Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 15

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 15
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segment recognized revenue when: (i) finished goods were shipped to its customers (in general, these conditions occurred at either
point of shipment or point of destination, depending on the terms of sale and transfer of control); (ii) there were no other
deliverables or performance obligations; and (iii) there were no further obligations to the customer after the title of the goods
had transferred. If the Company received consideration before achieving the criteria previously mentioned, it recorded a contract
liability, which would be classified as a component of liabilities held for sale in the accompanying consolidated balance sheets. The OEM
distribution segment had no
contract liabilities at September 30, 2024, 2023 or 2022. The results of operations of the OEM segment are reported as discontinued
operations for Fiscal 2024 and Fiscal 2023 (see Note 3).

Discontinued Retail Distribution Segment

The retail distribution segment
sold products primarily through online websites operated by authorized third-party retailers. Revenue was recognized when control (as
defined in Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”) of the related
goods was transferred to the retailer, which generally occurred upon shipment to the end customer. Other than product delivery, the retail
distribution segment did not typically have other deliverables or performance obligations associated with its products. Revenue was measured
as the amount of consideration expected to be received in exchange for the products provided, net of allowances taken by retailers for
product returns and any taxes collected from customers that will be remitted to governmental authorities. When the Company received consideration
before achieving the criteria previously mentioned, it recorded a contract liability, which was classified as a component of deferred
income in the accompanying consolidated balance sheets. The retail distribution segment had no contract liabilities at September 30, 2024,
2023 or 2022. The results of operations of the retail segment are reported as discontinued operations for Fiscal 2024 and Fiscal 2023
(see Note 3). 

     F-11 

Design Segment

The Company applies the “cost
to cost” and “right to invoice” methods of revenue recognition to the contracts with customers in the design segment.
The design segment typically engages in two types of contracts: (i) time and material and (ii) fixed price. The Company recognizes revenue
over time on its time and material contracts utilizing a “right to invoice” method. Revenues from fixed price contracts that
require performance of services that are not