Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 27

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 27
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0% per year. The monthly rent payment is $6,000 per month.

At December 31, 2024, the
Company’s operating leases had a weighted average remaining lease term of 6.5 years and a weighted average discount rate of 5.9%.

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FORWARD INDUSTRIES, INC. AND
SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At December 31, 2024, future
minimum payments under non-cancellable operating leases were as follows:

    Schedule of future
minimum payments under non-cancellable operating leases 

    Remainder of Fiscal 2025 
    $456,000 
  
    Fiscal 2026 
     587,000 
  
    Fiscal 2027 
     464,000 
  
    Fiscal 2028 
     428,000 
  
    Fiscal 2029 
     440,000 
  
    Thereafter 
     1,111,000 
  
    Total future minimum lease payments 
     3,486,000 
  
    Less imputed interest 
     (605,000)
  
    Present value of lease liabilities 
     2,881,000 
  
    Less current portion of lease liabilities 
     (455,000)
  
    Long-term portion of lease liabilities 
    $2,426,000 

  NOTE 11
  SUBSEQUENT EVENT

On February 11, 2025, the Company entered
into a third agreement with Forward China to convert $225,000 of amounts due to Forward China into 225 shares of Series A-1
convertible preferred stock with a stated value of $1,000 per share. This conversion agreement was affected to raise the
Company’s shareholders’ equity to the amount necessary to meet the Stockholders’ Equity Rule. See Notes 6 and
8.

 19 

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion
and analysis should be read in conjunction with our unaudited condensed consolidated financial statements, and the notes thereto, and
other financial information appearing elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements
and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.  The following discussion
and analysis compares our condensed