Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 89

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 89
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Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date”, which clarified the effective
date of ASU 2024-03 for non-calendar year-end companies. ASU 2024-03 will require the Company to disclose the amounts of
purchases of inventory, employee compensation, depreciation and intangible asset amortization, as applicable, included in certain expense
captions in the consolidated statements of operations, as well as qualitatively describe remaining amounts included in those captions. ASU
2024-03 will also require the Company to disclose both the amount and the Company’s definition of selling expenses. This ASU
is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 31, 2027.
The Company is currently evaluating the effects of the pronouncement on its condensed consolidated financial statements.

In December 2023, the FASB
issued ASU 2023-09, "Income Taxes - Improvements to Income Tax Disclosures", requiring enhancements and further transparency
to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years
beginning after December 15, 2024 on a prospective basis and retrospective application is permitted. The Company is currently evaluating
the effects of this pronouncement on its condensed consolidated financial statements.

In November 2023, the FASB
issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires expanded
segment reporting and disclosure and is effective for the Company for fiscal years beginning after December 15, 2023, and interim periods
within fiscal years beginning after December 15, 2024. The Company is currently evaluating the effects of this pronouncement on its condensed
consolidated financial statements.

NOTE 3        DISCONTINUED
OPERATIONS AND ASSETS HELD FOR SALE

Considering the recurring
losses incurred by the retail segment, in July 2023, the Company decided to cease operations of its retail distribution segment (“Retail
Exit”). The primary assets of the retail segment were inventory and accounts receivable. The Company sold, liquidated, or otherwise
disposed of all remaining retail inventory, and collected remaining retail accounts receivable by September 30, 2024, at which time the
retail segment was considered fully discontinued. We expect to have no