Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 33

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 33
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 bank to the logistics provider in order to satisfy such undertaking pursuant to the bank letter
of guarantee. Forward Switzerland would be required to perform under the guarantee agreement only in the event that (i) a value added
tax liability is imposed on the Company’s revenues in The Netherlands; (ii) the logistics provider asserts that it has been called
upon in its capacity as surety by the Dutch Receiver of Taxes to pay such taxes; (iii) Forward Switzerland or the Company on its behalf
fails or refuses to remit the amount of value added tax due to the logistics provider upon its demand; and (iv) the logistics provider
makes a drawing under the bank letter of guarantee. Under the Representation Agreement, Forward Switzerland agreed that the letter of
guarantee would remain available for drawing for three years following the date that its relationship terminates with the logistics provider
to satisfy any value added tax liability arising prior to expiration of the Representation Agreement but asserted by The Netherlands after
expiration.

The initial term of the bank
letter of guarantee expired February 28, 2011, but it renews automatically for one-year periods on February 28 of each subsequent year
unless Forward Switzerland provides the Swiss bank with written notice of termination at least 60 days prior to the renewal date. It is
the intent of Forward Switzerland and the logistics provider that the bank letter of guarantee amount be adjusted annually. In consideration
of the issuance of the letter of guarantee, Forward Switzerland has granted the Swiss bank a security interest in all of its assets on
deposit with, held by, or credited to Forward Switzerland’s accounts with, the Swiss bank (approximately $245,000 at September 30,
2024). At September 30, 2024, the Company had not incurred a liability in connection with this guarantee.

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 September 30, 2024, there were no such actions
or proceedings, either individually or in the aggregate, that, if decided adversely to its interests, the Company believes would be material
to its business.

     F-22 

NOTE 13      LEASES

The Company’s operating
leases are primarily for corporate, engineering, and administrative office space. Total operating lease expense in Fiscal 2024 was $619,000,
of which $15,000 was recorded in sales and marketing expenses and $604,000 was recorded in general and administrative expenses on