Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1216

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 9B
Chunk 1216
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staking-based fees, subject to certain parameters according to a schedule set forth in the Asset Management Agreement. The Asset Manager
is otherwise responsible for all of its overhead costs and the custody fees of any custodian selected by the Asset Manager, and the Company
will pay or reimburse the Asset Manager for all reasonable and documented expenses related to the operation of the account.

The Asset Management Agreement
has an initial term of three years and renews for successive one-year renewal periods unless the Company or the Asset Manager terminates
or elects not to continue effectiveness of the Asset Management Agreement. The Asset Management Agreement may be terminated by either
party without cause after the initial term or any subsequent renewal period upon ninety (90) days’ notice prior to the expiration
of such term. In addition, at any time, the Asset Management Agreement may be terminated either for cause or upon certain acts of insolvency,
each as described therein. While the Asset Manager is the exclusive asset manager for the Company, the Asset Manager may nonetheless provide
similar services to other clients, and the Asset Manager or its affiliates may engage in transactions for their own accounts. The Asset
Management Agreement contains customary representations, warranties, confidentiality, indemnification and limitation of liability provisions,
and is governed by the laws of the State of New York.

     F-35 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During Fiscal 2025, the Company
incurred fees of $535,000 related to the Asset Management Agreement, which were recorded on the consolidated financial statements as a
component of related party expenses and related party payables at and for the fiscal year ended September 30, 2025.

Buying Agency and Supply Agreement

The Company had a Buying Agency
and Supply Agreement (the “Supply Agreement”) with Forward China. The Supply Agreement provided that, upon the terms and subject
to the conditions set forth therein, Forward China would act as the Company’s exclusive buying agent and supplier of Products (as
defined in the Supply Agreement) in the Asia-Pacific region. The Company purchased products at Forward China’s cost and, from October
2023 through October 2024, paid Forward China a monthly service fee equal to the sum of (i) $65,833, and (ii) 4% of “Adjusted Gross
Profit”, which is defined as the selling price less the cost from Forward China. Due to the Retail Exit and decline in the OEM distribution