Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 20

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 20
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0, the Company
began selling smart-enabled furniture, which is 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 Mr. Wise. The Company recognized revenues from the sale
of Koble products of $380,000 and $2,058,000 in fiscal 2024 and fiscal 2023, respectively. 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. The agreement expired in August 2023 and was extended on a month-to-month
basis until November 30, 2023.

| 13 |

The Company had an arrangement
with Happ LLC (“Happ”), whose principal owner is the daughter of Ms. Yu, whereby the Company purchased products directly from
Forward China and shipped the product directly to Happ. In consideration for these services, the Company was paid a 3.0% fee on the total
cost of the product. Revenue recognized from Happ was approximately $523,000 and $626,000 in fiscal 2024 and fiscal 2023, respectively.

The sister of Paul Severino,
the former President of IPS, was employed by IPS as its Chief Marketing Officer and received total compensation of approximately $30,000
and $120,000 in fiscal 2024 and fiscal 2023, respectively.

To fund the acquisition of
IPS, the Company issued a $1.6 million promissory note to Forward China in consideration for a one-year loan. The note was originally
due January 18, 2019, but has been subsequently extended several times and is now due on December 31, 2025. The note bears an interest
rate of 8% and charges monthly interest. The Company made approximately $63,000 and $104,000 in interest payments associated with the
note in fiscal 2024 and fiscal 2023, respectively. In fiscal 2024, the Company made $500,000 of principal payments on this note. As of
the record date, the principal on this note is $600,000