Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1346

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 10
Chunk 1346
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,000 and incurred fees related to the ATM of $839,000, of which $102,000 have been recorded as a reduction to additional
paid-in capital and $737,000 have been recorded as deferred financing costs and presented as a component of other assets on the consolidated
financial statements.

Nasdaq

In July 2023, the Company was
notified by Nasdaq that it was not in compliance with Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Rule”). Thereafter,
in February 2024, the Company was notified that it was not in compliance with Nasdaq Listing Rule 5550(b)(1) (the “Shareholders’
Equity Rule”) (collectively, with the Minimum Bid Price Rule, the “Minimum Requirements”). In April 2024, the Company
presented a plan of action to the Nasdaq Hearings Panel to meet compliance with the Minimum Requirements. As a result of the reverse stock
split effected in June 2024 and the entrance into the first Accounts Payable Conversion Agreement (described in Note 14), the Company
regained compliance with the Minimum Requirements in July 2024 and was formally notified by Nasdaq that the Minimum Requirements were
met. Until July 24, 2025, the Company was subject to a Nasdaq “Panel Monitor” which provided that in the event the Company
fails to satisfy the Shareholders’ Equity Rule (not the Minimum Bid Price Rule) during the monitoring period, the Company would
be required to request a hearing before the Panel in order to maintain its listing rather than taking the interim step of submitting a
compliance plan for the Listing Qualifications Staff’s review or receiving any otherwise applicable grace period.

On February 21, 2025, the Company
was notified by Nasdaq that due to its reported Shareholders’ Equity of $2,279,297 at December 31, 2024, it was not in compliance
with the Shareholders’ Equity Rule. Due to the Panel Monitor, the Company was not eligible for any grace period and Nasdaq determined
the Company’s common stock would be scheduled for delisting from Nasdaq. On February 27, 2025, the Company requested a hearing on
this matter with the Panel, which stayed any trading suspension or delisting of the Company’s common stock until the completion
of the hearings process.

As a result of the fourth conversion
agreement with Forward China (see Note 14),