Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 58

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 58
---
able segments. The results of the retail and OEM segments were classified as discontinued operations as discussed
in Note 3. The prior year segment disclosures have been reformatted from what was previously disclosed to conform to the current year
presentation and omit certain disclosures that are no longer required.

     F-39 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Revenues
from two customers represented 43.1% and 49.7% of the Company’s consolidated net revenues for the three months ended December 31,
2024 and 2023, respectively.

Accounts receivable from
four customers represented 72.9% of the Company’s consolidated accounts receivable at December 31, 2024 and accounts receivable
from two customers represented 48.7% of the Company’s consolidated accounts receivable at September 30, 2024.

In December 2024, our largest
design customer notified us of its plan to discontinue their insulin patch pump program, on which we were working. The Company expects
this to cause a material decrease in design segment revenues beginning in the second quarter of Fiscal 2025.

NOTE 6        SHAREHOLDERS’ EQUITY

Reverse Stock Split

The Company’s shareholders
authorized, and the Board of Directors approved, a 1-for-10 reverse stock split, which became effective on June 18, 2024. Any fractional
shares that would have otherwise resulted from the reverse stock split were rounded up to the nearest whole share. Accordingly, all references
made to shares, 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. The reverse stock split did not change the par value of the common
stock nor the authorized number of shares of common stock, preferred stock or any series of preferred stock.

Nasdaq

In July 2023, the Company was notified by Nasdaq that it was not in compliance with Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Rule”). Thereafter,
in February 2024, the Company was notified that it was not in compliance with Nasdaq Listing Rule 5550(b)(1) (the “Stockholders’
Equity Rule”) (collectively, with the Minimum Bid Price Rule, the “Minimum Requirements”). In April 2024,