Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 37

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 37
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 $300,000 on this note during Fiscal 2024 and Fiscal 2023,
respectively, and this note has a remaining balance of $600,000 at September 30, 2024.

Other Related Party Activity

In October 2020, the Company
began selling smart-enabled furniture, 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 $380,000 and $2,058,000 in Fiscal 2024 and Fiscal 2023,
respectively. Due to the Retail Exit, these revenues are included in the loss from discontinued operations for Fiscal 2024 and Fiscal
2023.

     F-24 

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 was
effective until August 31, 2023 and was extended on a month-to-month basis until November 30, 2023. The Company incurred costs under
this agreement of $20,000
and $127,000
for Fiscal 2024 and Fiscal 2023, respectively. Due to the Retail Exit, these costs are included in income (loss) from discontinued
operations for Fiscal 2024 and Fiscal 2023. The Company had accounts payable to Justwise of $0
and $10,000
at September 30, 2024 and 2023, respectively.

The Company recorded revenue
from a customer whose principal owner is an immediate family member of Jenny P. Yu, a shareholder of the Company and managing director
of Forward China. The Company recognized revenues from this customer of $523,000
and $626,000
in Fiscal 2024 and Fiscal 2023, respectively. Due to the OEM Plan, this revenue is now presented as a component of income/(loss) from
discontinued operations for fiscal 2024 and 2023. The Company had accounts receivable of