Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 969

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 8
Chunk 969
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, multiple awards (see Note 9).

Recent Accounting Pronouncements

In November 2024, the Financial
Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Income Statement—Reporting
Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” and
in January 2025, the FASB issued ASU No. 2025-01, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation
Disclosures (Subtopic 220-40): Clarifying the Effective Date”, which clarified the effective date of ASU 2024-03 for non-calendar
year-end companies. ASU 2024-03 will require the Company to disclose the amounts of purchases of inventory, employee compensation, depreciation
and intangible asset amortization, as applicable, included in certain expense captions in the consolidated statements of operations, as
well as qualitatively describe remaining amounts included in those captions. ASU 2024-03 will also require the Company to disclose both
the amount and the Company’s definition of selling expenses. This ASU is effective for fiscal years beginning after December 15,
2026 and interim periods within fiscal years beginning after December 31, 2027. The Company is currently evaluating the effects of the
pronouncement on its consolidated financial statements.

In December 2023, the FASB issued
ASU 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU
2023-08”). ASU 2023-08 requires certain crypto assets meeting defined criteria to be measured at fair value each reporting period
with changes in fair value recognized in net income, presented separately from other intangible assets and accompanied by enhanced disclosures.
This standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this
standard in the fourth quarter of Fiscal 2025, in conjunction with its new treasury strategy. Since the Company held no digital assets
until September 2025, the adoption of this standard had no impact to prior reported financial statements and no cumulative adjustment
to retained earnings was required or recorded.

In December 2023, the FASB issued
ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures”,