Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 490

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 2
Chunk 490
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 the Board of Directors, who shall also be chairperson of the Board of Directors
(such nominee, the “Investor Designee”), and the Company agreed to use its reasonable best efforts to cause the Investor Designee
to be elected to the Board of Directors (including recommending that the Company’s shareholders vote in favor of the election of
the Investor Designee).

Registered Direct Offering

On August 11, 2025, the
Company entered into subscription agreements with six investors pursuant to which it agreed to issue and sell, in a registered direct
offering (the “Offering”), an aggregate of approximately 263,000 shares of its common stock at a price of $8.50 per share.
The Offering closed on August 11, 2025 and the aggregate gross proceeds from the Offering were approximately $2,238,000.

Preferred Stock

Series A-1 Convertible Preferred Stock

In connection with the Accounts
Payable Conversion Agreements with Forward China (see Note 14), the Company filed three Certificates of Amendment to the Certificate of
Incorporation (the “COD”) designating 6,700 shares of Series A-1 Convertible Preferred Stock (the “Series A-1”),
with a stated value of $1,000 per share (the “Stated Value”).

The holders of the Series A-1
have no voting rights and rank senior to all classes or series of the Company’s common stock with respect to the distribution of
assets upon liquidation, dissolution, or winding up. Subject to a 19.9% Share Cap (as defined in the COD) the Series A-1 shall be convertible
into a number of shares of the Company’s common stock as determined by (i) multiplying the number of shares to be converted by the
Stated Value, (ii) adding the result of all accrued and accumulated and unpaid dividends on such shares to be converted, and then (iii)
dividing the result by the conversion price of $7.50, subject to adjustment as defined in the COD. The Series A-1 is not redeemable.

In August and September 2025,
all 4,925 outstanding shares of the Series A-1 were converted into 656,666 shares of the Company’s common stock. Following this
conversion, no shares of the Series A-1 remain outstanding.

     F-23 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED