Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 700

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 5
Chunk 700
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 a reduction in expected future performance of the reporting units.

The change in other expense/(income),
net is due to a $160,035,000 reduction in the fair value of our digital assets resulting from a decline in the market value of SOL, a
$658,000 increase in the estimated fair value of the warrant liability from July 1, 2025 through August 8, 2025 based on changes in the
inputs to the valuation model, and lower interest income, interest expense and foreign currency exchange rate losses.

In Fiscal 2025, we recorded a
tax provision of $20,000, incurred a loss from continuing operations before income taxes of $169,069,000 and had an effective tax rate
of 0%. In Fiscal 2024, we recorded a tax provision of $23,000, generated a loss from continuing operations before income taxes of $2,143,000
and had an effective tax rate of (1.3%). We maintain significant net operating loss carryforwards and do not recognize a significant income
tax provision or benefit as our deferred tax provision is typically offset by a full valuation allowance on our net deferred tax assets.

Consolidated basic and diluted
loss per share from continuing operations was $24.90 and $1.97 for Fiscal 2025 and Fiscal 2024, respectively.

LIQUIDITY AND CAPITAL RESOURCES

Prior to our recent financings,
our primary source of liquidity has been our operations. The primary demand on our working capital is and has historically been (i) operating
losses, (ii) repayment of debt obligations, and (iii) any increases in accounts receivable and inventories arising in the ordinary course
of business. Historically, our sources of liquidity have been adequate to satisfy working capital requirements arising in the ordinary
course of business and we anticipate that our liquidity and financial resources will remain adequate to manage our operating and financial
requirements until at least December 2026. At September 30, 2025, our working capital was approximately $38.5 million. At November 30,
2025, our cash balance was approximately $41.2 million.

Recent Financings

On September 9, 2025, we sold
and issued to certain accredited investors in a private placement an aggregate of: (i) 77,144,562 shares of our common stock at an offering
price of $18.50 per share, and (ii) pre-funded warrants to purchase 12,