Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 36

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 36
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 future liquidity, Forward China agreed to limit the amount of outstanding payables it would seek
to collect from us to $500,000 in any 12-month period, which we agreed to pay within 30 days of any such request. This agreement pertains
only to payables that were outstanding at October 30, 2023 of $7,365,000. Purchases from Forward China made after October 30, 2023, are
not covered by this agreement and are expected to be paid according to normal payment terms. At December 31, 2024, the remaining balance
covered by this agreement was $4,881,000. We can provide no assurance that (i) Forward China will extend the FC Note again if we request
an extension, (ii) Forward China will extend additional payment terms on any payables not covered by the agreement, if needed, or (iii)
any new credit facility will be available on terms acceptable to us or at all.

 24 

Our condensed consolidated
financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things,
the realization of assets and satisfaction of liabilities in the ordinary course of business. We had an accumulated deficit and working
capital deficit of $20,345,000 and $162,000, respectively, at December 31, 2024, a net loss of $708,000 for the three months ended December
31, 2024 and $1,951,000 in Fiscal 2024 and a cash balance of approximately $2,900,000 at January 31, 2025.

In December 2024, we
were notified by our largest design customer of its plan to discontinue their insulin patch pump program, on which IPS was working, and
was beginning to wind down all activities related to it. Revenue from this customer (all of which related to this program) represented
approximately 25.2% of the Company’s consolidated net revenues in fiscal 2024.  We expect this to cause a material decrease
in our revenues beginning in the second quarter of Fiscal 2025. Based on our forecasted cash flows, we believe that there is substantial
doubt about our ability to continue as a going concern for a period of 12 months from the date of issuance of the condensed consolidated
financial statements.

If we have the opportunity
to make a strategic acquisition (as we have in the past with the acquisitions of IPS and Kablo