Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1055

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 9
Chunk 1055
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 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 represents the remaining contractual term of the warrants.
The expected volatility is based on the historical price of the Company’s common stock over the most recent periods commensurate
with the expected term of the warrants. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon issues
with a remaining term equivalent to the warrants’ expected term. The Company historically has not paid any dividends on its common
stock and has no intention to do so in the foreseeable future. 

    Schedule of warrant assumptions 

    May 23, 2025  
    August 8, 2025 
  
    Expected term (years) 
     5.0  
     4.8 
  
    Expected volatility 
     76.75%  
     77.40% 
  
    Risk free interest rate 
     4.08%  
     3.84% 
  
    Expected dividends 
     0%  
     0% 

A rollforward of the warrant liability is follows:

    Schedule of rollforward warrant liability 

    Warrant liability at May 23, 2025 
     563,111 
  
    Change in fair value of warrant liability 
     658,332 
  
    Reclassification of warrant liability to equity 
     (1,221,443)
  
    Warrant liability at September 30, 2025 
     – 

Pre-Funded Warrants

The unfunded exercise price of
each Pre-Funded Warrant equals $0.00001 per underlying Pre-Funded Warrant Share. The exercise price and the number of shares of Common
Stock issuable upon exercise of each Pre-Funded Warrant is subject to appropriate adjustment in the event of certain stock dividends,
stock splits, stock combinations, or similar events affecting our Common Stock. The Pre-Funded Warrants