Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 31

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 31
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 per share in each period because their inclusion would have been anti-dilutive:

    Schedule of anti-dilutive shares 

    For the Three Months Ended June 30,  
    For the Nine Months Ended June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Convertible preferred stock 
     879,000  
     –  
     879,000  
     – 
  
    Options 
     169,000  
     97,000  
     169,000  
     97,000 
  
    Warrants 
     186,000  
     7,500  
     186,000  
     7,500 
  
    Total potentially dilutive shares 
     1,234,000  
     104,500  
     1,234,000  
     104,500 

     19 

  NOTE 8
  RELATED PARTY TRANSACTIONS

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 segment business, this sourcing agreement expired October 31, 2024. In November 2024, the Company
and Forward China agreed to: (i) extend the sourcing agreement until April 30, 2025, but allow either party to cancel with 30 days’
notice, (ii) reduce the fixed portion of the sourcing fee to $35,000 per month, and (iii) change the payment terms to better align with
payments from the Company’s customers. The Sourcing Agreement was extended until May 9, 2025 and was subsequently terminated in
connection with the sale of the OEM segment. See