Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1270

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 9C
Chunk 1270
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 Company
paid third-party fees of $66,500 associated with this agreement, of which $29,000 related to the preferred stock portion of the agreement
and has been deducted from the proceeds and recorded as a reduction of additional paid-in capital, and $37,500 related to the warrants
and has been recorded as a component of general and administrative expenses on the consolidated financial statements at September 30,
2025.

In September 2025, in connection
with the Securities Purchase Agreement, the Company entered into a waiver and leak-out agreement (the “Waiver and Leak-out Agreement”)
with the Series B Investors, pursuant to which the Series B Investors agreed to (i) the termination, waiver or amendment of all covenants
and provisions to forgo all of their rights under the Series B Warrants, the PS Agreement and the Series B Registration Rights Agreement,
including a general release from any liability for prior non-performance, and (ii) provide conversion notices and such other documentation
reasonably requested by the Company in order to complete the conversion of all of the Series B into shares of common stock. On September
10, 2025, all outstanding shares of the Series B were converted into 228,765 shares of the Company’s common stock. Following the
conversion, no shares of Series B remain outstanding.

In connection with the Waiver
and Leak-out Agreement, the Company granted the Series B Investors the right to purchase up to $33,000,000 worth of shares of Common Stock
at a purchase price of $18.50 per share; and has included for registration on the resale registration statement filed November 3, 2025,
on behalf of the Series B Investors as a selling shareholder, all shares of Common Stock previously underlying the Series B Stock and
Series B Warrants held by them. In September 2025, the Series B Investors purchased 1,783,783 shares of the Company’s common stock
in connection with this agreement.

     F-24 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Warrants 

Series B Warrants

In connection with the PS Agreement,
the Company issued warrants to purchase 111,111
shares of its common stock with an exercise price of $6.50 per share and an expiration date of May 23, 2030 (the “Series B Warrants”).
At the time of grant, and through August 8,