Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 482

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 2
Chunk 482
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 on our 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 consolidated statements of operations
for the years ended September 30, 2025 and 2024.

In March 2025, in
connection with the fourth Conversion Agreement (see Note 14), Forward China determined it would not renew the Buying Agency and
Supply Agreement (“Sourcing Agreement”), which subsequently expired on May 9, 2025 (see Note 14). Without this
agreement, the Company determined it would not continue the OEM segment of the business and committed to a plan to sell the segment.
On May 16, 2025, the Company and Forward US entered into a transaction agreement with Forward China, pursuant to which: (i) the
Company sold all equity interest in Forward Switzerland and Forward UK and sold certain other net assets related to Forward
US’ OEM segment to Forward China to satisfy outstanding payables due to Forward China under the Sourcing Agreement; (ii) the
Company and Forward China terminated the Sourcing Agreement and extended the term of the Note Payable (see Note 14) to December 31,
2025; and (iii) the Company paid Forward China $200,000 at closing plus $150,000
on each of July 31, 2025, August 31, 2025 and September 30, 2025. Results of operations for Forward Switzerland and Forward UK were
included in the Company’s results of operations through and including May 16, 2025.

The sale of the OEM business
is considered a strategic shift that will have a significant impact on the Company’s operations and financial results. The assets
and liabilities of the OEM segment were classified as assets and liabilities held for sale on the consolidated balance sheets at September
30, 2024. The results of operations for the OEM segment have been classified as discontinued operations on the consolidated statements
of operations for the years ended September 30, 2025 and 2024.

The consolidated balance sheets
and statements of operations for comparable periods have been reclassified to conform to this presentation in accordance with the accounting
guidance.

     F-17 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents
the major classes of the “Net