Company: FWDI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003548
Chunk: 9

Company: Forward Industries, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 9
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 also continues to evaluate cost reduction efforts as needed. However, there are no assurances that
our cost reduction efforts will be sufficient to enable the Company to continue as a going concern. The condensed consolidated financial
statements do not include any adjustments that might result if the Company is unable to continue as a going concern. Such adjustments
could be material.

  NOTE 2
  ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed
consolidated financial statements include the accounts of Forward Industries, Inc. and all of its wholly-owned subsidiaries: Forward Industries
(IN), Inc. (“Forward US”), Forward Industries (Switzerland) GmbH (“Forward Switzerland”), Forward Industries UK
Limited (“Forward UK”), Intelligent Product Solutions, Inc. (“IPS”) and Kablooe, Inc. (“Kablooe”).
The terms “Forward”, “we”, “our” or the “Company” as used throughout this document are
used to indicate Forward Industries, Inc. and all of its wholly-owned subsidiaries. All significant intercompany transactions and balances
have been eliminated in consolidation.

In the opinion of management,
the accompanying condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q reflect all normal recurring
adjustments necessary to present fairly the financial position and results of operations and cash flows for the interim periods presented
herein but are not necessarily indicative of the results of operations for the year ending September 30, 2025. These condensed consolidated
financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its
Annual Report on Form 10-K for the fiscal year ended September 30, 2024, and with the disclosures and risk factors presented therein.
The September 30, 2024 condensed consolidated balance sheet has been derived from the audited consolidated financial statements.

Accounting Estimates

The preparation of the Company’s
condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America
(“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting periods. Actual results could differ from those estimates and assumptions. Within this report, certain dollar
amounts and percentages have been rounded to their approximate values.

Segment Reporting

As a result of the Retail
Exit and the OEM Plan, the design segment is the Company’s only reportable segment at March 31,