Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 755

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 5
Chunk 755
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fails to satisfy the Shareholders’ Equity Rule (not the Minimum Bid Price Rule) during the monitoring period, the Company would
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.

On February 21, 2025, the Company
was notified by Nasdaq that due to its reported Shareholders’ Equity of $2,279,297 at December 31, 2024, it was not in compliance
with the Shareholders’ Equity Rule. Due to the Panel Monitor, the Company was not eligible for any grace period and Nasdaq determined
the Company’s common stock would be scheduled for delisting from Nasdaq. On February 27, 2025, the Company requested a hearing on
this matter with the Panel, which stayed any trading suspension or delisting of the Company’s common stock until the completion
of the hearings process.

As a result of the fourth conversion
agreement with Forward China (see Note 14), the Company regained compliance with the Shareholders’ Equity Rule in March 2025 and
was formally notified by Nasdaq in April that it was in compliance with all applicable continued listing standards and that the scheduled
hearing had been canceled.

Shares Reserved for Future Issuance

At September 30, 2025, the Company
had a total of 128,681,429 shares reserved for future issuance as follows: (i) 102,440,439 shares related to the ATM, (ii) 11,081,083
related to the Pre-Funded Warrants, (iii) 6,242,315 related to the Advisor Warrants and (iv) 8,917,592 related to the Lead Investor Warrants.

     F-27 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Tokenization of Common Stock

In September 2025, the Company
entered into a digital transfer agent agreement with Superstate Services LLC (“Superstate”) as its co-transfer agent, to give
shareholders the ability to tokenize their holdings of the Company’s common stock on the Solana blockchain. Any tokenized shares
are recorded and maintained by Superstate and represent the same ownership interests as the corresponding shares of the Company’s
common stock. At September 30, 2025,