Forward Industries Inc Says Determined That Costs That Co Will Incur As A Result Of Retail Distribution Operations Exit Will Be About $1.7M
Portfolio Pulse from Benzinga Newsdesk
Forward Industries Inc. has disclosed in an SEC filing that the estimated costs for exiting its Retail Distribution Operations will be about $1.7 million. This decision, made by a special committee of the Board of Directors on July 21, 2023, follows operating losses reported by the segment: approximately $1.062 million for the six months ended March 31, 2023, and $1.809 million for the fiscal year ended September 30, 2022. The company's Design and OEM Distribution businesses will not be affected by this exit.
December 20, 2023 | 8:06 pm
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Forward Industries expects to incur costs of approximately $1.7 million due to the exit from its Retail Distribution Operations, which had been operating at a loss.
The announcement of a $1.7 million cost related to exiting the Retail Distribution Operations is likely to be viewed negatively by investors, as it reflects both a significant expense and the closure of a business segment. However, the fact that the segment was operating at a loss could mitigate the negative impact, as the exit might be seen as a strategic move to cut losses and focus on more profitable areas. The short-term impact is likely negative due to the immediate financial implications, but the long-term outlook could be neutral to positive if the company reallocates resources effectively.
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