Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 26

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 26
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 $20,000 for the three months ended December 31, 2024
and 2023, respectively. Due to the Retail Exit, these costs are included in the loss from discontinued operations for the three months
ended December 31, 2023. The Company had no accounts payable to Justwise at December 31, 2024 or September 30, 2024.

The Company recorded revenue
from a customer whose principal owner is an immediate family member of Jenny P. Yu, a significant shareholder of the Company and managing
director of Forward China. The Company recognized revenue from this customer of $0 and $120,000 for the three months ended December 31,
2024 and 2023, respectively. The Company had accounts receivable from this customer of $0 and $96,000 at December 31, 2024 or September
30, 2024, respectively.

  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.

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.