Company: FWDI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003548
Chunk: 54

Company: Forward Industries, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 54
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 be paid according to normal payment terms. At March 31, 2025, the remaining balance covered by this agreement was $2,099,000.

As previously disclosed on
a Form 8-K filed with the SEC on March 24, 2025, the Company and Forward China have entered into proposed terms which would provide a
framework by which Forward China would purchase either the assets or the securities of the OEM business. As part of those proposed terms,
a payment plan on the amounts owed under the FC Note and the outstanding payables will be provided by Forward China as part of the consideration
paid. We can provide no assurance that a definitive agreement will be reached or that any transaction will be completed.

The Company is in preliminary discussions regarding
a potential sale of equity securities and establishment of an equity line of credit facility with an institutional investor. We can provide
no assurance that either financing will close or, if closed, will be on terms acceptable to us.

Our condensed 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. We had an accumulated deficit and working
capital (excluding discontinued assets held for sale) of $21,797,000 and $2,784,000, respectively, at March 31, 2025, a net loss of $2,160,000
for the six months ended March 31, 2025 and $1,951,000 in Fiscal 2024 and a cash balance of approximately $1,400,000 at April 30, 2025.

In December 2024, we
were notified by our largest design customer 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