Company: FWDI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003548
Chunk: 46

Company: Forward Industries, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 46
---
 September 30, 2024 for information regarding risk factors that could affect the Company’s results.
We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required
by applicable law or regulation. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking
statements.

Business Overview

Forward Industries, Inc.
is a global design, sourcing and distribution company serving top tier medical and technology customers worldwide. The
Company provides hardware and software product design and engineering services to customers predominantly located in the U.S.

In June 2024, the Company’s
stockholders authorized, and the Company’s Board of Directors approved, a 1-for-10 reverse stock split of our common stock, which became
effective on June 18, 2024. Accordingly, all references made to share, per share, or common share amounts in the accompanying condensed
consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the reverse stock split.

Discontinued Operations

Considering the recurring
losses incurred by the retail distribution segment, in July 2023, we decided to cease operations of our retail distribution segment (“Retail
Exit”) and we are presenting the results of operations for this segment within discontinued operations in the current and prior
periods presented herein. The discontinuation of the retail segment represented a strategic shift in the Company’s business. The
primary assets of the retail segment were inventory and accounts receivable. The Company sold, liquidated, or otherwise disposed of the
remaining retail inventory and collected the remaining retail accounts receivable by September 30, 2024, at which time the retail segment
was considered fully discontinued. We expect to have no further significant continuing involvement with this segment. The inventory of
the retail segment met the criteria to be considered “held-for-sale” in accordance with ASC 205-20, “Discontinued Operations.”
Accordingly, the retail inventory was classified on our condensed consolidated balance sheet as “discontinued assets held for sale”
at September 30, 2023, and the results of operations for the retail segment have been classified as “Discontinued Operations”
on the condensed consolidated statements of operations for the three and six months ended March 31, 2025 and 2024.

 19 

In March 2025, in connection
with the fourth Conversion Agreement (see Note 8 to the condensed consolidated financial statements), Forward China determined it would
not renew the Buying Agency