Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1646

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 14
Chunk 1646
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     F-38 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

    Digital Assets Segment 

    Fiscal 2025  
    Fiscal 2024 
  
    Revenues 
    $4,582,000  
    $– 
  
    Cost of revenues 
     170,000  
     – 
  
    Gross profit 
     4,412,000  
     – 
  
    Asset management fees (a) 
     539,000  
     – 
  
    Loss on change in fair value of digital assets 
     160,035,000  
     – 
  
    Loss from continuing operations before income taxes 
    $(156,162,000) 
    $– 

  (a)
  Depreciation expense, amortization expense and asset management fees are not regularly provided to the CODM, however they are components of loss from continuing operations before income taxes and identified as a "specific profit or loss" item and therefore disclosed separately in accordance with the related accounting guidance.

  (b)
  Other segment expenses include insurance expense, bad debt expense, bank and payroll processing fees, and various other general and administrative expenses.

The following table is a reconciliation
of segment loss from continuing operations before taxes to our consolidated loss from continuing operations before income taxes.

    Schedule of reconciliation
of segment loss 

    Fiscal 2025  
    Fiscal 2024 
  
    Design segment loss from continuing operations before income taxes 
    $(5,159,000) 
    $104,000 
  
    Digital assets segment loss from continuing operations before income taxes 
     (156,162,000) 
     – 
  
    Corporate and other non-segment expenses 
     (7,748,000) 
     (2,247,000)
  
    Consolidated loss from continuing operations before income taxes 
    $(169,069,000) 
    $(2,143,000)

Segment assets consist of accounts
receivable and digital assets, which are regularly reviewed by the CODM, as well as goodwill and intangible assets resulting from design
segment acquisitions.

    Schedule of segment assets 

    Segment Assets at September 30, 

    2025  
    2024 
  
    Design segment 
    $3,380,000  
    $5,820