Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1192

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 9B
Chunk 1192
---

cash flow analysis incorporating variables categorized within Level 3 of the fair value hierarchy such as projected revenues, growth rate
and discount rate. The quantitative testing indicated the carrying amount of the IPS reporting unit exceeded its fair value, resulting
in a goodwill impairment charge of $225,000 in the three months ended December 31, 2024, primarily driven by a reduction in the expected
future performance of the IPS reporting unit.

The Company reviewed the fair
value of the IPS reporting unit at September 30, 2025, in connection with its annual goodwill impairment evaluation. Based on a decrease
in its estimated future cash flows, driven by declining revenues and continued losses, the Company determined the carrying amount of this
reporting unit exceeded its fair value and recorded an additional impairment charge of $943,000 for the remaining goodwill balance.

Below is the rollforward of
goodwill for the design segment, the only reportable segment with goodwill: 

     Schedule of  roll forward
of goodwill 

    Balance at September 30, 2024 
    $1,559,000 
  
    Impairment of IPS reporting unit 
     (1,168,000)
  
    Impairment of Kablooe reporting unit 
     (391,000)
  
    Balance September 30, 2025 
    $– 

NOTE 5         PROPERTY AND
EQUIPMENT

Property and equipment and related accumulated depreciation
and amortization are summarized in the table below: 

    Schedule of property and equipment 

    September 30, 

    2025  
    2024 
  
    Computer hardware and software 
    $490,000  
    $481,000 
  
    Furniture and fixtures 
     32,000  
     48,000 
  
    Equipment 
     95,000  
     83,000 
  
    Property and equipment, cost 
     617,000  
     612,000 
  
    Less accumulated depreciation and amortization 
     (493,000) 
     (394,000)
  
    Property and equipment, net 
    $124,000  
    $218,000 

Depreciation expense was $119,000 and $120,000 for
Fiscal 2025 and Fiscal 2024, respectively.

     F-20 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES