Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 26

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 26
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 that remained available under the 2011 Plan. Awards which are forfeited or expire are eligible for regrant
under the 2021 Plan. The exercise prices of stock options granted may not be less than the fair market value of the common stock as quoted
on the Nasdaq stock market on the grant date and the expiration date of option awards may not exceed 10 years. At September 30, 2024,
there were 1,243,000 shares of common stock available for grants under the 2021 Plan.

Stock Options

The fair value of option awards
is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions in the following table. The expected
term represents the period over which the stock option awards are expected to be outstanding. The Company utilizes the simplified method
to develop an estimate of the expected term of “plain vanilla” option grants. The expected volatility used is based on the
historical price of the Company’s stock over the most recent period commensurate with the expected term of the award. The risk-free
interest rate used is based on the implied yield of U.S. Treasury zero-coupon issues with a remaining term equivalent to the award’s
expected term. The Company historically has not paid any dividends on its common stock and had no intention to do so on the date the share-based
awards were granted. The Company accounts for forfeitures in the period they occur.

In applying the Black-Scholes
option pricing model to options granted, the Company used the following assumptions:

     Schedule of assumptions used for options

    Fiscal 2024
     
    Fiscal 2023
  
    Expected term (years)
     
    3.00
     
    2.75
  
    Expected volatility
     
    66.4%
     
    69.0%
  
    Risk free interest rate
     
    4.83%
     
    4.31%
  
    Expected dividends
     
    –
     
    –

In
Fiscal 2024, the Company granted options to three of its non-employee directors to purchase an aggregate of 33,243 shares of its
common stock at an exercise price of $7.60 per share. The options vest one year from the date of grant, expire five years from the date
of grant and 11,081 were forfeited prior to vesting. The options have a weighted average grant-date fair value of $