Forward Industries (FORD) 10-Q 12 May 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2017	May 11, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Registrant Name	FORWARD INDUSTRIES INC
Entity Central Index Key	38,264
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	FORD
Entity Common Stock, Shares Outstanding		8,780,830
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Current assets:
Cash	$ 3,649,284	$ 4,760,620
Accounts receivable	4,424,939	4,864,423
Inventories	2,729,219	2,572,980
Prepaid expenses and other current assets	155,847	141,421
Total current assets	10,959,289	12,339,444
Property and equipment, net	31,576	43,030
Other assets	12,843	12,843
Total Assets	11,003,708	12,395,317
Current liabilities:
Accounts payable	40,640	62,136
Due to Forward China	2,457,896	3,519,676
Accrued expenses and other current liabilities	292,602	587,741
Total current liabilities	2,791,138	4,169,553
Other liabilities	44,872	51,486
Total Liabilities	2,836,010	4,221,039
Commitments and contingencies
Shareholders' equity:
Common stock, par value $0.01 per share; 40,000,000 shares authorized; 8,780,830 shares issued and outstanding	87,808	87,808
Additional paid-in capital	17,862,518	17,783,060
Accumulated deficit	(9,760,843)	(9,674,805)
Accumulated other comprehensive loss	(21,785)	(21,785)
Total shareholders' equity	8,167,698	8,174,278
Total liabilities and shareholders' equity	$ 11,003,708	$ 12,395,317

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2017	Sep. 30, 2016
Statement of Financial Position [Abstract]
Common stock, par or stated value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	8,780,830	8,780,830
Common stock, shares outstanding (in shares)	8,780,830	8,780,830

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net revenues	$ 4,532,876	$ 7,025,453	$ 11,124,124	$ 14,163,336
Cost of goods sold	3,816,790	5,824,917	9,249,209	11,440,435
Gross profit	716,086	1,200,536	1,874,915	2,722,901
Operating expenses
Sales and marketing	389,694	432,146	807,221	865,034
General and administrative	563,479	623,180	1,156,659	1,464,846
Total operating expenses	953,173	1,055,326	1,963,880	2,329,880
Income (loss) from operations	(237,087)	145,210	(88,965)	393,021
Other income (expense):
Other income (expense), net	(443)	(907)	2,927	(4,638)
Total other income (expense), net	(443)	(907)	2,927	(4,638)
Net income (loss)	(237,530)	144,303	(86,038)	388,383
Net income (loss)	(237,530)	144,303	(86,038)	388,383
Other comprehensive loss:
Translation adjustments	0	(480)	0	(916)
Comprehensive income (loss)	$ (237,530)	$ 143,823	$ (86,038)	$ 387,467
Net income (loss) per basic common share	$ (.03)	$ 0.02	$ (.01)	$ .05
Net income (loss) per diluted common share	$ (.03)	$ 0.02	$ (.01)	$ 0.04
Weighted average number of common and common equivalent shares outstanding
Basic	8,671,240	8,503,436	8,646,103	8,445,152
Diluted	8,671,240	8,660,114	8,646,103	8,645,395

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - 6 months ended Mar. 31, 2017 - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income / Loss	Total
Beginning balance, shares at Sep. 30, 2016	8,780,830
Beginning balance, value at Sep. 30, 2016	$ 87,808	$ 17,783,060	$ (9,674,805)	$ (21,785)	$ 8,174,278
Share-based compensation		79,458			79,458
Net loss			(86,038)		(86,038)
Ending balance, shares at Mar. 31, 2017	8,780,830
Ending balance, value at Mar. 31, 2017	$ 87,808	$ 17,862,518	$ (9,760,843)	$ (21,785)	$ 8,167,698

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows From Operating Activities:
Net income (loss)	$ (86,038)	$ 388,383
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Share-based compensation	79,458	134,212
Depreciation and amortization	11,454	28,314
Deferred rent	(5,360)	(8,057)
Changes in operating assets and liabilities:
Accounts receivable	439,484	(531,610)
Inventories	(156,239)	179,783
Prepaid expenses and other current assets	(14,426)	(26,491)
Other assets	0	28,119
Accounts payable and due to Forward China	(1,083,276)	(526,668)
Accrued expenses and other current liabilities	(296,393)	(357,103)
Other liabilities	0	(34,306)
Net cash used in operating activities	(1,111,336)	(725,424)
Cash Flows From Investing Activities:
Purchases of property and equipment	0	(46,347)
Net cash used in investing activities	0	(46,347)
Cash Flows From Financing Activities:
Restricted stock repurchased and retired	0	(1,667)
Net cash used in financing activities	0	(1,667)
Net decrease in cash	(1,111,336)	(773,438)
Cash at beginning of period	4,760,620	4,042,124
Cash at end of period	3,649,284	3,268,686
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	0	0
Cash paid for taxes	$ 0	$ 0

1. OVERVIEW

1. OVERVIEW	6 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
OVERVIEW	Forward Industries, Inc. (“Forward” or the “Company”) designs and distributes carry and protective solutions, primarily for hand held electronic devices. The Company’s principal customer market is original equipment manufacturers, or “OEMs” (or the contract manufacturing firms of these OEM customers), that either package their products as accessories “in box” together with their branded product offerings, or sell them through their retail distribution channels. The Company’s OEM products include carrying cases and other accessories for medical monitoring and diagnostic kits and a variety of other portable electronic and non-electronic products (such as sporting and recreational products, bar code scanners, smartphones, GPS location devices, tablets, and firearms). The Company’s OEM customers are located in: (i) the Asia-Pacific Region, which we refer to as the “APAC Region”; (ii) Europe, the Middle East, and Africa, which we refer to as the “EMEA Region”; and (iii) the Americas. The Company does not manufacture any of its OEM products and sources substantially all of its OEM products from independent suppliers in China, through Forward China (refer to Note 7 – Buying Agency and Supply Agreement). 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, 2017. 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, 2016, and with the disclosures and risk factors presented therein. The September 30, 2016 condensed consolidated balance sheet has been derived from the audited consolidated financial statements.

2. ACCOUNTING POLICIES

2. ACCOUNTING POLICIES	6 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
ACCOUNTING POLICIES	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. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly owned subsidiaries (Forward US and Forward Switzerland). All significant intercompany transactions and balances have been eliminated in consolidation. Income Taxes The Company recognizes future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carryforwards to the extent that realization of these benefits is more likely than not. As of March 31, 2017, there was no change to our assessment that a full valuation allowance was required against all net deferred tax assets. Accordingly, any deferred tax provision or benefit was offset by an equal and opposite change to the valuation allowance. No current book income tax provision was recorded against book net income due to the existence of significant net operating loss carryforwards. Revenue Recognition The Company generally recognizes revenue from product sales to its customers when: (i) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (ii) persuasive evidence of an arrangement exists; (iii) the Company has no continuing obligations to the customer; and (iv) collection of the related accounts receivable is reasonably assured. The Company defers revenue when it receives consideration before achieving the criteria previously mentioned. Reclassifications Certain amounts in the accompanying fiscal 2016 financial statements have been reclassified to conform to the fiscal 2017 presentation. Share-Based Compensation Expense The Company recognizes employee and director share-based compensation in its condensed consolidated statements of operations and comprehensive income (loss) at the grant-date fair value of stock options and other equity-based compensation. The determination of stock option grant-date fair value is estimated using the Black-Scholes option pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in-substance, multiple awards. Refer to Note 4 - Share-Based Compensation. In addition, the Company recognizes share-based compensation to non-employees based upon the fair value, using the Black-Scholes option pricing model, determined at the deemed measurement dates over the related contract service period. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605-Revenue Recognition and most industry-specific guidance throughout the ASC. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The Company will adopt ASU 2014-09 in the first quarter of fiscal 2018 and plans to apply the full retrospective approach. Because the Company's primary source of revenues is from the sale of finished goods, the Company does not anticipate that the adoption of ASU 2014-09 will have a material impact on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which requires management to assess a company’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Before this new standard, there was minimal guidance in U.S. GAAP specific to going concern. Under the new standard, disclosures are required when conditions give rise to substantial doubt about a company’s ability to continue as a going concern within one year from the financial statement issuance date. The new standard applies to all companies and is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. The Company will adopt this standard in its fiscal year ended September 30, 2017 consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out (“LIFO”). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not anticipate that the adoption of ASU 2015-11 will have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which applies to the classification of deferred tax assets and liabilities. The update eliminates the requirement to classify deferred tax assets and liabilities as noncurrent or current within a classified statement of financial position. This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not anticipate that the adoption of ASU 2015-17 will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which will require lessees to report most leases as assets and liabilities on the balance sheet, while lessor accounting will remain substantially unchanged. This ASU requires a modified retrospective transition approach for existing leases, whereby the new rules will be applied to the earliest year presented. The new standard is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2016-09 will have a material impact on its consolidated financial statements.

3. SHAREHOLDERS' EQUITY

3. SHAREHOLDERS' EQUITY	6 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	Stock Repurchase In September 2002 and January 2004, the Board authorized the repurchase of up to an aggregate of 486,200 shares of outstanding common stock. Under those authorizations, through March 31, 2017, the Company repurchased an aggregate of 224,690 shares at a cost of approximately $487,000. During the six months ended March 31, 2017, the Company did not repurchase or retire any shares of its outstanding restricted common stock.

4. SHARE-BASED COMPENSATION

4. SHARE-BASED COMPENSATION	6 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the following assumptions. The expected term represents the period over which the stock option awards are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The expected volatility used is based on the historical price of the Company’s stock over the most recent period commensurate with the expected term of the award. The risk-free interest rate used is based on the implied yield of U.S. Treasury zero-coupon issues with a remaining term equivalent to the award’s expected term. The Company historically has not paid any dividends on its common stock and had no intention to do so on the date the share-based awards were granted. The estimated annual forfeiture rate is based on management’s expectations and will reduce expense ratably over the vesting period. The forfeiture rate will be adjusted periodically based on the extent to which actual option forfeitures differ, or are expected to differ, from the previous estimate, when it is material. There were no options granted during the six months ended March 31, 2017 and 2016. The following table summarizes stock option activity during the six months ended March 31, 2017: Weighted Weighted Average Average Remaining Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, September 30, 2016 266,000 $ 2.27 Granted - Exercised - Forfeited (10,000 ) 3.73 Expired - Outstanding, March 31, 2017 256,000 $ 2.22 4.3 $ 31,400 Exercisable, March 31, 2017 215,999 $ 2.51 3.5 $ 9,549 The Company recognized compensation expense of approximately $1,000 and $6,000 during the three months ended March 31, 2017 and 2016, respectively, and approximately $3,000 and $10,000 during the six months ended March 31, 2017 and 2016, respectively, for stock option awards in its condensed consolidated statements of operations and comprehensive income (loss). As of March 31, 2017, there was approximately $5,000 of total unrecognized compensation cost related to nonvested stock option awards. That cost is expected to be recognized over a weighted average period of 1.0 years. The following table provides additional information regarding stock option awards that were outstanding and exercisable at March 31, 2017: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Options Price In Years Options $0.64 to $1.99 $ 1.00 97,500 $ 1.25 5.1 57,499 $2.00 to $2.99 2.46 96,000 2.46 2.4 96,000 $3.00 to $3.79 3.74 62,500 3.74 3.9 62,500 256,000 3.5 215,999 Restricted Stock Awards The Company recognized compensation expense of approximately $29,000 and $44,000 during the three months ended March 31, 2017 and 2016, respectively, and approximately $77,000 and $122,000 during the six months ended March 31, 2017 and 2016, respectively, for restricted stock awards in its condensed consolidated statements of operations and comprehensive income (loss). As of March 31, 2017, there was approximately $8,000 of total unrecognized compensation cost related to nonvested restricted stock awards. That cost is expected to be recognized over a weighted average period of 1.0 years. The following table summarizes restricted stock activity during the six months ended March 31, 2017: Weighted Average Total Number of Grant Date Grant Date Shares Fair Value Fair Value Non-vested, September 30, 2016 159,317 $ 1.29 $ 205,146 Granted - Vested (124,317 ) 1.47 (182,746 ) Forfeited - Non-vested, March 31, 2017 35,000 $ 0.64 $ 22,400

5. INCOME (LOSS) PER SHARE

5. INCOME (LOSS) PER SHARE	6 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
INCOME (LOSS) PER SHARE	Basic income (loss) per share data for each period presented is computed using the weighted-average number of shares of common stock outstanding during each such period. Diluted income (loss) per share data is computed using the weighted-average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of: (i) shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method; and (ii) shares of nonvested restricted stock. The Company calculated the potential diluted earnings per share in accordance with ASC 260, as follows: For the Three Months Ended For the Six Months Ended March 31, March 31, 2017 2016 2017 2016 Numerator: Net income (loss) (numerator for basic and diluted earnings per share) $ (237,530 ) $ 144,303 $ (86,038 ) $ 388,383 Weighted average shares outstanding (denominator for basic earnings per share) 8,671,240 8,503,436 8,646,103 8,445,152 Effects of dilutive securities: Assumed exercise of stock options, treasury stock method - 28,509 - 29,456 Assumed vesting of restricted stock, treasury stock method - 128,169 - 170,787 Dilutive potential common shares - 156,678 - 200,243 Denominator for diluted earnings per share - weighted average shares and assumed potential common shares 8,671,240 8,660,114 8,646,103 8,645,395 Basic earnings (loss) per share $ (0.03 ) $ 0.02 $ (0.01 ) $ 0.05 Diluted earnings (loss) per share $ (0.03 ) $ 0.02 $ (0.01 ) $ 0.04 The following securities were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: As of March 31, 2017 2016 Options 256,000 208,500 Warrants 723,846 723,846 Total potentially dilutive shares 979,846 932,346

6. CONCENTRATIONS

6. CONCENTRATIONS	6 Months Ended
	Mar. 31, 2017
Risks and Uncertainties [Abstract]
CONCENTRATIONS	Concentration of Revenues and Accounts Receivable For the three and six months ended March 31, 2017 and 2016, the Company had significant customers with individual percentage of total revenues equaling 10% or greater as follows: For the Three Months Ended For the Six Months Ended March 31, March 31, 2017 2016 2017 2016 Customer 1 25.1 % 17.7 % 26.6 % 18.4 % Customer 2 23.4 % 28.5 % 21.6 % 24.3 % Customer 3 22.0 % 34.0 % 22.6 % 33.9 % Customer 4 10.4 % 11.3 % 11.8 % 12.2 % Totals 80.9 % 91.5 % 82.6 % 88.8 % At March 31, 2017 and September 30, 2016, concentration of accounts receivable with significant customers representing 10% or greater of accounts receivable was as follows: March 31, 2017 September 30, 2016 Customer 1 40.8% 33.0% Customer 2 17.3% 16.0% Customer 3 15.2% 19.6% Customer 4 12.7% 14.7% Totals 86.0% 83.3%

7. RELATED PARTY TRANSACTIONS

7. RELATED PARTY TRANSACTIONS	6 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	Buying Agency and Supply Agreement On March 12, 2012, the Company entered into a Buying Agency and Supply Agreement (the “Supply Agreement”) with Forward Industries Asia-Pacific Corporation, a British Virgin Islands corporation (“Forward China”). The Supply Agreement, as amended, provides that, upon the terms and subject to the conditions set forth therein, Forward China will act as the Company’s exclusive buying agent and supplier of Products (as defined in the Supply Agreement) in the Asia Pacific region. The Company purchases products at Forward China’s cost and also pays to Forward China a monthly service fee equal to the sum of: (i) $100,000; and (ii) 4% of “Adjusted Gross Profit”, which is defined as the selling price less the cost from Forward China. The amended Supply Agreement expires on September 8, 2018, subject to renewal. Terence Bernard Wise, Chief Executive Officer and Chairman of the Company, is a principal of Forward China. In addition, Jenny P. Yu, a Managing Director of Forward China, beneficially owns more than 5% of the Company’s shares of common stock. The Company recognized approximately $344,000 and $366,000 during the three months ended March 31, 2017 and 2016, respectively, and approximately $707,000 and $739,000 during the six months ended March 31, 2017 and 2016, respectively, in service fees paid to Forward China, which are included as a component of cost of goods sold in the accompanying condensed consolidated statements of operations and comprehensive income (loss). During the three and six months ended March 31, 2017, the Company received commissions from Forward China of $0 and $12,904, respectively, which is included in net revenues. As a result of the continued decrease in the Company’s net revenues, Forward China has agreed to forgo its rights to the 4% portion of the service fee under the Supply Agreement beginning with the third fiscal quarter until the end of fiscal year 2017. The Company and Forward China are currently negotiating a revised service fee under the Agreement.

8. LEGAL PROCEEDINGS

8. LEGAL PROCEEDINGS	6 Months Ended
	Mar. 31, 2017
Legal Matters and Contingencies [Abstract]
LEGAL PROCEEDINGS	From time to time, the Company may become a party to legal actions or proceedings in the ordinary course of its business. As of March 31, 2017, there were no such actions or proceedings, either individually or in the aggregate, that, if decided adversely to the Company’s interests, the Company believes would be material to its business.

2. ACCOUNTING POLICIES (Policie

2. ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Accounting Estimates	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.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly owned subsidiaries (Forward US and Forward Switzerland). All significant intercompany transactions and balances have been eliminated in consolidation.
Income Taxes	Income Taxes The Company recognizes future tax benefits and liabilities measured at enacted rates attributable to temporary differences between financial statement and income tax bases of assets and liabilities and to net tax operating loss carryforwards to the extent that realization of these benefits is more likely than not. As of March 31, 2017, there was no change to our assessment that a full valuation allowance was required against all net deferred tax assets. Accordingly, any deferred tax provision or benefit was offset by an equal and opposite change to the valuation allowance. No current book income tax provision was recorded against book net income due to the existence of significant net operating loss carryforwards.
Revenue Recognition	Revenue Recognition The Company generally recognizes revenue from product sales to its customers when: (i) title and risk of loss are transferred (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale); (ii) persuasive evidence of an arrangement exists; (iii) the Company has no continuing obligations to the customer; and (iv) collection of the related accounts receivable is reasonably assured. The Company defers revenue when it receives consideration before achieving the criteria previously mentioned.
Reclassifications	Reclassifications Certain amounts in the accompanying fiscal 2016 financial statements have been reclassified to conform to the fiscal 2017 presentation.
Share-Based Compensation Expense	Share-Based Compensation Expense The Company recognizes employee and director share-based compensation in its condensed consolidated statements of operations and comprehensive income (loss) at the grant-date fair value of stock options and other equity-based compensation. The determination of stock option grant-date fair value is estimated using the Black-Scholes option pricing model, which includes variables such as the expected volatility of the Company’s share price, the exercise behavior of its grantees, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. In the case of awards with multiple vesting periods, the Company has elected to use the graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award as if the award was, in-substance, multiple awards. Refer to Note 4 - Share-Based Compensation. In addition, the Company recognizes share-based compensation to non-employees based upon the fair value, using the Black-Scholes option pricing model, determined at the deemed measurement dates over the related contract service period.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605-Revenue Recognition and most industry-specific guidance throughout the ASC. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date for annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The Company will adopt ASU 2014-09 in the first quarter of fiscal 2018 and plans to apply the full retrospective approach. Because the Company's primary source of revenues is from the sale of finished goods, the Company does not anticipate that the adoption of ASU 2014-09 will have a material impact on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which requires management to assess a company’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Before this new standard, there was minimal guidance in U.S. GAAP specific to going concern. Under the new standard, disclosures are required when conditions give rise to substantial doubt about a company’s ability to continue as a going concern within one year from the financial statement issuance date. The new standard applies to all companies and is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. The Company will adopt this standard in its fiscal year ended September 30, 2017 consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, first-out (“LIFO”). This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not anticipate that the adoption of ASU 2015-11 will have a material impact on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” which applies to the classification of deferred tax assets and liabilities. The update eliminates the requirement to classify deferred tax assets and liabilities as noncurrent or current within a classified statement of financial position. This ASU is effective for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period. The Company does not anticipate that the adoption of ASU 2015-17 will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which will require lessees to report most leases as assets and liabilities on the balance sheet, while lessor accounting will remain substantially unchanged. This ASU requires a modified retrospective transition approach for existing leases, whereby the new rules will be applied to the earliest year presented. The new standard is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The Company does not anticipate that the adoption of ASU 2016-09 will have a material impact on its consolidated financial statements.

4. SHARE-BASED COMPENSATION (Ta

4. SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	Weighted Weighted Average Average Remaining Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, September 30, 2016 266,000 $ 2.27 Granted - Exercised - Forfeited (10,000 ) 3.73 Expired - Outstanding, March 31, 2017 256,000 $ 2.22 4.3 $ 31,400 Exercisable, March 31, 2017 215,999 $ 2.51 3.5 $ 9,549
Schedule of option activity by exericse price	Options Outstanding Options Exercisable Weighted Weighted Weighted Average Outstanding Average Average Exercisable Exercise Exercise Number of Exercise Remaining Life Number of Price Price Options Price In Years Options $0.64 to $1.99 $ 1.00 97,500 $ 1.25 5.1 57,499 $2.00 to $2.99 2.46 96,000 2.46 2.4 96,000 $3.00 to $3.79 3.74 62,500 3.74 3.9 62,500 256,000 3.5 215,999
Schedule restricted stock option activity	Weighted Average Total Number of Grant Date Grant Date Shares Fair Value Fair Value Non-vested, September 30, 2016 159,317 $ 1.29 $ 205,146 Granted - Vested (124,317 ) 1.47 (182,746 ) Forfeited - Non-vested, March 31, 2017 35,000 $ 0.64 $ 22,400

5. INCOME (LOSS) PER SHARE (Tab

5. INCOME (LOSS) PER SHARE (Tables)	6 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of income (loss) per share	For the Three Months Ended For the Six Months Ended March 31, March 31, 2017 2016 2017 2016 Numerator: Net income (loss) (numerator for basic and diluted earnings per share) $ (237,530 ) $ 144,303 $ (86,038 ) $ 388,383 Weighted average shares outstanding (denominator for basic earnings per share) 8,671,240 8,503,436 8,646,103 8,445,152 Effects of dilutive securities: Assumed exercise of stock options, treasury stock method - 28,509 - 29,456 Assumed vesting of restricted stock, treasury stock method - 128,169 - 170,787 Dilutive potential common shares - 156,678 - 200,243 Denominator for diluted earnings per share - weighted average shares and assumed potential common shares 8,671,240 8,660,114 8,646,103 8,645,395 Basic earnings (loss) per share $ (0.03 ) $ 0.02 $ (0.01 ) $ 0.05 Diluted earnings (loss) per share $ (0.03 ) $ 0.02 $ (0.01 ) $ 0.04
Schedule of antidilutive securities excluded	As of March 31, 2017 2016 Options 256,000 208,500 Warrants 723,846 723,846 Total potentially dilutive shares 979,846 932,346

6. CONCENTRATIONS (Tables)

6. CONCENTRATIONS (Tables)	6 Months Ended
	Mar. 31, 2017
Risks and Uncertainties [Abstract]
Significant customers with revenue concentrations	For the three and six months ended March 31, 2017 and 2016, the Company had significant customers with individual percentage of total revenues equaling 10% or greater as follows: For the Three Months Ended For the Six Months Ended March 31, March 31, 2017 2016 2017 2016 Customer 1 25.1 % 17.7 % 26.6 % 18.4 % Customer 2 23.4 % 28.5 % 21.6 % 24.3 % Customer 3 22.0 % 34.0 % 22.6 % 33.9 % Customer 4 10.4 % 11.3 % 11.8 % 12.2 % Totals 80.9 % 91.5 % 82.6 % 88.8 % At March 31, 2017 and September 30, 2016, concentration of accounts receivable with significant customers representing 10% or greater of accounts receivable was as follows: March 31, 2017 September 30, 2016 Customer 1 40.8% 33.0% Customer 2 17.3% 16.0% Customer 3 15.2% 19.6% Customer 4 12.7% 14.7% Totals 86.0% 83.3%

3. SHAREHOLDERS' EQUITY (Detail

3. SHAREHOLDERS' EQUITY (Details Narrative) - Common Stock - USD ($)	6 Months Ended	175 Months Ended
	Mar. 31, 2017	Mar. 31, 2017
Temporary Equity [Line Items]
Stock repurchased, shares	0	224,690
Stock repurchased, amount	$ 0	$ 487,000

4. SHARE-BASED COMPENSATION (De

4. SHARE-BASED COMPENSATION (Details - Option activity) - Options [Member]	6 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Number of Options
Shares, Outstanding at Beginning | shares	266,000
Shares, Granted | shares	0
Shares, Exercised | shares	0
Shares, Forfeited | shares	(10,000)
Shares, Expired | shares	0
Shares, Outstanding at Ending | shares	256,000
Shares, Exercisable | shares	215,999
Weighted Average Exercise Price
Weighted average exercise price, Outstanding at Beginning | $ / shares	$ 2.27
Weighted average exercise price, Granted | $ / shares
Weighted average exercise price, Exercised | $ / shares
Weighted average exercise price, Forfeited | $ / shares	3.73
Weighted average exercise price, Expired | $ / shares
Weighted average exercise price, Outstanding at Ending | $ / shares	2.22
Weighted average exercise price, Exercisable | $ / shares	$ 2.51
Weighted Average Remaining life In Years
Weighted average remaining contractual term (Years), Outstanding	4 years 3 months 18 days
Weighted average remaining contractual term (Years), Exercisable	3 years 6 months
Intrinsic Value
Aggregate intrinsic value, Outstanding | $	$ 31,400
Aggregate intrinsic value, Exercisable | $	$ 9,549

4. SHARE-BASED COMPENSATION (21

4. SHARE-BASED COMPENSATION (Details - Options by exercise price) - $ / shares	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2017	Sep. 30, 2016
$0.64 to $1.99 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit		$ 0.64
Exercise price upper limit		1.99
Options Outstanding, Weighted average exercise price	$ 1	$ 1
Options Outstanding, Outstanding Number of Options	97,500	97,500
Options Exercisable, Weighted average exercise price	$ 1.25	$ 1.25
Options Exercisable, Weighted Average Remaining Life In Years		5 years 1 month 6 days
Options Exercisable, Exercisable Number of Options	57,499	57,499
$2.00 to $2.99 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit		$ 2
Exercise price upper limit		2.99
Options Outstanding, Weighted average exercise price	$ 2.46	$ 2.46
Options Outstanding, Outstanding Number of Options	96,000	96,000
Options Exercisable, Weighted average exercise price	$ 2.46	$ 2.46
Options Exercisable, Weighted Average Remaining Life In Years		2 years 4 months 24 days
Options Exercisable, Exercisable Number of Options	96,000	96,000
$3.00 to $3.79 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price lower limit		$ 3
Exercise price upper limit		3.79
Options Outstanding, Weighted average exercise price	$ 3.74	$ 3.74
Options Outstanding, Outstanding Number of Options	62,500	62,500
Options Exercisable, Weighted average exercise price	$ 3.74	$ 3.74
Options Exercisable, Weighted Average Remaining Life In Years		3 years 10 months 24 days
Options Exercisable, Exercisable Number of Options	62,500	62,500
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding, Weighted average exercise price	$ 2.22	$ 2.22	$ 2.27
Options Outstanding, Outstanding Number of Options	256,000	256,000
Options Exercisable, Weighted Average Remaining Life In Years	3 years 6 months
Options Exercisable, Exercisable Number of Options	215,999	215,999

4. SHARE-BASED COMPENSATION (22

4. SHARE-BASED COMPENSATION (Details - Restricted stock activity) - Restricted Stock [Member]	6 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Number of Shares
Shares, Non-vested balance	159,317
Shares granted
Shares vested	(124,317)
Shares forfeited
Shares, Non-vested balance	159,317
Weighted Average Grant Date Fair Value
Weighted average grant date fair value, Non-vested balance | $ / shares	$ 1.29
Weighted average grant date fair value, vested | $ / shares	1.47
Weighted average grant date fair value, Non-vested balance | $ / shares	$ 0.64
Total Grant Date Fair Value
Total grant date fair value, Non-vested balance | $	$ 205,146
Total grant date fair value, vested | $	(182,746)
Total grant date fair value, Non-vested balance | $	$ 22,400

4. SHARE-BASED COMPENSATION (23

4. SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense			$ 79,458	$ 134,212
Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	$ 1,000	$ 6,000	3,000	10,000
Options [Member] | Nonvested Stock Option Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	5,000		$ 5,000
Unrecognized compensation cost weighted average vesting period			1 year
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	29,000	$ 44,000	$ 77,000	$ 122,000
Unrecognized compensation cost	$ 8,000		$ 8,000
Unrecognized compensation cost weighted average vesting period			1 year

5. INCOME (LOSS) PER SHARE (Det

5. INCOME (LOSS) PER SHARE (Details - Diluted loss per share) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net income (loss)	$ (237,530)	$ 144,303	$ (86,038)	$ 388,383
Denominator:
Weighted average shares outstanding - basic	8,671,240	8,503,436	8,646,103	8,445,152
Effect of dilutive securities
Assumed exercise of stock options, treasury stock method	0	28,509	0	29,456
Assumed vesting of restricted stock, treasury stock method	0	128,169	0	170,787
Dilutive potential common shares	0	156,678	0	200,243
Weighted average shares outstanding - diluted	8,671,240	8,660,114	8,646,103	8,645,395
Basic earnings per share	$ (.03)	$ 0.02	$ (.01)	$ .05
Diluted earnings per share	$ (.03)	$ 0.02	$ (.01)	$ 0.04

5. INCOME (LOSS) PER SHARE (D25

5. INCOME (LOSS) PER SHARE (Details - Antidilutive shares) - shares	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	979,846	932,346
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	256,000	208,500
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	723,846	723,846

6. CONCENTRATIONS (Details - Co

6. CONCENTRATIONS (Details - Concentration sales)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Sales Revenue, Net [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	80.90%	91.50%	82.60%	88.80%
Sales Revenue, Net [Member] | Customer 1 [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	25.10%	17.70%	26.60%	18.40%
Sales Revenue, Net [Member] | Customer 2 [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	23.40%	28.50%	21.60%	24.30%
Sales Revenue, Net [Member] | Customer 3 [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	22.00%	34.00%	22.60%	33.90%
Sales Revenue, Net [Member] | Customer 4 [Member]
Revenue, Major Customer [Line Items]
Concentration Risk	10.40%	11.30%	11.80%	12.20%
Accounts Receivable [Member]
Revenue, Major Customer [Line Items]
Concentration Risk			86.00%		83.30%
Accounts Receivable [Member] | Customer 1 [Member]
Revenue, Major Customer [Line Items]
Concentration Risk			40.80%		33.00%
Accounts Receivable [Member] | Customer 2 [Member]
Revenue, Major Customer [Line Items]
Concentration Risk			17.30%		16.00%
Accounts Receivable [Member] | Customer 3 [Member]
Revenue, Major Customer [Line Items]
Concentration Risk			15.20%		19.60%
Accounts Receivable [Member] | Customer 4 [Member]
Revenue, Major Customer [Line Items]
Concentration Risk			12.70%		14.70%

7. RELATED PARTY TRANSACTIONS (

7. RELATED PARTY TRANSACTIONS (Details Narrative) - Forward China [Member] - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Related Party Transaction [Line Items]
Service fees paid	$ 344,000	$ 366,000	$ 707,000	$ 739,000
Commissions earned	$ 0		$ 12,904