Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 835

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 6
Chunk 835
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 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, 2025, the warrants had been classified as a liability because the nature of certain settlement
provisions prevented them from meeting the fixed-for-fixed equity classification criteria in ASC 815, “Derivatives and Hedging.”
On August 8, 2025, upon receiving shareholder approval to issue shares of the Company’s common stock in excess of the Nasdaq 19.9%
(exchange cap) limitations upon exercise of the Series B Warrants, these warrants met the requirements to be classified as equity. The
fair value of the warrants was measured on the grant date and was remeasured every reporting period through August 8, 2025, with the
resulting gain or loss from the change in fair value recorded as a component of other income/expense on the consolidated financial statements.
Upon receiving the aforementioned shareholder approval, the Series B Warrants were reclassified to equity and are no longer subject to
fair value measurement. A final Black-Scholes valuation was performed prior to reclassifying the Series B Warrants to equity. The fair
value of the warrants was estimated using a Black-Scholes valuation methodology using the assumptions in the following table, which are
categorized within Level 3 of the fair value hierarchy. The expected term