Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 70

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 70
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 testing for the Kablooe reporting unit at September 30, 2024. This quantitative testing indicated the carrying amount
of the Kablooe reporting unit exceeded its fair value, resulting in a goodwill impairment charge of $200,000 in September 2024, primarily
driven by a reduction in its expected future performance.

We
will continue to monitor the IPS and Kablooe goodwill for impairment as needed in future periods. Changes in economic, industry or market
conditions, business operations, competition, the price of our common shares or market capitalization or our actual performance compared
with estimates of our future performance may affect the fair value of goodwill and could result in additional impairment charges in the
future.

 A-8 

Recent Accounting Pronouncements

For information on recent
accounting pronouncements and impacts, see Note 2 to the unaudited condensed consolidated financial statements.

RESULTS OF OPERATIONS FOR THE THREE MONTHS
ENDED DECEMBER 31, 2024 COMPARED TO THE THREE MONTHS ENDED DECEMBER 31, 2023

The table below summarizes our consolidated results from continuing
operations for the three months ended December 31, 2024 (the “2025 Quarter”) as compared to the three months ended December
31, 2023 (the “2024 Quarter). All dollar amounts and percentages presented herein have been rounded to approximate values.

The table below summarizes our consolidated results
of continuing operations for the 2025 Quarter as compared to the 2024 Quarter:

    Consolidated Results of Operations 

    2025
Quarter  
    2024
Quarter  
    Change ($)  
    Change (%) 
  
    Revenues, net 
    $4,624,000  
    $5,142,000  
    $(518,000) 
     (10.1%)
  
    Cost of sales 
     3,491,000  
     3,700,000  
     (209,000) 
     (5.6%)
  
    Gross profit 
     1,133,000  
     1,442,000  
     (309,000) 
     (21.4%)
  
    Sales and marketing expenses 
     160,000  
     209,000  
     (49,000) 
     (23.4%)
  
    General and administrative expenses 
     1,646