Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1409

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 11
Chunk 1409
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 to each of Jump Crypto and Multicoin, in addition to the Securities acquired by Jump Crypto and Multicoin pursuant to the Securities
Purchase Agreement, 1,783,519 shares of our Common Stock (the “Lead Investor Shares”) and 4,458,796 warrants to purchase an
amount of shares of the Common Stock (the “Lead Investor Warrants”). Pursuant to the Lead Investor Agreement, for so long
as Multicoin continues to beneficially own at least 5% of the Company’s issued and outstanding shares of Common Stock, Multicoin
has the right to nominate one individual for election to the Board of Directors, who shall also be chairperson of the Board of Directors
(such nominee, the “Investor Designee”), and the Company agreed to use its reasonable best efforts to cause the Investor Designee
to be elected to the Board of Directors (including recommending that the Company’s shareholders vote in favor of the election of
the Investor Designee).

Registered Direct Offering

On August 11, 2025, the
Company entered into subscription agreements with six investors pursuant to which it agreed to issue and sell, in a registered direct
offering (the “Offering”), an aggregate of approximately 263,000 shares of its common stock at a price of $8.50 per share.
The Offering closed on August 11, 2025 and the aggregate gross proceeds from the Offering were approximately $2,238,000.

Preferred Stock

Series A-1 Convertible Preferred Stock

In connection with the Accounts
Payable Conversion Agreements with Forward China (see Note 14), the Company filed three Certificates of Amendment to the Certificate of
Incorporation (the “COD”) designating 6,700 shares of Series A-1 Convertible Preferred Stock (the “Series A-1”),
with a stated value of $1,000 per share (the “Stated Value”).

The holders of the Series A-1
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 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