Forward Industries, Inc. Annual Report - How They Did This Year

Hey there! Let's dive into how Forward Industries, Inc. performed this past year, focusing on the fiscal year ending September 30, 2025. It was a pretty eventful year with some big strategic moves and changes to their financial setup!

Big Strategic Shifts & New Directions

This year, Forward Industries made some significant changes to its business structure. They discontinued operations for their IPS and Kablooe business units.

On the financial side, the company has been very active in raising capital, bringing in new money through several avenues. They issued new Series A1 and Series B Convertible Preferred Stock, which are special types of shares that often come with specific rights and can be converted into regular common stock later. They also entered into Securities Purchase Agreements and established an Equity Line of Credit, which is like a flexible loan they can draw from as needed.

They secured investments and agreements with prominent names in the digital asset space, including Jump Crypto and Multicoin, as lead investors. They also have a strategic advisor agreement with Galaxy Digital LP. This involvement from crypto-focused firms aligns the company with the digital asset or blockchain industry. They issued various warrants (which give investors the right to buy shares at a set price later) to these investors and advisors. They also conducted an At-the-Market (ATM) Offering, which allows them to sell new shares directly into the market over time to raise funds.

Business Performance & Risks

• Customer Concentration in Design: In their Design segment, the company saw an increase in customer concentration. This past year (FY2025), one customer accounted for a significant portion of the Design segment's revenue, compared to two key customers in the previous year (FY2024). This means they are more reliant on a single customer for a big chunk of that segment's business, which can be a risk if that customer's business changes or reduces orders.

Other Notable Activities

The company continues to have ongoing relationships, including transactions with Forward China for service fees and purchases, and a promissory note. They also have agreements with Justwise Group and Koble. Additionally, they granted stock options to non-employee directors and their CEO under their 2021 Equity Incentive Plan.

Overall, Forward Industries is undergoing a significant transformation, shedding older business units and actively raising capital with new partners, indicating a strategic move into emerging technology sectors.