Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1334

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 10
Chunk 1334
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for the Kablooe reporting unit at September 30, 2024. Using an income approach methodology, the fair value of the Kablooe reporting unit
was estimated with a discounted cash flow analysis incorporating variables categorized within level 3 of the fair value hierarchy such
as projected revenues, growth rate and discount rate. This quantitative testing indicated the carrying amount of the Kablooe reporting
unit exceeded its fair value, resulting in a goodwill impairment charge of $200,000 in Fiscal 2024, primarily driven by a reduction in
the expected future performance of the Kablooe reporting unit. The Company reviewed the fair value of the Kablooe reporting unit at September
30, 2025, in connection with its annual goodwill impairment evaluation. Based on a decrease in its estimated future cash flows, driven
by declining revenues and continued losses, the Company determined the carrying amount of this reporting unit exceeded its fair value
and recorded an impairment charge of $391,000 for the remaining goodwill balance.

     F-19 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In December 2024, IPS was notified
by its largest customer of its plan to discontinue its insulin patch pump program, on which IPS was working, and was beginning to wind
down all activities related to it. Due to the historically high concentration of revenue with this customer, the loss of its business
was considered a triggering event which prompted the Company to evaluate the goodwill of the IPS reporting unit. Management concluded
an impairment was more likely than not to have occurred and performed a quantitative goodwill impairment test for the IPS reporting unit
at December 31, 2024. Using primarily an income approach methodology, the fair value of the IPS reporting unit was estimated using a discounted
cash flow analysis incorporating variables categorized within Level 3 of the fair value hierarchy such as projected revenues, growth rate
and discount rate. The quantitative testing indicated the carrying amount of the IPS reporting unit exceeded its fair value, resulting
in a goodwill impairment charge of $225,000 in the three months ended December 31, 2024, primarily driven by a reduction in the expected
future performance of the IPS reporting unit.

The Company reviewed the fair
value of the IPS reporting unit at September 30, 2025, in connection with its annual goodwill impairment evaluation. Based on a decrease
in its estimated future cash flows, driven by declining revenues and continued losses,