Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 815

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 6
Chunk 815
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 from native staking. See Note 16 for additional information on our segments.

Goodwill

The Company reviews goodwill
for impairment at least annually, or more often if triggering events occur. The Company has two reporting units with goodwill (the IPS
and Kablooe operating segments) and we perform our annual goodwill impairment test on September 30, the end of the fiscal year, or upon
the occurrence of a triggering event. The Company has the option to perform a qualitative assessment to determine if an impairment is
more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value
of a reporting unit is less than its carrying amount, then the Company would not need to perform a quantitative impairment test for the
reporting unit. If the Company cannot support such a conclusion or does not elect to perform the qualitative assessment, then the Company
will perform the quantitative assessment by comparing the fair value of the reporting unit with its carrying amount, including goodwill.
If the fair value of the reporting unit exceeds its carrying value, no impairment charge is recognized. If the fair value of the reporting
unit is less than its carrying value, an impairment charge will be recognized for the amount by which the reporting unit’s carrying
amount exceeds its fair value. A significant amount of judgment is required in performing goodwill impairment tests including estimating
the fair value of a reporting unit. See Note 4.

Digital Assets

The Company accounts for its
holdings of digital assets, including cryptocurrencies such as Solana, as indefinite-lived intangible assets in accordance with Accounting
Standards Codification (“ASC”) 350-60, “Intangibles – Goodwill and Other – Crypto Assets (“ASC 350-60”).
Digital assets are initially measured at cost and subsequently measured at fair value, with changes in fair value recognized in net income/(loss)
each reporting period. Digital assets are classified as noncurrent assets unless the Company intends to sell them or otherwise realize
their value within twelve months after the reporting date. Upon disposal of a digital asset (e.g., by sale, exchange or transfer) the
Company derecognizes the asset and recognizes a realized gain or loss in net income, calculated as the difference between the sale proceeds
and the asset’s carrying amount, which is determined using a first-in, first-out method.

Digital assets that are not in
scope of ASC 350-60 are accounted for as indefinite-lived intangible assets subject to impairment testing, or as financial