Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 23

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 23
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119,000 and $102,000 for
Fiscal 2024 and Fiscal 2023, respectively.

NOTE 6         FAIR VALUE MEASUREMENTS
- EARNOUT

The acquisition of Kablooe provides
annual contingent earnout payments based on results of operations through August 2025. The fair value of this earnout liability is measured
on a recurring basis at each reporting date using a Black-Scholes valuation model with the following inputs and assumptions, which are
categorized within level 3 of the fair value hierarchy:

     Schedule of fair value assumptions

    September 30,

    2024
     
    2023
  
    Volatility
     
    40%
     
    40%
  
    Risk-free interest rate
     
    3.6%
     
    4.9% - 5.3%
  
    Expected term in years
     
    0.5
     
    0.4 - 1.4
  
    Dividend yield
     
    –
     
    –

In Fiscal 2023, the Company reduced
this liability from $70,000 to $0 based on changes in the expected likelihood of Kablooe reaching the specified earnings targets. In Fiscal
2024, there were no changes to the total fair value of this earnout liability.

     F-16 

NOTE 7        ACCRUED EXPENSES
AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities at
September 30, 2024 and 2023 are as follows: 

    Schedule of accrued expenses and other current liabilities 

    September 30, 

    2024  
    2023 
  
    Accrued commissions/bonuses 
    $109,000  
    $852,000 
  
    Paid time off 
     265,000  
     268,000 
  
    Other 
     198,000  
     191,000 
  
    Total 
    $572,000  
    $1,311,000 

NOTE 8        SHAREHOLDERS’
EQUITY

Reverse Stock Split

The Company’s shareholders
authorized, and the Board of Directors approved a 1-for-10 reverse stock split, which became effective on June 18, 2024. Any fractional
shares that would have otherwise resulted from the reverse stock split