Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 73

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 73
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 of assets and satisfaction of liabilities in the ordinary course of business. We had an accumulated deficit of $20,345,000
at December 31, 2024, a net loss of $708,000 for the three months ended December 31, 2024 and $1,951,000 in Fiscal 2024 and a cash balance
(excluding cash associated with the discontinued OEM segment) of approximately $2,600,000 at January 31, 2025.

In December 2024, we
were notified by our largest design customer of its plan to discontinue their insulin patch pump program, on which IPS was 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 cause a material decrease in our
revenues beginning in the second quarter of 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 (as we have in the past with the acquisitions of IPS and Kablooe) or an investment in a product or partnership,
we may require additional capital beyond our current cash balance to fund the opportunity. If we seek to raise additional capital, there
is no assurance that we will be able to raise funds on terms that are acceptable to us or at all.

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.

 A-10 

Cash Flows

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

Operating
Activities

During the 2025 Quarter,
cash used in operating activities of $434,000 resulted from a net loss of $708,000, a decrease in deferred income of $121,000, a decrease
in accrued expenses and other current liabilities of $131,000 and cash used in discontinued operations of $81,000, partially offset by
a net increase in accounts receivable and contract assets of $172,000, non-cash charges for depreciation, amortization,