Company: FWDI
Filing Date: 2025-08-06
Form Type: PRE 14A
Source: 0001683168-25-005714
Chunk: 9

Company: Forward Industries, Inc.
Filing Date: 2025-08-06
Form: PRE 14A
Chunk 9
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 currently
has a total of 44,000,000 shares of capital stock authorized under the Certificate of Incorporation, consisting of 40,000,000 shares of
common stock and 4,000,000 shares of preferred stock. The Board is asking our shareholders to approve an amendment that will increase
the number of authorized shares of common stock from 40,000,000 to 300,000,000 and increase the number of authorized shares
of all classes of stock from 44,000,000 to 304,000,000. The number of shares of authorized preferred stock would remain unchanged.

No other changes
to the Certificate of Incorporation are being proposed, including with respect to the number of authorized shares of preferred stock.
The amendment is not intended to modify the rights of existing shareholders in any material respect. The additional shares of common stock
to be authorized pursuant to the proposed amendment will be identical to the shares of common stock currently authorized and outstanding
under our Certificate of Incorporation, none of which have preemptive or similar rights to acquire the newly authorized shares.

Reasons for the Amendment

The
Board believes that it is in the Company’s best interest to increase the number of authorized shares of our common stock from 40,000,000
shares to 300,000,000 shares in order to provide the Company with greater flexibility to issue additional shares for purposes such as
raising capital and other corporate needs without the need to obtain additional shareholder approval to increase our authorized shares
of common stock. Each additional authorized share of common stock would have the same rights and privileges as each share of currently
authorized common stock. Without an increase in the number of authorized shares of common stock, the Company may be constrained in its
ability to raise capital in a timely fashion or at all and may lose important business opportunities, which could adversely affect our
financial performance and growth. Other than its equity line of credit, the Company has no definitive agreements to issue common stock
in the future

Effects of the Amendment

The proposed amendment to
our Certificate of Incorporation would increase the total number of authorized shares of the Company’s common stock to 300,000,000
shares.

The rights and preferences
of the shares of common stock prior and subsequent to the increase in the Company’s authorized capital will remain the same. It
is not anticipated that the Company’s financial condition, management’s percentage ownership, the number of shareholders,
or any aspect of the Company’s business will materially change as a result of the