Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 16

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 16
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 related to the production of tangible assets are recognized by using cost inputs to measure
progress toward the completion of its performance obligations, or the “cost to cost” method. Revenues from fixed price contracts
that contain specific deliverables are recognized when the performance obligation has been satisfied or the transfer of goods to the customer
has been completed and accepted.

Recognized revenues that will
not be billed until a later date are recorded as contract assets in the accompanying consolidated balance sheets. The design segment had
contract assets of $1,273,000, $976,000 and $609,000 at September 30, 2024, 2023 and 2022, respectively. Contracts where collections to
date have exceeded recognized revenues, or contract liabilities, are recorded as a liability and classified as a component of deferred
income in the accompanying consolidated balance sheets. The design segment had contract liabilities of $399,000, $297,000 and $439,000
at September 30, 2024, 2023 and 2022, respectively.

Shipping and Handling Fees

The Company includes shipping
and handling fees billed to customers in net revenues and the related transportation costs in cost of sales.

Foreign Currency Transactions

The Company’s functional
currency is the U.S. dollar. Foreign currency transactions may generate receivables or payables that are fixed in terms of the amount
of foreign currency that will be received or paid. Fluctuations in exchange rates between such foreign currency and the functional currency
increase or decrease the expected amount of functional currency cash flows upon settlement of the transaction. These increases or decreases
in expected functional currency cash flows are foreign currency transaction gains or losses that are included in other income or expense
in the accompanying consolidated statements of operations. The approximate net gains (losses) from foreign currency transactions were
$8,000 and $2,000 in Fiscal 2024 and Fiscal 2023, respectively.

Fair Value Measurements

We perform fair value measurements
in accordance with the guidance provided by ASC 820, “Fair Value Measurement.” ASC 820 defines fair value as the price that
would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, we consider
the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when
pricing the assets or liabilities, such as inherent risk,