Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 61

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 61
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50 per share and exercise of all of the Warrants, the Series B Investors would collectively own approximately 333,334 shares of
common stock (222,223 shares from Series B conversion and 111,111 shares from Warrant exercise) without giving effect to the issuance
of dividend shares (if any) and the beneficial ownership limitations defined under the Certificate of Designation and Warrants. Such shares
would constitute approximately 23% of the outstanding common stock as of the record date adjusted for the additional shares issued upon
conversion and exercise. Because the potential payment of dividends in shares of common stock and the conversion price of the Series B
may be adjusted (subject to a floor price of $1.00), the number of shares that will actually be issued may be more than 333,334 shares
of common stock. The ownership interest of the existing shareholders (other than the Series B Investors) would be correspondingly reduced.
The number of shares of common stock described above does not give effect to (i) the future issuance of shares of common stock upon the
exercise of outstanding options or warrants, or (ii) any other potential future issuances of common stock, including pursuant to the ELOC.
The sale into the public market of these shares also could materially and adversely affect the market price of our common stock.

If, despite the Company’s
best efforts the shareholder approval is not obtained at this Annual Meeting, the Company shall cause an additional shareholder meeting
to be held as soon as possible. If, despite the Company’s reasonable best efforts the shareholder approval is not obtained after
such subsequent shareholder meetings, the Company shall cause additional shareholder meetings to be held at least once every six months
thereafter until such shareholder approval is obtained. For the avoidance of doubt, if the Company fails to obtain shareholder approval,
(i) the Exchange Cap shall be applicable for all purposes, limiting share issuances to 20% of then currently outstanding shares, and (ii)
any dividend payments on the Series B shall be payable only in cash.

Recommendation of the Board

The Board recommends a vote “FOR” the
Nasdaq 20% Issuance Proposal Series B.

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<div align='center'>PROPOSAL 6. APPROVAL OF AMENDMENT TO THE 2021 EQUITY INCENTIVE PLAN</div>

The Company’s 2021 Equity
Incentive Plan (the “2021 Plan”) was adopted by the Board on December 17, 2020 and was approved