Company: FWDI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006141
Chunk: 24

Company: Forward Industries, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 1
Chunk 24
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 meet compliance with the Minimum Requirements. As
a result of the reverse stock split effected in June 2024 and the entrance into the first 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 was subject to a Nasdaq “Panel Monitor” which provided
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 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 Stockholders’ 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 8), the Company regained compliance with the Stockholders’ 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.

Preferred Stock

Series A-1 Convertible Preferred Stock

In
connection with the Accounts Payable Conversion Agreements with Forward China (see Note 8), the Company filed three Certificates of Amendment
to the Certificate of Incorporation (the “COD”) designating 6,700 shares of Series A-1 Convertible Preferred Stock (the “Series
A-1”), with a stated value of $1,000 per share (the “Stated Value”).

The
holders of the Series A-1 have no voting rights and rank senior to all classes or series of the Company’s common stock with respect
to the distribution of assets upon liquidation, dissolution, or winding up. Subject to