Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 64

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 64
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 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 products of $0 and $273,000 in the three months ended December 31,
2024 and 2023, respectively. Due to the Retail Exit, these revenues are included in the loss from discontinued operations for the three
months ended December 31, 2023.

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. This agreement existed on a month-to-month basis
until November 30, 2023. The Company incurred costs under this agreement of $0 and $20,000 for the three months ended December 31, 2024
and 2023, respectively. Due to the Retail Exit, these costs are included in the loss from discontinued operations for the three months
ended December 31, 2023. The Company had no accounts payable to Justwise at December 31, 2024 or September 30, 2024.

The Company recorded revenue
from a customer whose principal owner is an immediate family member of Jenny P. Yu, a significant shareholder of the Company and managing
director of Forward China. The Company recognized revenue from this customer of $0 and $120,000 for the three months ended December 31,
2024