Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 58

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 58
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 our ability to raise capital and satisfy our ongoing
business needs. If we are unable to issue Purchase Shares pursuant to the ELOC Agreement, we may be unable to fully satisfy our ongoing
business needs on the terms or timeline we anticipate, if at all, the effect of which could materially and adversely impact future operating
results, and may result in the Company seeking liquidation or bankruptcy proceedings.

Recommendation of the Board

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

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<div align='center'>PROPOSAL 5: NASDAQ 20% ISSUANCE PROPOSAL SERIES B</div>

Overview

On May 23, 2025 the Company entered
into Securities Purchase Agreements dated May 23, 2025 (the “Series B Purchase Agreements”) with C/M Capital Master Fund,
LP and WVP-Emerging Manager Onshore Fund, LLC-Structured Small Cap Lending Series (collectively, the “Series B Investors”)
whereby the Series B Investors were issued an aggregate of 1,000,000 shares of Series B Preferred Stock (“Series B”) in aggregate
consideration for $1,000,000. The Series B are convertible into shares of the Company’s common stock. Additionally, the Series B
Investors were issued an aggregate of 111,111 warrants exercisable at $6.50 per share. The Company intends to use the proceeds from the
issuance of the Series B for working capital and general corporate purposes.

As disclosed under Proposal
4, the Company’s common stock is listed on the Nasdaq Capital Market, and, as such, is subject to the applicable rules of the Nasdaq,
including Nasdaq Listing Rule 5635. Nasdaq Listing Rule 5635 requires a company listed on Nasdaq to obtain shareholder approval prior
to the issuance of common stock in connection with a transaction, other than a public offering, at a price below the “Minimum Price” involving the sale, issuance or potential issuance by the Company of common stock (or securities convertible into or exercisable for common stock), if the number of shares of common stock to be issued is equal to
or in excess of 20% of the number of shares of common stock then outstanding (the “Exchange Cap”). The Exchange Cap is 220,103
shares. Under Rule 5635(d)(1)(A), the “Minimum Price” means a price that is the lower of