Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 25

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 25
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 a 19.9% Share Cap (as 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. See Note 12.

     16 

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) accrue 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) are convertible into common stock at $4.50 per share, subject to customary anti-dilution and other adjustments as set forth
in the COD, (iii) are mandatorily convertible if certain conditions are met, (iv) have 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) are not redeemable, (vi) have such voting rights as required by New York law, including class voting rights
on matters affecting the Series B rights and preferences and (vii) have senior rights to all classes of common stock with respect to dividends,
distributions, and liquidation preferences. The Series B shares contain certain beneficial ownership limitations and are subject to a
maximum number of shares of common stock that may be issued without triggering shareholder approval requirements under the Nasdaq Stock
Market rules. See Note 12. Dividends through June 30, 2025 were capitalized by increasing the stated value of each share of the Series B.

On
May 23, 2025 the Company entered into a Preferred Stock Purchase Agreement