Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 31

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 31
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 and perform quantitative
goodwill impairment testing for the Kablooe reporting unit at September 30, 2024. This quantitative testing indicated the carrying amount
of the Kablooe reporting unit exceeded its fair value, resulting in a goodwill impairment charge of $200,000 in September 2024, primarily
driven by a reduction in its expected future performance.

We
will continue to monitor the IPS and Kablooe goodwill for impairment as needed in future periods. Changes in economic, industry or market
conditions, business operations, competition, the price of our common shares or market capitalization or our actual performance compared
with estimates of our future performance may affect the fair value of goodwill and could result in additional impairment charges in the
future.

 21 

Recent Accounting Pronouncements

For information on recent
accounting pronouncements and impacts, see Note 2 to the unaudited condensed consolidated financial statements.

RESULTS OF OPERATIONS FOR
THE THREE MONTHS ENDED DECEMBER 31, 2024 COMPARED TO THE THREE MONTHS ENDED DECEMBER 31, 2023

Consolidated Results

The table below summarizes our consolidated results
from continuing operations for the 2025 Quarter as compared to the 2024 Quarter:

    Consolidated Results of Operations 

    2025 Quarter  
    2024 Quarter  
    Change ($)  
    Change (%) 
  
    Revenues, net 
    $6,616,000  
    $7,152,000  
    $(536,000) 
     (7.5%)
  
    Cost of sales 
     5,115,000  
     5,509,000  
     (394,000) 
     (7.2%)
  
    Gross profit 
     1,501,000  
     1,643,000  
     (142,000) 
     (8.6%)
  
    Sales and marketing expenses 
     305,000  
     369,000  
     (64,000) 
     (17.3%)
  
    General and administrative expenses 
     1,679,000  
     1,654,000  
     25,000  
     1.5% 
  
    Goodwill impairment 
     225,000  
     –  
     225,000  
     –