Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 21

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 21
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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.

On May 16, 2025, the Company
and Forward Industries (IN), Inc., a wholly-owned subsidiary of the Company entered into a Transaction Agreement with Forward China, a
company owned by Terence Wise, who at the time served as the Company’s Chairman of the Board and Chief Executive Officer. Pursuant
to the Transaction Agreement, the Company sold its wholly-owned subsidiary, Forward Industries (Switzerland) GmbH and certain other assets
related to the Company’s discontinued Original Equipment Manufacturer business to Forward China to satisfy outstanding payables
of approximately $4,100,000 due to Forward China under that certain Buying Agency and Supply Agreement between the Company and Forward
China (the “Agency Agreement”). Additionally, as part of the Agreement, (i) the Company and Forward China terminated the Agency
Agreement and (ii) the Company and Forward China extended the maturity date of that certain Promissory Note dated January 18, 2018 (as
amended) issued by the Company to Forward China to December 31, 2025. The Company paid $200,000 to Forward China at closing and agreed
to make additional cash payments of $150,000 on each of July 31, 2025, August 29, 2025 and September 30, 202