Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 643

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 4
Chunk 643
---
 over $1.65 billion through multiple equity financing transactions
(see Note 8). As a result, the Company believes it now has sufficient liquidity to fund anticipated cash requirements for operations and
working capital purposes through at least December 2026. As a result, the previously disclosed going concern uncertainty language has
been removed as substantial doubt no longer exists regarding the Company’s ability to continue as a going concern.

NOTE 2        ACCOUNTING POLICIES

Use of Estimates

The preparation of the Company’s
consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S.
GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting periods. Actual results could differ from those estimates and assumptions. Within this report, certain dollar amounts and
percentages have been rounded to their approximate values.

Basis of Presentation

The accompanying consolidated
financial statements include the accounts of Forward Industries, Inc. and all of its wholly-owned subsidiaries: Forward Industries (IN),
Inc. (“Forward US”), DE Sub 1 LLC (“Forward Delaware”), Forward Industries (Switzerland) GmbH (“Forward
Switzerland”), Forward Industries UK Limited (“Forward UK”), Intelligent Product Solutions, Inc. (“IPS”)
and Kablooe, Inc. (“Kablooe”). The terms “Forward”, “we”, “our” or the “Company”
as used throughout this document are used to indicate Forward Industries, Inc. and all of its wholly-owned subsidiaries. All significant
intercompany transactions and balances have been eliminated in consolidation.

     F-10 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Segment Reporting

As a result of the Retail Exit,
the OEM Plan and the Company’s new digital asset treasury strategy, the Company now has two reportable segments: design and digital
assets. The design segment consists of two operating segments (IPS and Kablooe, which have been aggregated into one reportable segment)
that provide a full spectrum of hardware and software product design and engineering services to customers predominantly located in the
U.S. The digital assets segment captures SOL-based yield generated by participating in the Solana network’s staking protocol, which
currently comprises rewards received from native staking. See Note 16 for additional information on our segments.

Good