Company: FWDI
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001683168-25-000993
Chunk: 21

Company: Forward Industries, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 21
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 “COD”) designating 2,700 shares of Series A-1 Convertible Preferred Stock, with a
stated value of $1,000 per share (the “Stated Value”).

The
holders of the Series A-1 Convertible Preferred Stock 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 Convertible Preferred Stock 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 Convertible Preferred Stock is not redeemable.

Stock Options

On October 1, 2024, the Company
granted options to two of its non-employee directors to purchase an aggregate of 48,020 shares of its common stock at an exercise price
of $3.73 per share. The options vest one year from the date of grant and expire five years from the date of the grant. The options have
a weighted average grant-date fair value of $1.67 per share and an aggregate grant-date fair value of $80,000, which will be recognized,
net of forfeitures, ratably over the vesting period.

On October 1, 2023, the Company
granted options to three of its non-employee directors to purchase an aggregate of 33,243 shares of its common stock at an exercise price
of $7.60 per share. The options vested one year from the date of grant, expire five years from the date of the grant and 11,081 were forfeited
prior to vesting. The options have a weighted average grant-date fair value of $3.60 per share and an aggregate grant-date fair value
of $120,000, which was recognized, net of forfeitures, ratably over the vesting period.

     15 

FORWARD INDUSTRIES, INC. AND
SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

There
were