Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 19

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 19
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 September 30, 2023, and the results of operations for the retail segment have been classified
as “Discontinued Operations” on the consolidated statements of operations for the years ended September 30, 2024 and 2023.

In March 2025, Forward China
determined it would not renew the Buying Agency and Supply Agreement (the “Sourcing Agreement”), which subsequently expired
on May 9, 2025 (see Note 14). Without this agreement, the Company determined it would not continue the OEM segment of the business and
committed to a plan to sell the segment. On May 16, 2025, the Company and Forward US entered into a transaction agreement with Forward
China, pursuant to which the Company sold all equity interest in Forward Switzerland and Forward UK and sold certain other net assets
related to Forward US’ OEM segment to Forward China to satisfy outstanding payables due to Forward China under the Sourcing Agreement.
Additionally, the Company and Forward China terminated the Supply Agreement and extended the term of the Note Payable (see Note 14) to
December 31, 2025. The Company paid $200,000 at closing and agreed to make additional cash payments of $150,000 on each of July 31, 2025,
August 31, 2025 and September 30, 2025.

     F-13 

The sale of the OEM business
is considered a strategic shift that will have a significant impact on the Company’s operations and financial results. The assets
and liabilities of the OEM segment were classified as assets and liabilities held for sale on the consolidated balance sheets at September
30, 2024 and 2023. The results of operations for the OEM segment have been classified as discontinued operations on the consolidated statements
of operations for fiscal 2024 and 2023. The consolidated balance sheets and statements of operations for comparable periods have been reclassified
to conform to this presentation in accordance with the accounting guidance.

The following table presents
the major classes of the “Net income/(loss) from discontinued operations, net of tax” in our consolidated statements of operations. 

     Schedule of discontinued operations 

    For the Fiscal Years Ended
                                                                                September 30, 

    2024  
    2023 

    Revenues, net 
    $10,935,000  
    $18,335,000 
  
    Cost of sales 
     9,642,000