Company: FWDI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001683168-25-003548
Chunk: 27

Company: Forward Industries, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 27
---
, which was sourced by Forward China and sold in the U.S. under the Koble brand name. The Koble brand
is owned by The Justwise Group Ltd. (“Justwise”), a company owned by Terence Wise, Chief Executive Officer and Chairman of
the Company. The Company recognized revenues from the sale of Koble products of $104,000 and $376,000 in the three and six months ended
March 31, 2024, respectively. Due to the Retail Exit, these revenues are included in the income from discontinued operations for the three
and six months ended March 31, 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 existed on a month-to-month basis
until November 30, 2023. The Company incurred costs under this agreement of $0 and $20,000 for the three months and six months ended March
31, 2024, respectively. Due to the Retail Exit, these costs are included in the income from discontinued operations for the three and
six months ended March 31, 2024. The Company had no accounts payable to Justwise at March 31, 2025 or September 30, 2024.

The Company recorded revenue
from a customer whose principal owner is an immediate family member of Jenny P. Yu, a significant shareholder of the Company and managing
director of Forward China. The Company recognized revenue from this customer of $198,000 and $318,000 for the three and six months ended
March 31, 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 six months ended March 31, 2025 or accounts receivable balances at March 31, 2025. Due to the OEM
Plan, these revenues are included in income from discontinued operations for the three and six months ended March 31, 2024 and the accounts
receivable balance is included in assets held for sale at September 30, 2024.

  NOTE 9