Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 208

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 208
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 (“OEM”) distribution segment of the business (“OEM Plan”).
In May 2025, the Company completed the sale of this line of business and is presenting its results of operations within discontinued operations
in the current and prior periods presented herein. The OEM distribution segment sourced and sold carrying cases and other accessories
for medical monitoring and diagnostic kits as well as a variety of other portable electronic and non-electronic devices to OEMs or their
contract manufacturers worldwide, that either packaged our products as accessories “in box” together with their branded product
offerings or sold them through their retail distribution channels. The Company did not manufacture any of its OEM products and sourced
substantially all of these products from independent suppliers in China, through Forward Industries Asia-Pacific Corporation, a British
Virgin Islands corporation (“Forward China”), a related party owned by the Company’s former CEO (see Note 14).

Unless otherwise noted, amounts
related to these discontinued operations are excluded from the disclosures presented herein. See Note 3 for more information on these
discontinued operations. 

Liquidity and Going Concern

The accompanying 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. The Company had an accumulated deficit and
working capital of $186,611,000 and $38,498,000, respectively, on September 30, 2025, a net loss of $166,974,000 in Fiscal 2025 and a
cash balance of approximately $41.2 million at November 30, 2025.

In the prior reporting period,
the Company identified certain conditions that raised substantial doubt about its ability to continue as a going concern. These conditions
included the loss of a significant customer, the resulting decline in revenues and cash, and recurring operating losses. During the period
from May 2025 to September 2025, the Company raised gross proceeds of over $1.65 billion through multiple equity financing transactions
(see Note 8). As a result, the Company believes it now has sufficient liquidity to fund anticipated cash requirements for operations and
working capital purposes through at least December 2026. As a result, the previously disclosed going concern uncertainty language has
been removed as substantial doubt no longer exists regarding the Company’s ability to continue as a going concern.

NOTE 2        ACCOUNTING POLICIES

Use of Estimates

The preparation of the Company’s
cons