Company: FWDI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003548
Chunk: 39

Company: Forward Industries, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 39
---
 of its plan to discontinue their insulin patch pump program, on which we were 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 continue to cause a material decrease
in our revenues in Fiscal 2025. Based on our forecasted cash flows, we believe that there is substantial doubt about our ability to continue
as a going concern for a period of 12 months from the date of issuance of the condensed consolidated financial statements.

If we have the opportunity
to make a strategic acquisition, we may require additional capital beyond our current cash balance to fund the opportunity.

Although we do not anticipate
the need to purchase additional material capital assets in order to carry out our business, it may be necessary for us to purchase a material
amount of equipment and other capital assets in the future, depending on need.

 23 

Cash Flows

During the 2025 Period and
2024 Period, our sources and uses of cash were as follows:

Operating
Activities

During the 2025 Period, cash
used in operating activities of $972,000 resulted from a net loss of $2,160,000, a decrease in accrued expenses and other current liabilities
of $153,000 and the net change in other operating assets and liabilities of $33,000, partially offset by non-cash expenses of $462,000
related to depreciation, amortization, share-based compensation and credit loss expense and a decrease in accounts receivable of $912,000.

During the 2024 Period, cash
used in operating activities of $383,000 resulted from a net loss of $907,000, decreases in accrued expenses and other current liabilities
of $785,000, a decrease in accounts payable of $304,000, a decrease in deferred income of $69,000 and the net change in other operating
assets and liabilities of $55,000, partially offset by the net change in discontinued assets and liabilities held for sale of $891,000,
non-cash expenses of $228,000 related to depreciation, amortization, share-based compensation and credit loss expense and a decrease in
accounts receivable of $618,000.

Investing Activities

Cash used in investing activities
in the 2025 Quarter and the 2024 Quarter of $7,000 and $41,000,