Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 24

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 24
---
 were rounded up to the nearest whole share. Accordingly, all references
made to shares, per share, or common share amounts in the accompanying consolidated financial statements and applicable disclosures have
been retroactively adjusted to reflect the reverse stock split. The reverse stock split did not change the par value of the common stock
nor the authorized number of shares of common stock or any series of preferred stock.

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 “Stockholders’
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 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 is subject to a Nasdaq “Panel Monitor” which provides for
in the event the Company fails to satisfy the Stockholders’ Equity Rule (not the Minimum Bid Price Rule) during the monitoring period,
the Company will 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.
We can provide no assurance that if the Company falls below the Stockholders’ Equity Rule requirement during this period that the
Company will be able to maintain its Nasdaq listing.

“Blank Check” Preferred Stock

The Company is authorized to
issue up to 4,000,000 shares of “blank check” preferred stock. The Board has the authority and discretion, without shareholder
approval, to issue preferred stock in one or more series for any consideration it deems appropriate, and to fix the relative rights and
preferences thereof including their redemption, dividend and conversion rights. Of these shares, 100,000 shares have been authorized as
the Series A Participating Preferred Stock. There were no shares of Series