Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 65

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 65
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 and 2023, respectively. Due to the OEM Plan, this revenue is now presented as a component of income/(loss) from discontinued operations
for the three months ended December 31, 2024 and 2023. The Company had accounts receivable from this customer of $0 and $96,000 at December
31, 2024 or September 30, 2024, respectively. Due to the OEM Plan, these receivables are now shown as a component of assets held for sale
at December 31, 2024 and September 30, 2024.

NOTE 9         LEGAL PROCEEDINGS

From time to time, the Company
may become a party to legal actions or proceedings in the ordinary course of its business. At December 31, 2024, and through the date
of this filing, there were no such actions or proceedings, either individually or in the aggregate, that, if decided adversely 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,