Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 34

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 34
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. Due to the Retail Exit, these revenues are included in the income from discontinued operations for the three
and nine months ended June 30, 2024.

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 expired November 30, 2023. The Company
incurred costs under this agreement of $0 and $20,000 for the three months and nine months ended June 30, 2024, respectively. Due to the
Retail Exit, these costs are included in the income from discontinued operations for the three and nine months ended June 30, 2024. The
Company had no accounts payable to Justwise at June 30, 2025 or September 30, 2024.

The Company recorded revenue
from a customer whose principal owner is an immediate family member of Jenny P. Yu. The Company recognized revenue from this customer
of $108,000 and $122,000 for the three and nine months ended June 30, 2024, respectively. The Company had accounts receivable from this
customer of $96,000 at September 30, 2024. There were no revenues from this customer for the three or nine months ended June 30, 2025
or accounts receivable balances at June 30, 2025. Due to the OEM Plan, these revenues are included in income from discontinued operations
for the three and nine months ended June 30, 2024 and the accounts receivable balance is included in assets held for sale at September
30, 2024.

  NOTE 9 
  LEGAL PROCEEDINGS

From time to time, the Company
is or may become a party to legal actions or proceedings in the ordinary course of its business. At June 30, 2025, and through the date
of this filing, there were no such actions or proceedings, either individually or in the aggregate, that, if decided adversely to the
Company’s interests, the Company believes would be material to its business.

     21 

  NOTE 10
  LEASES

The Company’s operating
leases are primarily for corporate