Company: FWDI
Filing Date: 2025-01-17
Form Type: 10-K/A
Source: 0001683168-25-000424
Chunk: 18

Company: Forward Industries, Inc.
Filing Date: 2025-01-17
Form: 10-K/A
Chunk 18
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 she shares control with her husband.                                       |
| (9) | Yu. Address is 9255 Doheny Rd., Apartment 2905, West Hollywood, California,                                                          
 90069.                                                                                                                               |

| 11 |

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The Company has a Buying
Agency and Supply Agreement (the “Supply Agreement”) with Forward China. Terence Wise, the Company’s Chairman, Chief
Executive Officer and largest shareholder, is the owner of Forward China. In addition, Jenny P. Yu, a Managing Director of Forward China,
owns more than 5% of the Company’s common stock. The Supply Agreement provides that Forward China will act as the Company’s
exclusive buying agent and supplier of products in the Asia Pacific region. The Company purchases products at Forward China’s cost
and pays Forward China a monthly fee for services it provides under the Supply Agreement. Through March 2023, the monthly service fee
is calculated at $100,000 plus 4% of “Adjusted Gross Profit.”, which is defined as the selling price less the cost from Forward
China. From April 2023 through October 2023, the fixed portion of the monthly fee was reduced to $83,333 per month. The Company recorded
service fees to Forward China of approximately $891,000 and $1,266,000 during fiscal 2024 and 2023, respectively. This supply agreement
expired October 22, 2023.

On November 2, 2023, Forward
and Forward China entered into a Buying Agency and Supply Agreement (the “New Agreement”). The New Agreement provides that
Forward China will act as Forward’s exclusive buying agent and supplier of products in the Asia Pacific region. Forward purchases
products at Forward China’s cost and pays Forward China a monthly fee for services it provides under the New Agreement. The monthly
service fee is $65,833 plus 4% of “Adjusted Gross Profit”, which is defined as the revenues recognized by Forward from the
sale of the product less Forward China’s cost for the product. The New Agreement expired October 31, 2024. The New Agreement was
substantially similar to the Supply Agreement (disclosed above) except for the reduced monthly fee payable to FC. In November 2024, the
Company and Forward China agreed to: (i) extend the New Agreement until April 30, 2025, but allow