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

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 8
Chunk 25
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 A preferred stock issued or outstanding at September 30, 2024
or 2023.

In connection
with the Conversion Agreements with Forward China (see Note 14), the Company filed two Certificates of Amendment to the Certificate of
Incorporation (the “COD”) designating 2,700 shares of Series A-1 Convertible Preferred Stock, with a stated value of $1,000
per share (the “Stated Value”).

     F-17 

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.

Warrants

At September 30, 2024, the Company
had 7,500 warrants outstanding and exercisable, which have an exercise price of $17.50 per share and an expiration date 90 days after
a registration statement registering common stock (other than pursuant to an employee benefit plan) is declared effective by the Securities
and Exchange Commission.

NOTE 9        
SHARE-BASED COMPENSATION

2021 Equity Incentive Plan

In February 2021, shareholders
of the Company approved the 2021 Equity Incentive Plan (the “2021 Plan”), which is administered by the Compensation Committee
of the Board of Directors and authorizes 1,291,000 shares of common stock for grants of various types of equity awards to officers, directors,
employees and consultants. Upon approval of the 2021 Plan, no additional awards were granted under the 2011 Long Term Incentive Plan (the
“2011 Plan”), which expired according to its terms in March 2021. Shares authorized under the 2021 Plan include 1,000,000
new shares and 291,000 shares