Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 49

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 2
Chunk 49
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case, we expect diabetic product sales to continue to represent a smaller portion of our OEM distribution revenue.

The following tables set
forth revenues by product line of our OEM distribution segment customers for the periods indicated:

    OEM Revenues by Product Line 

    2025
                                                                                Quarter  
    2024
                                                                                Quarter  
    Change ($)  
    Change (%) 
  
    Diabetic products 
    $1,616,000  
    $1,424,000  
    $192,000  
     13.5% 
  
    Other products 
     375,000  
     586,000  
     (211,000) 
     (36.0%)
  
    Total net revenues 
    $1,991,000  
    $2,010,000  
    $(19,000) 
     (0.9%)

Diabetic Product Revenues

Our OEM distribution segment
sources to the order of, and sells carrying cases for, blood glucose diagnostic kits directly to OEMs (or their contract manufacturers).
The OEM customer or its contract manufacturer packages our carry cases “in box” as a custom accessory for the OEM’s
blood glucose testing and monitoring kits or, to a lesser extent, sells them through their retail distribution channels.

Revenues from diabetic products
increased due to higher volumes from some diabetic customers, partially offset by lower volumes from other diabetic customers. Management
believes that revenues from diabetic customers will decline in future periods. Revenues from diabetic products represented 81% of net
revenues for the OEM distribution segment in the 2025 Quarter compared to 71% in the 2024 Quarter.

 23 

Other Product Revenues

Our OEM distribution segment
also sources and sells cases and protective solutions for a diverse array of portable electronic and non-electronic products (such as
sporting and recreational products, bar code scanners, GPS devices, tablets and firearms) on a made-to-order basis that are customized
to fit the products sold by our OEM customers.

Revenues from other products
decreased due to the net reduction in demand from non-diabetic customers. We will continue to focus on our sales and sales support teams
in our continued efforts to expand and diversify our other products customer base.

Operating Income

Operating income improved
for the OEM distribution segment and operating income margin improved from 2.0% in the 2024 Quarter to 11.2% in the