Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 51

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 51
---
 to U.S. holders in light of their particular circumstances or to U.S.
holders who may be subject to special tax treatment under the Code, including, without limitation, dealers in securities, commodities
or foreign currency, certain former citizens or long-term residents of the United States, insurance companies, tax-exempt organizations,
banks, financial institutions, small business investment companies, regulated investment companies, real estate investment trusts, retirement
plans, persons whose functional currency is not the U.S. dollar, traders that mark-to-market their securities, persons subject to the
alternative minimum tax or Medicare contribution tax on net investment income, persons who hold their shares of our common stock as part
of a hedge, straddle, conversion or other risk reduction transaction, persons who hold their shares of our common stock as “qualified
small business stock” under Section 1045 and/or 1202 of the Code, or who acquired their shares of the Company’s common stock
pursuant to the exercise of compensatory stock options, the vesting of previously restricted shares of stock or otherwise as compensation.

The state and local tax consequences
of the Nevada Reincorporation are beyond the scope of this discussion. This discussion should not be considered as tax or investment advice,
and the tax consequences of the Nevada Reincorporation may not be the same for all U.S. holders. Shareholders should consult their own
tax advisors to understand their individual federal, state, local,and foreign tax consequences.

| 40 |

Tax Consequences to the Company.The Nevada Reincorporation is intended to constitute a “reorganization” within the meaning of Section 368(a)(1)(F) of
the Code. The tax consequences described below assume that the Nevada Reincorporation is properly characterized as a reorganization.

The Company would not recognize
any taxable income, gain or loss as a result of the Nevada Reincorporation. In addition, the Company does not expect the Nevada Reincorporation
to affect the Company’s ability to utilize the Company’s net operating loss carryforwards.

Tax Consequences to U.S. Holders.U.S. holders generally will not recognize gain or loss as a result of the Nevada Reincorporation. The aggregate tax basis of Forward
Nevada common stock received by each U.S. holder will equal the aggregate tax basis of the Forward New York common stock surrendered by
such U.S. holder in exchange therefor.

The holding period of the Forward
Nevada common stock received by each U