Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 12

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 12
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 The design segment consists of two operating
segments (IPS and Kablooe, which have been aggregated into one reportable segment) that provide a full spectrum of hardware and software
product design and engineering services to customers predominantly located in the U.S. See Note 16 for more information on segments.

Goodwill

The Company reviews goodwill
for impairment at least annually, or more often if triggering events occur. The Company has two reporting units with goodwill (the IPS
and Kablooe operating segments) and we perform our annual goodwill impairment test on September 30, the end of the fiscal year, or upon
the occurrence of a triggering event such as an overall change in economic climate, changes in the industry and competitive environment,
and earnings quality and sustainability. The Company has the option to perform a qualitative assessment to determine if an impairment
is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair
value of a reporting unit is less than its carrying amount, then the Company would not need to perform a quantitative impairment test
for the reporting unit. If the Company cannot support such a conclusion or does not elect to perform the qualitative assessment, then
the Company will perform the quantitative impairment test by comparing the fair value of the reporting unit with its carrying amount,
including goodwill. If the fair value of the reporting unit exceeds its carrying amount, no impairment charge is recognized. If the fair
value of the reporting unit is less than its carrying amount, an impairment charge will be recognized for the amount by which the reporting
unit’s carrying amount exceeds its fair value. A significant amount of judgment is required in performing goodwill impairment tests
including estimating the fair value of a reporting unit. See Note 4.

     F-9 

Intangible Assets

Intangible assets include trademarks
and customer relationships, which were acquired as part of the acquisitions of IPS in Fiscal 2018 and Kablooe in Fiscal 2020 and are amortized
over their estimated useful lives, which are periodically evaluated for reasonableness.

Our intangible assets are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In assessing
the recoverability of our intangible assets, we must make estimates and assumptions regarding future cash flows and other factors to determine
the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge
is recognized and the magnitude of any such charge