Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 52

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 2
Chunk 52
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in our revenues beginning in the second quarter of Fiscal 2025. Based on our forecasted cash flows, we believe that there is substantial
doubt about our ability to continue as a going concern for a period of 12 months from the date of issuance of the condensed consolidated
financial statements.

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. If we seek to raise additional capital, there
is no assurance that we will be able to raise funds on terms that are acceptable to us or at all.

Although we do not anticipate
the need to purchase additional material capital assets in order to carry out our business, it may be necessary for us to purchase a material
amount of equipment and other capital assets in the future, depending on need.

Cash Flows

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

Operating
Activities

During the 2025 Quarter,
cash used in operating activities of $410,000 resulted from a net loss of $708,000, a decrease in amounts due to Forward China of $455,000,
an increase in inventories of $263,000, an decrease in deferred income of $121,000, a decrease in accrued expenses and other current liabilities
of $126,000, partially offset by an decrease in accounts receivable of $819,000, non-cash charges for depreciation, amortization, share-based
compensation, credit losses and goodwill impairment of $353,000 and the net change in other operating assets and liabilities of $91,000.

During the 2024 Quarter,
cash provided by operating activities of $116,000 resulted from an increase in accounts payable and amounts due to Forward China of $522,000,
a decrease in accounts receivable of $445,000, a decrease in discontinued assets held for sale of $372,000 and non-cash charges of $121,000
related to depreciation, amortization, share-based compensation and credit losses, partially offset by a decrease in accrued expenses
and other current liabilities of $863,000, a net loss of $354,000 and the net change in other operating assets and liabilities of $127,000.

Investing Activities

Cash used in investing activities
in the 2025 Quarter and the 2024 Quarter