Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 102

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 102
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 Less current portion of lease liabilities 
     (455,000)
  
    Long-term portion of lease liabilities 
    $2,426,000 

NOTE 11        SUBSEQUENT EVENT

On February 11, 2025, the
Company entered into a third agreement with Forward China to convert $225,000 of amounts due to Forward China into 225 shares of Series
A-1 convertible preferred stock with a stated value of $1,000 per share. This conversion agreement was affected to raise the Company’s
shareholders’ equity to the amount necessary to meet the Stockholders’ Equity Rule. See Notes 6 and 8.

 F-44 

ITEM 2.       
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED
DECEMBER 31, 2024 COMPARED TO THE THREE MONTHS ENDED DECEMBER 31, 2023

As described below, in March 2025, the Company
committed to a plan to sell the OEM segment of its business and completed the sale of this segment in May 2025. The assets and liabilities
of the OEM segment have been classified as assets and liabilities held for sale and the results of operations and cash flows have been
classified as discontinued operations for all periods presented. Upon reclassification, the Company determined that it had only one reportable
segment. Segment disclosures have been recast to reflect this change for all periods presented. This information is presented solely to
present recast financial information to reflect these organizational structure changes. Accordingly, the following information speaks
as of the original filing date and should be read in conjunction with the Quarterly Report and our other filings with the SEC since the
date of the Quarterly Report.

In addition to historical
information, this report includes “forward-looking statements”, as such term is used within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements include, among other things, statements regarding our liquidity, plans on repaying outstanding
debt obligations, as well as other statements regarding our future operations, financial condition and prospects, and business strategies.
Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,”
“expects,” “intends,” “plans,” “predicts,” “projects,” “will be,”
“will continue,” “will likely result,” and similar expressions. These forward-looking