Company: FWDI
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0001683168-25-006240
Chunk: 11

Company: Forward Industries, Inc.
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 11
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POSAL – SERIES A-1</div>

The Company’s common
stock is listed on The Nasdaq Capital Market (“Nasdaq”), and, as such, is subject to the applicable rules of Nasdaq, including
Nasdaq Listing Rule 5635. Nasdaq listing rules require a company listed on Nasdaq to obtain shareholder approval prior to the issuance
of common stock in connection with the issuance of securities to a substantial shareholder or other related party of the Company
where the issuance would result in such person beneficial ownership exceeding 20% of the Company’s common stock. The potential issuance
of additional shares of common stock pursuant to the conversion of the Series A-1, as described further below, may or will exceed the
Conversion Caps under the applicable Nasdaq listing rules. Accordingly, to ensure compliance with Nasdaq listing rules, the Company must
obtain the approval of the Company’s shareholders for the issuance of these shares pursuant to the conversion of the Series A-1.
The Certificate of Designation for the Series A-1 is attached to this Proxy Statement as .

The Company has 4,315 shares
as Series A-1 outstanding, which are convertible into shares of the Company’s common stock, at a conversion price, of $7.50 per
share (approximately 575,333 shares of common stock). The Series A-1 is convertible into a number of shares of common stock as is determined
by (i) multiplying the number of shares of Series A-1 to be converted by the stated value of $1,000 per share, (iii) adding to the result
all accrued and accumulated and unpaid dividends on such shares of Series A-1 to be converted, and then (iii) dividing the result by the
conversion price in effect immediately prior to such conversion. As of the record date, there were no dividends (accrued, accumulated
or unpaid) on the Series A-1. Pursuant to the Series A-1 Certificate of Designation, the Company cannot issue shares of common stock in
excess of the Conversion Caps, unless and until the Company obtains shareholder approval allowing the issuance of common stock as required
under the Nasdaq Listing Rules. Since August 8, 2025, FC (defined below) has converted 610 shares of Series A-1 into 81,333 shares of
common stock.

Forward
Industries (Asia-Pacific) Corporation (“FC”), an entity controlled by Mr. Terence Wise, the Company’s former Chairman