Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1044

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 9
Chunk 1044
---
 Forward Switzerland and Forward UK and sold 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; (ii) the
Company and Forward China terminated the Sourcing Agreement and extended the term of the Note Payable (see Note 14) to December 31,
2025; and (iii) the Company paid Forward China $200,000 at closing plus $150,000
on each of July 31, 2025, August 31, 2025 and September 30, 2025. 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. The assets
and liabilities of the OEM segment were classified as assets and liabilities held for sale on the consolidated balance sheets at September
30, 2024. The results of operations for the OEM segment have been classified as discontinued operations on the consolidated statements
of operations for the years ended September 30, 2025 and 2024.

The consolidated balance sheets
and statements of operations for comparable periods have been reclassified to conform to this presentation in accordance with the accounting
guidance.

     F-17 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents
the major classes of the “Net income (loss) from discontinued operations, net of tax” in our consolidated statements of operations. 

     Schedule of discontinued operations 

    For the Fiscal Years Ended September 30, 

    2025  
    2024 

    Revenues, net 
    $5,563,000  
    $10,935,000 
  
    Cost of sales 
     4,445,000  
     9,642,000 
  
    Gross profit 
     1,118,000  
     1,293,000 
  
    Sales and marketing expenses 
     360,000  
     880,000 
  
    General and administrative expenses 
     49,000  
     197,000 
  
    Operating income 
     709,000  
     216,000 
  
    Gain on sale of discontinued operations