Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 21

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 21
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    $1,975,000 
  
    Less accumulated amortization 
     (271,000) 
     (1,183,000) 
     (1,454,000) 
     (242,000) 
     (1,053,000) 
     (1,295,000)
  
    Net carrying amount 
    $314,000  
    $207,000  
    $521,000  
    $343,000  
    $337,000  
    $680,000 

The Company’s intangible
assets resulted from the acquisitions of Kablooe and IPS in Fiscal 2020 and Fiscal 2018, respectively. Intangible assets are amortized
over their expected useful lives of 15
years for the trademarks and eight
8years for the customer relationships. Amortization expense related to intangible assets was $53,000
for the three months ended June 30, 2025 and 2024, and $160,000
for the nine months ended June 30, 2025 and 2024, which is included in general and administrative expenses on the condensed consolidated
statements of operations.

At June 30, 2025, estimated
amortization expense for the Company’s intangible assets is as follows:

    Schedule of estimated amortization expense 

    Remainder of Fiscal 2025 
    $53,000 
  
    Fiscal 2026 
     121,000 
  
    Fiscal 2027 
     82,000 
  
    Fiscal 2028 
     4,000 
  
    Fiscal 2029 
     39,000 
  
    Fiscal 2030 
     39,000 
  
    Thereafter 
     183,000 
  
    Total 
    $521,000 

Goodwill

Goodwill
represents the future economic benefits of assets acquired in a business combination that are not individually identified or separately
recognized. The Company’s goodwill resulted from the acquisitions of Kablooe and IPS in Fiscal 2020 and Fiscal 2018, respectively.
The goodwill associated with the IPS acquisition is not deductible for tax purposes, but the goodwill associated with the Kablooe acquisition
is deductible for tax purposes.

In
December 2024, IPS was notified by its largest customer of its plan to discontinue its insulin patch pump program, on which IPS was working,
and was beginning to wind down