Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 34

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 34
---
 the
consolidated statements of operations. Total operating lease expense in Fiscal 2023 was $621,000, of which $3,000 was recorded in sales
and marketing expenses and $618,000 was recorded in general and administrative expenses on the consolidated statements of operations.
Cash paid for amounts included in operating lease liabilities in Fiscal 2024 and Fiscal 2023, which have been included in cash flows from
operating activities, was $592,000 and $575,000, respectively.

At September 30, 2024, the Company’s
operating leases had a weighted average remaining lease term of 6.9 years and a weighted average discount rate of 5.8%.

Future minimum payments under non-cancellable operating
leases are as follows:

     Schedule of future minimum payments under operating leases 

    Fiscal 2025 
    $556,000 
  
    Fiscal 2026 
     510,000 
  
    Fiscal 2027 
     419,000 
  
    Fiscal 2028 
     428,000 
  
    Fiscal 2029 
     440,000 
  
    Thereafter 
     1,111,000 
  
    Total future minimum lease payments 
     3,464,000 
  
    Less imputed interest 
     (630,000)
  
    Present value of lease liabilities 
     2,834,000 
  
    Less current portion of lease liabilities 
     (404,000)
  
    Long-term portion of lease liabilities 
    $2,430,000 

NOTE 14       RELATED PARTY
TRANSACTIONS 

Buying Agency and Supply Agreement

The Company has a Buying Agency
and Supply Agreement (the “Supply Agreement”) with Forward China. The Supply Agreement provides that, upon the terms and subject
to the conditions set forth therein, Forward China will 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 purchases products at Forward China’s cost and through
March 2023 paid Forward China a monthly service fee equal to the sum of (i) $100,000, and (ii) 4% of “Adjusted Gross Profit”,
which is defined as the selling price less the cost from Forward China. Considering the loss of a significant OEM distribution customer
(see Note 16), effective April 1, 2023, the Company and Forward China agreed to