Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 13

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 13
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. 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. If these estimates or material related assumptions change
in the future, we may be required to record impairment charges related to our intangible assets. Management evaluated and concluded that
there were no indications of impairments of intangible assets at September 30, 2024 or 2023.

Cash

The Company maintains cash deposits
and a money market account in banks with financial institutions in the United States (that at times may exceed federally insured limits
of $250,000 per financial institution). At September 30, 2024 and 2023, there were deposits totaling $2,089,000 and $2,207,000, respectively,
held in excess of federally insured limits. Historically, we have not experienced any losses due to such cash concentrations.

Accounts Receivable

Accounts receivable consist of
unsecured trade accounts with customers net of an allowance for credit losses. Collectability of accounts receivable is estimated by evaluating
the number of days accounts are outstanding, customer payment history, recent payment trends and perceived creditworthiness, adjusted
as necessary based on specific customer situations. At September 30, 2024 and 2023, the Company had allowances for credit losses of $27,000
and $771,000, respectively.

Inventories

Inventories consist primarily
of finished goods and are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value. Based on
management’s estimates, an allowance is made to reduce excess, obsolete, or otherwise unsellable inventories to net realizable value.
The allowance is established through charges to cost of sales, which is now presented as a component of income/(loss) from discontinued
operations in the Company’s consolidated statements of operations. In determining the adequacy of the allowance, management’s
estimates are based upon several factors, including analyses of inventory levels, historical loss trends, sales history and projections
of future sales demand. The Company’s estimates of the allowance may change from time to time based on management’s assessments,
and such changes could be material. Due to the Retail Exit and the OEM Plan, all inventory on hand at September 30, 2024 and 2023 is presented
as a component of assets held for