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<title>Prepared by e-Services,LLC. - www.edgar2.net</title>

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<p>&nbsp;</p>

<p align=center>SECURITIES AND EXCHANGE COMMISSION</p>

<p align=center>Washington, D.C. 20549</p>

<p align="center">FORM 8-K</p>

<p align=center>CURRENT REPORT</p>

<p align=center>Pursuant
to Section 13 or 15(d) of<br>
the Securities Exchange Act of 1934</p>

<p align=center>Date
of Report (Date of Earliest Event Reported):<br>
July 1, 2002</p>

<p align=center><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORWARD
INDUSTRIES,
INC.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u>(Exact Name of Registrant as Specified in Charter)</p>

<div align="center">
  <center>

<table border=0 cellspacing=0 cellpadding=0 width=660 style="border-collapse: collapse" bordercolor="#111111">
 <tr>
  <td width=180 valign=top>
  <p><u>&nbsp;&nbsp;&nbsp;&nbsp;New
  York</u></p>
  </td>
  <td width=73 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=191 valign=top>
  <p><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0-6669&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </u></p>
  </td>
  <td width=33 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=183 valign=top>
  <p><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  13-1950672&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=180 valign=top>
  <p>(State or
  Other</p>
  </td>
  <td width=73 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=191 valign=top>
  <p>(Commission
  File</p>
  </td>
  <td width=33 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=183 valign=top>
  <p>(IRS
  Employer</p>
  </td>
 </tr>
 <tr>
  <td width=180 valign=top>
  <p>&nbsp;Jurisdiction of </p>
  </td>
  <td width=73 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=191 valign=top>
  <p>&nbsp;Number)</p>
  </td>
  <td width=33 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=183 valign=top>
  <p>Identification
  No.)</p>
  </td>
 </tr>
 <tr>
  <td width=180 valign=top>
  <p>Incorporation)</p>
  </td>
  <td width=73 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=191 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=33 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=183 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
</table>

  </center>
</div>

<p align=center>1801
Green Road Suite E<br>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pompano Beach,
Florida 33064&nbsp;&nbsp;&nbsp;<br>
</u>(Address of Principal Executive Offices)</p>

<p align=center>Registrant's
Telephone Number, including<br>
area code: <u>&nbsp;(954) 360-6420</u></p>

<p align="center">&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
(Former Address, if changed since last report)</p>

<hr color="#000080">&nbsp;<p>Item 5:&nbsp; Other Events</p>

<p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In recent weeks the registrant
has been negotiating with Motorola, Inc. regarding the terms of the parties'
existing license agreement, particularly with respect to royalty terms.&nbsp; Under the terms of the agreement, the
registrant is required to pay Motorola a royalty, including a guaranteed
minimum royalty, and is permitted to sell Motorola branded products in Europe,
the Middle East and Africa.&nbsp; The
registrant anticipates that the negotiations will continue and desires to
conclude them on mutually satisfactory terms.&nbsp;
The registrant also believes that, in the event that these negotiations
are not successfully concluded, it is in its best interests to comply with
certain notice provisions of the agreement; accordingly, the registrant issued
a notice to Motorola terminating the agreement effective September 27,
2002.&nbsp; The registrant intends to rescind
the termination notice or enter into a new license agreement with Motorola if
the ongoing negotiations are resolved to the mutual satisfaction of the
parties.</p>

<p align=center>&nbsp;</p>

<p align=center>SIGNATURES</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.</p>

<p>&nbsp;</p>

<p>Dated: July 1, 2002</p>

<p>&nbsp;</p>

<div align=right>

<table border=0 cellspacing=0 cellpadding=0 width="405">
 <tr>
  <td width=27 valign=top>
  &nbsp;</td>
  <td width=378 valign=top>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORWARD INDUSTRIES, INC.</td>
 </tr>
 <tr>
  <td width=27 valign=top>
  &nbsp;</td>
  <td width=378 valign=top>
  &nbsp;</td>
 </tr>
 <tr>
  <td width=27 valign=top>
  &nbsp;</td>
  <td width=378 valign=top>
  &nbsp;</td>
 </tr>
 <tr>
  <td width=27 valign=top>
  <p>By:</p>
  </td>
  <td width=378 valign=top>
  <u>&nbsp;//s//
  Jerome E. Ball___________</u></td>
 </tr>
 <tr>
  <td width=27 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=378 valign=top>
  Name: Jerome
  E. Ball</td>
 </tr>
 <tr>
  <td width=27 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=378 valign=top>
  Title:
  Chariman and Chief Executive Officer</td>
 </tr>
</table>

</div>

<p>&nbsp;</p>


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Prepared by e-Services,LLC. - www.edgar2.net
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date
of Report (Date of Earliest Event Reported):
July 1, 2002
FORWARD
INDUSTRIES,
INC.
(Exact Name of Registrant as Specified in Charter)
New
  York
0-6669
13-1950672
(State or
  Other
(Commission
  File
(IRS
  Employer
Jurisdiction of
Number)
Identification
  No.)
Incorporation)
1801
Green Road Suite E
Pompano Beach,
Florida 33064
(Address of Principal Executive Offices)
Registrant's
Telephone Number, including
area code:
(954) 360-6420
(Former Address, if changed since last report)
Item 5:  Other Events
In recent weeks the registrant
has been negotiating with Motorola, Inc. regarding the terms of the parties'
existing license agreement, particularly with respect to royalty terms.  Under the terms of the agreement, the
registrant is required to pay Motorola a royalty, including a guaranteed
minimum royalty, and is permitted to sell Motorola branded products in Europe,
the Middle East and Africa.  The
registrant anticipates that the negotiations will continue and desires to
conclude them on mutually satisfactory terms. 
The registrant also believes that, in the event that these negotiations
are not successfully concluded, it is in its best interests to comply with
certain notice provisions of the agreement; accordingly, the registrant issued
a notice to Motorola terminating the agreement effective September 27,
2002.  The registrant intends to rescind
the termination notice or enter into a new license agreement with Motorola if
the ongoing negotiations are resolved to the mutual satisfaction of the
parties.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Dated: July 1, 2002
FORWARD INDUSTRIES, INC.
By:
//s//
  Jerome E. Ball___________
Name: Jerome
  E. Ball
Title:
  Chariman and Chief Executive Officer