Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 960

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 8
Chunk 960
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 3 for more information on these
discontinued operations. 

Liquidity and Going Concern

The accompanying consolidated
financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things,
the realization of assets and satisfaction of liabilities in the ordinary course of business. The Company had an accumulated deficit and
working capital of $186,611,000 and $38,498,000, respectively, on September 30, 2025, a net loss of $166,974,000 in Fiscal 2025 and a
cash balance of approximately $41.2 million at November 30, 2025.

In the prior reporting period,
the Company identified certain conditions that raised substantial doubt about its ability to continue as a going concern. These conditions
included the loss of a significant customer, the resulting decline in revenues and cash, and recurring operating losses. During the period
from May 2025 to September 2025, the Company raised gross proceeds of over $1.65 billion through multiple equity financing transactions
(see Note 8). As a result, the Company believes it now has sufficient liquidity to fund anticipated cash requirements for operations and
working capital purposes through at least December 2026. As a result, the previously disclosed going concern uncertainty language has
been removed as substantial doubt no longer exists regarding the Company’s ability to continue as a going concern.

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 all of its wholly-owned subsidiaries: Forward Industries (IN),
Inc. (“Forward US”), DE Sub 1 LLC (“Forward Delaware”), Forward Industries (Switzerland) GmbH (“Forward
Switzerland”), Forward Industries UK Limited (“Forward UK”), Intelligent Product Solutions, Inc. (“IPS”)
and Kablooe, Inc. (“Kablooe”). The terms “Forward”, “we”, “our” or the