Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1852

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 8
Chunk 1852
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to extend the lease term of one of its New York locations through April 2027. Payments under this operating lease commenced February 1,
2025, and escalate 4.0% per year. The monthly rent payment is $6,000 per month.

At September 30, 2025, the Company’s
operating leases had a weighted average remaining lease term of 6.0 years and a weighted average discount rate of 5.9%.

At September 30, 2025, future
minimum payments under non-cancellable operating leases were as follows:

Future minimum payments under non-cancellable operating
leases are as follows: 

    Schedule of future
minimum payments under non-cancellable operating leases 

    Fiscal 2026 
    $587,000 
  
    Fiscal 2027 
     465,000 
  
    Fiscal 2028 
     428,000 
  
    Fiscal 2029 
     440,000 
  
    Fiscal 2030 
     452,000 
  
    Thereafter 
     659,000 
  
    Total future minimum lease payments 
     3,031,000 
  
    Less imputed interest 
     (486,000)
  
    Present value of lease liabilities 
     2,545,000 
  
    Less current portion of lease liabilities 
     (451,000)
  
    Long-term portion of lease liabilities 
    $2,094,000 

     F-34 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14       RELATED PARTY TRANSACTIONS

Galaxy Service Agreement

In September 2025, the Company
entered into a services agreement (the “Services Agreement”) with Galaxy, pursuant to which the Company engaged Galaxy to
provide certain operational, financial and human resources services to assist with the inception of its new digital assets treasury business.
Galaxy will not be providing any (i) tax advice or services, (ii) legal advice or services, or (iii) advice in connection with the Investment
Company Act of 1940, as amended (the “Investment Company Act”), or any related analyses thereto.

As compensation for its services,
we will pay Galaxy fees of approximately $583,000 per month. The Services Agreement has an initial term of six months but may be extended
for one additional six month period if mutually agreed in writing