Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 101

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 101
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 to the
Company’s interests, the Company believes would be material to its business.

NOTE 10        LEASES

The Company’s operating
leases are primarily for corporate, engineering, and administrative office space. Total operating lease expense for the three months ended
December 31, 2024 was $155,000, of which $4,000 was recorded in sales and marketing expenses and $151,000 was recorded in general and
administrative expenses on the condensed consolidated financial statements. Total operating lease expense for the three months ended December
31, 2023 was $155,000, of which $4,000 was recorded in sales and marketing expenses and $151,000 was recorded in general and administrative
expenses on the condensed consolidated financial statements. Cash paid for amounts included in operating lease liabilities for the three
months ended December 31, 2024 and 2023, which have been included in cash flows from operating activities, was $151,000 and $147,000,
respectively.

     F-43 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The
Company signed a renewal to extend the lease term of one of its New York locations for an additional 27 months. Payments under this operating
lease commence February 1, 2025 and escalate 4.0% per year. The monthly rent payment is $6,000 per month.

At December 31, 2024, the
Company’s operating leases had a weighted average remaining lease term of 6.5 years and a weighted average discount rate of 5.9%.

At December 31, 2024, future
minimum payments under non-cancellable operating leases were as follows:

    Schedule of future
minimum payments under non-cancellable operating leases 

    Remainder of Fiscal 2025 
    $456,000 
  
    Fiscal 2026 
     587,000 
  
    Fiscal 2027 
     464,000 
  
    Fiscal 2028 
     428,000 
  
    Fiscal 2029 
     440,000 
  
    Thereafter 
     1,111,000 
  
    Total future minimum lease payments 
     3,486,000 
  
    Less imputed interest 
     (605,000)
  
    Present value of lease liabilities 
     2,881,000