Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 440

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 2
Chunk 440
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aggregation 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.

 34 

In December 2023, the FASB issued
ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures”, requiring enhancements and further transparency to certain
income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning
after December 15, 2024 on a prospective basis and retrospective application is permitted. The Company is currently evaluating the effects
of this pronouncement on its consolidated financial statements.

In November 2023, the FASB issued
ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires expanded segment
reporting and disclosure and is effective for the Company for fiscal years beginning after December 15, 2023, and interim periods within
fiscal years beginning after December 15, 2024. The Company adopted this standard in Fiscal 2025 with no material impact to its consolidated
financial statements.

RESULTS OF OPERATIONS FOR FISCAL 2025 COMPARED
TO FISCAL 2024

The table below summarizes our consolidated results
from continuing operations for Fiscal 2025 as compared to Fiscal 2024:

    Fiscal 2025  
    Fiscal 2024  
    Change ($)  
    Change (%) 
  
    Net revenues 
    $18,188,000  
    $19,991,000  
    $(1,803,000) 
     (9.0%)
  
    Cost of sales 
     12,997,000