Forwardly Inc (FORW)

[NoMoDo]

A bunch of crap on both sides over the S-1 can be seen here.
No, this isn't a insider get rich scheme. No, it doesn't indicate that a merger is going to happen.

now the question remains: why is the S-1 so important?

When a company issues shares directly, they must file a S-1 with the SEC. It allows investors to know that the shares will be freely tradable. At FORW, initial investors paid into the company for shares of stock. Those shares were not tradable until the S-1 was filed.

What you should know about an S-1 is:
How many shares could potentially be dumped on the market (compared to current oustanding).
Who owns those shares and the potential of those people selling those shares.
How will the shares be sold - is it convertible debt or initial investment?
If there is convertible debt, what is the conversion cost?

Of the above, the last question is the one that would likely affect a stock the most. Here, convertible debt would be converted at a specific price. In contrast, HMBL still has about $2.5mil in convertible debt that converts at a % of market price. That sucks (and I own a ton of HMBL). Here is an example of FORW's convertible debt:

On January 29, 2021, we issued a 17-month convertible note to Status Marketing Company Inc. in the principal amount of $100,000 that was convertible into shares of our common stock at $0.05 per share together with two warrants, one with an exercise price of $0.02 that was exercisable for 12 months from the date of the note and the other exercisable for 36 months from the date of the note at an exercise price of $0.25. The Company extended the exercise period of the 12-month warrant to August 29, 2022.

Most of the convertible debt has a pricetag above current stock price. That means that there is a very good chance that this debt won't be converted. Even if it does (maybe the lender wants out), FORW would only pay .05/share for the debt. A good thing for FORW. There is $50k worth of debt that is convertible at .012 - slightly below the current stock price. That is about 4.1mil shares. Expect those shares to be sold very soon. Will it cause the price to dip? Probably, but not likely lower than a penny. Once those shares are gone, the price should rebound to roughly .02 - the next cost of convertible debt.