Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 23

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 23
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 ended June 30, 2025.

Below
is rollforward of goodwill:

    Schedule of  roll forward
of goodwill 

    Balance at September 30, 2024 
    $1,559,000 
  
    Impairment of IPS reporting unit 
     (225,000)
  
    Balance at June 30, 2025 
    $1,334,000 

  NOTE 5
  SEGMENTS AND CONCENTRATIONS

As a result of the Retail
Exit and the OEM Plan, the Company now has only one reportable segment. The prior year segment disclosures have been reformatted from
what was previously disclosed to conform to the current year presentation and omit certain disclosures that are no longer required.

Revenues from two customers
represented 32.4% of the Company’s consolidated net revenues for the three months ended June 30, 2025. Revenues from three customers
represented 42.5% of the Company’s consolidated net revenues for the nine months ended June 30, 2025. Revenues from two customer
represented 49.7% and 50.1% of the Company’s consolidated net revenues for the three and nine months ended June 30, 2024, respectively.

Accounts receivable and contract
assets from three customers represented 50.1% and 57.9% of the Company’s consolidated accounts receivable and contract asset balances
at June 30, 2025 and September 30, 2024, respectively.

In December 2024, our largest
design customer notified us of its plan to discontinue their insulin patch pump program, on which we were working. The Company expects
this to continue to cause a material decrease in revenues relative to Fiscal 2024.

     15 

  NOTE 6
  SHAREHOLDERS’ EQUITY

Nasdaq 

In July 2023, the Company
was notified by Nasdaq that it was not in compliance with Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Rule”). Thereafter,
in February 2024, the Company was notified that it was not in compliance with Nasdaq Listing Rule 5550(b)(1) (the “Stockholders’
Equity Rule”) (collectively, with the Minimum Bid Price Rule, the “Minimum Requirements”). In April 2024, the Company
presented a plan of action to the Nasdaq Hearings Panel to