Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1186

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 9B
Chunk 1186
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The Company estimates the fair
value of employee and non-employee director share-based compensation on the date of grant using the Black-Scholes option pricing model,
which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest
rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors.
The fair value of employee and non-employee director share-based compensation is recognized in the consolidated statements of operations
over the related service or vesting period of each grant. In the case of awards with multiple vesting periods, the Company has elected
to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting
portion of the award as if the award was, in substance, multiple awards (see Note 9).

Recent Accounting Pronouncements

In November 2024, the Financial
Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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 Disaggregation
Disclosures (Subtopic 220-40): Clarifying the Effective Date”, which clarified the effective date of ASU 2024-03 for non-calendar
year-end companies. ASU 2024-03 will require the Company to disclose the amounts of purchases of inventory, employee compensation, depreciation
and intangible asset amortization, as applicable, included in certain expense captions in the consolidated statements of operations, as
well as qualitatively describe remaining amounts included in those captions. ASU 2024-03 will also require the Company to disclose both
the amount and the Company’s definition of selling expenses. This ASU is effective for fiscal years beginning after December 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
202