Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 120

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 120
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    U.S. federal statutory rate 
     21.0%  
     21.0% 
  
    State tax rate, net of federal benefit 
     4.0%  
     2.1% 
  
    Foreign rate differential 
     0.0%  
     0.7% 
  
    Tax return to provision adjustments 
     (0.1%) 
     (14.3%)
  
    Effect of state tax rate change 
     0.1%  
     1.9% 
  
    Change in valuation allowance 
     (24.8%) 
     (12.6%)
  
    Permanent differences 
     (0.2%) 
     (0.1%)

    Effective tax rate 
     0.0%  
     (1.3%)

     F-32 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At September 30, 2025 and 2024,
the Company had no significant uncertain tax positions or related interest or penalties requiring accrual. It is the Company’s policy
to recognize interest and/or penalties, if any, related to income tax matters in income tax expense in the consolidated statements of
operations. For the periods presented in the accompanying consolidated statements of operations, no material income tax related interest
or penalties were assessed or recorded. All fiscal years prior to the fiscal year ended September 30, 2022, are closed to federal and
state examination.

On July 4, 2025,
the One Big Beautiful Bill Act (“OBBBA”) was enacted. The OBBBA introduced multiple tax law and other
legislative changes, including modifications to income tax provisions such as domestic research and development expenses, capital
expenditures, and U.S. taxation of international earnings. The OBBBA is not expected to materially impact the Company’s
effective tax rate or cash flows for Fiscal 2025 or future periods.

NOTE 11        LOSS/EARNINGS PER
SHARE

Basic loss/earnings per share
data for each period presented is computed using the weighted average number of shares of common stock outstanding during each such period
and includes Pre-Funded Warrants (see Note 8) from their date of issuance. Diluted loss/earnings per share data is computed using the
weighted average number of common and dil