Forward Industries(FORD) - 2025 Q3 - Quarterly Report

Financial Performance - Revenues for the three months ended June 30, 2025, were $2,495,000, a decrease of 50.5% compared to $5,036,000 for the same period in 2024[117] - Gross profit for the 2025 Quarter was a loss of $621,000, compared to a profit of $1,308,000 in the 2024 Quarter, representing a decline of 147.5%[117] - The company reported a loss from continuing operations of $2,404,000 in the 2025 Quarter, compared to a loss of $455,000 in the 2024 Quarter, an increase of 428.4%[122] - For the nine months ended June 30, 2025, revenues were $10,242,000, down 32.8% from $15,249,000 in the same period in 2024[123] - The company incurred a goodwill impairment charge of $225,000 in the 2025 Period, which was not present in the 2024 Period[123] - Operating loss for the nine months ended June 30, 2025, was $5,280,000, an increase of 265.4% from a loss of $1,445,000 in the 2024 Period[123] - The company reported a loss from continuing operations of $5,124,000 in the 2025 Period, compared to a loss of $1,447,000 in the 2024 Period, resulting in a basic and diluted loss per share of $4.65[128] - The accumulated deficit was $22,647,000 at June 30, 2025, with a net loss of $3,010,000 for the nine months ended June 30, 2025[133] Expense Management - The gross profit margin for the 2025 Quarter declined to (24.9%) from 26.0% in the 2024 Quarter[119] - Sales and marketing expenses decreased to $140,000 in the 2025 Quarter, down 25.5% from $188,000 in the 2024 Quarter[117] - General and administrative expenses increased to $1,799,000 in the 2025 Quarter, up 13.9% from $1,579,000 in the 2024 Quarter[120] - Gross margin fell sharply from 26.7% in the 2024 Period to 3.3% in the 2025 Period, influenced by lower revenue and utilization rates[125] Revenue Outlook - The company expects continued revenue decline due to the loss of a major customer in December 2024, which is anticipated to have a material impact on future revenues[118] - Net revenues declined significantly due to the loss of a major customer and a decrease in project volume, with expectations of continued revenue decline compared to fiscal 2024[124] Cash Flow and Financing - Working capital was $1,211,000 as of June 30, 2025, with a cash balance of approximately $5,600,000 as of August 12, 2025[129] - The company raised gross proceeds of $2,432,000 from the sale of 246,000 shares of common stock under the $35 million ELOC from July 1 to August 12, 2025[130] - A registered direct offering on August 11, 2025, generated approximately $2,230,000 from the sale of 263,000 shares at $8.50 per share[131] - Cash used in operating activities was $2,199,000 during the 2025 Period, primarily due to a net loss and changes in working capital[136] - Cash provided by financing activities in the 2025 Period included $971,000 from the issuance of preferred stock and warrants[139] Going Concern - The company expressed substantial doubt about its ability to continue as a going concern for the next 12 months, indicating a potential need for additional capital[134]