Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1420

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 11
Chunk 1420
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 $1,428,000, which was fully recognized
on the date of grant. 

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 vested 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 had a weighted average grant-date fair value of $3.60 per share and an aggregate grant-date fair value of $120,000,
which was recognized, net of forfeitures, ratably over the vesting period.

The options granted in Fiscal
2025 had a weighted average grant-date fair value of $5.99 per share. The Company recognized compensation expense for stock option awards
of $1,574,000 and $101,000 during Fiscal 2025 and Fiscal 2024, respectively, which was recorded as a component of general and administrative
expenses in its consolidated statements of operations.

During Fiscal 2025, the Company
issued 3,907 shares of its common stock pursuant to the exercise of stock options for aggregate cash proceeds of $61,000, which had an
aggregate intrinsic value of $75,000. No options were exercised in Fiscal 2024.

At September 30, 2025, there
was $94,000 of unrecognized compensation cost related to nonvested stock option awards that is expected to be recognized over a weighted
average period of 0.6 years. In connection with the Securities Purchase Agreement (see Note 8), certain stock options are subject to
a lockup period, which prohibits the sale of the underlying common stock until March 2026, without prior written consent from the Company.

The following table summarizes
stock option activity during Fiscal 2025: 

    Schedule of stock option activity 

    Weighted  
    Weighted  

    Average  
    Average  
    Aggregate 

    Number of  
    Exercise  
    Remaining  
    Intrinsic 

    Options  
    Price  
    Life (Yrs.)  
    Value 
  
    Outstanding at September 30, 2024 
     81,000  
    $12.15  

    Granted 
     278,000  
    $13.74  

    Exercised 
     (