Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 779

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 6
Chunk 779
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 Company’s
shareholders authorized, and the Company’s Board of Directors approved, a 1-for-10 reverse stock split of our common stock, which became
effective on June 18, 2024. Accordingly, all references made to share, per share, or common share amounts in the accompanying consolidated
financial statements and applicable disclosures have been retroactively adjusted to reflect the reverse stock split.

 32 

Discontinued Operations

Considering the recurring losses
incurred by the retail segment, in July 2023, the Company decided to cease operations of our retail distribution segment, and we are presenting
the results of operations for this segment within discontinued operations in the current and prior periods presented herein. The discontinuation
of the retail segment represents a strategic shift in the Company’s business. The primary assets of the retail segment are inventory
and accounts receivable. The Company sold, liquidated, or otherwise disposed of the remaining retail inventory and collected the remaining
retail accounts receivable as of September 30, 2025. As of September 30, 2025, the retail segment was fully discontinued, and we expect
to have no further significant involvement in this segment. The inventory of the retail segment was presented as discontinued assets held
for sale on the balance sheet at September 30, 2023 and the results of operations for the retail segment have been classified as discontinued
operations on the consolidated statements of operations for the years ended September 30, 2025 and 2024. All information and results in
this annual report on Form 10-K exclude the discontinued retail segment unless otherwise noted. See Note 3 to our consolidated financial
statements for additional information on the discontinued retail segment.

In March 2025, the Company committed
to a plan to sell the original equipment manufacturer (“OEM”) distribution segment of the business (“OEM Plan”).
In May 2025, the Company completed the sale of this line of business and is presenting its results of operations within discontinued operations
in the current and prior periods presented herein. The OEM distribution segment sourced and sold carrying cases and other accessories
for medical monitoring and diagnostic kits as well as a variety of other portable electronic and non-electronic devices to OEMs or their
contract manufacturers worldwide, that either packaged our products as accessories “in box” together with their branded product
offerings or sold them through their retail distribution channels. The Company did not manufacture any of its OEM products and sourced
substantially all of these products from