Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 103

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 103
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 statements are based on
current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially
and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include,
but are not limited to, those discussed in the Quarterly Report, and in particular, the risks discussed under the caption “Risk
Factors” in Item 1A of the Annual Report and those discussed in other documents we file with the SEC. We undertake no obligation
to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these
risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Business Overview

Forward Industries, Inc.
is a global design, company serving top tier medical and technology customers. The Company provides
hardware and software product design and engineering services to customers predominantly located in the U.S. 

In June 2024, the Company’s
stockholders authorized, and the Company’s Board of Directors approved, a 1-for-10 reverse stock split of our common stock, which became
effective on June 18, 2024. Accordingly, all references made to share, per share, or common share amounts in the accompanying condensed
consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the reverse stock split.

Discontinued Operations

Considering the recurring
losses incurred by the retail distribution segment, in July 2023, we decided to cease operations of our retail distribution segment (“Retail
Exit”) and we are presenting the results of operations for this segment within discontinued operations in the prior periods presented
herein. The discontinuation of the retail segment represents a strategic shift in the Company’s business. The primary assets of
the retail segment were inventory and accounts receivable. The Company sold, liquidated, or otherwise disposed of the remaining retail
inventory and collected the remaining retail accounts receivable by September 30, 2024, at which time the retail segment was considered
fully discontinued. We expect to have no further significant continuing involvement with this segment. The inventory of the retail segment
met the criteria to be considered “held-for-sale” in accordance with ASC 205-20, “Discontinued Operations.” Accordingly,
the retail inventory is classified on our condensed consolidated balance sheet as “discontinued assets held for sale” at September
30, 2023, and the results of operations for the retail segment have been classified as “Dis