Forward Industries (FORD) 10-K 16 Dec 21 2021 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Sep. 30, 2021	Dec. 10, 2021	Mar. 31, 2021
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--09-30
Entity File Number	001-34780
Entity Registrant Name	FORWARD INDUSTRIES, INC
Entity Central Index Key	0000038264
Entity Tax Identification Number	13-1950672
Entity Incorporation, State or Country Code	NY
Entity Address, Address Line One	700 Veterans Memorial Highway
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Hauppauge
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11788
City Area Code	631
Local Phone Number	547-3041
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	FORD
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 18,700,000
Entity Common Stock, Shares Outstanding		10,061,185

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Current assets:
Cash	$ 1,410,365	$ 2,924,627
Accounts receivable, net	8,760,715	7,602,316
Inventories, net	2,062,557	1,275,694
Prepaid expenses and other current assets	561,072	419,472
Total current assets	12,794,709	12,222,109
Property and equipment, net	167,997	215,323
Intangible assets, net	1,318,658	1,531,415
Goodwill	1,758,682	1,758,682
Operating lease right of use assets, net	3,743,242	3,512,042
Other assets	72,251	116,697
Total assets	19,855,539	19,356,268
Current liabilities:
Line of credit	0	1,000,000
Note payable to Forward China	0	1,600,000
Accounts payable	391,992	197,022
Due to Forward China	5,733,708	3,622,401
Deferred income	187,695	485,078
Current portion of notes payable	0	983,395
Current portion of finance lease liability	1,523	18,411
Current portion of earnout consideration	25,000	45,000
Current portion of operating lease liability	340,151	259,658
Accrued expenses and other current liabilities	527,974	615,401
Total current liabilities	7,208,043	8,826,366
Other liabilities:
Note payable to Forward China	1,600,000	0
Notes payable, less current portion	0	529,973
Operating lease liability, less current portion	3,559,053	3,359,088
Finance lease liability, less current portion	0	12,769
Earnout consideration, less current portion	45,000	45,000
Total other liabilities	5,204,053	3,946,830
Total liabilities	12,412,096	12,773,196
Commitments and contingencies
Shareholders' equity:
Common stock, par value $0.01 per share; 40,000,000 shares authorized; 10,061,185 and 9,883,851 shares issued and outstanding at September 30, 2021 and 2020, respectively	100,612	98,838
Additional paid-in capital	19,914,476	19,579,684
Accumulated deficit	(12,571,645)	(13,095,450)
Total shareholders' equity	7,443,443	6,583,072
Total liabilities and shareholders' equity	$ 19,855,539	$ 19,356,268

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Sep. 30, 2020
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)	10,061,185	9,883,851
Common stock, shares outstanding (in shares)	10,061,185	9,883,851

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenues, net	$ 39,021,996	$ 34,478,358
Cost of sales	30,887,577	27,839,851
Gross profit	8,134,419	6,638,507
Sales and marketing expenses	2,503,518	1,950,704
General and administrative expenses	6,395,900	5,655,186
Goodwill impairment	0	1,015,000
Loss from operations	(764,999)	(1,982,383)
Gain on forgiveness of note payable	(1,356,570)	0
Fair value adjustment of earnout consideration	(20,000)	(350,000)
Fair value adjustment of deferred cash consideration	0	16,000
Interest income	(88,760)	(60,932)
Interest expense	171,957	174,962
Other expense, net	4,569	3,701
Income/(loss) before income taxes	523,805	(1,766,114)
Provision for income taxes	0	9,167
Net income/(loss)	$ 523,805	$ (1,775,281)
Earnings/(loss) per share:
Basic	$ 0.05	$ (0.19)
Diluted	$ 0.05	$ (0.19)
Weighted average common shares outstanding:
Basic	9,950,094	9,583,441
Diluted	10,443,018	9,583,441

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Sep. 30, 2019	$ 95,338	$ 18,936,130	$ (11,320,169)	$ 7,711,299
Beginning balance, shares at Sep. 30, 2019	9,533,851
Share-based compensation		245,154		245,154
Shares issued for Kablooe acquisition	$ 3,000	366,900		369,900
Shares issued for Kablooe acquisition, Shares	300,000
Stock options exercised	$ 500	31,500		32,000
Stock options exercised, Shares	50,000
Net loss			(1,775,281)	(1,775,281)
Ending balance, value at Sep. 30, 2020	$ 98,838	19,579,684	(13,095,450)	6,583,072
Ending balance, shares at Sep. 30, 2020	9,883,851
Share-based compensation		68,855		68,855
Stock options exercised	$ 1,774	265,937		267,711
Stock options exercised, Shares	177,334
Net loss			523,805	523,805
Ending balance, value at Sep. 30, 2021	$ 100,612	$ 19,914,476	$ (12,571,645)	$ 7,443,443
Ending balance, shares at Sep. 30, 2021	10,061,185

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating Activities:
Net income/(loss)	$ 523,805	$ (1,775,281)
Adjustments to reconcile net income/(loss) to net cash used in operating activities:
Share-based compensation	68,855	245,154
Depreciation and amortization	327,290	271,973
Bad debt expense/(recovery)	506,469	(78,278)
Gain on forgiveness of note payable	(1,356,570)	0
Change in fair value of earn-out consideration	(20,000)	(350,000)
Change in fair value of deferred cash consideration	0	16,000
Goodwill impairment	0	1,015,000
Impairment of investment	0	326,941
Changes in operating assets and liabilities:
Accounts receivable	(1,664,868)	(733,228)
Inventories	(786,863)	333,133
Prepaid expenses and other current assets	(141,600)	30,542
Other assets	44,446	138,311
Accounts payable and due to Forward China	2,306,277	245,679
Deferred income	(297,383)	219,713
Net changes in operating lease liabilities	49,258	25,945
Accrued expenses and other current liabilities	(87,427)	(194,550)
Net cash used in operating activities	(528,311)	(262,946)
Investing Activities:
Purchases of property and equipment	(67,207)	(68,456)
Cash used in acquisition of Kablooe, Inc.	0	(352,628)
Cash acquired in acquisition of Kablooe, Inc.	0	31,024
Net cash used in investing activities	(67,207)	(390,060)
Financing Activities:
Proceeds from line of credit borrowings	150,000	900,000
Repayment of line of credit borrowings	(1,150,000)	(1,200,000)
Repayment of notes payable	(156,798)	(68,551)
Proceeds from note payable	0	1,356,570
Proceeds from stock options exercised	267,711	32,000
Repayments of finance leases	(29,657)	(35,199)
Payment of deferred cash consideration	0	(500,000)
Net cash (used in)/provided by financing activities	(918,744)	484,820
Net decrease in cash	(1,514,262)	(168,186)
Cash at beginning of year	2,924,627	3,092,813
Cash at end of year	1,410,365	2,924,627
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	154,510	178,114
Cash paid for taxes	8,389	4,854
Supplemental Disclosures of Non-Cash Information:
Lease assets recorded	565,590	3,825,632
Lease liabilities recorded	565,590	3,906,391
Common stock issued in Kablooe acquisition	0	369,900
Fair value of Kablooe contingent earnout consideration	$ 0	$ 90,000

OVERVIEW

OVERVIEW	12 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
OVERVIEW	NOTE 1 OVERVIEW Business Forward Industries, Inc. (“Forward”, “we”, “our”, or the “Company”), is a fully integrated design, development and manufacturing solution provider for top tier medical and technology customers worldwide. Through its acquisitions of IPS and Kablooe, the Company has expanded its ability to design and develop solutions for our existing multinational client base and expand beyond the diabetic product line into a variety of industries with a full spectrum of hardware and software product design and engineering services. In addition to our existing design and distribution of carry and protective solutions, primarily for handheld electronic devices, the Company is now a one-stop shop for design, development and manufacturing solutions serving a wide range of clients in the industrial, commercial and consumer industries. The Company’s previous principal customer market has been original equipment manufacturers, or “OEMs” (or the contract manufacturing firms of these OEM customers), that either package our 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 geographic area encompassing North America, Central America and South America, which we refer to as 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 Industries Asia-Pacific Corporation, a British Virgin Islands corporation (“Forward China”). See Note 14. As a result of the expansion of the design development capabilities through its wholly-owned subsidiaries, IPS and Kablooe, the Company is now able to introduce proprietary products to the market from concepts brought to it from a number of different sources, both inside and outside the Company. Liquidity In Fiscal 2021, the Company generated net income of $524,000 523,805 528,311 Impact of COVID-19 The outbreak of the COVID-19 virus continues to impact our results of operations. While the most significant impact was in Fiscal 2020, the virus continued to impact our results of operations in Fiscal 2021. The business shutdowns resulting from the pandemic disrupted our supply chain and the manufacture or shipment of our products and delayed the rollout of our retail products. Additionally, demand for our design and development services was reduced or delayed as a result of the pandemic as certain customers reduced discretionary spending. The risk of collecting accounts receivable is also enhanced as a result of the economic impact of COVID-19. While revenues for Fiscal 2021 increased as compared to Fiscal 2020, they were lower than anticipated due in part to the impact of COVID-19 and the resulting economic conditions. The impact of lower than anticipated revenue was further complicated by a significant increase in freight costs due to the global shipping container shortage caused in part by the pandemic. Many government restrictions have been relaxed and the economy has continued to open in more jurisdictions. However, the emergence of new and transmittable variants of COVID-19 could lead to a possible resurgence of the virus, particularly in populations with low vaccination rates and has resulted in new restrictions in certain geographies and among certain businesses. The long-term financial impact on our business cannot be reasonably estimated at this time. As a result, the effects of COVID-19 may not be fully reflected in our financial results until future periods. Refer to “Part I, Item 1A — Risk Factors” for a description of the material risks that the Company currently faces in connection with COVID-19. Until the pandemic is fully controlled, we expect business conditions to remain challenging. In response to these challenges, we will continue to focus on those factors that we can control: closely managing and controlling our expenses; aligning our design and development schedules with demand in a proactive manner as there are changes in market conditions to minimize our cash operating costs; pursuing further improvements in the productivity and effectiveness of our development, selling and administrative activities and, where appropriate, taking advantage of opportunities to enhance our business growth and strategy. To help mitigate the impact of these challenging business conditions, we implemented cost-cutting initiatives including reducing executive pay and Board of Directors compensation for the three months ended June 30, 2021. See “Liquidity and Capital Resources” section of Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further description of these cost-cutting measures.

ACCOUNTING POLICIES

ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
ACCOUNTING POLICIES	NOTE 2 ACCOUNTING POLICIES Use of Estimates The preparation of the Company’s 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. The extent to which COVID-19 may impact our financial condition or results of operations is uncertain. As of the date of issuance of this report, we are not aware of any specific events or circumstances that would require us to update our estimates or judgments or adjust the carrying amount of our assets or liabilities. Basis of Presentation The accompanying consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly-owned subsidiaries (Forward US, Forward Switzerland, Forward UK, IPS and Kablooe). All significant intercompany transactions and balances have been eliminated in consolidation. The acquisition of Kablooe took place in August 2020 and its results of operations have been included in our consolidated financial statements since the acquisition date. Accordingly, our results of operations for Fiscal 2021 include Kablooe’s results of operations for 12 months, while our results of operations for Fiscal 2020 include Kablooe’s results of operations for approximately six weeks. Key terms of the acquisition are described in Note 3. Segment Reporting The Company has three reportable segments: OEM distribution, retail distribution and design. The OEM distribution segment sources and distributes carrying cases and other accessories for medical monitoring and diagnostic kits and a variety of other portable electronic and non-electronic devices directly to OEMs or their contract manufacturers. The retail distribution segment sources and sells smart-enabled furniture and a variety of other products through agreements with various retailers, both in stores and through online retailer websites. 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. See Note 16 for more information on 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 (IPS and Kablooe) 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 impairment test 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 amount, no impairment charge is recognized. If the fair value of the reporting unit is less than its carrying amount, 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. Intangible Assets 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 (see Note 3) and are recorded based on their estimated fair value determined in conjunction with the purchase price allocation. These intangible assets 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 that the carrying amount of an asset 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 also 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. 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 impairment of intangible assets at September 30, 2021 or 2020. Cash The Company maintains its cash in bank and financial institution deposits in the United States (that at times may exceed federally insured limits of $ 250,000 805,000 2,300,000 Accounts Receivable Accounts receivable consist of unsecured trade accounts with customers. The Company maintains an allowance for doubtful accounts, which is recorded as a reduction to accounts receivable on the consolidated balance sheets. 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, 2021, the Company had allowances for doubtful accounts of $ 90,000 706,000 249,000 347,000 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 in the Company’s consolidated statements of operations. As reserved inventory is disposed, the Company charges off the associated allowance. 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. At September 30, 2021 and 2020, the allowance for slow-moving inventory was $ 50,000 0 Property and Equipment Property and equipment consist of computer hardware and software, furniture, fixtures and equipment and are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. The estimated useful lives for all property and equipment ranges from three to five years. Leases The Company adopted Accounting Standards Codification (“ASC”) 842, "Leases", effective October 1, 2019 using the modified retrospective transition method and elected to apply the available practical expedients to enable the preparation of financial information on adoption. The practical expedients applied under the new standard allow the Company to carry forward the historical lease classification and not reassess its prior conclusions about lease identification or initial direct costs. In accordance with this guidance, lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term, using the Company’s incremental borrowing rate commensurate with the lease term, since the Company’s lessors do not provide an implicit rate, nor is one readily available. The Company has certain leases that may include an option to renew and when it is reasonably probable to exercise such option, the Company will include the renewal option terms in determining the lease asset and lease liability. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating lease assets are shown as right of use assets and financing lease assets are a component of property and equipment on the consolidated balance sheets. The current and long-term portions of operating and financing lease liabilities are shown separately as such on the consolidated balance sheets. Upon adoption of ASC 842, the Company recognized right of use assets of $3,649,000 and corresponding lease liabilities of $3,729,000 pertaining to its operating leases on its consolidated balance sheets. 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. At September 30, 2021, 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. Our income tax provision or benefit is generally not significant due to the existence of significant net operating loss carryforwards. Revenue Recognition OEM and Retail Distribution Segments The Company generally recognizes revenue in its OEM and retail distribution segments when: (i) finished goods are shipped to its customers (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale and transfer of control); (ii) there are no other deliverables or performance obligations; and (iii) there are no further obligations to the customer after the title of the goods has transferred. When the Company receives consideration before achieving the criteria previously mentioned, it records a contract liability, which is classified as a component of deferred income in the accompanying consolidated balance sheets. The retail distribution segment had contract liabilities of $ 0 75,000 0 no Design Segment The Company applies the “cost to cost” and “right to invoice” methods of revenue recognition to the contracts with customers in the design segment. The design segment typically engages in two types of contracts: (i) time and material and (ii) fixed price. The Company recognizes revenue over time on its time and material contracts utilizing a “right to invoice” method. Revenues from fixed price contracts that require performance of services that are not related to the production of tangible assets are recognized by using cost inputs to measure progress toward the completion of its performance obligations, or the “cost to cost” method. Revenues from fixed price contracts that contain specific deliverables are recognized when the performance obligation has been satisfied or the transfer of goods to the customer has been completed and accepted. Recognized revenues that will not be billed until a later date, or contract assets, are recorded as an asset and classified as a component of accounts receivable in the accompanying consolidated balance sheets. The design segment had contract assets of $ 693,000 649,000 611,000 188,000 410,000 220,000 Shipping and Handling Fees The Company includes shipping and handling fees billed to customers in net revenues and the related transportation costs in cost of sales. Foreign Currency Transactions The Company’s functional currency is the U.S. dollar. Foreign currency transactions may generate receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. Fluctuations in exchange rates between such foreign currency and the functional currency increase or decrease the expected amount of functional currency cash flows upon settlement of the transaction. These increases or decreases in expected functional currency cash flows are foreign currency transaction gains or losses that are included in other expense in the accompanying consolidated statements of operations. The approximate net losses from foreign currency transactions were $ 5,000 3,000 Fair Value Measurements We perform fair value measurements in accordance with the guidance provided by ASC 820, “Fair Value Measurement.” ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the assets or liabilities, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset's or liability's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value: · Level 1: quoted prices in active markets for identical assets or liabilities; · Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or · Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. Share-Based Compensation Expense The Company estimates the fair value of employee and non-employee director share-based compensation on the date of grant 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. The fair value of employee and non-employee director share-based compensation is recognized in the consolidated statements of operations over the related service or vesting period of each grant. 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 (see Note 9). Business Combinations The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, the Company makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships and developed technology, discount rates and terminal values. Our estimates of fair value are based upon assumptions believed to be reasonable, but actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. Reclassifications Certain amounts in the accompanying Fiscal 2020 financial statements have been reclassified to conform to the Fiscal 2021 presentation. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement – Disclosure Framework (Topic 820)” to improve the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company adopted this guidance in the first quarter of Fiscal 2021 with no material impact to its consolidated financial statements. In November 2019, the FASB issued ASU 2019-08, “Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606)” to provide guidance for share-based payment awards granted to a customer in conjunction with selling goods or services accounted for under Topic 606. The pronouncement is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company adopted this guidance in the first quarter of Fiscal 2021 with no material impact to its consolidated financial statements. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” ASU 2019-11 is an accounting pronouncement that provides clarity to and amends earlier guidance on this topic and would be effective concurrently with the adoption of such earlier guidance. This pronouncement is effective for the Company for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years. The Company is currently evaluating the effects of this pronouncement on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15 “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)” addressing customers’ accounting for implementation costs incurred in a cloud computing arrangement that is a service contract, which requires customers to apply internal-use software guidance to determine the implementation costs that are able to be capitalized. Capitalized implementation costs are required to be amortized over the term of the arrangement, beginning when the cloud computing arrangement is ready for its intended use. The effective date of the new guidance for public companies is for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance in the first quarter of Fiscal 2021 with no material impact to its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This guidance removes certain exceptions to the general principles in Topic 740 and provides consistent application of U.S. GAAP by clarifying and amending existing guidance. The effective date of the new guidance for public companies is for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of this pronouncement on its consolidated financial statements.

ACQUISITION

ACQUISITION	12 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
ACQUISITION	NOTE 3 ACQUISITION On August 17, 2020, in order to further diversify its customer base and the industries in which it sells its products, the Company and Kablooe, Inc. (a newly formed wholly-owned subsidiary of the Company) entered into an Asset Purchase Agreement (the “Agreement”) with Kablooe Design, Inc. (“Kablooe Design”) and its sole shareholder. Kablooe Design is an innovative medical and consumer design and development company whose clients include leading brands in medical devices. In consideration for the acquisition of substantially all of the assets of Kablooe Design, the Company: (i) paid $ 353,000 300,000 500,000 At the date of acquisition, the consideration transferred consisted of cash, shares of Forward’s common stock, and contingent consideration based on the earnings performance of Kablooe over a five-year period. The acquisition date fair value of consideration transferred consisted of the following: Total purchase consideration Cash at closing (1) $ 353,000 Value of Forward's common stock (2) 370,000 Fair value of contingent earnout consideration (3) 90,000 Total Purchase Consideration $ 813,000 _________________ (1) Cash paid by Forward at closing. (2) Forward issued 300,000 shares of its common stock valued at $1.23 per share, which represents the August 17, 2020 closing price of $1.37 per share, less an estimated 10% reduction in fair value related to restrictions that limit their marketability for a period of six months. (3) Fair value of the contingent consideration is measured using the Black-Scholes option pricing method. Contingent consideration is to be paid in cash only upon Kablooe meeting certain earnings milestones over a five-year period. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed on the acquisition date: Assets acquired and liabilities assumed Cash $ 31,000 Accounts receivable 96,000 Customer relationships (8 yr life) 340,000 Trademark (15 yr life) 110,000 Property and equipment 9,000 Other assets 9,000 Total identifiable assets acquired 595,000 Accounts payable (22,000 ) Accrued liabilities (135,000 ) Deferred revenue (46,000 ) Debt (170,000 ) Total liabilities assumed (373,000 ) Net identifiable assets acquired 222,000 Goodwill 591,000 Net assets acquired $ 813,000 In relation to our acquisition of Kablooe, we incurred $ 78,000 172,000

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	12 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS AND GOODWILL	NOTE 4 INTANGIBLE ASSETS AND GOODWILL Intangible Assets The Company’s intangible assets consist of the following: Schedule of intangible assets September 30, 2021 September 30, 2020 Trademark Customer Relationships Total Intangible Assets Trademark Customer Relationships Total Intangible Assets Gross carrying amount $ 585,000 $ 1,390,000 $ 1,975,000 $ 585,000 $ 1,390,000 $ 1,975,000 Less accumulated amortization (125,000 ) (531,000 ) (656,000 ) (86,000 ) (358,000 ) (444,000 ) Net carrying amount $ 460,000 $ 859,000 $ 1,319,000 $ 499,000 $ 1,032,000 $ 1,531,000 The Company’s intangible assets were acquired as a result of the acquisitions of Kablooe and IPS in Fiscal 2020 and Fiscal 2018, respectively, and relate to the design segment of our business. Intangible assets are amortized over their expected useful lives of 15 years for the trademarks and 8 years for the customer relationships. During Fiscal 2021 and Fiscal 2020, the Company recorded amortization expense related to intangible assets of $ 212,000 167,000 At September 30, 2021, estimated amortization expense for the Company’s intangible assets for each of the next five years and thereafter is as follows: Estimated future amortization expense Fiscal 2022 $ 213,000 Fiscal 2023 213,000 Fiscal 2024 213,000 Fiscal 2025 213,000 Fiscal 2026 121,000 Thereafter 346,000 Total $ 1,319,000 Goodwill Goodwill represents the future economic benefits of assets acquired in a business combination that are not individually identified or separately recognized. The Company’s goodwill resulted from the acquisitions of Kablooe and IPS in Fiscal 2020 and Fiscal 2018, respectively. The goodwill associated with the IPS acquisition is not deductible for tax purposes, but the goodwill associated with the Kablooe acquisition is deductible for tax purposes. All of the Company’s goodwill is held under the design segment of our business. During Fiscal 2020, the Company experienced triggering events that prompted the testing of its goodwill for impairment. Those triggering events included the reduction in fair value of the IPS contingent earn-out consideration discussed in Note 6 and revised revenue and operational projections for IPS for the later part of Fiscal 2020 and future periods. Based on these factors, the Company concluded that it was more likely than not that the fair value of the IPS reporting unit had declined below its carrying amount. The Company then calculated the fair value of this reporting unit using Level 3 inputs, which is a combination of asset-based, income and market approaches. The estimates and assumptions utilized in the estimated fair value calculation included discount rate, terminal growth rate, selection of peer group companies and control premium applied as well as forecasts of revenue growth rates, gross margins, operating margins, and working capital requirements. Any changes in the judgments, estimates, or assumptions used could produce significantly different results. The Company concluded the IPS reporting unit’s fair value was below its carrying amount by $ 1,015,000 no

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 PROPERTY AND EQUIPMENT Property and equipment and related accumulated depreciation and amortization are summarized in the table below: Schedule of property, plant and equipment September 30, 2021 2020 Computer hardware and software $ 483,000 $ 488,000 Furniture and fixtures 159,000 149,000 Equipment 52,000 61,000 Property and equipment, cost 694,000 698,000 Less: accumulated depreciation and amortization (526,000 ) (483,000 ) Property and equipment, net $ 168,000 $ 215,000 Depreciation expense was $ 115,000 105,000

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 6 FAIR VALUE MEASUREMENTS The earnout consideration of $ 70,000 90,000 90,000 70,000 0 The following table presents the placement in the fair value hierarchy and summarizes the change in fair value of the earn-out consideration for Fiscal 2021 and Fiscal 2020: Schedule of fair value liability measured on recurring basis Fair value measurement at reporting date using Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance (Level 1) (Level 2) (Level 3) Balance at September 30, 2019 $ 834,000 $ – $ – $ 834,000 Increase in fair value of IPS deferred cash consideration 16,000 – – 16,000 Decrease in the fair value of IPS earnout consideration (350,000 ) – – (350,000 ) Payout of IPS deferred cash consideration (500,000 ) – – (500,000 ) Fair value of Kablooe earnout consideration 90,000 – – 90,000 Balance at September 30, 2020 90,000 – – 90,000 Decrease in fair value of Kablooe earnout consideration (20,000 ) – – (20,000 ) Balance at September 30, 2021 $ 70,000 $ – $ – $ 70,000 The fair value of the Kablooe contingent earn-out consideration is measured on a recurring basis at each reporting date. The following inputs and assumptions were used in the Black-Scholes valuation model to estimate the fair value of the Kablooe earn-out consideration at September 30, 2021 and 2020: Fair value assumptions September 30, 2021 2020 Volatility 40% 40% Risk-free interest rate 0.3% 1% Expected term in years 0.5-3.4 0.5-4.5 Dividend yield – – During Fiscal 2019, the Company received common stock from a customer as compensation for services provided, which was recorded as a cost-method investment with an estimated fair value of $ 327,000 In Fiscal 2019, the Company recorded bad debt expense of $ 1,626,000 s to an allowance on the note receivable. The Company received $ 101,000 134,000 89,000 61,000 12,000 73,000 During Fiscal 2020, as a result of the customer’s default on the promissory note, the impact of COVID-19, and performance of the business in which the Company is invested, including its inability to generate revenue, management concluded the investment was also impaired and it recorded an impairment charge of $ 327,000 The following table presents the placement in the fair value hierarchy and summarizes the change in fair value of the cost method investment during Fiscal 2020: Schedule of changes in fair value of the cost method investment Fair value measurement at reporting date using Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance (Level 1) (Level 2) (Level 3) September 30, 2019 $ 327,000 $ – $ 327,000 $ – Impairment of cost method investment (327,000 ) – (327,000 ) – September 30, 2020 $ – $ – $ – $ –

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
	Sep. 30, 2021
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	NOTE 7 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities at September 30, 2021 and 2020 are as follows: Schedule of accrued expenses and other accrued liabilities September 30, 2021 2020 Paid time off $ 241,000 $ 296,000 Other payroll-related liabilities 199,000 178,000 Other 88,000 141,000 Total $ 528,000 $ 615,000

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	12 Months Ended
	Sep. 30, 2021
Equity [Abstract]
SHAREHOLDERS’ EQUITY	NOTE 8 SHAREHOLDERS’ EQUITY Anti-Takeover Provisions Shareholder Rights Plan On April 26, 2013, the Board of Directors (the "Board") adopted a Shareholder Rights Plan, as set forth in the Rights Agreement between the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent. Pursuant to the Rights Agreement, the Board declared a dividend distribution of one Right (a "Right") for each outstanding share of Company Common Stock, par value $0.01 per share (the "Common Stock") to shareholders of record at the close of business on May 6, 2013, which date will be the record date, and for each share of Common Stock issued (including shares distributed from treasury) by the Company thereafter and prior to the Distribution Date (as described below and defined in the Rights Agreement). Each Right entitles the registered holder, subject to the terms of the Rights Agreement, to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock, $0.01 par value per share (the "Series A Preferred Stock"), at an exercise price of $4.00 per one one-thousandth of a share of Series A Preferred Stock, subject to adjustment. Initially, no separate Rights certificates will be distributed and instead the Rights will attach to all certificates representing shares of outstanding Common Stock. Subject to certain exceptions specified in the Rights Agreement, the Rights will separate from the Common Stock and become exercisable on the distribution date (the "Distribution Date"), which will occur on the earlier of (i) the 10th business day (or such later date as may be determined by the Board) after the public announcement that an Acquiring Person (as defined in the Rights Agreement) has acquired beneficial ownership of 20% or more of the Common Stock then outstanding; or (ii) the 10th business day (or such later date as may be determined by the Board) after a person or group announces a tender or exchange offer that would result in a person or group of affiliated and associated persons beneficially owning 20% or more of the Common Stock then outstanding. “Blank Check” Preferred Stock The Company is authorized to issue up to 4,000,000 100,000 Warrants At September 30, 2021, the Company had 151,000 2.3 90 days after a registration statement registering common stock (other than pursuant to an employee benefit plan) is declared effective Other Activity In Fiscal 2020, the Company issued 300,000 177,000 50,000

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	12 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 9 SHARE-BASED COMPENSATION 2021 Equity Incentive Plan In February 2021, shareholders of the Company approved the 2021 Equity Incentive Plan (the “2021 Plan”), which is administered by the Compensation Committee of the Board of Directors and authorizes 1,291,000 1,291,000 2011 Long Term Incentive Plan In March 2011, shareholders of the Company approved the 2011 Plan, which originally authorized 850,000 shares of common stock for grants of various types of equity awards to officers, directors, employees, consultants, and independent contractors. In February 2018, the shareholders of the Company approved an amendment to the 2011 Plan to increase the aggregate number of shares of the Company's common stock authorized for issuance under the 2011 Plan by 1,000,000 shares of common stock, from 850,000 shares of common stock to 1,850,000 Stock Options The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions in the following table. 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” 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 Company accounts for forfeitures in the period they occur. In applying the Black-Scholes option pricing model to options granted, the Company used the following assumptions: Assumptions used for options Fiscal 2021 Fiscal 2020 Expected term (years) – 2.5-3.0 Expected volatility – 65 79 Risk free interest rate – 0.15 1.39 Expected dividends – – The Company made no grants of stock options or other equity awards in Fiscal 2021. In Fiscal 2020, the Company made the following option grants: · Options to non-employee directors to purchase an aggregate of 248,019 1.13 one year 145,000 · Options to its Chief Executive Officer to purchase 180,395 1.40 100,000 · Options to an employee to purchase 27,329 1.42 two years 20,000 The options granted during Fiscal 2020 had a weighted average grant date fair value of $ 0.58 69,000 245,000 During Fiscal 2021 and 2020, respectively, the Company issued 177,000 50,000 268,000 32,000 306,000 33,000 At September 30, 2021, there was $ 4,000 0.9 The following table summarizes stock option activity during Fiscal 2021: Schedule of stock option activity Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Options Price Life (Yrs.) Value Outstanding at September 30, 2020 1,138,000 $ 1.49 Granted – $ – Exercised (177,000 ) $ 1.51 Forfeited (1,000 ) $ 1.67 Expired (32,000 ) $ 3.30 Outstanding at September 30, 2021 928,000 $ 1.43 2.8 $ 895,000 Exercisable at September 30, 2021 915,000 $ 1.43 2.8 $ 881,000 Options outstanding at September 30, 2021 have an exercise price between $ 1.13 1.67

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 10 INCOME TAXES The following table summarizes the Company’s consolidated provision/(benefit) for U.S. federal, state and foreign taxes on income: Schedule of income tax provision Fiscal 2021 Fiscal 2020 Current: Federal $ – $ (4,000 ) State – 13,000 Foreign – – Deferred: Federal (506,000 ) 414,000 State (47,000 ) 82,000 Foreign (146,000 ) 283,000 Total deferred income tax expense (699,000 ) 788,000 Change in valuation allowance 699,000 (779,000 ) Income tax provision/(benefit) $ – $ 9,000 The deferred tax provision/(benefit) is the change in the deferred tax assets and liabilities representing the tax consequences of changes in the amounts of temporary differences, net operating loss carryforwards and changes in tax rates during the fiscal year. The Company’s deferred tax assets and liabilities are comprised of the following: Schedule of deferred income taxes September 30, 2021 2020 Deferred tax assets Net operating losses $ 2,093,000 $ 1,812,000 Share-based compensation 175,000 180,000 Excess tax over book basis in inventory 43,000 20,000 Reserves and other allowances 569,000 155,000 Accrued compensation 15,000 70,000 Depreciation – 31,000 Interest expense limitation 40,000 – Other items 16,000 21,000 Total deferred tax assets 2,951,000 2,289,000 Deferred tax liabilities Depreciation (18,000 ) – Prepaid expenses (131,000 ) (58,000 ) Intangible assets (216,000 ) (245,000 ) 481 Election (IPS) – (99,000 ) Total deferred tax liabilities (365,000 ) (402,000 ) Valuation allowance (2,586,000 ) (1,887,000 ) Net deferred tax assets $ – $ – The Company recorded a provision for income taxes which includes net expense of $0 and $9,000 in Fiscal 2021 and 2020, respectively. The Fiscal 2020 net expense of $9,000 includes state income tax expenses of $13,000, partially offset by a $4,000 refund of the remaining unused balance of alternative minimum tax (“AMT”) credits. Under the Tax Cuts and Jobs Act of 2017, AMT was repealed. The tax code in turn provided for a refund of the tax credits that existed on December 31, 2017 at a 50% rate in tax years 2018, 2019 and 2020, with any remaining credits being fully refundable in 2021. The CARES Act allowed corporations to immediately claim unused AMT credits on their 2019 tax return. State income tax expense was the result of taxable income in states where net operating loss carryforwards (“NOLs”) were not available. At September 30, 2021, the Company had available net NOLs for U.S. federal income tax purposes of $ 7,220,000 and NOLs for state income tax purposes of $1,000,000 1,790,000 1,427,000 260,000 25,000 10,000 At September 30, 2021, as part of its periodic evaluation of the necessity to maintain a valuation allowance against its deferred tax assets, and after consideration of all factors, including, among others, projections of future taxable income, current year NOL utilization and the extent of the Company's cumulative losses in recent years, the Company determined that, on a more likely than not basis, it would not be able to use remaining deferred tax assets, except with respect to the U.S. federal income taxes in the event the Company elects to effect repatriation of certain foreign source income of Forward Switzerland, which income is currently considered to be permanently reinvested and for which no U.S. tax liability has been accrued. Accordingly, the Company has determined to maintain a full valuation allowance against its net deferred tax assets. At September 30, 2021 and 2020, the valuation allowance was $2,586,000 and $1,887,000, respectively. In the future, the utilization of the Company's NOLs may be subject to certain change of control limitations. If the Company determines that it will be able to use some or all of its deferred tax assets in a future reporting period, the adjustment to reduce or eliminate the valuation allowance would reduce its income tax expense and increase after-tax income. The significant elements contributing to the difference between the U.S. federal statutory tax rate and the Company’s effective tax rate are as follows: Reconciliation of effective tax rate Fiscal 2021 Fiscal 2020 U.S. federal statutory rate 21.0% 21.0% State tax rate, net of federal benefit (8.3% ) (1.9% ) Foreign rate differential (2.6% ) (14.9% ) Tax return to provision adjustments (78.8% ) (12.7% ) Effect of state tax rate change (7.8% ) 1.5% Change in valuation allowance 129.9% 41.1% State income taxes 0.0% (0.7% ) Permanent differences (53.4% ) (33.9% ) Effective tax rate 0.0% (0.5% ) In December 2020, the Company received approval of its application for forgiveness of its note payable related to the Paycheck Protection Program (the “PPP loan”) in the aggregate principal amount of $ 1,357,000 At September 30, 2021 and 2020, the Company had not accrued any interest or penalties related to uncertain tax positions. It is the Company's policy to recognize interest and/or penalties, if any, related to income tax matters in income tax expense in the consolidated statements of operations. For the periods presented in the accompanying consolidated statements of operations, no material income tax related interest or penalties were assessed or recorded. All fiscal years prior to the fiscal year ended September 30, 2018 are closed to federal and state examination.

EARNINGS_LOSS PER SHARE

EARNINGS/LOSS PER SHARE	12 Months Ended
	Sep. 30, 2021
Earnings/(loss) per share:
EARNINGS/LOSS PER SHARE	NOTE 11 EARNINGS/LOSS PER SHARE Basic earnings/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 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 shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method. A reconciliation of basic and diluted earnings/loss per share is as follows: Schedule of earnings (loss) per share For the Fiscal Years Ended September 30, 2021 2020 Numerator: Net income/(loss) $ 524,000 $ (1,775,000 ) Denominator: Weighted average common shares outstanding 9,950,000 9,583,000 Dilutive common share equivalents 493,000 – Weighted average dilutive shares outstanding 10,443,000 9,583,000 Earnings/(loss) per share: Basic $ 0.05 $ (0.19 ) Diluted $ 0.05 $ (0.19 ) There were no Schedule of antidilutive securities excluded Fiscal 2020 Options 1,138,000 Warrants 151,000 Total potentially dilutive shares 1,289,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 COMMITMENTS AND CONTINGENCIES Guarantee Obligation In February 2010, Forward Switzerland and its European logistics provider (freight forwarding and customs agent) entered into a Representation Agreement (the “Representation Agreement”) whereby, among other things, the European logistics provider agreed to act as Forward Switzerland's fiscal representative in The Netherlands for the purpose of providing services in connection with any value added tax matters. As part of this agreement, Forward Switzerland agreed to provide an undertaking (in the form of a bank letter of guarantee) to the logistics provider with respect to any value added tax liability arising in The Netherlands that the logistics provider is required to pay to Dutch tax authorities on its behalf. In February 2010, Forward Switzerland entered into a guarantee agreement with a Swiss bank relating to the repayment of any amount up to €75,000 (equal to approximately $87,000 at September 30, 2021) paid by such bank to the logistics provider in order to satisfy such undertaking pursuant to the bank letter of guarantee. Forward Switzerland would be required to perform under the guarantee agreement only in the event that (i) a value added tax liability is imposed on the Company's revenues in The Netherlands; (ii) the logistics provider asserts that it has been called upon in its capacity as surety by the Dutch Receiver of Taxes to pay such taxes; (iii) Forward Switzerland or the Company on its behalf fails or refuses to remit the amount of value added tax due to the logistics provider upon its demand; and (iv) the logistics provider makes a drawing under the bank letter of guarantee. Under the Representation Agreement, Forward Switzerland agreed that the letter of guarantee would remain available for drawing for three years following the date that its relationship terminates with the logistics provider to satisfy any value added tax liability arising prior to expiration of the Representation Agreement but asserted by The Netherlands after expiration. The initial term of the bank letter of guarantee expired February 28, 2011, but it renews automatically for one-year periods on February 28 of each subsequent year unless Forward Switzerland provides the Swiss bank with written notice of termination at least 60 days prior to the renewal date. It is the intent of Forward Switzerland and the logistics provider that the bank letter of guarantee amount be adjusted annually. In consideration of the issuance of the letter of guarantee, Forward Switzerland has granted the Swiss bank a security interest in all of its assets on deposit with, held by, or credited to Forward Switzerland’s accounts with, the Swiss bank (approximately $436,000 at September 30, 2021). At September 30, 2021, the Company had not incurred a liability in connection with this guarantee. Legal Proceedings On August 21, 2020, IPS was named a third-party defendant in a patent dispute claim currently pending in the U.S. District Court for the Eastern District of New York. The complaint, which contains no specific amount of claimed monetary damages, asserts that certain intellectual property was misappropriated by IPS and one of its former employees. In October 2021, the Court ruled that the misappropriation claim was invalid. The remaining allegation is that IPS breached a non-disclosure agreement with a party to the case. IPS denies the allegations, believes the action is without merit and intends to vigorously defend it. The Company has filed a motion to dismiss. From time to time, the Company may become a party to other legal actions or proceedings in the ordinary course of its business. At September 30, 2021, there were no such actions or proceedings, either individually or in the aggregate, that, if decided adversely to its interests, the Company believes would be material to its business.

LEASES

LEASES	12 Months Ended
	Sep. 30, 2021
Leases [Abstract]
LEASES	NOTE 13 LEASES The Company’s operating leases are primarily for corporate, sales and administrative office space. Total operating lease expense in Fiscal 2021 was $ 611,000 562,000 489,000 495,000 The Company leases certain computer equipment through finance lease agreements expiring through July 2022. The net book value of assets under finance leases was $ 14,000 23,000 2,000 At September 30, 2021, the Company’s operating leases had a weighted average remaining lease term of 9.3 5.7 Future minimum payments under non-cancellable operating leases are as follows: Schedule of Future Minimum Rental Payments for Operating Leases Fiscal 2022 $ 554,000 Fiscal 2023 554,000 Fiscal 2024 565,000 Fiscal 2025 531,000 Fiscal 2026 510,000 Thereafter 2,398,000 Total future minimum lease payments 5,112,000 Less imputed interest (1,213,000 ) Total $ 3,899,000

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Sep. 30, 2021
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 14 RELATED PARTY TRANSACTIONS Buying Agency and Supply Agreement The Company has a Buying Agency and Supply Agreement (the “Supply Agreement”) with Forward China. The Supply Agreement 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 Supply Agreement expires October 22, 2023. Terence Wise, Chief Executive Officer and Chairman of the Company, is the owner of Forward China. In addition, Jenny P. Yu, a Managing Director of Forward China, beneficially owns more than 5% of the Company’s common stock. The Company recorded service fees to Forward China of $ 1,404,000 1,363,000 The Company has a separate agreement with Forward China to address the potential impact of customers sourcing directly from Forward China. In the event a customer bypasses the services of the Company and does business directly with Forward China, Forward China will pay a commission of 50% of the net revenue, less direct costs, generated from the products or services sold. The Company recognized revenue of $12,000 of commissions related to this agreement in Fiscal 2021. No commissions were recognized in Fiscal 2020. The Company had prepayments to Forward China for inventory purchases of $ 317,000 107,000 Promissory Note On January 18, 2018, the Company issued a $ 1,600,000 8 January 18, 2019 128,000 Related Party Sales A member of the Company’s Audit, Governance and Compensation Committees of its Board of Directors is also a member of the Board of Directors of a company to whom the Company’s OEM distribution segment sold products during Fiscal 2021. The Company recognized revenue of $ 63,000 During Fiscal 2020, the Company’s design division provided services to a customer whose former Chief Operating and Financial Officer and equity owner is an immediate family member of a director on the Company’s Board of Directors. The director is a member on the Board’s Audit, Governance and Compensation Committees. The Company sold design services to this customer of $ 44,000 no no Related Party Activity In October 2020, the Company began selling smart-enabled furniture, which is sourced by Forward China and sold in the U.S. under the Koble brand name. The Koble brand is owned by The Justwise Group Ltd., a company owned by Terence Wise, Chief Executive Officer and Chairman of the Company. The Company recognized revenues from the sale of Koble products of $ 1,493,000

401(k) PLAN

401(k) PLAN	12 Months Ended
	Sep. 30, 2021
Retirement Benefits [Abstract]
401(k) PLAN	NOTE 15 401(k) PLAN The Company maintains a 401(k) benefit plan allowing eligible employees to make pre-tax contributions of a portion of their salary in amounts subject to IRS limitations. The Company made immediately vested matching contributions of $ 331,000 269,000

SEGMENTS AND CONCENTRATIONS

SEGMENTS AND CONCENTRATIONS	12 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
SEGMENTS AND CONCENTRATIONS	NOTE 16 SEGMENTS AND CONCENTRATIONS Segments The Company has three reportable segments: OEM distribution, retail distribution and design. See Note 2 for more information on the composition and accounting policies of our reportable segments. Our chief operating decision maker (“CODM”) regularly reviews revenue and operating income for each segment to assess financial results and allocate resources. In Fiscal 2021, due to the growth of our retail division, we determined it to be a separate reportable segment. For our OEM and retail distribution segments, we exclude general and administrative and general corporate expenses from their measure of profitability as these expenses are not allocated to the segments and therefore not included in the measure of profitability used by the CODM. For the design segment, general and administrative expenses directly attributable to that segment are included in its measure of profitability as these expenses are included in the measure of its profitability reviewed by the CODM. We do not include intercompany activity in our segment results shown below to be consistent with the information that is presented to the CODM. Segment assets consist of accounts receivable and inventory, which are regularly reviewed by the CODM, as well as goodwill and intangible assets resulting from design segment acquisitions. The Fiscal 2020 results of operations for each segment discussed below have been reformatted from what was previously disclosed to segregate the retail distribution segment and exclude general corporate expenses from segment operating income to show them as a reconciling item so that results are comparable to the current year presentation. Information by segment and related reconciliations are shown in tables below: Segment operating income (loss) Revenues Fiscal 2021 Fiscal 2020 OEM distribution $ 19,290,000 $ 19,726,000 Retail distribution 3,183,000 1,026,000 Design 16,549,000 13,726,000 Total segment revenues $ 39,022,000 $ 34,478,000 Operating Income/(Loss) Fiscal 2021 Fiscal 2020 OEM distribution $ 1,479,000 $ 1,616,000 Retail distribution (779,000 ) (337,000 ) Design 603,000 (378,000 ) Total segment operating income 1,303,000 901,000 General corporate expenses (2,068,000 ) (2,883,000 ) Total loss from operations (765,000 ) (1,982,000 ) Other income, net (1,289,000 ) (216,000 ) Income/(loss) before income taxes $ 524,000 $ (1,766,000 ) Condensed Balance Sheet Depreciation and Amortization Fiscal 2021 Fiscal 2020 OEM distribution $ 7,000 $ 7,000 Retail distribution 1,000 – Design 319,000 265,000 Total $ 327,000 $ 272,000 Segment Assets September 30, 2021 2020 OEM distribution $ 5,898,000 $ 5,103,000 Retail distribution 2,178,000 416,000 Design 5,824,000 6,649,000 Total segment assets 13,900,000 12,168,000 General corporate assets 5,956,000 7,188,000 Total assets $ 19,856,000 $ 19,356,000 Geographic Concentrations The Company’s long-lived assets consist of property and equipment and operating lease right of use assets, all of which are located in the United States. The following table sets forth our consolidated net revenues by country for Fiscal 2021 and Fiscal 2020: Revenues from External Customers Revenues Fiscal 2021 Fiscal 2020 United States $ 25,670,000 $ 21,017,000 China 5,640,000 5,093,000 Germany 2,787,000 3,375,000 Poland 3,111,000 2,675,000 Other foreign countries 1,814,000 2,318,000 Total $ 39,022,000 $ 34,478,000 Customer Concentrations In Fiscal 2021 and Fiscal 2020, the Company had significant customers in the OEM distribution segment whose individual percentage of the Company’s consolidated revenues and accounts receivable was 10% or greater. The following customers or their affiliates or contract manufacturers accounted for 10% or more of the Company’s consolidated net revenues for Fiscal 2021 and Fiscal 2020: Schedule of concentration percentages Fiscal 2021 Fiscal 2020 Customer A $ 5,343,000 $ 6,145,000 Customer B 3,913,000 3,448,000 Customer C 5,111,000 4,912,000 The following customers or their affiliates or contract manufacturers accounted for 10% or more of the Company’s consolidated accounts receivable at September 30, 2021 and 2020: September 30, 2021 2020 Customer A $ 1,454,000 $ 977,000 Customer B 1,259,000 966,000 Customer C 1,138,000 843,000 Supplier Concentration The Company’s OEM and retail distribution segments procure substantially all their products through independent suppliers in China through Forward China. Depending on the product, Forward China may require several different suppliers to furnish component parts or pieces.

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
	Sep. 30, 2021
Leases [Abstract]
LINE OF CREDIT	NOTE 17 LINE OF CREDIT The Company, specifically IPS, has a $ 1,300,000 May 31, 2022 The Wall Street Journal 4.0 1,300,000

DEBT

DEBT	12 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
DEBT	NOTE 18 DEBT On April 18, 2020 1,357,000 1.0 April 18, 2022 827,000 530,000 In connection with the acquisition of Kablooe, the Company assumed a loan payable with a principal amount of $ 170,000 6.0 15,000 monthly 0

MOONI AGREEMENT

MOONI AGREEMENT	12 Months Ended
	Sep. 30, 2021
Mooni Agreement
MOONI AGREEMENT	NOTE 19 MOONI AGREEMENT On January 29, 2019, the Company entered into a three-year Distribution Agreement (the “Agreement”) with Mooni International AB and its owner. In accordance with the Agreement, the Company: (i) was appointed as the exclusive distributor of Mooni's current and future products (including future products developed or offered by Mooni and/or the owner) in North America, (ii) subject to certain repayment requirements, paid a fee of $400,000 to Mooni, and (iii) was granted an option to purchase a controlling interest of Mooni at a valuation not to exceed $5 million which, if exercised, would be effective on the 12 month anniversary of the effective date of the Agreement. This option was not exercised and therefore expired. Additionally, Forward China, a company owned by Terence Wise, the Company's Chairman and Chief Executive Officer, was named the designated supplier under the Agreement. The Company generated revenues from this agreement of $ 198,000 263,000 44,000 0 133,000 45,000 133,000

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of the Company’s 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. The extent to which COVID-19 may impact our financial condition or results of operations is uncertain. As of the date of issuance of this report, we are not aware of any specific events or circumstances that would require us to update our estimates or judgments or adjust the carrying amount of our assets or liabilities.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of Forward Industries, Inc. and its wholly-owned subsidiaries (Forward US, Forward Switzerland, Forward UK, IPS and Kablooe). All significant intercompany transactions and balances have been eliminated in consolidation. The acquisition of Kablooe took place in August 2020 and its results of operations have been included in our consolidated financial statements since the acquisition date. Accordingly, our results of operations for Fiscal 2021 include Kablooe’s results of operations for 12 months, while our results of operations for Fiscal 2020 include Kablooe’s results of operations for approximately six weeks. Key terms of the acquisition are described in Note 3.
Segment Reporting	Segment Reporting The Company has three reportable segments: OEM distribution, retail distribution and design. The OEM distribution segment sources and distributes carrying cases and other accessories for medical monitoring and diagnostic kits and a variety of other portable electronic and non-electronic devices directly to OEMs or their contract manufacturers. The retail distribution segment sources and sells smart-enabled furniture and a variety of other products through agreements with various retailers, both in stores and through online retailer websites. 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. See Note 16 for more information on segments.
Goodwill	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 (IPS and Kablooe) 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 impairment test 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 amount, no impairment charge is recognized. If the fair value of the reporting unit is less than its carrying amount, 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.
Intangible Assets	Intangible Assets 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 (see Note 3) and are recorded based on their estimated fair value determined in conjunction with the purchase price allocation. These intangible assets 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 that the carrying amount of an asset 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 also 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. 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 impairment of intangible assets at September 30, 2021 or 2020.
Cash	Cash The Company maintains its cash in bank and financial institution deposits in the United States (that at times may exceed federally insured limits of $ 250,000 805,000 2,300,000
Accounts Receivable	Accounts Receivable Accounts receivable consist of unsecured trade accounts with customers. The Company maintains an allowance for doubtful accounts, which is recorded as a reduction to accounts receivable on the consolidated balance sheets. 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, 2021, the Company had allowances for doubtful accounts of $ 90,000 706,000 249,000 347,000
Inventories	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 in the Company’s consolidated statements of operations. As reserved inventory is disposed, the Company charges off the associated allowance. 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. At September 30, 2021 and 2020, the allowance for slow-moving inventory was $ 50,000 0
Property and Equipment	Property and Equipment Property and equipment consist of computer hardware and software, furniture, fixtures and equipment and are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. The estimated useful lives for all property and equipment ranges from three to five years.
Leases	Leases The Company adopted Accounting Standards Codification (“ASC”) 842, "Leases", effective October 1, 2019 using the modified retrospective transition method and elected to apply the available practical expedients to enable the preparation of financial information on adoption. The practical expedients applied under the new standard allow the Company to carry forward the historical lease classification and not reassess its prior conclusions about lease identification or initial direct costs. In accordance with this guidance, lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term, using the Company’s incremental borrowing rate commensurate with the lease term, since the Company’s lessors do not provide an implicit rate, nor is one readily available. The Company has certain leases that may include an option to renew and when it is reasonably probable to exercise such option, the Company will include the renewal option terms in determining the lease asset and lease liability. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating lease assets are shown as right of use assets and financing lease assets are a component of property and equipment on the consolidated balance sheets. The current and long-term portions of operating and financing lease liabilities are shown separately as such on the consolidated balance sheets. Upon adoption of ASC 842, the Company recognized right of use assets of $3,649,000 and corresponding lease liabilities of $3,729,000 pertaining to its operating leases on its consolidated balance sheets.
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. At September 30, 2021, 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. Our income tax provision or benefit is generally not significant due to the existence of significant net operating loss carryforwards.
Revenue Recognition	Revenue Recognition OEM and Retail Distribution Segments The Company generally recognizes revenue in its OEM and retail distribution segments when: (i) finished goods are shipped to its customers (in general, these conditions occur at either point of shipment or point of destination, depending on the terms of sale and transfer of control); (ii) there are no other deliverables or performance obligations; and (iii) there are no further obligations to the customer after the title of the goods has transferred. When the Company receives consideration before achieving the criteria previously mentioned, it records a contract liability, which is classified as a component of deferred income in the accompanying consolidated balance sheets. The retail distribution segment had contract liabilities of $ 0 75,000 0 no Design Segment The Company applies the “cost to cost” and “right to invoice” methods of revenue recognition to the contracts with customers in the design segment. The design segment typically engages in two types of contracts: (i) time and material and (ii) fixed price. The Company recognizes revenue over time on its time and material contracts utilizing a “right to invoice” method. Revenues from fixed price contracts that require performance of services that are not related to the production of tangible assets are recognized by using cost inputs to measure progress toward the completion of its performance obligations, or the “cost to cost” method. Revenues from fixed price contracts that contain specific deliverables are recognized when the performance obligation has been satisfied or the transfer of goods to the customer has been completed and accepted. Recognized revenues that will not be billed until a later date, or contract assets, are recorded as an asset and classified as a component of accounts receivable in the accompanying consolidated balance sheets. The design segment had contract assets of $ 693,000 649,000 611,000 188,000 410,000 220,000
Shipping and Handling Fees	Shipping and Handling Fees The Company includes shipping and handling fees billed to customers in net revenues and the related transportation costs in cost of sales.
Foreign Currency Transactions	Foreign Currency Transactions The Company’s functional currency is the U.S. dollar. Foreign currency transactions may generate receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. Fluctuations in exchange rates between such foreign currency and the functional currency increase or decrease the expected amount of functional currency cash flows upon settlement of the transaction. These increases or decreases in expected functional currency cash flows are foreign currency transaction gains or losses that are included in other expense in the accompanying consolidated statements of operations. The approximate net losses from foreign currency transactions were $ 5,000 3,000
Fair Value Measurements	Fair Value Measurements We perform fair value measurements in accordance with the guidance provided by ASC 820, “Fair Value Measurement.” ASC 820 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at their fair values, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the assets or liabilities, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset's or liability's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value: · Level 1: quoted prices in active markets for identical assets or liabilities; · Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or · Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities.
Share-Based Compensation Expense	Share-Based Compensation Expense The Company estimates the fair value of employee and non-employee director share-based compensation on the date of grant 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. The fair value of employee and non-employee director share-based compensation is recognized in the consolidated statements of operations over the related service or vesting period of each grant. 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 (see Note 9).
Business Combinations	Business Combinations The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, the Company makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships and developed technology, discount rates and terminal values. Our estimates of fair value are based upon assumptions believed to be reasonable, but actual results may differ from estimates. Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed.
Reclassifications	Reclassifications Certain amounts in the accompanying Fiscal 2020 financial statements have been reclassified to conform to the Fiscal 2021 presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement – Disclosure Framework (Topic 820)” to improve the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company adopted this guidance in the first quarter of Fiscal 2021 with no material impact to its consolidated financial statements. In November 2019, the FASB issued ASU 2019-08, “Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606)” to provide guidance for share-based payment awards granted to a customer in conjunction with selling goods or services accounted for under Topic 606. The pronouncement is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company adopted this guidance in the first quarter of Fiscal 2021 with no material impact to its consolidated financial statements. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” ASU 2019-11 is an accounting pronouncement that provides clarity to and amends earlier guidance on this topic and would be effective concurrently with the adoption of such earlier guidance. This pronouncement is effective for the Company for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years. The Company is currently evaluating the effects of this pronouncement on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15 “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)” addressing customers’ accounting for implementation costs incurred in a cloud computing arrangement that is a service contract, which requires customers to apply internal-use software guidance to determine the implementation costs that are able to be capitalized. Capitalized implementation costs are required to be amortized over the term of the arrangement, beginning when the cloud computing arrangement is ready for its intended use. The effective date of the new guidance for public companies is for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance in the first quarter of Fiscal 2021 with no material impact to its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This guidance removes certain exceptions to the general principles in Topic 740 and provides consistent application of U.S. GAAP by clarifying and amending existing guidance. The effective date of the new guidance for public companies is for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effects of this pronouncement on its consolidated financial statements.

ACQUISITION (Tables)

ACQUISITION (Tables)	12 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Total purchase consideration	Total purchase consideration Cash at closing (1) $ 353,000 Value of Forward's common stock (2) 370,000 Fair value of contingent earnout consideration (3) 90,000 Total Purchase Consideration $ 813,000 _________________ (1) Cash paid by Forward at closing. (2) Forward issued 300,000 shares of its common stock valued at $1.23 per share, which represents the August 17, 2020 closing price of $1.37 per share, less an estimated 10% reduction in fair value related to restrictions that limit their marketability for a period of six months. (3) Fair value of the contingent consideration is measured using the Black-Scholes option pricing method. Contingent consideration is to be paid in cash only upon Kablooe meeting certain earnings milestones over a five-year period.
Assets acquired and liabilities assumed	Assets acquired and liabilities assumed Cash $ 31,000 Accounts receivable 96,000 Customer relationships (8 yr life) 340,000 Trademark (15 yr life) 110,000 Property and equipment 9,000 Other assets 9,000 Total identifiable assets acquired 595,000 Accounts payable (22,000 ) Accrued liabilities (135,000 ) Deferred revenue (46,000 ) Debt (170,000 ) Total liabilities assumed (373,000 ) Net identifiable assets acquired 222,000 Goodwill 591,000 Net assets acquired $ 813,000

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	12 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	Schedule of intangible assets September 30, 2021 September 30, 2020 Trademark Customer Relationships Total Intangible Assets Trademark Customer Relationships Total Intangible Assets Gross carrying amount $ 585,000 $ 1,390,000 $ 1,975,000 $ 585,000 $ 1,390,000 $ 1,975,000 Less accumulated amortization (125,000 ) (531,000 ) (656,000 ) (86,000 ) (358,000 ) (444,000 ) Net carrying amount $ 460,000 $ 859,000 $ 1,319,000 $ 499,000 $ 1,032,000 $ 1,531,000
Estimated future amortization expense	Estimated future amortization expense Fiscal 2022 $ 213,000 Fiscal 2023 213,000 Fiscal 2024 213,000 Fiscal 2025 213,000 Fiscal 2026 121,000 Thereafter 346,000 Total $ 1,319,000

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	Schedule of property, plant and equipment September 30, 2021 2020 Computer hardware and software $ 483,000 $ 488,000 Furniture and fixtures 159,000 149,000 Equipment 52,000 61,000 Property and equipment, cost 694,000 698,000 Less: accumulated depreciation and amortization (526,000 ) (483,000 ) Property and equipment, net $ 168,000 $ 215,000

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of fair value liability measured on recurring basis	Schedule of fair value liability measured on recurring basis Fair value measurement at reporting date using Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance (Level 1) (Level 2) (Level 3) Balance at September 30, 2019 $ 834,000 $ – $ – $ 834,000 Increase in fair value of IPS deferred cash consideration 16,000 – – 16,000 Decrease in the fair value of IPS earnout consideration (350,000 ) – – (350,000 ) Payout of IPS deferred cash consideration (500,000 ) – – (500,000 ) Fair value of Kablooe earnout consideration 90,000 – – 90,000 Balance at September 30, 2020 90,000 – – 90,000 Decrease in fair value of Kablooe earnout consideration (20,000 ) – – (20,000 ) Balance at September 30, 2021 $ 70,000 $ – $ – $ 70,000
Fair value assumptions	Fair value assumptions September 30, 2021 2020 Volatility 40% 40% Risk-free interest rate 0.3% 1% Expected term in years 0.5-3.4 0.5-4.5 Dividend yield – –
Schedule of changes in fair value of the cost method investment	Schedule of changes in fair value of the cost method investment Fair value measurement at reporting date using Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance (Level 1) (Level 2) (Level 3) September 30, 2019 $ 327,000 $ – $ 327,000 $ – Impairment of cost method investment (327,000 ) – (327,000 ) – September 30, 2020 $ – $ – $ – $ –

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Sep. 30, 2021
Payables and Accruals [Abstract]
Schedule of accrued expenses and other accrued liabilities	Schedule of accrued expenses and other accrued liabilities September 30, 2021 2020 Paid time off $ 241,000 $ 296,000 Other payroll-related liabilities 199,000 178,000 Other 88,000 141,000 Total $ 528,000 $ 615,000

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Assumptions used for options	Assumptions used for options Fiscal 2021 Fiscal 2020 Expected term (years) – 2.5-3.0 Expected volatility – 65 79 Risk free interest rate – 0.15 1.39 Expected dividends – –
Schedule of stock option activity	Schedule of stock option activity Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Options Price Life (Yrs.) Value Outstanding at September 30, 2020 1,138,000 $ 1.49 Granted – $ – Exercised (177,000 ) $ 1.51 Forfeited (1,000 ) $ 1.67 Expired (32,000 ) $ 3.30 Outstanding at September 30, 2021 928,000 $ 1.43 2.8 $ 895,000 Exercisable at September 30, 2021 915,000 $ 1.43 2.8 $ 881,000

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Schedule of income tax provision	Schedule of income tax provision Fiscal 2021 Fiscal 2020 Current: Federal $ – $ (4,000 ) State – 13,000 Foreign – – Deferred: Federal (506,000 ) 414,000 State (47,000 ) 82,000 Foreign (146,000 ) 283,000 Total deferred income tax expense (699,000 ) 788,000 Change in valuation allowance 699,000 (779,000 ) Income tax provision/(benefit) $ – $ 9,000
Schedule of deferred income taxes	Schedule of deferred income taxes September 30, 2021 2020 Deferred tax assets Net operating losses $ 2,093,000 $ 1,812,000 Share-based compensation 175,000 180,000 Excess tax over book basis in inventory 43,000 20,000 Reserves and other allowances 569,000 155,000 Accrued compensation 15,000 70,000 Depreciation – 31,000 Interest expense limitation 40,000 – Other items 16,000 21,000 Total deferred tax assets 2,951,000 2,289,000 Deferred tax liabilities Depreciation (18,000 ) – Prepaid expenses (131,000 ) (58,000 ) Intangible assets (216,000 ) (245,000 ) 481 Election (IPS) – (99,000 ) Total deferred tax liabilities (365,000 ) (402,000 ) Valuation allowance (2,586,000 ) (1,887,000 ) Net deferred tax assets $ – $ –
Reconciliation of effective tax rate	Reconciliation of effective tax rate Fiscal 2021 Fiscal 2020 U.S. federal statutory rate 21.0% 21.0% State tax rate, net of federal benefit (8.3% ) (1.9% ) Foreign rate differential (2.6% ) (14.9% ) Tax return to provision adjustments (78.8% ) (12.7% ) Effect of state tax rate change (7.8% ) 1.5% Change in valuation allowance 129.9% 41.1% State income taxes 0.0% (0.7% ) Permanent differences (53.4% ) (33.9% ) Effective tax rate 0.0% (0.5% )

EARNINGS_LOSS PER SHARE (Tables

EARNINGS/LOSS PER SHARE (Tables)	12 Months Ended
	Sep. 30, 2021
Earnings/(loss) per share:
Schedule of earnings (loss) per share	Schedule of earnings (loss) per share For the Fiscal Years Ended September 30, 2021 2020 Numerator: Net income/(loss) $ 524,000 $ (1,775,000 ) Denominator: Weighted average common shares outstanding 9,950,000 9,583,000 Dilutive common share equivalents 493,000 – Weighted average dilutive shares outstanding 10,443,000 9,583,000 Earnings/(loss) per share: Basic $ 0.05 $ (0.19 ) Diluted $ 0.05 $ (0.19 )
Schedule of antidilutive securities excluded	Schedule of antidilutive securities excluded Fiscal 2020 Options 1,138,000 Warrants 151,000 Total potentially dilutive shares 1,289,000

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Schedule of Future Minimum Rental Payments for Operating Leases Fiscal 2022 $ 554,000 Fiscal 2023 554,000 Fiscal 2024 565,000 Fiscal 2025 531,000 Fiscal 2026 510,000 Thereafter 2,398,000 Total future minimum lease payments 5,112,000 Less imputed interest (1,213,000 ) Total $ 3,899,000

SEGMENTS AND CONCENTRATIONS (Ta

SEGMENTS AND CONCENTRATIONS (Tables)	12 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Segment operating income (loss)	Segment operating income (loss) Revenues Fiscal 2021 Fiscal 2020 OEM distribution $ 19,290,000 $ 19,726,000 Retail distribution 3,183,000 1,026,000 Design 16,549,000 13,726,000 Total segment revenues $ 39,022,000 $ 34,478,000 Operating Income/(Loss) Fiscal 2021 Fiscal 2020 OEM distribution $ 1,479,000 $ 1,616,000 Retail distribution (779,000 ) (337,000 ) Design 603,000 (378,000 ) Total segment operating income 1,303,000 901,000 General corporate expenses (2,068,000 ) (2,883,000 ) Total loss from operations (765,000 ) (1,982,000 ) Other income, net (1,289,000 ) (216,000 ) Income/(loss) before income taxes $ 524,000 $ (1,766,000 )
Condensed Balance Sheet	Condensed Balance Sheet Depreciation and Amortization Fiscal 2021 Fiscal 2020 OEM distribution $ 7,000 $ 7,000 Retail distribution 1,000 – Design 319,000 265,000 Total $ 327,000 $ 272,000 Segment Assets September 30, 2021 2020 OEM distribution $ 5,898,000 $ 5,103,000 Retail distribution 2,178,000 416,000 Design 5,824,000 6,649,000 Total segment assets 13,900,000 12,168,000 General corporate assets 5,956,000 7,188,000 Total assets $ 19,856,000 $ 19,356,000
Revenues from External Customers	Revenues from External Customers Revenues Fiscal 2021 Fiscal 2020 United States $ 25,670,000 $ 21,017,000 China 5,640,000 5,093,000 Germany 2,787,000 3,375,000 Poland 3,111,000 2,675,000 Other foreign countries 1,814,000 2,318,000 Total $ 39,022,000 $ 34,478,000
Schedule of concentration percentages	Schedule of concentration percentages Fiscal 2021 Fiscal 2020 Customer A $ 5,343,000 $ 6,145,000 Customer B 3,913,000 3,448,000 Customer C 5,111,000 4,912,000 The following customers or their affiliates or contract manufacturers accounted for 10% or more of the Company’s consolidated accounts receivable at September 30, 2021 and 2020: September 30, 2021 2020 Customer A $ 1,454,000 $ 977,000 Customer B 1,259,000 966,000 Customer C 1,138,000 843,000

OVERVIEW (Details Narrative)

OVERVIEW (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net Income (Loss) Attributable to Parent	$ 523,805	$ (1,775,281)
Net Cash Provided by (Used in) Operating Activities	$ 528,311	$ 262,946

ACCOUNTING POLICIES (Details Na

ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Cash and Cash Equivalents [Line Items]
Cash, Uninsured Amount	$ 250,000
Impairment of intangible assets	50,000	$ 0
Loss from foreign currency transactions	5,000	3,000
Distribution [Member]
Cash and Cash Equivalents [Line Items]
Allowances for doubtful accounts	90,000	249,000
Contract liabilities	0	75,000	$ 0
Design [Member]
Cash and Cash Equivalents [Line Items]
Allowances for doubtful accounts	706,000	347,000
Contract liabilities	188,000	410,000	220,000
Contract assets	693,000	649,000	611,000
O E M Distribution [Member]
Cash and Cash Equivalents [Line Items]
Contract liabilities		0	$ 0
Foreign Bank [Member]
Cash and Cash Equivalents [Line Items]
Cash, Uninsured Amount	$ 805,000	$ 2,300,000

ACQUISITION (Details - Acquisit

ACQUISITION (Details - Acquisition date fair value) - Kablooe Design [Member]	11 Months Ended
	Aug. 17, 2021USD ($)
Business Acquisition [Line Items]
Cash at closing	$ 353,000	[1]
Value of Forward's common stock	370,000	[2]
Fair value of contingent earnout consideration	90,000	[3]
Total Purchase Consideration	$ 813,000
[1]	Cash paid by Forward at closing.
[2]	Forward issued 300,000 shares of its common stock valued at $1.23 per share, which represents the August 17, 2020 closing price of $1.37 per share, less an estimated 10% reduction in fair value related to restrictions that limit their marketability for a period of six months.
[3]	Fair value of the contingent consideration is measured using the Black-Scholes option pricing method. Contingent consideration is to be paid in cash only upon Kablooe meeting certain earnings milestones over a five-year period.

ACQUISITION (Details - Fair val

ACQUISITION (Details - Fair values of the assets acquired and liabilities ) - USD ($)	Sep. 30, 2021	Sep. 30, 2020	Aug. 17, 2020
Business Acquisition [Line Items]
Goodwill	$ 1,758,682	$ 1,758,682
Kablooe Design [Member]
Business Acquisition [Line Items]
Cash			$ 31,000
Accounts receivable			96,000
Customer relationships (8 yr life)			340,000
Trademark (15 yr life)			110,000
Property and equipment			9,000
Other assets			9,000
Total identifiable assets acquired			595,000
Accounts payable			(22,000)
Accrued liabilities			(135,000)
Deferred revenue			(46,000)
Debt			170,000
Total liabilities assumed			(373,000)
Net identifiable assets acquired			222,000
Goodwill			591,000
Net assets acquired			$ 813,000

ACQUISITION (Details Narrative)

ACQUISITION (Details Narrative) - USD ($)		11 Months Ended	12 Months Ended
		Aug. 17, 2021	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Revenues			$ 39,021,996	$ 34,478,358
Kablooe Design [Member]
Business Acquisition [Line Items]
Cash paid for acquisition, gross	[1]	$ 353,000
Common stock issued		300,000
Contingent earnout payments		$ 500,000
Acquisition costs				78,000
Revenues				$ 172,000
[1]	Cash paid by Forward at closing.

INTANGIBLE ASSETS AND GOODWIL_2

INTANGIBLE ASSETS AND GOODWILL (Details - Intangible Assets) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,975,000	$ 1,975,000
Accumulated Amortization	(656,000)	(444,000)
Net Carrying Amount	1,319,000	1,531,000
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	585,000	585,000
Accumulated Amortization	(125,000)	(86,000)
Net Carrying Amount	460,000	499,000
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,390,000	1,390,000
Accumulated Amortization	(531,000)	(358,000)
Net Carrying Amount	$ 859,000	$ 1,032,000

INTANGIBLE ASSETS AND GOODWIL_3

INTANGIBLE ASSETS AND GOODWILL (Details - Estimated amortization expense) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Fiscal 2022	$ 213,000
Fiscal 2023	213,000
Fiscal 2024	213,000
Fiscal 2025	213,000
Fiscal 2026	121,000
Thereafter	346,000
Total	$ 1,319,000	$ 1,531,000

INTANGIBLE ASSETS AND GOODWIL_4

INTANGIBLE ASSETS AND GOODWILL (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 212,000	$ 167,000
Goodwill impairment	$ 0	$ 1,015,000

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 694,000	$ 698,000
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(526,000)	(483,000)
Property, Plant and Equipment, Net	167,997	215,323
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	483,000	488,000
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	159,000	149,000
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 52,000	$ 61,000

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 115,000	$ 105,000

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details - Fair value hierarchy) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value liabilities, beginning balance	$ 90,000	$ 834,000
Increase in fair value of IPS deferred cash consideration		16,000
Increase (decrease) in fair value of IPS earn-out consideration		(350,000)
Payout of IPS deferred cash consideration		(500,000)
Fair value of Kablooe contingent earnout consideration		90,000
Decrease in fair value of Kablooe earnout consideration	(20,000)
Fair value liabilities, ending balance	70,000	90,000
Fair Value, Inputs, Level 2 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value liabilities, beginning balance	0	0
Increase in fair value of IPS deferred cash consideration		0
Increase (decrease) in fair value of IPS earn-out consideration		0
Payout of IPS deferred cash consideration		0
Fair value of Kablooe contingent earnout consideration		0
Decrease in fair value of Kablooe earnout consideration	0
Fair value liabilities, ending balance	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value liabilities, beginning balance	90,000	834,000
Increase in fair value of IPS deferred cash consideration		16,000
Increase (decrease) in fair value of IPS earn-out consideration		(350,000)
Payout of IPS deferred cash consideration		(500,000)
Fair value of Kablooe contingent earnout consideration		90,000
Decrease in fair value of Kablooe earnout consideration	(20,000)
Fair value liabilities, ending balance	70,000	90,000
Fair Value, Inputs, Level 1 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value liabilities, beginning balance	0
Increase in fair value of IPS deferred cash consideration		0
Increase (decrease) in fair value of IPS earn-out consideration		0
Payout of IPS deferred cash consideration		0
Fair value of Kablooe contingent earnout consideration		0
Decrease in fair value of Kablooe earnout consideration	0
Fair value liabilities, ending balance	$ 0	$ 0
Measurement Input, Expected Dividend Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value assumptions

FAIR VALUE MEASUREMENTS (Deta_2

FAIR VALUE MEASUREMENTS (Details - Assumptions)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value assumptions	40%	40%
Measurement Input, Risk Free Interest Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value assumptions	0.3%	1%
Measurement Input, Expected Term [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value assumptions	0.5-3.4	0.5-4.5
Measurement Input, Expected Dividend Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value assumptions

FAIR VALUE MEASUREMENTS (Deta_3

FAIR VALUE MEASUREMENTS (Details - Change in fair value of the cost ) - Cost-method Investments [Member] - USD ($)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair value of investment	$ 0	$ 327,000
Impairment of cost method investment	(327,000)
Fair Value, Inputs, Level 1 [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair value of investment	0	0
Impairment of cost method investment	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair value of investment	0	327,000
Impairment of cost method investment	(327,000)
Fair Value, Inputs, Level 3 [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair value of investment	0	$ 0
Impairment of cost method investment	$ 0

FAIR VALUE MEASUREMENTS (Deta_4

FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred cash consideration	$ 70,000	$ 90,000
Cost-method investment	327,000
Accounts Receivable, Credit Loss Expense (Reversal)			$ 1,626,000
Proceeds from Notes Payable	0	1,356,570
Impairment of investment		327,000
Uncollectible Account [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Proceeds from Notes Payable	101,000	134,000
Interest and Fee Income, Other Loans	89,000	61,000
[custom:RecoveryOfBadDebtExpense]	12,000	73,000
Kablooe [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Earnout liability	$ 70,000	90,000
I P S [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Earnout liability		$ 0

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Payables and Accruals [Abstract]
Paid time off	$ 241,000	$ 296,000
Other payroll-related liabilities	199,000	178,000
Other	88,000	141,000
Total	$ 528,000	$ 615,000

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative) - shares	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Class of Stock [Line Items]
Warrants outstanding	151,000
Warrants exercisable	151,000
Equity Option [Member]
Class of Stock [Line Items]
Number of options exercised	177,000	50,000
Kablooe [Member]
Class of Stock [Line Items]
Number of common stock issued		300,000
Warrants [Member]
Class of Stock [Line Items]
Warrants remaining life	2 years 3 months 18 days
Warrants 2 [Member]
Class of Stock [Line Items]
Warrant expiration terms	90 days after a registration statement registering common stock (other than pursuant to an employee benefit plan) is declared effective
Blank Check Preferred Stock [Member]
Class of Stock [Line Items]
Shares authorized for issuance	4,000,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Shares authorized for issuance	100,000

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details - Assumptions)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Expected term (years)		2.5-3.0
Expected volatility	0.00%
Expected volatility minimum		65.00%
Expected volatility maximum		79.00%
Risk free interest rate	0.00%
Risk free interest rate minimum		0.15%
Risk free interest rate maximum		1.39%
Expected dividends	0.00%	0.00%

SHARE-BASED COMPENSATION (Det_2

SHARE-BASED COMPENSATION (Details - Option activity) - Equity Option [Member] - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at Beginning	1,138,000
Weighted average exercise price, Outstanding at Beginning	$ 1.49
Shares, Granted	0
Weighted average exercise price, Granted
Shares, Exercised	(177,000)	(50,000)
Weighted average exercise price, Exercised	$ 1.51
Shares, Forfeited	(1,000)
Weighted average exercise price, Forfeited	$ 1.67
Shares, Expired	(32,000)
Weighted average exercise price, Expired	$ 3.30
Shares, Outstanding at Ending	928,000	1,138,000
Weighted average exercise price, Outstanding at Ending	$ 1.43	$ 1.49
Weighted average remaining contractual term (Years), Outstanding	2 years 9 months 18 days
Aggregate intrinsic value, Outstanding	$ 895,000
Shares, Exercisable	915,000
Weighted average exercise price, Exercisable	$ 1.43
Weighted average remaining contractual term (Years), Exercisable	2 years 9 months 18 days
Aggregate intrinsic value, Exercisable	$ 881,000

SHARE-BASED COMPENSATION (Det_3

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense	$ 68,855	$ 245,154
Proceeds from options exercised	$ 267,711	$ 32,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option exercise price	$ 1.13
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option exercise price	$ 1.67
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	0
Options granted exercise price
Weighted average grant date value per share		$ 0.58
Share based compensation expense	$ 69,000	$ 245,000
Number of options exercised	177,000	50,000
Proceeds from options exercised	$ 268,000	$ 32,000
Intrinsic value of options exercised	306,000	$ 33,000
Equity Option [Member] | Nonvested Stock Option Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 4,000
Unrecognized compensation cost weighted average vesting period	10 months 24 days
Equity Option [Member] | Directors [Member] | Five-Year Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		248,019
Options granted exercise price		$ 1.13
Options vesting period		one year
Options grant date fair value		$ 145,000
Equity Option [Member] | Chief Executive Officer [Member] | Five-Year Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		180,395
Options granted exercise price		$ 1.40
Options grant date fair value		$ 100,000
Equity Option [Member] | Employees [Member] | Five-Year Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		27,329
Options granted exercise price		$ 1.42
Options vesting period		two years
Options grant date fair value		$ 20,000
N 2021 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance	1,291,000
Shares available for grant	1,291,000
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance	1,850,000

INCOME TAXES (Details - Tax pro

INCOME TAXES (Details - Tax provision) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Current:
Current Federal Tax Expense (Benefit)	$ 0	$ (4,000)
Current State and Local Tax Expense (Benefit)	0	13,000
Current Foreign Tax Expense (Benefit)	0	0
Deferred:
Deferred Federal Income Tax Expense (Benefit)	(506,000)	414,000
Deferred State and Local Income Tax Expense (Benefit)	(47,000)	82,000
Deferred Foreign Income Tax Expense (Benefit)	(146,000)	283,000
Deferred Income Tax Expense (Benefit)	(699,000)	788,000
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	699,000	(779,000)
Income Tax Expense (Benefit)	$ 0	$ 9,167

INCOME TAXES (Details - Deferre

INCOME TAXES (Details - Deferred tax) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Deferred tax assets
Net operating losses	$ 2,093,000	$ 1,812,000
Share-based compensation	175,000	180,000
Excess tax over book basis in inventory	43,000	20,000
Reserves and other allowances	569,000	155,000
Accrued compensation	15,000	70,000
Depreciation	0	31,000
Interest expense limitation	40,000	0
Other items	16,000	21,000
Total deferred tax assets	2,951,000	2,289,000
Deferred tax liabilities
Depreciation	(18,000)	0
Prepaid expenses	(131,000)	(58,000)
Intangible assets	(216,000)	(245,000)
481 Election (IPS)	0	(99,000)
Total deferred tax liabilities	(365,000)	(402,000)
Valuation allowance	(2,586,000)	(1,887,000)
Net deferred tax assets	$ 0	$ 0

INCOME TAXES (Details - Tax rec

INCOME TAXES (Details - Tax reconciliation)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
U.S. federal statutory rate	21.00%	21.00%
State tax rate, net of federal benefit	(8.30%)	(1.90%)
Foreign rate differential	(2.60%)	(14.90%)
Other	(78.80%)	(12.70%)
Effect of state tax rate change	(7.80%)	1.50%
Change in valuation allowance	129.90%	41.10%
State income taxes	0.00%	(0.70%)
Permanent differences	(53.40%)	(33.90%)
Effective tax rate	0.00%	(0.50%)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Deferred tax assets	$ 2,093,000	$ 1,812,000
Net income	524,000	$ (1,775,000)
P P P Loan [Member]
Operating Loss Carryforwards [Line Items]
Principal amount			$ 1,357,000
Forward Switzerland [Member]
Operating Loss Carryforwards [Line Items]
Net income	25,000
Forward UK [Member]
Operating Loss Carryforwards [Line Items]
Net income	10,000
State [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward	7,220,000
Federal [Member]
Operating Loss Carryforwards [Line Items]
Deferred tax assets	1,790,000
Foreign Tax [Member]
Operating Loss Carryforwards [Line Items]
Deferred tax assets	260,000
Foreign operating loss carryforward	$ 1,427,000

EARNINGS PER SHARE (Details - D

EARNINGS PER SHARE (Details - Diluted loss per share) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net income/(loss)	$ 524,000	$ (1,775,000)
Denominator:
Weighted Average Number of Shares Outstanding, Basic	9,950,094	9,583,441
Dilutive common share equivalents	493,000	0
Weighted Average Number of Shares Outstanding, Diluted	10,443,018	9,583,441
Earnings/(loss) per share:
Basic	$ 0.05	$ (0.19)
Diluted	$ 0.05	$ (0.19)

EARNINGS PER SHARE (Details - A

EARNINGS PER SHARE (Details - Antidilutive shares) - shares	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	0	1,289,000
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares		1,138,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares		151,000

EARNINGS_LOSS PER SHARE (Detail

EARNINGS/LOSS PER SHARE (Details Narrative) - shares	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Earnings/(loss) per share:
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	1,289,000

LEASES (Details)

LEASES (Details)	Sep. 30, 2021USD ($)
Leases [Abstract]
Fiscal 2022	$ 554,000
Fiscal 2023	554,000
Fiscal 2024	565,000
Fiscal 2025	531,000
Fiscal 2026	510,000
Thereafter	2,398,000
Total future minimum lease payments	5,112,000
Less imputed interest	(1,213,000)
Total	$ 3,899,000

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Rent expense	$ 611,000	$ 562,000
Cash paid for amounts included in operating lease liabilities	489,000	495,000
Finance Lease, Right-of-Use Asset, Amortization	14,000	$ 23,000
Finance Lease, Interest Expense	$ 2,000
Operating leases term	9 years 3 months 18 days
Operating leases	5.70%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	4 Months Ended	12 Months Ended
	Jan. 18, 2019	Sep. 30, 2021	Sep. 30, 2020
Related Party Transaction [Line Items]
Prepaid expenses and other current assets		$ 561,072	$ 419,472
Revenue from related party		39,021,996	34,478,358
Accounts receivable			0
Customer [Member]
Related Party Transaction [Line Items]
Revenue from related party		0
Accounts receivable		0
Customer [Member]
Related Party Transaction [Line Items]
Revenue from related party			44,000
Product [Member]
Related Party Transaction [Line Items]
Revenue from related party		63,000
Koble Products [Member]
Related Party Transaction [Line Items]
Revenue from related party		1,493,000
Forward China [Member]
Related Party Transaction [Line Items]
Service fees paid		1,404,000	1,363,000
Prepaid expenses and other current assets		317,000	107,000
Debt face amount	$ 1,600,000
Debt stated interest rate	8.00%
Debt maturity date	Jan. 18, 2019
Interest expense		$ 128,000	$ 128,000

401(k) PLAN (Details Narrative)

401(k) PLAN (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Retirement Benefits [Abstract]
Pension contribution	$ 331,000	$ 269,000

OPERATING SEGMENT INFORMATION (

OPERATING SEGMENT INFORMATION (Details - Income Statement) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Revenues	$ 39,021,996	$ 34,478,358
Loss from operations	(764,999)	(1,982,383)
Net loss	523,805	(1,775,281)
Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Revenues	39,022,000	34,478,000
Loss from operations	1,303,000	901,000
Consolidated operating income	(765,000)	(1,982,000)
Other (income)/expense, net	(1,289,000)	(216,000)
Net loss	524,000	(1,766,000)
Intersubsegment Eliminations [Member]
Segment Reporting Information [Line Items]
General corporate expenses	(2,068,000)	(2,883,000)
O E M Distribution [Member]
Segment Reporting Information [Line Items]
Revenues	19,290,000	19,726,000
Loss from operations	1,479,000	1,616,000
Retail Distribution [Member]
Segment Reporting Information [Line Items]
Revenues	3,183,000	1,026,000
Loss from operations	(779,000)	(337,000)
Design [Member]
Segment Reporting Information [Line Items]
Revenues	16,549,000	13,726,000
Loss from operations	$ 603,000	$ (378,000)

OPERATING SEGMENT INFORMATION_2

OPERATING SEGMENT INFORMATION (Details - Balance sheet) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Depreciation and Amortization	$ 327,290	$ 271,973
Assets	19,855,539	19,356,268
Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Depreciation and Amortization	327,000	272,000
Assets	19,856,000	19,356,000
O E M Distribution [Member]
Segment Reporting Information [Line Items]
Depreciation and Amortization	7,000	7,000
Assets	5,898,000	5,103,000
Retail Distribution [Member]
Segment Reporting Information [Line Items]
Depreciation and Amortization	1,000	0
Assets	2,178,000	416,000
Design [Member]
Segment Reporting Information [Line Items]
Depreciation and Amortization	319,000	265,000
Assets	5,824,000	6,649,000
Segment Assets [Member]
Segment Reporting Information [Line Items]
Assets	13,900,000	12,168,000
General Corporate Assets [Member]
Segment Reporting Information [Line Items]
Assets	$ 5,956,000	$ 7,188,000

OPERATING SEGMENT INFORMATION_3

OPERATING SEGMENT INFORMATION (Details - Revenues) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 39,021,996	$ 34,478,358
Reportable Subsegments [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	39,022,000	34,478,000
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	25,670,000	21,017,000
CHINA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	5,640,000
APAC Region [Member] | CHINA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues		5,093,000
GERMANY
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	2,787,000	3,375,000
POLAND
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,111,000	2,675,000
Other Foreign Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,814,000	$ 2,318,000

OPERATING SEGMENT INFORMATION_4

OPERATING SEGMENT INFORMATION (Details - Concentrations) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Revenue, Major Customer [Line Items]
Revenues	$ 39,021,996	$ 34,478,358
Accounts receivable		0
Customer A [Member]
Revenue, Major Customer [Line Items]
Revenues	5,343,000	6,145,000
Accounts receivable	1,454,000	977,000
Customer B [Member]
Revenue, Major Customer [Line Items]
Revenues	3,913,000	3,448,000
Accounts receivable	1,259,000	966,000
Customer C [Member]
Revenue, Major Customer [Line Items]
Revenues	5,111,000	4,912,000
Accounts receivable	$ 1,138,000	$ 843,000

LINE OF CREDIT (Details Narrati

LINE OF CREDIT (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Line of credit maximum borrowing amount	$ 1,300,000
Line of credit maturity date	May 31, 2022
Line of credit effective interest rate	4.00%	4.00%
Line of credit amount available	$ 1,300,000

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Note payable, current	$ 0	$ 983,395
Paycheck Protection Program [Member]
Debt Instrument [Line Items]
Debt interest rate	1.00%
Note payable, current	$ 827,000
Note payable, noncurrent	$ 530,000
Paycheck Protection Program [Member]
Debt Instrument [Line Items]
Debt issuance date	Apr. 18, 2020
Loan received	$ 1,357,000
Debt maturity date	Apr. 18, 2022
Loan Payable [Member] | Kablooe [Member]
Debt Instrument [Line Items]
Debt interest rate	6.00%
Debt face amount	$ 170,000
Periodic payment amount	$ 15,000
Payment frequency	monthly
Loan payable outstanding		$ 0

MOONI AGREEMENT (Details Narrat

MOONI AGREEMENT (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
AgreementsLineItems [Line Items]
Revenues	$ 39,021,996	$ 34,478,358
Unamortized fee - current portion	561,072	419,472
Unamortized fee - noncurrent portion	72,251	116,697
Amortization of option	133,000	133,000
Distribution Agreement [Member] | Mooni International [Member]
AgreementsLineItems [Line Items]
Unamortized fee - current portion	44,000	133,000
Unamortized fee - noncurrent portion	0	45,000
Mooni International [Member]
AgreementsLineItems [Line Items]
Revenues	$ 198,000	$ 263,000