Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 108

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 108
---
OURCES

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 of assets and satisfaction of liabilities in the ordinary course of business. We 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, we
were notified by our largest design customer of its plan to discontinue their insulin patch pump program, on which IPS was working, and
was beginning to wind down all activities related to it. Revenue from this customer (all of which related to this program) represented
more than 30% of the Company’s consolidated net revenues in fiscal 2024.  We expect this to cause a material decrease in our
revenues beginning in the second quarter