Company: FWDI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003548
Chunk: 30

Company: Forward Industries, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 30
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 cause our actual results to
differ materially from those reflected in the forward-looking statements. These risks include the inability to expand our customer base,
loss of additional customers, pricing pressures, lack of success of our marketing people, economic or other factors resulting in the failure
to enter into purchase agreements for the sale of equity, failure to reach a definitive agreement for the sale of the OEM business,
inability to maintain compliance with Nasdaq listing standards, and the inability of our customers to pay for our services. No
assurance can be given that the actual results will be consistent with the forward-looking statements. Investors should read carefully
the factors described in the “Risk Factors” section of the Company’s filings with the SEC, including the Company’s
Form 10-K for the year ended September 30, 2024 for information regarding risk factors that could affect the Company’s results.
We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required
by applicable law or regulation. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking
statements.

Business Overview

Forward Industries, Inc.
is a global design, sourcing and distribution company serving top tier medical and technology customers worldwide. The
Company provides hardware and software product design and engineering services to customers predominantly located in the U.S.

In June 2024, the Company’s
stockholders authorized, and the Company’s Board of Directors approved, a 1-for-10 reverse stock split of our common stock, which became
effective on June 18, 2024. Accordingly, all references made to share, 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.

Discontinued Operations

Considering the recurring
losses incurred by the retail distribution segment, in July 2023, we decided to cease operations of our retail distribution segment (“Retail
Exit”) and we are presenting the results of operations for this segment within discontinued operations in the current and prior
periods presented herein. The discontinuation of the retail segment represented a strategic shift in the Company’s business. The
primary assets of the retail segment were inventory and accounts receivable. The Company sold, liquidated, or otherwise disposed of the
remaining retail inventory and collected the remaining retail accounts receivable by September 30, 2024, at which time the retail segment
was considered fully discontinued. We expect to