Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 11

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 11
---
 Fiscal 2025. Based on our forecasted cash flows, we believe
our existing cash balance and working capital will not be sufficient to meet our liquidity needs through December 31, 2025, 12 months
from the date of issuance of these consolidated financial statements. These factors raise substantial doubt about our ability to continue
as a going concern.

Management plans to initiate
cost reduction measures in Fiscal 2025 to mitigate the impact of the loss of our largest customer, including a reduction in force which
was communicated in December 2024. These plans will be evaluated and adjusted as deemed necessary based on the ongoing needs of the business.
Management also plans to seek flexibility on payment terms for ongoing purchases from Forward China and attempt to obtain debt or equity
financing to fund its ongoing operations. However, there are no current agreements or understanding with regard to the form, time or amount
of such financing and there is no assurance that any financing can be obtained, that Forward China will grant any flexibility on payment
terms or that our cost reduction efforts will be sufficient to enable the Company to continue as a going concern. The consolidated financial
statements do not include any adjustments that might result if the Company is unable to continue as a going concern. Such adjustments
could be material.

     F-8 

NOTE 2        ACCOUNTING POLICIES

Use of Estimates

The preparation of the Company’s
consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.
GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting periods. Actual results could differ from those estimates and assumptions. Within this report, certain dollar amounts and
percentages have been rounded to their approximate values.

Basis of Presentation

The accompanying consolidated
financial statements include the accounts of Forward Industries, Inc. and its wholly-owned subsidiaries (Forward Industries (IN), Inc.
(“Forward US”), Forward Industries (Switzerland) GmbH (“Forward Switzerland”), Forward Industries UK Limited (“Forward
UK”), Intelligent Product Solutions, Inc. (“IPS”), and Kablooe, Inc. (“Kablooe”). All significant intercompany
transactions and balances have been eliminated in consolidation.

Segment Reporting

As a result of the discontinued
retail and OEM segments, as disclosed in Note 3, the Company now has only one reportable segment.