Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 508

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 2
Chunk 508
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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 
     3,031,000 
  
    Less imputed interest 
     (486,000)
  
    Present value of lease liabilities 
     2,545,000 
  
    Less current portion of lease liabilities 
     (451,000)
  
    Long-term portion of lease liabilities 
    $2,094,000 

     F-34 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14       RELATED PARTY TRANSACTIONS

Galaxy Service Agreement

In September 2025, the Company
entered into a services agreement (the “Services Agreement”) with Galaxy, pursuant to which the Company engaged Galaxy to
provide certain operational,