Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 22

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 22
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ablooe and IPS in Fiscal 2020 and Fiscal 2018, respectively and are held under the design
segment of our business. The goodwill associated with the IPS acquisition is not deductible for tax purposes, but the goodwill associated
with the Kablooe acquisition is deductible for tax purposes.

Due to historical losses of the
Kablooe reporting unit, the Company elected to bypass the qualitative assessment and perform quantitative goodwill impairment testing
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.

     F-15 

The Company performed the annual
goodwill impairment test for Fiscal 2023 and determined there was no impairment.

Below is the rollforward of goodwill
for the design segment, the only reportable segment with goodwill:

     Schedule of  roll forward
of goodwill 

    Balance at September 30, 2023 
    $1,759,000 

    Impairment of Kablooe reporting unit 
     (200,000)

    Balance September 30, 2024 
    $1,559,000 

NOTE 5         PROPERTY AND
EQUIPMENT

Property and equipment and related accumulated depreciation
and amortization are summarized in the table below:

     Schedule of property and equipment 

    September 30, 

    2024  
    2023 
  
    Computer hardware and software 
    $481,000  
    $478,000 
  
    Furniture and fixtures 
     48,000  
     67,000 
  
    Equipment 
     83,000  
     171,000 
  
    Property and equipment, cost 
     612,000  
     716,000 
  
    Less accumulated depreciation and amortization 
     (394,000) 
     (444,000)
  
    Property and equipment, net 
    $218,000  
    $272,000 

Depreciation expense was $