Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 439

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 2
Chunk 439
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, based on relevant information. These
estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with
precision. Changes in assumptions could significantly affect the estimates.

Share-Based Compensation

We measure share-based compensation
expense related to employee and non-employee director share-based awards based on the estimated fair value of the awards as determined
on the date of grant, which is recognized as expense over the requisite service period. We utilize the Black-Scholes option pricing model
to estimate the fair value of stock options issued as compensation. The Black-Scholes model requires the input of highly subjective and
complex assumptions, including the expected term of the stock option, and the expected volatility of our common stock over the period
commensurate with the expected term of the option. Uncontrollable uncertainties, such as fluctuation in interest rates, can have an effect
on our Black-Scholes estimate calculations. Such fluctuations and other unforeseen changes in inputs could have a material impact on the
general and administrative expenses within our financial statements.

Recent Accounting Pronouncements

In December 2023, the Financial
Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-08, Intangibles - Goodwill
and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 requires
certain crypto assets meeting defined criteria to be measured at fair value each reporting period with changes in fair value recognized
in net income, presented separately from other intangible assets and accompanied by enhanced disclosures. This standard is effective for
fiscal years beginning after December 15, 2024, with early adoption permitted. The Company early adopted this standard in the fourth quarter
of Fiscal 2025, in conjunction with its new treasury strategy. Since the Company held no digital assets until September 2025, the adoption
of this standard had no impact to prior reported financial statements and no cumulative adjustment to retained earnings was required or
recorded.

In November 2024, the FASB issued
ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):
Disaggregation of Income Statement Expenses” and in January 2025, the FASB issued ASU No. 2025-01, “Income Statement—Reporting
Comprehensive Income—Expense Dis