Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 81

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 81
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”, “we”, “our” or the “Company”) is a global design company serving top tier
medical and technology customers. The Company provides hardware and software product design and
engineering services to customers predominantly located in the U.S.

Discontinued Operations

In July 2023, the Company
decided to cease operations of its retail distribution segment (“Retail Exit”) and is presenting the results of operations
for this segment within discontinued operations in the prior periods presented herein. Our retail distribution business sourced and sold
smart-enabled furniture, hot tubs and saunas and a variety of other products through various online retailer websites to customers predominantly
located in the U.S. and Canada. The inventory of the retail segment was presented as discontinued assets held for sale on the balance
sheet at September 30, 2023.

In March 2025, the Company
committed to a plan to sell the original equipment manufacturer (“OEM”) distribution segment of the business (“OEM Plan”).
In May 2025, the Company completed the sale of this line of business and is presenting its results of operations within discontinued operations
in the current and prior periods presented herein. The OEM distribution segment sourced and sold carrying cases and other accessories
for medical monitoring and diagnostic kits as well as a variety of other portable electronic and non-electronic devices to OEMs or their
contract manufacturers worldwide, that either packaged our products as accessories “in box” together with their branded product
offerings or sold them through their retail distribution channels. The Company did not manufacture any of its OEM products and sourced
substantially all of these products from independent suppliers in China, through Forward Industries Asia-Pacific Corporation, a British
Virgin Islands corporation (“Forward China”), a related party owned by the Company’s former CEO (see Note 14).

Unless otherwise noted, amounts
related to these discontinued operations are excluded from the disclosures presented herein. See Note 3 for more information on these
discontinued operations.

Liquidity and
Going Concern

The accompanying 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. The Company had an accumulated
deficit of $20,345,000 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