Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 47

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 2
Chunk 47
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,000  
     (64,000) 
     (17.3%)
  
    General and administrative expenses 
     1,679,000  
     1,654,000  
     25,000  
     1.5% 
  
    Goodwill impairment 
     225,000  
     –  
     225,000  
     – 
  
    Loss from operations 
     (708,000) 
     (380,000) 
     (328,000) 
     86.3% 
  
    Other (income) / expense, net 
     –  
     1,000  
     (1,000) 
     (100.0%)
  
    Loss from continuing operations 
    $(708,000) 
    $(381,000) 
    $(327,000) 
     85.8% 

The discussion that follows
below provides further details about our results from continuing operations for the 2025 Quarter as compared to the 2024 Quarter.

Most of the decline in net
revenues from the 2024 Quarter to the 2025 Quarter is attributable to the design segment, while the OEM distribution segment experienced
a small decline in revenue.

Our gross profit decreased
in the design segment and was partially offset by an increase in gross margin in the OEM distribution segment. Our gross margin was mostly
flat at 22.7% in the 2025 Quarter versus 23.0% in the 2024 Quarter. Declines in the design segment margin driven by lower utilization
rates were mostly offset by improvements in OEM segment margin due to the lower sourcing fee from Forward China and a change in the mix
of revenue.

Sales and marketing expenses
decreased primarily due to lower personnel costs and decreased slightly as a percentage of revenues.

General and administrative
expenses increased slightly in the 2025 Quarter. Higher corporate professional fees and an increase in design segment bad debt expense
were partially offset by a reduction in other components of corporate expenses, primarily director compensation. Management continues
to monitor the various components of general and administrative expenses and how these costs are affected by inflationary and other factors.
We intend to adjust these costs as needed based on the overall needs of the business.

The decrease in other income/expense,
net is primarily due to a decrease in interest expense resulting from a reduction in the amount of debt outstanding.

During the