Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1205

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 9B
Chunk 1205
---
 types of equity awards to officers, directors,
employees and consultants. Upon approval of the 2021 Plan, no additional awards were granted under the 2011 Long Term Incentive Plan (the
“2011 Plan”), which expired according to its terms in March 2021. Shares authorized under the 2021 Plan included 100,000 new
shares and 29,100 shares 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 from the date of grant. On
August 8, 2025, shareholders of the Company approved an increase of 300,000 authorized shares under the 2021 Plan. At September 30, 2025,
there were approximately 53,000 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 has not historically 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 2025
     
    Fiscal 2024
  
    Expected term (years)
     
    2.5 - 3.0
     
    3.0
  
    Expected volatility
     
    63.2% - 84.2%
     
    66.4%