Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 86

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 86
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 Company has two reporting
units with goodwill (the IPS and Kablooe operating segments) and we perform our annual goodwill impairment test on September 30, the end
of the fiscal year, or upon the occurrence of a triggering event. The Company has the option to perform a qualitative assessment to determine
if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not
that the fair value of a reporting unit is less than its carrying amount, then the Company would not need to perform a quantitative impairment
test for the reporting unit. If the Company cannot support such a conclusion or does not elect to perform the qualitative assessment,
then the Company will perform the quantitative assessment by comparing the fair value of the reporting unit with its carrying amount,
including goodwill. If the fair value of the reporting unit exceeds its carrying value, no impairment charge is recognized. If the fair
value of the reporting unit is less than its carrying value, an impairment charge will be recognized for the amount by which the reporting
unit’s carrying amount exceeds its fair value. A significant amount of judgment is required in performing goodwill impairment tests
including estimating the fair value of a reporting unit. See Note 4.

     F-35 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Intangible Assets

Intangible assets include
trademarks and customer relationships, which were acquired as part of the acquisitions of IPS in Fiscal 2018 and Kablooe in Fiscal 2020
and are amortized over their estimated useful lives, which are periodically evaluated for reasonableness.

Our intangible assets are
reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
In assessing the recoverability of our intangible assets, we must make estimates and assumptions regarding future cash flows and other
factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether
an impairment charge is recognized and the magnitude of any such charge. Fair value estimates are made at a specific point in time, based
on relevant information. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore
cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related
assumptions change in the future, we may be required to record impairment charges