Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 15

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 15
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 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 further significant continuing involvement with this segment. The
Retail Exit was considered a strategic shift that would have a significant impact on the Company’s operations and financial results.
The inventory of the retail segment met the criteria to be considered “held-for-sale” in accordance with ASC 205-20, “Discontinued
Operations.” Accordingly, the retail inventory was classified on our condensed consolidated balance sheets as “discontinued
assets held for sale” at September 30, 2023, and the results of operations for the retail segment have been classified as “Discontinued
Operations” on the condensed consolidated statements of operations for the three months ended December 31, 2023.

The total amount related
to the discontinued retail segment included in Due to Forward China on the condensed consolidated balance sheets was approximately $641,000
at December 31, 2024 and September 30, 2024.

The following table presents
the major classes of the “Income from discontinued operations, net of tax” in our condensed consolidated statements of operations
for the three months ended December 31, 2023.

    Schedule of discontinued operations 

    Revenues, net 
    $665,000 
  
    Cost of sales 
     470,000 
  
    Gross profit 
     195,000 

    Sales and marketing expenses 
     145,000 
  
    General and administrative expenses 
     23,000 
  
    Income from discontinued operations 
    $27,000 

There was no depreciation,
amortization, investing or financing cash flow activities, or other significant non-cash operating cash flow activities for the retail
segment in the three months ended December 31, 2024 or 2023.

  NOTE 4
  INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

The Company’s intangible
assets consist of the following:

    Schedule of intangible assets 

    December 31, 2024  
    September 30, 2024 

    Trademarks  
    Customer Relationships  
    Total Intangible Assets  
    Trademarks  
    Customer Relationships  
    Total Intangible Assets