Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 46

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 46
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 products and sourced
substantially all of these products from independent suppliers in China, through Forward Industries Asia-Pacific Corporation, a British
Virgin Islands corporation (“Forward China”), a related party owned by the Company’s former CEO (see Note 14).

Unless otherwise noted, amounts
related to these discontinued operations are excluded from the disclosures presented herein. See Note 3 for more information on these
discontinued operations.

Liquidity and
Going Concern

The accompanying 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. The Company had an accumulated
deficit of $20,345,000 at December 31, 2024, a net loss of $708,000 for the three months ended December 31, 2024 and $1,951,000 in Fiscal
2024 and a cash balance (excluding cash associated with the discontinued OEM segment) of approximately $2,600,000 at January 31, 2025.

In December 2024, our
largest design customer notified us of its plan to discontinue their insulin patch pump program, on which we were working. We
expect this to cause a material decrease in our revenues beginning in the second quarter of 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
February 13, 2026, 12 months from the date of issuance of these condensed 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 condensed consolidated financial statements do