Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 270

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1B
Chunk 270
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 at least one year from
the date of issuance of these financial statements. As a result, substantial doubt about the Company’s ability to continue as a
going concern no longer exists.

If we have the opportunity to
make a strategic acquisition (as we have in the past with the acquisitions of IPS and Kablooe) or an investment in a product or partnership,
we may require additional capital beyond our current cash balance to fund the opportunity.

Cash Flows

During Fiscal 2025 and Fiscal
2024, our sources and uses of cash were as follows:

Operating Activities

During Fiscal 2025, cash used
in operating activities of $4,502,000 resulted from the net loss of $166,974,000, non-cash net digital asset revenue of $4,412,000, the
$1,406,000 gain on sale of the OEM business, and the net change in other operating assets and liabilities of $120,000, partially offset
by non-cash charges of $160,035,000 related to the fair value adjustment to digital assets, non-cash charges of $3,309,000 for depreciation,
amortization, share-based compensation and credit loss expense, non-cash charges of $658,000 related to the fair value adjustment to the
warrant liability, non-cash charges of $2,026,000 for the impairment of goodwill and intangible assets, a $1,153,000 increase in accounts
payable and related party payables, an $833,000 decrease in accounts receivable and contract assets and $396,000 cash provided by discontinued
operations.

During Fiscal 2024, cash provided
by operating activities of $520,000 resulted from a net decrease in accounts receivable and contract assets of $1,224,000, cash provided
by discontinued operations of $1,672,000, non-cash charges for depreciation, amortization, share-based compensation, credit loss expense
and goodwill impairment of $653,000 and the net change in other operating assets and liabilities of $53,000, partially offset by the net
loss of $1,951,000, a decrease in accrued expenses and other current liabilities $739,000, a decrease in accounts payable $392,000.

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Investing Activities

In Fiscal 2025 cash used for
investing activities included $900,791,000 used to purchase digital assets, $650,000 in payments related to the sale of the OEM