Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 738

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 5
Chunk 738
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15,
2026 and interim periods within fiscal years beginning after December 31, 2027. The Company is currently evaluating the effects of the
pronouncement on its consolidated financial statements.

In December 2023, the FASB issued
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 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 December 2023, the FASB issued
ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures”, requiring enhancements and further transparency to certain
income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning
after December 15, 2024, on a prospective basis and retrospective application is permitted. The Company is currently evaluating the effects
of this pronouncement on its consolidated financial statements.

     F-16 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In November 2023, the FASB issued
ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires expanded segment
reporting and disclosure and is effective for the Company for fiscal years beginning after December 15, 2023, and interim periods within
fiscal years beginning after December 15, 2024. The Company adopted this guidance in Fiscal 2025, which did not have a material impact
on its financial statements.

NOTE 3         DISCONTINUED
OPERATIONS AND ASSETS HELD FOR SALE

In July 2023, the Company decided
to cease operations of its retail distribution segment (“Retail Exit”). The primary