Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 29

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 29
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     1,000 
  
    Interest expense limitation 
     82,000  
     46,000 
  
    Total deferred tax assets 
     5,065,000  
     5,081,000 

    Deferred tax liabilities 

    Depreciation 
     (11,000) 
     (9,000)
  
    Prepaid expenses 
     (41,000) 
     (88,000)
  
    Intangible assets 
     (64,000) 
     (145,000)
  
    Operating lease right-of-use assets 
     (642,000) 
     (737,000)
  
    Total deferred tax liabilities 
     (758,000) 
     (979,000)
  
    Valuation allowance 
     (4,307,000) 
     (4,102,000)
  
    Net deferred tax assets 
    $–  
    $– 

The Company recorded a provision
for income taxes which includes net expense of $23,000 and $20,000 in Fiscal 2024 and Fiscal 2023, respectively, primarily for state income
tax expenses in states where net operating loss carryforwards (“NOLs”) were not available.

At September 30, 2024, the Company had available NOLs
for U.S. federal income tax purposes of $13,012,000 and NOLs for state income tax purposes of $7,425,000. 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 $2,732,000 with respect to U.S. federal income taxes and $516,000 for state income taxes. In addition, at September 30, 2024, the Company
had available NOLs for foreign income tax purposes of $1,975,000, resulting in a deferred tax asset of $338,000, expiring through 2028.
Total net deferred tax assets, before valuation allowance, were $4,307,000 and $4,102,000 at September 30, 2024 and 2023, respectively.
Undistributed earnings of the Company’s foreign subsidiaries are considered permanently reinvested; therefore, in accordance with
U.S. GAAP, no provision for U.S. federal or