What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-14 compared with 2025-05-14 · 173 added, 175 removed, 145 unchanged (71% of the section changed)

5 unchanged sentences

The following discussion

and analysis compares our condensed consolidated results of operations for the three and six months ended March 31, 2025 (the “2025

Quarter” and the “2025 Period”, respectively) with those for the three and six months ended March 31, 2024 (the “2024

and analysis compares our condensed consolidated results of operations for the three and nine months ended June 30, 2025 (the “2025

Quarter” and the “2025 Period”, respectively) with those for the three and nine months ended June 30, 2024 (the “2024

Quarter” and “2024 Period”, respectively).

1 unchanged sentence

to approximate values.

Cautionary Note Regarding

Cautionary Note Regarding Forward-Looking

This report contains

“forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995).

These statements include, among other things, statements regarding our liquidity, plans on repaying outstanding debt obligations,

plans on utilizing the equity line of credit, plans for other financing as well as other statements regarding our future operations,

financial condition and prospects, and business strategies.

Forward-looking statements generally can be identified by words such as

“anticipates,” “believes,” “estimates,” “expects,” “intends,”

“plans,” “predicts,” “projects,” “will be,” “will continue,” “will

likely result,” and similar expressions.

These forward-looking statements are based on current expectations and assumptions

that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the

forward-looking statements.

This report contains “forward-looking

statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995).

These statements include, among

other things, statements regarding our liquidity, plans on repaying outstanding debt obligations, planned sale of the OEM business, closing

of an equity line of credit or other equity financing as well as other statements regarding our future operations, financial condition

and prospects, and business strategies.

Forward-looking statements generally can be identified by words such as "anticipates,"

"believes," "estimates," "expects," "intends," "plans," "predicts," "projects,"

"will be," "will continue," "will likely result," and similar expressions.

These forward-looking statements

are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to

differ materially from those reflected in the forward-looking statements.

These risks include the inability to expand our customer base,

loss of additional customers, pricing pressures, lack of success of our marketing people, economic or other factors resulting in the failure

to enter into purchase agreements for the sale of equity, failure to reach a definitive agreement for the sale of the OEM business ,

inability to maintain compliance with Nasdaq listing standards, and the inability of our customers to pay for our services.

assurance can be given that the actual results will be consistent with the forward-looking statements.

Investors should read carefully

the factors described in the “Risk Factors” section of the Company’s filings with the SEC, including the Company’s

Form 10-K for the year ended September 30, 2024 for information regarding risk factors that could affect the Company’s results.

We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required

by applicable law or regulation.

These risks include the inability to expand our customer base, loss of additional customers, pricing

pressures, lack of success of our marketing efforts, economic or other factors resulting in the failure to enter into purchase

agreements for the sale of equity, failure to raise capital when needed, the inability to maintain compliance with Nasdaq listing

standards, and the inability of our customers to pay for our services.

No assurance can be given that the actual results will be

consistent with the forward-looking statements.

Investors should read carefully the factors described in the “Risk

Factors” section of the Company’s filings with the SEC, including the Company’s Form 10-K for the year ended

September 30, 2024 for information regarding risk factors that could affect the Company’s results.

We undertake no obligation

to revise or publicly release the results of any revision to these forward-looking statements, except as required by applicable law

or regulation.

Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking

1 unchanged sentence

Forward Industries, Inc.

is a global design, sourcing and distribution company serving top tier medical and technology customers worldwide.

Company provides hardware and software product design and engineering services to customers predominantly located in the U.S.

is a global design company serving top tier medical and technology customers.

The Company provides

hardware and software product design and engineering services to customers predominantly located in the U.S.

In June 2024, the Company’s

4 unchanged sentences

Discontinued Operations

Considering the recurring

losses incurred by the retail distribution segment, in July 2023, we decided to cease operations of our retail distribution segment (“Retail

Exit”) and we are presenting the results of operations for this segment within discontinued operations in the current and prior

periods presented herein.

The discontinuation of the retail segment represented a strategic shift in the Company’s business.

primary assets of the retail segment were inventory and accounts receivable.

The Company sold, liquidated, or otherwise disposed of the

remaining retail inventory and collected the remaining retail accounts receivable by September 30, 2024, at which time the retail segment

was considered fully discontinued.

We expect to have no further significant continuing involvement with this segment.

The inventory of

the retail segment met the criteria to be considered “held-for-sale” in accordance with ASC 205-20, “Discontinued Operations.”

Accordingly, the retail inventory was classified on our condensed consolidated balance sheet as “discontinued assets held for sale”

at September 30, 2023, and the results of operations for the retail segment have been classified as “Discontinued Operations”

on the condensed consolidated statements of operations for the three and six months ended March 31, 2025 and 2024.

In July 2023, we decided

to cease operations of our retail distribution segment (“Retail Exit”) and we are presenting the results of operations for

this segment within discontinued operations in the current and prior periods presented herein.

The discontinuation of the retail segment

represented a strategic shift in the Company’s business.

The primary assets of the retail segment were inventory and accounts receivable.

The Company sold, liquidated, or otherwise disposed of the remaining retail inventory and collected the remaining retail accounts receivable

by September 30, 2024, at which time the retail segment was considered fully discontinued.

We expect to have no further significant continuing

involvement with this segment.

The inventory of the retail segment met the criteria to be considered “held-for-sale” in accordance

with ASC 205-20, “Discontinued Operations.” Accordingly, the retail inventory was classified on our condensed consolidated

balance sheet as “discontinued assets held for sale” at September 30, 2023, and the results of operations for the retail segment

have been classified as “Discontinued Operations” on the condensed consolidated statements of operations for the three and

nine months ended June 30, 2025 and 2024.

In March 2025, in connection

with the fourth Conversion Agreement (see Note 8 to the condensed consolidated financial statements), Forward China determined it would

not renew the Buying Agency and Supply Agreement, which was scheduled to expire on April 30, 2025.

Without this agreement, the Company

determined it would not continue the OEM segment of the business and committed to a plan to sell the segment in the next three months,

after which it does not plan to have any significant continuing involvement with this segment.

The sale of the OEM business is considered

a strategic shift that will have a significant impact on the Company’s operations and financial results.

The assets and liabilities

of the OEM segment are classified as assets and liabilities held for sale on the condensed consolidated balance sheets at March 31, 2025

and September 30, 2024.

not renew the Buying Agency and Supply Agreement, which subsequently expired on May 9, 2025.

Without this agreement, the Company determined

it would not continue the OEM segment of the business and committed to a plan to sell the segment.

On May 16, 2025, the Company and Forward

US entered into a transaction agreement with Forward China, pursuant to which the Company sold all equity interest in Forward Switzerland

and Forward UK and certain other net assets related to Forward US’ OEM segment to Forward China to satisfy outstanding payables

due to Forward China under the Sourcing Agreement.

Additionally, the Company and Forward China terminated the Supply Agreement and extended

the term of the Note Payable (see Note 8 to the condensed consolidated financial statements) to December 31, 2025.

The Company paid $200,000

at closing and agreed to make additional cash payments of $150,000 on each of July 31, 2025, August 31, 2025 and September 30, 2025, which

are shown as Due to Forward China on the condensed consolidated financial statements.

Results of operations for Forward Switzerland and

Forward UK were included in the Company’s results of operations through and including May 16, 2025.

The sale of the OEM business

is considered a strategic shift that will have a significant impact on the Company’s operations and financial results.

and liabilities of the OEM segment were classified as assets and liabilities held for sale on the condensed consolidated balance sheets

at September 30, 2024.

The results of operations for the OEM segment have been classified as discontinued operations on the condensed

consolidated statements of operations for the three and six months ended March 31, 2025 and 2024.

Unless otherwise noted, results

for discontinued operations are excluded from the discussion that follows.

consolidated statements of operations for the three and nine months ended June 30, 2025 and 2024.

Unless otherwise noted, results for

discontinued operations are excluded from the discussion that follows.

Variability of Revenues

29 unchanged sentences

carrying amount exceeded its fair value, resulting in a goodwill impairment charge of $225,000 in December 2024, primarily driven by a

reduction in its expected future performance.

the second quarter of fiscal 2025, the IPS reporting unit continued to experience low levels of staff utilization due in part to the loss

of the aforementioned major customer, which was anticipated.

In addition, due to the uncertainty in the global markets related to tariffs

on imports, many IPS customers were slow to commit funds to projects as they were unsure how tariffs and other macroeconomic factors would

impact their business.

The combination of these events resulted in negative gross profit for the IPS reporting unit in the second quarter,

which the Company considered another triggering event to evaluate the goodwill of the IPS reporting unit for impairment.

Management performed

a quantitative goodwill impairment analysis for the IPS reporting unit at March 31, 2025, which indicated the fair value of the IPS reporting

unit exceeded its carrying amount, resulting in no further goodwill impairment in the three months ended March 31, 2025.

reduction in its expected future performance at that time.

the second and third quarters of fiscal 2025, the IPS reporting unit continued to experience low levels of staff utilization due in part

to the loss of the aforementioned major customer, which was anticipated.

In addition, due to the uncertainty in the global markets related

to tariffs on imports, many IPS customers were slow to commit funds to projects, primarily in the second quarter of fiscal 2025, as they

were unsure how tariffs and other macroeconomic factors would impact their business.

The combination of these events resulted in negative

gross profit for the IPS reporting unit in the second and third quarters, which the Company considered triggering events to evaluate the

goodwill of the IPS reporting unit for impairment.

Management performed a quantitative goodwill impairment analysis for the IPS reporting

unit at March 31, 2025 and June 30, 2025, both of which indicated the fair value of the IPS reporting unit exceeded its carrying amount,

resulting in no further goodwill impairment in the three months ended March 31, 2025 or June 30, 2025.

to the historical losses of the Kablooe reporting unit, the Company elected to bypass the qualitative assessment and perform quantitative

11 unchanged sentences

RESULTS OF OPERATIONS FOR

THE THREE MONTHS ENDED MARCH 31, 2025 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2024

THE THREE MONTHS ENDED JUNE 30, 2025 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2024

The table below summarizes our consolidated results

7 unchanged sentences

General and administrative expenses

Loss from operations

Other expense, net

Operating loss

Other income, net

Loss from continuing operations

8 unchanged sentences

our largest design customer notified us of its plan to discontinue their insulin patch pump program, on which we were working.

this to continue to cause a material decrease in our revenues in fiscal 2025.

We are working on cost reduction efforts to mitigate the

reduction in revenue.

Additionally, based on current economic conditions, in part due to the uncertainty in how tariffs will affect our

customers, we believe that our revenues will continue to decrease in the design business as customers are slow to commit funds to projects.

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 26.2% in the 2024 Quarter to (5.7%) in the 2025 Quarter, driven by lower staff utilization rates, and partially

mitigated by an increase in the average bill rate.

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 increased as a percentage of revenues from 4.1% in the 2024 Quarter to 4.7% in the

2025 Quarter.

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 decreased in the 2025 Quarter.

Lower personnel costs and a reduction in expenses related to our annual shareholder meeting were

partially offset by higher professional fees.

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.

The decrease in other expense,

net is due to a decrease in interest expense resulting from a reduction in the amount of debt outstanding, a decrease in interest income

resulting from lower cash balances in interest bearing accounts and a reduction in foreign currency exchange losses.

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.

The change in other income,

net is primarily due to the change in fair value of the warrant liability and the decrease in interest income resulting from lower cash

balances in interest bearing accounts.

We generated a loss from

6 unchanged sentences

RESULTS OF OPERATIONS FOR

THE SIX MONTHS ENDED MARCH 31, 2025 COMPARED TO THE SIX MONTHS ENDED MARCH 31, 2024

THE NINE MONTHS ENDED JUNE 30, 2025 COMPARED TO THE NINE MONTHS ENDED JUNE 30, 2024

The table below summarizes our consolidated results

7 unchanged sentences

Goodwill impairment

Loss from operations

Other expense, net

Operating loss

Other (income)/expense, net

Loss from continuing operations

1 unchanged sentence

$ (1,447,000 )

$ (3,677,000 )

The discussion that follows

6 unchanged sentences

We expect this to continue

to cause a material decrease in our revenues in fiscal 2025.

We are working on cost reduction efforts to mitigate the reduction in revenue.

Additionally, based on current economic conditions, in part due to the uncertainty in how tariffs will affect our customers, we believe

that our revenues will continue to decrease in the design business as customers are slow to commit funds to projects.

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 and June 2025.

Our gross margin decreased

from 27.1% in the 2024 Period to 12.3% in the 2025 Period, driven by lower staff utilization rates and was partially offset by an increase

in the average bill rate.

from 26.7% in the 2024 Period to 3.3% in the 2025 Period, driven by lower revenue and utilization rates and was partially offset by staff

reductions in January and June of 2025.

Sales and marketing expenses

decreased primarily due to lower personnel costs but remained flat at 4.0% of revenues in both periods.

decreased primarily due to lower personnel costs and lower marketing spend but increased as a percentage of revenues from 4.0% in the

2024 Period to 4.4% in the 2025 Period.

General and administrative

expenses decreased in the 2025 Period.

Lower personnel costs related to staff reductions, coupled with a reduction in expenses related

to our annual shareholder meeting and lower director compensation were partially offset by higher professional fees.

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.

During the 2025 Period, we

recorded a goodwill impairment charge of $225,000 related to the IPS reporting unit.

This impairment charge resulted from the quantitative

goodwill impairment testing performed at December 31, 2024 and was driven by the expected reduction in revenues following the loss of

a significant customer.

The decrease in other expense,

net is due to a decrease in interest expense resulting from a reduction in the amount of debt outstanding, a decrease in interest income

resulting from lower cash balances in interest bearing accounts and a reduction in foreign currency exchange losses.

expenses increased in the 2025 Period.

Lower personnel costs related to staff reductions, a reduction in expenses related to our annual

shareholder meeting and the June 2024 reverse stock split and lower director compensation were offset by higher professional

fees primarily related to the sale of the OEM segment.

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.

The change in other (income)/expense,

net is primarily due to the change in fair value of the warrant liability, a decrease in interest income resulting from lower cash balances

in interest bearing accounts, and a decrease in interest expense resulting from a reduction in the amount of debt outstanding.

We generated a loss from

5 unchanged sentences

loss per share from continuing operations were $4.65 and $1.31 for the 2025 Period and the 2024 Period, respectively.

LIQUIDITY AND CAPITAL RESOURCES

Our primary source of liquidity

is our operations.

The primary demand on our working capital has historically been (i) operating losses, (ii) repayment of debt obligations,

and (iii) any increases in accounts receivable and inventories arising in the ordinary course of business.

Historically, our sources of

liquidity have been adequate to satisfy working capital requirements arising in the ordinary course of business.

At March 31, 2025, our

working capital (excluding discontinued assets held for sale) was $2,784,000 compared to working capital of $4,663,000 at September 30,

The decrease was primarily due to lower cash and accounts receivable balances.

Forward China, our largest

vendor and an entity owned by our Chairman of the Board and Chief Executive Officer, holds a $1,600,000 promissory note (the “FC

Note”) issued by us which matures on June 30, 2025 (see Note 8 to the condensed consolidated financial statements).

The outstanding

balance of the FC Note has been reduced to $600,000 following principal payments totaling $1,000,000 made through March 31, 2025.

the FC Note has been extended multiple times to support our liquidity position, we intend to fund the repayment at maturity using existing

cash balances, proceeds from equity and/or debt financing, and/or by seeking additional extensions as deemed necessary.

Additionally,

Forward China has extended payment terms on our outstanding payables due to them when necessary.

At March 31, 2025, our accounts payable

due to Forward China was approximately $4,998,000.

In connection with the sourcing agreement entered into in October 2023 (see Note 8

to the condensed consolidated financial statements) and in order to preserve our current and future liquidity, Forward China agreed to

limit the amount of outstanding payables it would seek to collect from us up to $500,000 in any 12-month period.

We have agreed to pay

these amounts within 30 days of any such request.

This agreement pertains only to payables that were outstanding at October 30, 2023 which

totaled $7,365,000.

Purchases made from Forward China made after October 30, 2023, are not covered by this agreement and are expected

to 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

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.

LIQUIDITY AND CAPITAL

Prior to our recent financings,

our primary source of liquidity has been our operations.

The primary demand on our working capital is and has historically been (i) operating

losses, (ii) repayment of debt obligations, and (iii) any increases in accounts receivable.

Our sources of liquidity are currently adequate

to satisfy working capital requirements arising in the ordinary course of business.

At June 30, 2025, our working capital was $1,211,000.

At August 12, 2025, our cash balance was approximately $5,600,000.

Recent Financings

From July 1 – August

12, 2025, the Company sold 246,000 shares of common stock under the $35 million ELOC and received gross proceeds of $2,432,000 in connection

with such sales.

Assuming the Company continues to meet its obligations under the Purchase Agreement, management plans to raise additional

capital through the ELOC in the near future.

We cannot provide any assurance that:

(i) we will be able to continue selling under the

ELOC, (ii) if we are able to sell under the ELOC, that we will be able to do so at prices that we believe are beneficial to the Company

and its shareholders, or (iii) that our registration statement on form S-1 registering shares to be sold under the ELOC in the future

will be declared and remain effective.

As of the filing date of this Form 10-Q, the Company has sold all shares registered by it under

On August 11, 2025, the

Company sold, in a registered direct offering, approximately 263,000 shares of its common stock at a price of $8.50 per share to six

investors and received gross proceeds of approximately $2,230,000.

Other Liquidity Factors

Forward China, an entity

owned by our former Chairman of the Board and Chief Executive Officer, holds a $600,000 promissory note issued by the Company which matures

on December 31, 2025 (see Note 8 to the condensed consolidated financial statements).

We plan on repaying the note on or prior to its

maturity date.

In connection with the sale of the OEM business, we are obligated to pay Forward China $150,000 on each of August 31, 2025

and September 30, 2025 (in addition to the payment made on July 31, 2025).

Our condensed consolidated

2 unchanged sentences

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.

capital of $22,647,000 and $1,211,000, respectively, at June 30, 2025, a net loss of $3,010,000 for the nine months ended June 30, 2025

and $1,951,000 in Fiscal 2024 and a cash balance of approximately $5,600,000 at August 12, 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.

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.

Although we do not anticipate

4 unchanged sentences

During the 2025 Period, cash

used in operating activities of $972,000 resulted from a net loss of $2,160,000, a decrease in accrued expenses and other current liabilities

of $153,000 and the net change in other operating assets and liabilities of $33,000, partially offset by non-cash expenses of $462,000

related to depreciation, amortization, share-based compensation and credit loss expense and a decrease in accounts receivable of $912,000.

used in operating activities of $2,199,000 resulted from a net loss of $3,010,000, the gain on sale of the OEM segment of $1,406,000,

the gain on the change in fair value of the warrant liability of $160,000, a decrease in accrued expenses and other current liabilities

of $261,000, partially offset by non-cash expenses of $589,000 related to depreciation, amortization, share-based compensation, credit

loss expense and goodwill impairment charges, a decrease in accounts receivable and contract assets of $1,634,000, the net change in other

operating assets and liabilities of $19,000 and the net cash provided by discontinued operations of $396,000.

During the 2024 Period, cash

used in operating activities of $383,000 resulted from a net loss of $907,000, decreases in accrued expenses and other current liabilities

of $785,000, a decrease in accounts payable of $304,000, a decrease in deferred income of $69,000 and the net change in other operating

assets and liabilities of $55,000, partially offset by the net change in discontinued assets and liabilities held for sale of $891,000,

non-cash expenses of $228,000 related to depreciation, amortization, share-based compensation and credit loss expense and a decrease in

accounts receivable of $618,000.

provided by operating activities of $53,000 resulted from a net loss of $1,307,000, decreases in accrued expenses and other current liabilities

of $707,000, a decrease in accounts payable of $373,000 and the net change in other operating assets and liabilities of $165,000, partially

offset by net cash provided by discontinued operations of $1,462,000, non-cash expenses of $333,000 related to depreciation, amortization,

share-based compensation and credit loss expense and a decrease in accounts receivable and contract assets of $810,000.

Investing Activities

Cash used in investing activities

in the 2025 Quarter and the 2024 Quarter of $7,000 and $41,000, respectively, resulted from purchases of property and equipment.

Cash used in financing activities

in the 2024 Quarter of $350,000 consisted of principal payments on the promissory note held by Forward China.

in the 2025 Period resulted from payments for the sale of the OEM segment of $200,000 and purchases of property and equipment of $26,000.

Cash used in investing activities in the 2024 Period resulted from purchases of property and equipment of $50,000.

Cash provided by financing

activities in the 2025 Period consisted of $971,000 net proceeds from the issuance of preferred stock and warrants, partially offset by

deferred financing costs of $60,000 related to the equity line of credit.

Cash used in financing activities in the 2024 Period consisted

of principal payments on the promissory note held by Forward China of $500,000.

Related Party Transactions

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis