DISCONTINUED OPERATIONS

12 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 3                                DISCONTINUED OPERATIONS

On June 21, 2012, the Company determined to exit its global retail business and focus solely on growing its OEM business.  The decision to eliminate the Retail division was primarily driven by the longer than estimated path to bring it to profitability and the strong net sales growth and cost rationalizations in the OEM business. Accordingly, the results of operations for the Retail division have been recorded as discontinued operations in the accompanying consolidated financial statements for the fiscal years presented. The Company has substantially completed its exit of its Retail business. Summarized operating results of discontinued operations are presented in the following table:

	For the Fiscal Years Ended September 30,
	2014		2013
Net sales	$	-	$	655,658
Gross (loss) profit		(9,700)		181,039
Operating expenses		(316,404)		(406,297)
Other income		70		6,935
Loss from discontinued operations, net of
tax benefit of $0 and $(6,002), respectively	$	(326,034)	$	(212,321)

Summarized assets and liabilities of discontinued operations are presented in the following table:

	As of September 30,
	2014		2013
Accounts receivable	$	-	$	280,034
Prepaid assets and other current assets		39		59,348
Total assets of discontinued operations	$	39	$	339,382
Accounts payable	$	3,396	$	25,438
Total liabilities of discontinued operations	$	3,396	$	25,438

The above accounts receivable relate to overdue payments pursuant to a Settlement Agreement and General Release (“Settlement Agreement”) executed on July 3, 2013 between the Company and G-Form LLC (“G-Form”) in exchange for certain retail inventories, the Company’s cooperation with certain administrative matters, and a mutual general release. On November 12, 2014, a U.S. District Court entered a Judgment compelling G-Form to remit $331,282 (includes legal fees and interest) to Forward. The Company is currently working to enforce the Court’s Order. However, due to the age of the account receivable and G-Form’s non-responsiveness to the Company’s communications on the subject, the Company has fully reserved for the $280,034 receivable as of September 30, 2014.