Company: FWDI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003548
Chunk: 28

Company: Forward Industries, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 28
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  LEGAL PROCEEDINGS

From time to time, the Company
is or may become a party to legal actions or proceedings in the ordinary course of its business. At March 31, 2025, 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 and the related expense is recorded in general and administrative
expenses on the condensed consolidated financial statements. Total operating lease expense for the three and six months ended March 31,
2025 was $155,000 and $310,000, respectively and total operating lease expense for the three and six months ended March 31, 2024 was $155,000
and $309,000, respectively. Cash paid for amounts included in operating lease liabilities for the six months ended March 31, 2025 and
2024, which have been included in cash flows from operating activities, was $302,000 and $294,000, respectively.

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 commenced February
1, 2025 and escalate 4.0% per year. The monthly rent payment is $6,000 per month.

At March 31, 2025, the Company’s
operating leases had a weighted average remaining lease term of 6.3 years and a weighted average discount rate of 5.9%.

     17 

At March 31, 2025, 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 
    $305,000 
  
    Fiscal 2026 
     587,000 
  
    Fiscal 2027 
     465,000 
  
    Fiscal 2028 
     428,000 
  
    Fiscal 2029 
     440,000 
  
    Thereafter 
     1,111,000 
  
    Total future minimum lease payments 
     3,336,000 
  
    Less imputed interest 
     (565,000)
  
    Present value of lease liabilities 
     2