Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 72

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 72
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 interest income and other components of other income/expense.

During the 2025 Quarter,
we recorded a goodwill impairment charge of $225,000 related to the IPS reporting unit. This impairment charge resulted from the quantitative
goodwill impairment testing performed at December 31, 2024 and was driven by the expected reduction in revenues following the loss of
a significant customer.

We generated a loss from
continuing operations of $897,000 in the 2025 Quarter compared to $365,000 in the 2024 Quarter. We maintain significant net operating
loss carryforwards and do not recognize a significant income tax expense or benefit as our deferred tax provision is typically offset
by a full valuation allowance on our net deferred tax asset.

Consolidated basic and diluted
loss per share from continuing operations were $0.82 and $0.33 for the 2025 Quarter and the 2024 Quarter, respectively.

LIQUIDITY AND
CAPITAL RESOURCES

Our
primary source of liquidity is our operations. The primary demand on our working capital has historically been (i) operating losses, (ii)
repayment of debt obligations, and (iii) any increases in accounts receivable and inventories arising in the ordinary course of business.
Historically, our sources of liquidity have been adequate to satisfy working capital requirements arising in the ordinary course of business.
At December 31, 2024, our working capital (excluding assets and liabilities held for sale) was $4,147,000 compared to $4,663,000 at September
30, 2024. The decrease was primarily due to lower cash and contract asset balances and was partially offset by lower accrued expenses.

Forward China, an entity
owned by our former Chairman of the Board and Chief Executive Officer, holds a $600,000 promissory note issued by us which matures on
December 31, 2005 (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 September 30, 2025 (in addition
to the $200,000 paid on closing and the $300,000 aggregate payments made on July 31, 2025 and August 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