Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 961

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 8
Chunk 961
---
 “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.

     F-10 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Segment Reporting

As a result of the Retail Exit,
the OEM Plan and the Company’s new digital asset treasury strategy, the Company now has two reportable segments: design and digital
assets. The design segment consists of two operating segments (IPS and Kablooe, which have been aggregated into one reportable segment)
that provide a full spectrum of hardware and software product design and engineering services to customers predominantly located in the
U.S. The digital assets segment captures SOL-based yield generated by participating in the Solana network’s staking protocol, which
currently comprises rewards received from native staking. See Note 16 for additional information on our segments.

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.

Digital Assets

The Company accounts for its
holdings of digital assets, including cryptocurrencies such as Solana, as indefinite-lived intangible assets in accordance with Accounting