Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 846

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 6
Chunk 846
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(41,000)
  
    Intangible assets 
     –  
     (64,000)
  
    Operating lease right-of-use assets 
     (578,000) 
     (642,000)
  
    Total deferred tax liabilities 
     (720,000) 
     (758,000)
  
    Valuation allowance 
     (45,643,000) 
     (4,307,000)
  
    Net deferred tax assets 
    $–  
    $– 

The Company recorded a provision
for income taxes which includes net expense of $20,000 and $23,000 in Fiscal 2025 and Fiscal 2024, respectively, primarily for state income
tax expenses in states where net operating loss carryforwards (“NOLs”) were not available.

At September 30, 2025, the Company
had available NOLs for U.S. federal income tax purposes of $15,776,000 and NOLs for state income tax purposes of $9,711,000. NOLs generated
prior to 2018 expire beginning in 2031 while NOLs generated after 2018 have an indefinite carryforward period. The NOLs result in a deferred
tax asset of $3,313,000 with respect to U.S. federal income taxes and $713,000 for state income taxes. Total net deferred tax assets,
before valuation allowance, were $45,643,000 and $4,307,000 at September 30, 2025 and 2024, respectively.

     F-31 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At September 30, 2025, as part
of its periodic evaluation of the necessity to maintain a valuation allowance against its deferred tax assets, and after consideration
of all factors, including, among others, projections of future taxable income, current year NOL utilization and the extent of the Company’s
cumulative losses in recent years, the Company determined that, on a more likely than not basis, it would not be able to use remaining
deferred tax assets. Accordingly, the Company has determined to maintain a full valuation allowance against its net deferred tax assets.
At September 30, 2025 and 2024, the valuation allowance was $45,643,000 and $4,307,000, respectively. In