Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 46

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 46
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idity Factors

Forward China, an entity
owned by our former Chairman of the Board and Chief Executive Officer, holds a $600,000 promissory note issued by the Company which matures
on December 31, 2025 (see Note 8 to the condensed consolidated financial statements). We plan on repaying the note on or prior to its
maturity date. In connection with the sale of the OEM business, we are obligated to pay Forward China $150,000 on each of August 31, 2025
and September 30, 2025 (in addition to the payment made on July 31, 2025).

Our condensed 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. We had an accumulated deficit and working
capital of $22,647,000 and $1,211,000, respectively, at June 30, 2025, a net loss of $3,010,000 for the nine months ended June 30, 2025
and $1,951,000 in Fiscal 2024 and a cash balance of approximately $5,600,000 at August 12, 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.

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.

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Cash Flows

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

Operating
Activities

During the 2025 Period, cash
used in operating activities of $2,199,000 resulted from a net loss of $3,010,000, the gain on sale of the OEM segment of $1,406,000,
the gain on the change in fair value of the warrant liability of $160,000, a