Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 99

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 99
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 30, 2023 are not covered by this agreement
and are expected to be paid according to normal payment terms. At December 31, 2024, the remaining balance covered by this agreement was
approximately $4,881,000.

Accounts Payable
Conversion Agreements

In order to maintain compliance
with Nasdaq’s listing standards, the Company entered into two separate agreements with Forward China (the “Conversion Agreements”),
which were effective in July and September of 2024, to convert portions of amounts Due to Forward China into shares of preferred stock.
Under the terms of the Conversion Agreements, Forward China agreed to convert $2,200,000 of the Due to Forward China payable into 2,200
shares of the Company’s newly designated Series A-1 convertible preferred stock (the “Preferred Stock”) with a stated
value of $1,000 per share. See Notes 6 and 11.

     F-42 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Promissory Note

On January 18, 2018, the
Company issued a $1,600,000 unsecured promissory note payable to Forward China to fund the acquisition of IPS. The promissory note bears
an interest rate of 8% per annum and had an original maturity date of January 18, 2019. Monthly interest payments commenced on February
18, 2018, with the principal due at maturity. The Company incurred and paid interest associated with this note of $12,000 and $19,000
in the three months ended December 31, 2024 and 2023, respectively. At December 31, 2024, the maturity date of this note was June 30,
2025. The maturity date of this note has been extended on several occasions to assist the Company with liquidity. This note has a remaining
balance of $600,000 at December 31, 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