Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 220

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 220
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 2024.

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.

     F-17 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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, 

    2025  
    2024 

    Revenues, net 
    $5,563,000  
    $10,935,000 
  
    Cost of sales 
     4,445,000  
     9,642,000 
  
    Gross profit 
     1,118,000  
     1,293,000 
  
    Sales and marketing expenses 
     360,000  
     880,000 
  
    General and administrative expenses 
     49,000  
     197,000 
  
    Operating income 
     709,000  
     216,000 
  
    Gain on sale of discontinued operations 
     1,406,000  
     – 
  
    Income from discontinued operations, net of tax 
    $2,115,000  
    $216,000 

There were no material amounts of depreciation, amortization,
investing or financing cash flows for the discontinued operations in Fiscal 2025 or Fiscal 2024. The only significant non-cash activity
for the discontinued operations in Fiscal 2025 and 2024 was the conversion of accounts payable to Forward China into preferred stock in
July and September of 2024 (see Note 14).

The following table presents the major components
of assets and liabilities held for sale on our consolidated financial statements at September 30, 2024: 

    Schedule of major components of assets and liabilities 

    Cash 
    $245,000 
  
    Accounts receivable, net 
     2,124,000 
  
    Inventories 
     490,000 
  
    Prepaid expenses and other current assets 
     49,000 
  
    Total assets held for sale 
    $2,908,000 

    Accounts payable 
    $25,000 
  
    Due