Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 100

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 100
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 products of $0 and $273,000 in the three months ended December 31,
2024 and 2023, respectively. Due to the Retail Exit, these revenues are included in the loss from discontinued operations for the three
months ended December 31, 2023.

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 ended December 31, 2024
and 2023, respectively. Due to the Retail Exit, these costs are included in the loss from discontinued operations for the three months
ended December 31, 2023. The Company had no accounts payable to Justwise at December 31, 2024 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 $0 and $120,000 for the three months ended December 31,
2024 and 2023, respectively. Due to the OEM Plan, this revenue is now presented as a component of income/(loss) from discontinued operations
for the three months ended December 31, 2024 and 2023. The Company had accounts receivable from this customer of $0 and $96,000 at December
31, 2024 or September 30, 2024, respectively. Due to the OEM Plan, these receivables are now shown as a component of assets held for sale
at December 31, 2024 and September 30, 2024.

NOTE 9         LEGAL PROCEEDINGS

From time to time, the Company
may become a party to legal actions or proceedings in the ordinary course of its business. At December 31, 2024, and through the date
of this filing, there were no such actions or proceedings, either individually or in the aggregate, that, if decided adversely