Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1220

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 9B
Chunk 1220
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and $61,000 was recorded to general and administrative expense on the consolidated statement of operations. The Company made immediately
vested contributions based on a percentage of the employee’s salary of $442,000 during Fiscal 2024, of which $341,000 was recorded
to cost of sales, $24,000 was recorded to sales and marketing expense and $77,000 was recorded to general and administrative expense on
the consolidated statement of operations.

     F-37 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 16        SEGMENTS AND CONCENTRATIONS

Segments

As a result of discontinuing
the retail and OEM segments (Note 3) and our new digital asset treasury strategy, the Company now has two reportable segments: design
and digital assets. See Note 2 for more information on the composition and accounting policies of our reportable segments. The results
of the retail and OEM segments were classified as discontinued operations as discussed in Note 3. The prior year segment disclosures have
been reformatted from what was previously disclosed to conform to the current year presentation.

The Company’s Chief Executive
Officer serves as the Chief Operating Decision Maker (“CODM”) and evaluates the financial performance of the business and
makes resource allocation decisions on the basis of revenue, gross profit and net income or loss from continuing operations before income
taxes for each reportable segment.

The tables below represent
the primary measure of segment performance evaluated by the CODM, as well as additional measures that are regularly provided to
the CODM on a segment-level.

    Schedule of segment performance 

    Design Segment 

    Fiscal 2025  
    Fiscal 2024 
  
    Revenues 
    $13,606,000  
    $19,991,000 
  
    Cost of revenues 
     12,708,000  
     14,691,000 
  
    Depreciation expense (a) 
     119,000  
     116,000 
  
    Gross profit 
     779,000  
     5,184,000 
  
    Sales and marketing personnel costs 
     356,000  
     541,000 
  
    Sales promotion and marketing expenses 
     139,000  
     218,000 
  
    General and administrative personnel costs 
     1,872,000