Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 36

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 36
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 collect from the Company to $500,000 in any 12-month period, which the Company
agreed to pay within 30 days of any such request. This agreement pertains only to payables that were outstanding at October 30, 2023 of
approximately $7,365,000. Purchases from Forward China made after October 30, 2023 are not covered by this agreement and are expected
to be paid according to normal payment terms. At September 30, 2024, the remaining balance covered by this agreement was approximately
$4,881,000.

During Fiscal 2023, as a result
of the Retail Exit, the Company recognized a loss of approximately $1,021,000 relating to the termination of unfulfilled purchase orders
with Forward China for retail products (see Note 3). 

Accounts Payable Conversion Agreement

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 with a stated value of $1,000 per share (see Note
8).

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 interest
at a 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 $63,000 and $104,000 in Fiscal
2024 and Fiscal 2023, respectively. At September 30, 2024, the maturity date of this note was December 31, 2024. In October 2024, the
maturity date of this note was extended to June 30, 2025. The maturity date of the note has been extended on several occasions to assist
the Company with liquidity. The Company made principal payments of $500,000 and