Forward Industries(FORD) - 2025 Q4 - Annual Report

Financial Performance - Net revenues for Fiscal 2025 were $18,188,000, a decrease of $1,803,000 or 9.0% compared to Fiscal 2024's $19,991,000[212] - The operating loss for Fiscal 2025 was $8,392,000, a substantial increase from the loss of $2,151,000 in Fiscal 2024[212] - The company incurred a loss from continuing operations before income taxes of $169,069,000 in Fiscal 2025, with an effective tax rate of 0%[219] - Consolidated basic and diluted loss per share from continuing operations was $24.90 for Fiscal 2025[220] Revenue Breakdown - The design segment revenue declined by $6,385,000, primarily due to the loss of a major design customer in December 2024[213] - Staking revenue from the digital assets segment contributed $4,582,000, partially offsetting the decline in design segment revenue[213] Profitability Metrics - Gross profit slightly increased to $5,191,000, with gross margin improving from 25.9% in Fiscal 2024 to 28.5% in Fiscal 2025[214] - The digital assets segment generated a gross profit of $4,412,000 with a gross margin of 96.3%[214] Expenses - General and administrative expenses rose significantly to $10,528,000, an increase of 65.4% from $6,366,000 in Fiscal 2024[212] - Sales and marketing expenses increased by $500,000 due to corporate marketing spend, partially offset by a $240,000 reduction in the design segment[215] - Corporate general and administrative expenses rose by $4,392,000, driven by higher share-based compensation and professional fees, while design segment expenses decreased by $769,000[216] - The company recorded goodwill impairment charges of $1,167,000 and intangible asset impairment charges of $271,000 related to the IPS reporting unit[217] Goodwill and Asset Impairment - Goodwill impairment increased to $2,026,000 in Fiscal 2025, compared to $200,000 in Fiscal 2024[212] - A $160,035,000 reduction in the fair value of digital assets was noted, primarily due to a decline in the market value of SOL[218] Cash Flow and Capital - Cash used in operating activities during Fiscal 2025 was $4,502,000, resulting from a net loss of $166,974,000[229] - Cash used for investing activities in Fiscal 2025 included $900,791,000 for purchasing digital assets[231] - As of September 30, 2025, the company's working capital was approximately $38.5 million, and cash balance was approximately $41.2 million[221] - The company raised approximately $1.65 billion through private placements and other financing transactions in September 2025[222] Digital Asset Strategy - As of November 30, 2025, digital asset holdings comprised more than 90% of the company's total assets[197] - The company launched a digital asset treasury strategy, acquiring 6,822,000 SOL at an average price of $232 per SOL, totaling approximately $1.58 billion[195]