Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 55

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 55
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ourcing Agreement.
Additionally, the Company and Forward China terminated the Supply Agreement and extended the term of the Note Payable (see Note 8) to
December 31, 2025. The Company paid $200,000 at closing and agreed to make additional cash payments of $150,000 on each of July 31, 2025,
August 31, 2025 and September 30, 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 condensed consolidated balance sheets at December 31,
2024 and September 30, 2024. The results of operations for the OEM segment have been classified as discontinued operations on the condensed
consolidated statements of operations for the three months ended December 31, 2024 and 2023. The condensed consolidated balance sheets
and statements of operations for comparable periods have been reclassified to conform to this presentation in accordance with the accounting
guidance.

The following table presents
the major classes of the “Income from discontinued operations, net of tax” in our condensed consolidated statements of operations
for the three months ended December 31, 2024 and 2023.

     Schedule of discontinued operations 

    For the Three Months Ended December 31, 

    2024  
    2023 

    Revenues, net 
    $1,991,000  
    $2,675,000 
  
    Cost of sales 
     1,623,000  
     2,280,000 
  
    Gross profit 
     368,000  
     395,000 

    Sales and marketing expenses 
     145,000  
     305,000 
  
    General and administrative expenses 
     33,000  
     79,000 
  
    Income from discontinued operations 
    $190,000  
    $11,000 

There were no material amounts
of depreciation, amortization, investing or financing cash flow activities, or other significant non-cash operating cash flow activities
for the discontinued operations in the three months ended December 31, 2024 or 2023.

NOTE 4        INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

The Company’s intangible
assets consist of the following: