Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 11

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 11
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 Fiscal 2024. In addition, due to the uncertainty in the global
markets related to tariffs on imports, many customers have been slow to commit funds to projects with us. Based on our forecasted cash
flows, we believe our existing cash balance and working capital may not be sufficient to meet our liquidity needs through August 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 initiated
cost reduction measures to mitigate the impact of declining revenues, including two reductions in workforce in January and June of
2025. Management continues to evaluate and adjust cost reduction efforts as deemed necessary based on the ongoing needs of the
business. In May 2025, the Company raised $1
million via the issuance of Series B Convertible Preferred Stock (see Note 6). From July 1 to August 12, 2025, the Company
raised $2,432,000
additional capital via its equity line of credit (see Note 6) and $2,230,000 in a registered direct offering (See Note 12). Assuming
the Company continues to meet its obligations under the Series B Preferred Stock Purchase Agreement (see Note 6), management plans
to raise additional capital through the ELOC in the near future. We cannot provide any assurance that: (i) we will be able to
continue selling under the ELOC, (ii) if we are able to sell under the ELOC, that we will be able to do so at prices that we believe
are beneficial to the Company and its shareholders, or (iii) that our registration statement on Form S-1 registering shares to be
sold under the ELOC in the future will be declared and remain effective. As of the filing date of this Form 10-Q, the Company
has sold all shares registered by it under the ELOC. The condensed consolidated financial statements do not include any adjustments
that might result if the Company is unable to continue as a going concern. Such adjustments could be material.

  NOTE 2
  ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed
consolidated financial statements include the accounts of Forward Industries, Inc. and all of its wholly-owned subsidiaries: Forward Industries
(IN), Inc. (“Forward US”), Forward Industries (Switzerland) GmbH (“Forward Switzerland”), Forward Industries UK
Limited (“Forward UK”), Intelligent Product Solutions, Inc. (“IPS”) and Kablooe