Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 333

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1B
Chunk 333
---
 

    2025  
    2024 
  
    Options 
     326,600  
     81,400 
  
    Warrants 
     13,495,000  
     7,500 
  
    Total potentially dilutive shares 
     13,821,600  
     88,900 

NOTE 12       COMMITMENTS AND CONTINGENCIES

From time to time, the Company
may become a party to legal actions or proceedings in the ordinary course of its business. At September 30, 2025, 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.

NOTE 13      LEASES

The Company’s operating
leases are primarily for corporate, engineering, and administrative office space and the related expense is recorded in general and administrative
expenses on the consolidated financial statements. Total operating lease expense in Fiscal 2025 and Fiscal 2024 was $617,000 and $619,000,
respectively. Cash paid for amounts included in operating lease liabilities in Fiscal 2025 and Fiscal 2024, which have been included in
cash flows from operating activities, was $607,000 and $592,000, respectively.

The Company signed a renewal
to extend the lease term of one of its New York locations through April 2027. Payments under this operating lease commenced February 1,
2025, and escalate 4.0% per year. The monthly rent payment is $6,000 per month.

At September 30, 2025, the Company’s
operating leases had a weighted average remaining lease term of 6.0 years and a weighted average discount rate of 5.9%.

At September 30, 2025, future
minimum payments under non-cancellable operating leases were as follows:

Future minimum payments under non-cancellable operating
leases are as follows: 

    Schedule of future
minimum payments under non-cancellable operating leases 

    Fiscal 2026 
    $587,000 
  
    Fiscal 2027 
     465,000 
  
    Fiscal 2028 
     428,000 
  
    Fiscal 2029 
     440,000 
  
    Fiscal 2030 
     452,000 
  
    Thereafter 
     659,000 
  
    Total future minimum lease payments