Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 18

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 18
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 changes in ownership of our common stock and other equity securities with the SEC. These individuals are required by
the regulations of the SEC to furnish us with copies of all Section 16(a) forms they file. Based solely on a review of the copies of the
forms furnished to us, and written representations from reporting persons, we believe that all filing requirements applicable to our officers,
directors and 10% beneficial owners were complied with during the fiscal year ended September 30, 2024.

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Related Person Transactions

The Company had a Buying
Agency and Supply Agreement (the “Supply Agreement”) with Forward Industries Asia-Pacific Corporation (“Forward China”).
Terence Wise, the Company’s former Chairman, Chief Executive Officer and greater than 10% beneficial owner, is the owner of Forward
China. Mr. Wise resigned in May 2025. In addition, Jenny P. Yu, a Managing Director of Forward China, owns more than 5% of the Company’s
common stock. The Supply Agreement provided that Forward China will act as the Company’s exclusive buying agent and supplier of
products in the Asia Pacific region. The Company purchased products at Forward China’s cost and paid Forward China a monthly fee
for services it provided under the Supply Agreement. Through March 2023, the monthly service fee was 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 provided that
Forward China will act as Forward’s exclusive buying agent and supplier of products in the Asia Pacific region. Forward purchased
products at Forward China’s cost and paid Forward China a monthly fee for services it provided under the New Agreement. The monthly
service fee was $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