Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 17

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 17
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term. Operating lease assets are shown as right-of-use assets on the condensed consolidated balance sheets. The current and long-term
portions of operating lease liabilities are shown separately as such on the condensed consolidated balance sheets.

Recent Accounting Pronouncements

In November 2024, the
Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)
2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic
220-40): Disaggregation of Income Statement Expenses” and in January 2025, the FASB issued ASU No. 2025-01, “Income
Statement—Reporting Comprehensive Income—Expense Disaggregation 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 condensed consolidated financial statements.

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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 condensed 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,