Forward Industries enters related-party buying agency deal, reduces monthly fee, defers $7.4M payables

Forward Industries, Inc.

New Buying Agency and Supply Agreement with FC (owned by CEO) reduces monthly service fee from $100k to $65,833 plus 4% of Adjusted Gross Profit.
Deferred Payment Agreement limits FC collection of $7,365,238 payables to $500k per 12-month period to preserve liquidity.
Extended Consultancy Agreement with Justwise Group (owned by CEO) for $10k/month effective September 1, 2023, month-to-month.
Agreements are with entities controlled by CEO Terence Wise; director Jenny P. Yu owns >5% of FORD common stock.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Forward Industries, Inc. entered into Deferred Payment Agreement with Forward Industries (Asia-Pacific) Corporation valued at Company owed FC $7,365,238; FC limited collection to $500,000 in any 12-month period (effective 2023-11-02).

Action: entry
Counterparty: Forward Industries (Asia-Pacific) Corporation
Value: Company owed FC $7,365,238; FC limited collection to $500,000 in any 12-month period
Effective: 2023-11-02

Exact text from the filing

the “Company”) and Forward Industries (Asia-Pacific) Corporation (“FC”) entered into a Buying Agency and Supply Agreement (the “New Agreement”).

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Forward Industries, Inc. entered into Buying Agency and Supply Agreement with Forward Industries (Asia-Pacific) Corporation valued at monthly service fee $65,833 plus 4% of Adjusted Gross Profit (effective 2023-11-02).

Action: entry
Agreement: supply
Counterparty: Forward Industries (Asia-Pacific) Corporation
Value: monthly service fee $65,833 plus 4% of Adjusted Gross Profit
Effective: 2023-11-02

Exact text from the filing

On November 2, 2023, Forward Industries, Inc. (the “Company”) and Forward Industries (Asia-Pacific) Corporation (“FC”) entered into a Buying Agency and Supply Agreement (the “New Agreement”).

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Forward Industries, Inc. entered into Consultancy Agreement Extension with Justwise Group Ltd. valued at $10,000 per month (effective 2023-11-03).

Action: entry
Counterparty: Justwise Group Ltd.
Value: $10,000 per month
Effective: 2023-11-03

Exact text from the filing

on November 3, 2023, the Company and Justwise Group Ltd. (“Justwise”), a company owned by Mr. Wise, entered into an agreement to extend its previously executed Consultancy Agreement.

View on SEC.gov

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Forward Industries, Inc. filing history →

Source: SEC EDGAR

accession 0001683168-23-007729

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