Company: FWDI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003548
Chunk: 19

Company: Forward Industries, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 19
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of the aforementioned major customer, which was anticipated. In addition, due to the uncertainty in the global markets related to tariffs
on imports, many IPS customers were slow to commit funds to projects as they were unsure how tariffs and other macroeconomic factors would
impact their business. The combination of these events resulted in negative gross profit for the IPS reporting unit in the second quarter,
which the Company considered another triggering event to evaluate the goodwill of the IPS reporting unit for impairment. Management concluded
an impairment was more likely than not to have occurred and performed a quantitative goodwill impairment analysis for the IPS reporting
unit at March 31, 2025. 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 fair value of the IPS reporting unit exceeded its carrying amount,
resulting in no further goodwill impairment in the three months ended March 31, 2025.

Below
is a rollforward of goodwill:

    Schedule of  roll forward
of goodwill 

    Balance at September 30, 2024 
    $1,559,000 
  
    Impairment of IPS reporting unit 
     (225,000)
  
    Balance at March 31, 2025 
    $1,334,000 

  NOTE 5
  SEGMENTS AND CONCENTRATIONS

As a result of the Retail
Exit and the OEM Plan, the Company now has only one reportable segment. The prior year segment disclosures have been reformatted from
what was previously disclosed to conform to the current year presentation and omit certain disclosures that are no longer required.

Revenues from two customers
represented 36.4% and 36.3% of the Company’s consolidated net revenues for the three and six months ended March 31, 2025, respectively.
Revenues from one customer represented 42.7% of the Company’s consolidated net revenues for the three months ended March 31, 2024
and revenues from two customers represented 50.2% of the Company’s consolidated net revenues for the six months ended March 31,
2024.

Accounts receivable from
3 customers represented 51.3% and 57.9% of the Company’s consolidated accounts receivable at March 31, 2025 and September 30, 2024,
respectively.

In December