Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 93

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 93
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 loss of its business was considered a triggering event which prompted the Company to evaluate the goodwill of the IPS
reporting unit. Management concluded an impairment was more likely than not to have occurred and performed a quantitative goodwill impairment
test for the IPS reporting unit at December 31, 2024. 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 carrying amount of the IPS reporting
unit exceeded its fair value, resulting in a goodwill impairment charge of $225,000 in the three months ended December 31, 2024, primarily
driven by a reduction in the expected future performance of the IPS reporting unit.

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

    Schedule of  roll forward
of goodwill 

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

NOTE 5        SEGMENTS AND CONCENTRATIONS

As a result of discontinuing the retail and OEM
segments, see Note 3, the Company now has only one reportable segment. See Note 2 for more information on the composition and accounting
policies of our reportable segments. The results of the retail and OEM segments were classified as discontinued operations as discussed
in Note 3. 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.

     F-39 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Revenues
from two customers represented 43.1% and 49.7% of the Company’s consolidated net revenues for the three months ended December 31,
2024 and 2023, respectively.

Accounts receivable from
four customers represented 72.9% of the Company’s consolidated accounts receivable at December 31, 2024 and accounts receivable
from two customers represented 48.7% of the Company’s consolidated accounts receivable at September 30, 2024.