What changed in this filing

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Item 1. Business

2024-12-27 compared with 2023-12-21 · 36 added, 49 removed, 246 unchanged (26% of the section changed)

25 unchanged sentences

Discontinued Operations

Considering the recurring losses incurred by the

retail segment, in July 2023, the Company decided to cease operations of our retail distribution segment and we are presenting the results

of operations for this segment within discontinued operations in the current and prior periods presented herein.

The discontinuation of

the retail segment represents a strategic shift in the Company’s business.

The primary assets of the retail segment are inventory

and accounts receivable.

The Company expects to sell, liquidate, or otherwise dispose of remaining retail inventory by June 30, 2024,

and to collect remaining retail accounts receivable by the end of fiscal 2024.

After this time, we expect to have no further significant

continuing involvement with the retail distribution segment.

The inventory of the retail segment is presented as discontinued assets held

for sale on the balance sheets at September 30, 2023 and 2022 and the results of operations for the retail segment have been classified

as discontinued operations on the consolidated statements of operations for the years ended September 30, 2023 and 2022.

All information

and results in this annual report on Form 10-K exclude the discontinued operations unless otherwise noted.

See Note 3 to our consolidated

financial statements for additional information on discontinued operations.

On May 11, 2023, the U.S.

Department of Health and Human Services declared the end of the Public Health Emergency for COVID-19;

however, the effects of COVID-19

continue to linger throughout the global economy and our businesses.

Though the severity of COVID-19 has subsided, new variants, or the

outbreak of a new pathogen, could interrupt business, cause renewed labor and supply chain disruptions, and negatively impact the global

and US economy, which could materially and adversely impact our businesses.

Considering the recurring

losses incurred by the retail segment, in July 2023, the Company decided to cease operations of our retail distribution segment and we

are presenting the results of operations for this segment within discontinued operations in the current and prior periods presented herein.

The discontinuation of the retail segment represents a strategic shift in the Company’s business.

The primary assets of the retail

segment were inventory and accounts receivable.

The Company sold, liquidated, or otherwise disposed of the remaining retail inventory

and collected the remaining retail accounts receivable as of September 30, 2024.

As of September 30, 2024, the retail segment was fully

discontinued, and we expect to have no further significant involvement in this segment.

The inventory of the retail segment is presented

as discontinued assets held for sale on the balance sheet at September 30, 2023 and the results of operations for the retail segment have

been classified as discontinued operations on the consolidated statements of operations for the years ended September 30, 2024 and 2023.

All information and results in this annual report on Form 10-K exclude the discontinued retail segment unless otherwise noted.

3 to our consolidated financial statements for additional information on the discontinued retail segment.

Corporate History

6 unchanged sentences

In May 2001, we formed Forward

Switzerland to facilitate distribution of aftermarket products under our licenses for cell phone cases with a major North American multinational

and to further develop our OEM European business presence.

After the expiration of the last of these licenses in March 2009, staff at

Forward Switzerland was significantly reduced and in recent years has primarily served our OEM customers in Europe.

Switzerland to facilitate distribution of aftermarket products under our licenses for cell phone cases and to further develop our OEM

European business presence.

After the expiration of the last of these licenses in March 2009, staff at Forward Switzerland was significantly

reduced and in recent years has primarily served our OEM customers in Europe.

In January 2018, Forward

76 unchanged sentences

to complement their product offerings.

Distribution Hubs for Customers

We have arrangements with

certain customers’ distribution hubs.

These arrangements obligate us to supply our products to our customers’ distribution

hubs where their products are manufactured, kitted, and/or warehoused pending sale, and where our products are packaged “in box”

with the distribution customers’ products.

The product quantities we are required to supply to each distribution hub are based on

the distribution customer’s purchase orders and forecasts.

We do not recognize revenue for product shipped to a customer’s

hub until we have been notified by our customer that our product has been used by the distribution hub.

Hub arrangements have had the

general effect of providing financing for our customers’ inventory purchases by extending the time between our placement of orders

to our suppliers and the time that we are able to recognize revenue.

The corollary effect is an increase in our inventory levels.

We utilize a third-party warehouse in Europe to store certain inventory items.

We do not recognize

revenue for products shipped to the warehouse until such products have been shipped to the customer and our performance obligation is

Product Supply

25 unchanged sentences

to $65,833 per month.

Other terms in the agreement are substantially the same as the prior agreement.

Other terms in the agreement were substantially the same as the prior agreement.

Due to the Company’s decision

to cease operations of its retail distribution segment and the decline in the OEM distribution segment business, the new sourcing agreement

expires October 31, 2024.

Terence Wise, our Chairman, Chief Executive Officer and largest shareholder, is the owner of Forward China.

expired October 31, 2024.

In November 2024, the Company and Forward China agreed to:

(i) extend the sourcing agreement until April 30,

2025, but allow either party to cancel with 30 days notice, (ii) reduce the fixed portion of the sourcing fee to $35,000 per month, and

(iii) change the payment terms to better align with payments from our customers.

Terence Wise, our Chairman, Chief Executive Officer and

largest shareholder, 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.

– Risk Factors” regarding our dependence on Forward China.

Yu, a Managing Director of Forward China, beneficially owns

more than 5% of the Company’s common stock.

See “Item 1A.

– Risk Factors” regarding our dependence on Forward

We procure substantially

53 unchanged sentences

We are committed to creating and maintaining a work environment in which employees are treated with respect and dignity.

We value our diverse employees and provide career and professional development opportunities that foster the success of our company.

We value our diverse employees and provide career and professional development opportunities that

foster the success of our company.

An effective approach to

48 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business