resulting from a net loss of $708,000 and various changes in working capital components [128]. - Cash used in investing activities was $5,000 in Q1 2025, down from $20,000 in Q1 2024, primarily for purchases of property and equipment [130]. - Cash used in financing activities in Q1 2024 included principal payments of $250,000 on the promissory note held by Forward China [131]. Goodwill and Future Outlook - A goodwill impairment charge of $225,000 was recorded in the 2025 Quarter due to the loss of a significant customer, which represented approximately 25.2% of consolidated net revenues in fiscal 2024 [99]. - The company expects to continue monitoring goodwill for impairment in future periods due to changes in economic and market conditions [101]. - Revenue from the largest design customer, which represented approximately 25.2% of consolidated net revenues in fiscal 2024, is expected to decline significantly starting in Q2 2025 due to the discontinuation of their insulin patch pump program [125]. - The company has substantial doubt about its ability to continue as a going concern for the next 12 months due to forecasted cash flows [125]. - The company may require additional capital for strategic acquisitions or investments, with no assurance of raising funds on acceptable terms [126]. Working Capital - As of December 31, 2024, the working capital deficit was $162,000, a decrease from a working capital of $273,000 at September 30, 2024, primarily due to lower cash and accounts receivable balances [122].

Group 1 - Intelligent Product Solutions (IPS) received a New York Product Design award for its design work on the EON Laser, a touch-free and pain-free fat reduction device by Dominion Aesthetic Technologies [1][3] - The EON Laser is recognized for its innovative technology in subcutaneous fat reduction, offering a non-invasive alternative to liposuction and other surgical interventions [3][4] - The EON Laser utilizes laser energy to raise the temperature of subcutaneous fat, triggering lipolysis while cooling the skin, resulting in a pain-free treatment option with no recovery time [3] Group 2 - The New York Product Design awards celebrate the contributions of product designers and manufacturers globally, highlighting their impact on daily living through practical and ingenious creations [2] - Intelligent Product Solutions is a subsidiary of Forward Industries and specializes in product design and engineering services, particularly in medtech and wearable technology [4]

Core Insights - Intelligent Product Solutions (IPS) has announced the promotion of Bob Wild to Chief Executive Officer (CEO), with Paul Severino continuing as President [1] - Bob Wild has been with IPS since 2011 and has played a significant role in developing innovative connected and wearable products, as well as medical devices [2] - IPS, founded in 2007, has grown to over one hundred employees and specializes in product design and engineering services, particularly in medtech and wearable technology [5] Company Leadership - Bob Wild's previous roles at IPS include Chief Operating Officer (COO), Senior Vice President, and Vice President of Electrical, Software, Systems Engineering & Information Technology [2] - Paul Severino, the former CEO and Co-founder, expressed confidence in Wild's leadership abilities and contributions to the firm [4] - Wild holds multiple degrees, including an MBA in Accounting and Finance, a Master's in Electrical Engineering, and a Bachelor's in Electrical and Systems Engineering [4] Company Background - IPS is a subsidiary of Forward Industries (NASDAQ: FORD) and is recognized for its award-winning product design and development services [1][5] - The company serves leading brands in consumer electronics and medical devices, including Neuvotion, Google, Verizon, Zebra Technologies, and Steinway [5] - IPS offers a full range of expert product design and engineering services, emphasizing its expertise in medtech and wearable technology solutions [5]

Financial Performance - The company reported a loss from continuing operations before income taxes of $1,924,600 for 2024, compared to a profit of $178,664 in 2023[41]. - Basic loss per share from continuing operations was $(1.77) in 2024, compared to a profit of $0.14 in 2023[41]. - The company reported a net loss of $1,950,587 for Fiscal 2024, compared to a net loss of $3,736,657 in Fiscal 2023, indicating an improvement in financial performance[93]. - For Fiscal 2024, total consolidated net revenues were $30,195,000, a decrease of 17.8% from $36,688,000 in Fiscal 2023[165]. - The OEM distribution segment generated revenues of $10,204,000 in Fiscal 2024, a decline of 27.5% from $14,002,000 in Fiscal 2023[197]. - The design segment revenues were $19,991,000 in Fiscal 2024, down 11.9% from $22,686,000 in Fiscal 2023[197]. - For the fiscal year ended September 30, 2024, the company reported a net loss from continuing operations of $1,951,000, compared to a loss of $3,736,000 for the fiscal year ended September 30, 2023[202]. - The basic earnings per share for the fiscal year ended September 30, 2024, was $(1.77), a decrease from $(3.39) in the previous year[202]. Assets and Liabilities - Total assets decreased from $17,386,142 in 2023 to $14,768,356 in 2024, a decline of approximately 15%[39]. - Current liabilities reduced from $10,836,099 in 2023 to $9,371,596 in 2024, representing a decrease of about 13.5%[39]. - Goodwill decreased from $1,758,682 in 2023 to $1,558,682 in 2024, a reduction of approximately 11.4%[39]. - Total shareholders' equity increased from $2,616,261 in 2023 to $2,967,034 in 2024, an increase of about 13.4%[39]. - As of September 30, 2024, the company had an accumulated deficit of $19,637,140 and working capital of $273,000[96]. - Accounts receivable amounted to $4,460,000 at September 30, 2024, down from $6,949,000 at September 30, 2023[79]. - The company had cash at the end of the year amounting to $3,022,436, a decrease from $3,180,468 at the beginning of the year[93]. - The company had total accrued expenses of $613,000 as of September 30, 2024, down from $1,358,000 in 2023[122]. - The total amount related to the retail segment included in Due to Forward China was approximately $641,000 and $1,002,000 at September 30, 2024, and 2023, respectively[130]. - The company had approximately $4,881,000 in outstanding payables to Forward China as of September 30, 2024, which is subject to a collection limit agreement[212]. Operational Changes - The company ceased operations of its retail distribution segment in July 2023, which is now classified as discontinued operations[46]. - The retail distribution segment was fully discontinued as of September 30, 2024, following a strategic shift due to recurring losses, with remaining retail inventory liquidated[114]. - The company entered into an agreement with Forward China to limit outstanding payables to $500,000 in any 12-month period, effective November 2023[47]. - The company entered into agreements to convert $2,200,000 of payables to Forward China into 2,200 shares of Series A-1 convertible preferred stock[213]. - The company reduced the fixed portion of the sourcing fee to Forward China from $100,000 to $65,833 per month effective October 2023[211]. Expenses and Costs - Sales and marketing expenses decreased from $1,663,791 in 2023 to $1,424,829 in 2024, a decline of approximately 14.3%[41]. - General and administrative expenses slightly decreased from $6,541,036 in 2023 to $6,516,246 in 2024, a reduction of about 0.4%[41]. - The company recognized share-based compensation of $101,360 in Fiscal 2024, up from $86,491 in Fiscal 2023[93]. - The Company recognized stock option compensation expenses of $101,000 in fiscal 2024, compared to $86,000 in fiscal 2023[159]. - The Company incurred interest payments of $63,000 on a promissory note to Forward China in Fiscal 2024, compared to $104,000 in Fiscal 2023[192]. - The Company recorded service fees to Forward China of $891,000 in Fiscal 2024, down from $1,266,000 in Fiscal 2023[187]. - Total operating lease expense for fiscal 2024 was $619,000, slightly down from $621,000 in fiscal 2023[206]. - The company has future minimum lease payments totaling $3,464,000, with a present value of lease liabilities at $2,834,000[208]. Impairments and Valuation - The company performed a goodwill impairment analysis, resulting in a charge of $200,000 for Fiscal 2024[93]. - The Company recognized a goodwill impairment charge of $200,000 for the Kablooe reporting unit in fiscal 2024, primarily due to a reduction in expected future performance[135]. - The carrying amount of the Kablooe reporting unit decreased from $1,759,000 on September 30, 2023, to $1,559,000 on September 30, 2024, after the impairment[137]. - The fair value of the earnout liability from the acquisition of Kablooe is measured using a Black-Scholes valuation model, categorized within level 3 of the fair value hierarchy[122]. - The Company maintained a full valuation allowance against its net deferred tax assets, with the valuation allowance increasing from $4,102,000 in 2023 to $4,307,000 in 2024, reflecting a change of $205,000[164]. Tax and NOLs - The Company recorded a provision for income taxes of $23,000 in Fiscal 2024, compared to $20,000 in Fiscal 2023, primarily for state income tax expenses[175]. - The Company had available net operating losses (NOLs) of $13,012,000 for U.S. federal income tax purposes and $7,425,000 for state income tax purposes as of September 30, 2024[176]. Future Outlook - The company’s forecasted operating results are sensitive to significant assumptions regarding future revenue and expenses[66]. - The company has suffered recurring losses from operations, raising substantial doubt about its ability to continue as a going concern[63]. - Revenue from a significant customer in the design segment represented 25.2% of consolidated net revenues in Fiscal 2024, down from 27.9% in Fiscal 2023, with expectations of a material revenue decrease starting Q2 Fiscal 2025 due to program discontinuation[167].