Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 27

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 27
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     4.9 
  
    Expected volatility 
     76.75%  
     76.94% 
  
    Risk free interest rate 
     4.08%  
     3.79% 
  
    Expected dividends 
     0%  
     0% 

The
change in fair value of the warrants is as follows:

    Schedule of change in warrant fair value 

    Warrant liability at May 23, 2025 
     563,111 
  
    Change in fair value of warrant liability 
     (160,223)
  
    Warrant liability at June 30, 2025 
     402,888 

     17 

Equity Line of Credit

On May 16, 2025, the Company entered into a Securities
Purchase Agreement (the “ELOC”) and related Registration Right Agreement with an accredited investor (the “Purchaser”)
pursuant to which the Company has the right, in its sole discretion, to sell, and the Purchaser agrees to purchase, shares of the Company’s
common stock having an aggregate value of up to $35 million, subject to certain limitations and conditions set forth in the underlying
agreement. See Note 12. The Company will control the timing and amount of any sales of common stock under this agreement. In
connection with the execution of the ELOC, the Company issued 25,000 commitment shares to the Purchaser and paid third-party fees of $60,000,
which have been recorded as a component of other assets on the condensed consolidated financial statements. Pursuant to the terms of the
ELOC, the Company may issue and sell shares to the Purchaser at prices discounted below the then-current market price of the Company’s
common stock. As of June 30, 2025, no other shares of common stock were issued in connection with this agreement.

On June 10, 2025, the Company
filed a registration statement to register shares of common stock issuable under the ELOC. The registration statement was declared effective
by the SEC on June 20, 2025. See Note 12.

Stock Options

On June 1, 2025, the Company
granted options to three of its non-employee directors to purchase an aggregate of 36,000 shares of its common stock at an exercise price
of $6.37 per share. The options vest one year