Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 7

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 7
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this to cause a material decrease in our revenues beginning in the second quarter of Fiscal 2025. Based on our forecasted cash flows,
we believe our existing cash balance and working capital will not be sufficient to meet our liquidity needs through February 13, 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 plans to
initiate cost reduction measures in Fiscal 2025 to mitigate the impact of the loss of our largest customer, including a reduction in force
which was communicated in December 2024. These plans will be evaluated and adjusted as deemed necessary based on the ongoing needs of
the business. Management also plans to seek flexibility on payment terms for ongoing purchases from Forward China and attempt to obtain
debt or equity financing to fund its ongoing operations. However, there are no current agreements or understanding with regard to the
form, time or amount of such financing and there is no assurance that any financing can be obtained, that Forward China will grant any
flexibility on payment terms or that our cost reduction efforts will be sufficient to enable the Company to continue as a going concern.
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.

     7 

FORWARD INDUSTRIES, INC. AND
SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  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, Inc. (“Kablooe”).
The terms “Forward”, “we”, “our” or the “Company” as used throughout this document are
used to indicate Forward Industries, Inc. and all of its wholly-owned subsidiaries. All significant intercompany transactions and balances
have been eliminated in consolidation.

In the opinion of management,
the accompanying condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q reflect all normal recurring
adjustments necessary to present fairly the financial position and results of operations and cash flows for the interim periods presented
herein