Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 662

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 4
Chunk 662
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 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 FINANCIAL STATEMENTS

Series B Convertible Preferred Stock

On May 21, 2025, the Company
filed a Certificate of Amendment to the Certificate of Incorporation (the “COD”) designating 1,000,000 shares of Series B
Convertible Preferred Stock (the “Series B”), with a par value of $0.01 per share and a stated value of $1.00 per share. The
Series B shares: (i) accrued dividends at 10% per annum, payable quarterly in arrears in cash, provided that the Company may elect to
pay dividends in common stock or by increasing the stated value if specified equity conditions are met (as defined in the COD), (ii) were
convertible into common stock at $4.50 per share, subject to customary anti-dilution and other adjustments as set forth in the COD, (iii)
were mandatorily convertible if certain conditions are met, (iv) had liquidation rights equal to the greater of 125% of the conversion
amount and the amount the holder would have received if the holder converted the shares into common stock immediately prior to liquidation,
(v) were not redeemable, (vi) had such voting rights as required by New York law, including class voting rights on matters affecting the
Series B rights and preferences and (vii) had senior rights to all classes of common stock with respect to dividends, distributions, and
liquidation preferences. The Series B shares contained certain beneficial ownership limitations and until August 8, 2025, were subject
to a maximum number of