Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 493

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 2
Chunk 493
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 purchase 111,111
shares of its common stock with an exercise price of $6.50 per share and an expiration date of May 23, 2030 (the “Series B Warrants”).
At the time of grant, and through August 8, 2025, the warrants had been classified as a liability because the nature of certain settlement
provisions prevented them from meeting the fixed-for-fixed equity classification criteria in ASC 815, “Derivatives and Hedging.”
On August 8, 2025, upon receiving shareholder approval to issue shares of the Company’s common stock in excess of the Nasdaq 19.9%
(exchange cap) limitations upon exercise of the Series B Warrants, these warrants met the requirements to be classified as equity. The
fair value of the warrants was measured on the grant date and was remeasured every reporting period through August 8, 2025, with the
resulting gain or loss from the change in fair value recorded as a component of other income/expense on the consolidated financial statements.
Upon receiving the aforementioned shareholder approval, the Series B Warrants were reclassified to equity and are no longer subject to
fair value measurement. A final Black-Scholes valuation was performed prior to reclassifying the Series B Warrants to equity. The fair
value of the warrants was estimated using a Black-Scholes valuation methodology using the assumptions in the following table, which are
categorized within Level 3 of the fair value hierarchy. The expected term represents the remaining contractual term of the warrants.
The expected volatility is based on the historical price of the Company’s common stock over the most recent periods commensurate
with the expected term of the warrants. The risk-free interest rate is based on the implied yield of U.S. Treasury zero-coupon issues
with a remaining term equivalent to the warrants’ expected term. The Company historically has not paid any dividends on its common
stock and has no intention to do so in the foreseeable future. 

    Schedule of warrant assumptions 

    May 23, 2025  
    August 8, 2025 
  
    Expected term (years) 
     5.0  
     4.8 
  
    Expected volatility 
     76.75%  
     77.40% 
  
    Risk free interest rate 
     4.08%  
     3.84% 
  
    Expected dividends 
     0%