Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 23

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 23
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 per share from continuing operations 
    $(0.64) 
    $(0.35)
  
    Diluted earnings per share from discontinued operations 
     –  
     0.03 
  
    Diluted loss per share 
    $(0.64) 
    $(0.32)

The following securities
were excluded from the calculation of diluted earnings per share in each period because their inclusion would have been anti-dilutive:

    Schedule of anti-dilutive shares 

    For the Three Months Ended December 31, 

    2024  
    2023 
  
    Options 
     129,000  
     125,500 
  
    Warrants 
     7,500  
     7,500 
  
    Total potentially dilutive shares 
     136,500  
     133,000 

     16 

FORWARD INDUSTRIES, INC. AND
SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  NOTE 8
  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. Effective April 1, 2023, the Company and
Forward China agreed to reduce the fixed portion of the sourcing fee from $100,000 to $83,333 per month for the remaining term of the
Supply Agreement, which expired in October 2023. Effective October 2023, the Company and Forward China entered into a new sourcing agreement
under which the fixed portion of the sourcing fee was further reduced to $65,833 per month. Other terms in the agreement are substantially
the same as the prior agreement. Due to the Retail Exit and decline in the OEM distribution segment business, the new sourcing agreement
expired October 31, 2024. In November