Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 988

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 8
Chunk 988
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2025, shareholders of the Company approved an increase of 300,000 authorized shares under the 2021 Plan. At September 30, 2025,
there were approximately 53,000 shares of common stock available for grants under the 2021 Plan.

Stock Options

The fair value of option awards
is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions in the following table. The expected
term represents the period over which the stock option awards are expected to be outstanding. The Company utilizes the simplified method
to develop an estimate of the expected term of “plain vanilla” option grants. The expected volatility used is based on the
historical price of the Company’s stock over the most recent period commensurate with the expected term of the award. The risk-free
interest rate used is based on the implied yield of U.S. Treasury zero-coupon issues with a remaining term equivalent to the award’s
expected term. The Company has not historically paid any dividends on its common stock and had no intention to do so on the date the share-based
awards were granted. The Company accounts for forfeitures in the period they occur.

In applying the Black-Scholes
option pricing model to options granted, the Company used the following assumptions: 

    Schedule of assumptions used for options

    Fiscal 2025
     
    Fiscal 2024
  
    Expected term (years)
     
    2.5 - 3.0
     
    3.0
  
    Expected volatility
     
    63.2% - 84.2%
     
    66.4%
  
    Risk free interest rate
     
    3.5% - 4.2%
     
    4.8%
  
    Expected dividends
     
    –
     
    –

     F-28 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In Fiscal 2025, the Company made
the following option grants:

·In October 2024, options to non-employee directors
to purchase an aggregate of 48,020 shares of its common stock at an exercise price of $3.73 per share. The options vest one year from
the date of grant, expire five years from the date of grant and have an aggregate grant-date fair value of $80,000, which will be recognized,