Company: FWDI
Filing Date: 2025-06-10
Form Type: S-1
Source: 0001683168-25-004372
Chunk: 16

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: S-1
Chunk 16
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 absence of any other financing sources, could have
a material adverse effect on our business or results of operation.

The Selling Stockholder will pay less than the then-prevailing market price for our common stock, which could cause the price of our common stock to decline.

The purchase price of our
common stock to be sold to the Selling Stockholder under the Purchase Agreement is derived from the market price of our common stock on
Nasdaq. Shares to be sold to the Selling Stockholder pursuant to the Purchase Agreement will be purchased at a discounted price.

For example, we may effect
sales to the Selling Stockholder pursuant to a Fixed Purchase Notice at a purchase price equal to the lesser of 95%
of (i) the lowest sale price of a share of common stock on the business day immediately preceding the applicable Fixed Purchase Date and
(ii) the daily volume weighted average price of the common stock for the five trading days immediately preceding the applicable Fixed
Purchase Date. This pricing mechanism means that shares will always be sold at a 5% or greater discount to market price. See “The Committed Equity Financing” for more information.

As a result of this pricing
structure, the Selling Stockholder may sell the shares they receive immediately after receipt of such shares, which could cause the price
of our common stock to decrease. This immediate resale could create downward pressure on our stock price.

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Investors who buy shares of common stock from the Selling Stockholder at different times will likely pay different prices.

Pursuant to the Purchase Agreement,
we have discretion (subject to the restrictions and satisfaction of the conditions in the Purchase Agreement) to vary the timing, price
and number of shares of common stock we sell to the Selling Stockholder. If and when we elect to sell shares of common stock to the Selling
Stockholder pursuant to the Purchase Agreement, after the Selling Stockholder has acquired such shares, the Selling Stockholder may resell
all, some or none of such shares at any time or from time to time in its sole discretion and at different prices. As a result, investors
who purchase shares from the Selling Stockholder in this offering at different times will likely pay different prices for those shares,
and so may experience different levels of dilution and in some cases substantial dilution and different outcomes in their investment results.
Investors may experience a decline in the value of the shares they purchase from the Selling Stockholder in this offering as a result
of future sales made by us to the Selling Stockholder at prices