Forward Industries, Inc. Debt Disclosure
NOTE 17 DEBT
On April 18, 2020, the Company entered into a PPP loan in an aggregate principal amount of $1,357,000. The loan was unsecured, bore interest at a rate of 1.0% per annum and was scheduled to mature on April 18, 2022. In October 2020, the Company filed for forgiveness of this loan and in December 2020, the Small Business Administration (“SBA”) approved its forgiveness request. The forgiveness has been accounted for as an extinguishment of debt and the resulting gain has been recorded as forgiveness of note payable on the consolidated statement of operations for Fiscal 2021. There is a six-year period during which the SBA can review the Company’s forgiveness.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2022 | Dec 16, 2022 | Showing above |
| 2021 | Dec 16, 2021 | |
| 2020 | Dec 17, 2020 | |
| 2019 | Dec 27, 2019 | |
| 2018 | Dec 20, 2018 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.