Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 889

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 7A
Chunk 889
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 of digital assets, including cryptocurrencies such as Solana, as indefinite-lived intangible assets in accordance with Accounting
Standards Codification (“ASC”) 350-60, “Intangibles – Goodwill and Other – Crypto Assets (“ASC 350-60”).
Digital assets are initially measured at cost and subsequently measured at fair value, with changes in fair value recognized in net income/(loss)
each reporting period. Digital assets are classified as noncurrent assets unless the Company intends to sell them or otherwise realize
their value within twelve months after the reporting date. Upon disposal of a digital asset (e.g., by sale, exchange or transfer) the
Company derecognizes the asset and recognizes a realized gain or loss in net income, calculated as the difference between the sale proceeds
and the asset’s carrying amount, which is determined using a first-in, first-out method.

Digital assets that are not in
scope of ASC 350-60 are accounted for as indefinite-lived intangible assets subject to impairment testing, or as financial assets if they
are redeemable for cash.

Intangible Assets

Intangible assets include
trademarks and customer relationships, which were acquired as part of the acquisitions of IPS in Fiscal 2018 and Kablooe in Fiscal 2020
and are amortized over their estimated useful lives, which are periodically evaluated for reasonableness.

     F-11 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Our intangible assets are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In assessing
the recoverability of our intangible assets, we must make estimates and assumptions regarding future cash flows and other factors to determine
the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge
is recognized and the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information.
These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined
with precision. Changes in assumptions could significantly affect the estimates. See Note 4.

Cash

The Company maintains cash deposits
and money market accounts with financial institutions in the United States that at times may exceed federally insured limits of $250,000
per financial institution. At September 30, 2025, there were deposits totaling approximately $37,471,