Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 71

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 71
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,000  
     1,598,000  
     48,000  
     3.0% 
  
    Goodwill impairment 
     225,000  
     –  
     225,000  
     – 
  
    Loss from operations 
     (898,000) 
     (365,000) 
     (533,000) 
     146.0% 
  
    Other (income) / expense, net 
     –  
     –  
     –  
     – 
  
    Loss from continuing operations 
    $(898,000) 
    $(365,000) 
    $(533,000) 
     146.0% 

The discussion that follows
below provides further details about our results from continuing operations for the 2025 Quarter as compared to the 2024 Quarter.

The decrease in net revenues
in the design segment was primarily driven by one customer whose revenue declined approximately $470,000, as well as a net decrease in
volume of work and projects with continuing customers, partially offset by projects from new customers. In December 2024, our largest
design customer notified us of its plan to discontinue their insulin patch pump program, on which the Company was working. We expect this
to cause a material decrease in our revenues beginning in the second quarter of fiscal 2025. We are working on cost reduction efforts
to mitigate the reduction in revenue.

Our gross margin decreased
from 28.0% in the 2024 Quarter to 24.5% in the 2025 Quarter driven by lower utilization rates and a decline in billable project hours,
partially offset by an increase in the average bill rate.

Sales and marketing expenses
decreased primarily due to lower personnel costs and decreased slightly as a percentage of revenues.

General and administrative
expenses increased slightly in the 2025 Quarter. Higher professional fees and an increase in bad debt expense were partially offset by
a reduction in various other expenses, primarily director compensation. Management continues to monitor the various components of general
and administrative expenses and how these costs are affected by inflationary and other factors. We intend to adjust these costs as needed
based on the overall needs of the business.

 A-9 

There were no significant
changes to other income/expense as the decrease in interest expense resulting from a reduction in the amount of debt outstanding was mostly
offset by a decrease in