Company: FWDI
Filing Date: 2025-05-22
Form Type: 8-K
Source: 0001683168-25-003941
Chunk: 1

Company: Forward Industries, Inc.
Filing Date: 2025-05-22
Form: 8-K
Item: Item 1.01
Chunk 1
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the “ Purchaser”). Pursuant to the
ELOC Agreement, the Company agreed to sell, and the Purchaser agreed to purchase, up to $35 million (the “ Available Amount”)
of the Company’s common stock, par value $0.01 per share (the “ Purchase Shares”), subject to a sale limit of 19.99%
of the outstanding shares of the Company’s common stock in accordance with the rules of The Nasdaq Stock Market, LLC.

The transactions contemplated by the ELOC Agreement
are subject to the Company registering the Purchaser’s resale of the Purchase Shares on a registration statement to be filed with
the Securities and Exchange Commission (the “ SEC”). Concurrent with the execution of the ELOC Agreement, the Company entered
into a registration rights agreement with the Purchaser (the “ Registration Rights Agreement”). Pursuant to the Registration
Rights Agreement, the Company agreed to file a registration statement on Form S-1 with the SEC covering the resale of the shares of common
stock sold under the ELOC, on or before the 30th calendar day following the date of the Registration Rights Agreement and to use its commercially
reasonable efforts to cause such registration statement to be declared effective by the SEC at the earliest practicable date, subject
to limited exceptions described therein. The registration rights granted under the Registration Rights Agreement are subject to certain
conditions and limitations and are subject to customary indemnification and contribution provisions.

In connection with entering into the ELOC Agreement,
the Company agreed to immediately issue to the Purchaser, 24,929 shares of common stock as commitment shares and, thereafter an amount
of shares equal to 1% of the Available Amount, which shall be issued in a pro rated fashion simultaneously with the delivery of any and
all Purchase Shares purchased under the ELOC Agreement.

The Company does not have a right to commence
any sales of common stock to the Purchaser under the ELOC Agreement until the time when all of the conditions to the Company’s right
to commence sales of Purchase Shares to the Purchaser set forth in the ELOC Agreement have been satisfied, including that a registration
statement covering the resale of the Purchase Shares is declared effective by the SEC and the final form of prospectus contained therein
is filed with the SEC (the “ Commencement Date”).

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At any time from and after the Commencement Date,
on any business day on which the previous business day’s closing sale price of common stock was equal to or greater than $1.00