Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 109

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 109
---
 of Fiscal 2025. Based on our forecasted cash flows, we believe that there is substantial doubt
about our ability to continue as a going concern for a period of 12 months from the date of issuance of the condensed consolidated financial
statements.

If we have the opportunity
to make a strategic acquisition (as we have in the past with the acquisitions of IPS and Kablooe) or an investment in a product or partnership,
we may require additional capital beyond our current cash balance to fund the opportunity. If we seek to raise additional capital, there
is no assurance that we will be able to raise funds on terms that are acceptable to us or at all.

Although we do not anticipate
the need to purchase additional material capital assets in order to carry out our business, it may be necessary for us to purchase a material
amount of equipment and other capital assets in the future, depending on need.

 A-10 

Cash Flows

During the 2025 Quarter and
2024 Quarter, our sources and uses of cash were as follows:

Operating
Activities

During the 2025 Quarter,
cash used in operating activities of $434,000 resulted from a net loss of $708,000, a decrease in deferred income of $121,000, a decrease
in accrued expenses and other current liabilities of $131,000 and cash used in discontinued operations of $81,000, partially offset by
a net increase in accounts receivable and contract assets of $172,000, non-cash charges for depreciation, amortization, share-based compensation,
credit losses and goodwill impairment of $353,000 and the net change in other operating assets and liabilities of $82,000.

During the 2024 Quarter,
cash used in operating activities of $94,000 resulted from a decrease in accrued expenses and other current liabilities of $859,000, a
decrease in accounts payable of $120,000, a net loss of $354,000 and the net change in other operating assets and liabilities of $69,000,
partially offset by cash provided by discontinued operations of $576,000, a net decrease in accounts receivable and contract assets of
$611,000, and non-cash charges of $121,000 related to depreciation, amortization, share-based compensation and credit losses.

Investing Activities

Cash used in investing activities
in the 2025 Quarter and the 2024 Quarter of $5,000 and $20,000, respectively, resulted from purchases of property