Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 50

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 50
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 goods to the customer
has been completed and accepted.

Recognized revenues that
will not be billed until a later date are recorded as contract assets in the accompanying condensed consolidated balance sheets. The design
segment had contract assets of $885,000, $1,273,000 and $976,000 at December 31, 2024, September 30, 2024 and September 30, 2023, respectively.
Contracts where collections to date have exceeded recognized revenues, or contract liabilities, are recorded as a liability and classified
as a component of deferred income in the accompanying condensed consolidated balance sheets. The design segment had contract liabilities
of $279,000, $399,000, and $297,000 at December 31, 2024, September 30, 2024 and September 30, 2023, respectively.

Goodwill

The Company reviews goodwill
for impairment at least annually, or more often if triggering events occur. The Company has two reporting
units with goodwill (the IPS and Kablooe operating segments) and we perform our annual goodwill impairment test on September 30, the end
of the fiscal year, or upon the occurrence of a triggering event. The Company has the option to perform a qualitative assessment to determine
if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not
that the fair value of a reporting unit is less than its carrying amount, then the Company would not need to perform a quantitative impairment
test for the reporting unit. If the Company cannot support such a conclusion or does not elect to perform the qualitative assessment,
then the Company will perform the quantitative assessment by comparing the fair value of the reporting unit with its carrying amount,
including goodwill. If the fair value of the reporting unit exceeds its carrying value, no impairment charge is recognized. If the fair
value of the reporting unit is less than its carrying value, an impairment charge will be recognized for the amount by which the reporting
unit’s carrying amount exceeds its fair value. A significant amount of judgment is required in performing goodwill impairment tests
including estimating the fair value of a reporting unit. See Note 4.

     F-35 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Intangible Assets

Intangible assets include
trademarks and customer relationships, which were acquired as part of the acquisitions of IPS in