Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 42

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 42
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     (2,560,000) 
     (459,000) 
     (2,101,000) 
     457.7% 
  
    Other income, net 
     (156,000) 
     (4,000) 
     (152,000) 
     3,800.0% 
  
    Loss from continuing operations 
    $(2,404,000) 
    $(455,000) 
    $(1,949,000) 
     428.4% 

The discussion that follows
below provides further details about our results from continuing operations for the 2025 Quarter as compared to the 2024 Quarter.

The decline in net revenues
from the 2024 Quarter to the 2025 Quarter is primarily attributable to the loss of a major customer in December 2024 as well as a net
decrease in volume of work and projects with continuing customers, partially offset by projects from new customers. In December 2024,
our largest design customer notified us of its plan to discontinue their insulin patch pump program, on which we were working. We expect
this to continue to cause a material decrease in our revenues relative to fiscal 2024. Management initiated cost reduction measures to
mitigate the impact of declining revenues, including two reductions in workforce in January 2025.

Our gross profit/(loss) margin
declined significantly, from 26.0% in the 2024 Quarter to (24.9%) in the 2025 Quarter, driven by lower revenues and utilization rates
and was partially mitigated by staff reductions in January  2025.

Sales and marketing expenses
decreased primarily due to lower personnel costs and lower marketing spend but increased as a percentage of revenues from 3.7% in the
2024 Quarter to 5.6% in the 2025 Quarter.

General and administrative
expenses increased in the 2025 Quarter. Lower personnel costs related to staff reductions and a reduction in expenses related to the June
2024 reverse stock split were offset by higher professional fees primarily related to the sale of the OEM division. Management continues
to monitor the various components of general and administrative expenses and how these costs are affected by inflationary and other factors.
We intend to adjust these costs as needed based on the overall needs of the business.

 27 

The change in other income,
net is primarily due to the change in fair value of the warrant liability and the