Company: FWDI
Filing Date: 2025-09-16
Form Type: 8-K
Source: 0001683168-25-007036
Chunk: 94

Company: Forward Industries, Inc.
Filing Date: 2025-09-16
Form: 8-K
Item: Item 1
Chunk 94
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In December 2024, our largest
design customer notified us of its plan to discontinue their insulin patch pump program, on which we were working. The Company expects
this to cause a material decrease in design segment revenues beginning in the second quarter of Fiscal 2025.

NOTE 6        SHAREHOLDERS’ EQUITY

Reverse Stock Split

The Company’s shareholders
authorized, and the Board of Directors approved, a 1-for-10 reverse stock split, which became effective on June 18, 2024. Any fractional
shares that would have otherwise resulted from the reverse stock split were rounded up to the nearest whole share. Accordingly, all references
made to shares, per share, or common share amounts in the accompanying condensed 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, preferred 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 8), 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 that
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. 
If the Company falls below the Stockholders’ Equity Rule during