Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 264

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1B
Chunk 264
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 could differ from these estimates.

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. Our intangible assets are reviewed for impairment
whenever events or changes in circumstances indicate their carrying amount 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.

Share-Based Compensation

We measure share-based compensation
expense related to employee and non-employee director share-based awards based on the estimated fair value of the awards as determined
on the date of grant, which is recognized as expense over the requisite service period. We utilize the Black-Scholes option pricing model
to estimate the fair value of stock options issued as compensation. The Black-Scholes model requires the input of highly subjective and
complex assumptions, including the expected term of the stock option, and the expected volatility of our common stock over the period
commensurate with the expected term of the option. Uncontrollable uncertainties, such as fluctuation in interest rates, can have an effect
on our Black-Scholes estimate calculations. Such fluctuations and other unforeseen changes in inputs could have a material impact on the
general and administrative expenses within our financial statements.

Recent Accounting Pronouncements

In December 2023, the Financial
Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-08, Intangibles - Goodwill
and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 requires
certain crypto assets meeting defined criteria to be measured at fair value each reporting period with changes in fair value recognized
in net income, presented separately from other intangible assets and accompanied by enhanced disclosures. This standard is effective for
fiscal years beginning after December 15,