Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1397

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 11
Chunk 1397
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 recognizes noncash
consideration from staking activities related to its digital asset holdings in accordance with ASC 606. Staking income is generated when
the Company participates in digital asset networks to validate transactions and, in return, earns rewards in the form of additional digital
assets. The Company considers its performance obligation to be satisfied at the point in time when it has successfully provided validation
services to the network and the reward is determinable and collectible. Revenue is measured as the fair value of digital assets received
as staking rewards at contract inception, which generally occurs at the beginning of each epoch of the respective blockchain.

     F-14 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Disaggregation of Revenue

Design segment revenue is predominantly
recognized over time and has similar other economic factors, including, but not limited to, the geographic location and type of customer,
payment terms and length of contracts. Digital assets staking revenue is recognized at a point in time. See Note 16 for disaggregated
revenue amounts.

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 losses from foreign currency transactions were $5,000 and
$8,000 in Fiscal 2025 and Fiscal 2024, 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, transfer restrictions, and risk of nonperformance.

ASC 820 establishes a fair value
hierarchy that