Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1574

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 13
Chunk 1574
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 are included in the loss from discontinued operations.

The Company had an agreement
with Justwise, under which (i) Justwise performed design, marketing and inventory management services related to the Koble products sold
by the Company and (ii) the Company was granted a license to sell Koble products. In exchange for such services, the Company paid Justwise
$10,000 per month plus 1% of the cost of Koble products purchased from Forward China. This agreement was effective until August 31, 2023,
and was extended on a month-to-month basis until November 30, 2023. The Company incurred costs under this agreement of $20,000 for Fiscal
2024. Due to the Retail Exit, these costs are included in the loss from discontinued operations. The Company had no accounts payable to
Justwise at September 30, 2025 or 2024.

The Company recorded revenue
from a customer whose principal owner is an immediate family member of Jenny P. Yu, a shareholder of the Company and managing director
of Forward China. In Fiscal 2024, the Company recognized revenues of $523,000 from this customer and had accounts receivable of $96,000
as of September 30, 2024. There were no revenues from this customer in Fiscal 2025, and no accounts receivable balances were outstanding
as of September 30, 2025. Due to the OEM plan, Fiscal 2024 revenues are reported as income from discontinued operations and the accounts
receivable as of September 30, 2024 are included in assets held for sale.

NOTE 15        401(k) PLAN 

The Company maintains a 401(k)
benefit plan allowing eligible employees to make pre-tax and/or after-tax contributions of a portion of their salary in amounts subject
to Internal Revenue Service limitations. The Company made immediately vested contributions based on a percentage of the employees’
salary of $355,000 during Fiscal 2025, of which $285,000 was recorded to cost of sales, $9,000 was recorded to sales and marketing expense
and $61,000 was recorded to general and administrative expense on the consolidated statement of operations. The Company made immediately
vested contributions based on a percentage of the employee’s salary of $442,000 during Fiscal 2024, of which $341,000 was recorded
to cost of sales, $24,000 was recorded to sales and marketing expense and $77,000 was recorded to