Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 50

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 50
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and directors more clarity and certainty in the reduction of their potential personal liability and strengthens the ability of directors
to resist coercive and inadequate takeover bids. The Board has considered these interests, among other matters, in reaching its decision
to approve the Nevada Reincorporation and to recommend that our shareholders vote in favor of this proposal.

U.S. Federal Income Tax Consequences

The following discussion is a
summary of certain U.S. federal income tax consequences of the Nevada Reincorporation to the Company of U.S. holders that hold shares
of our common stock as capital assets for U.S. federal income tax purposes. The discussion is based on the Code, regulations promulgated
under the Code by the U.S. Treasury Department (including proposed and temporary regulations), rulings, current administrative interpretations
and official pronouncements of the IRS, and judicial decisions, all as currently in effect and all of which are subject to differing interpretations
or to change, possibly with retroactive effect. Such change could materially and adversely affect the tax consequences described below.
No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of the tax consequences
described herein.

This summary does not address
all aspects of U.S. federal income taxation that may be relevant to U.S. holders in light of their particular circumstances or to U.S.
holders who may be subject to special tax treatment under the Code, including, without limitation, dealers in securities, commodities
or foreign currency, certain former citizens or long-term residents of the United States, insurance companies, tax-exempt organizations,
banks, financial institutions, small business investment companies, regulated investment companies, real estate investment trusts, retirement
plans, persons whose functional currency is not the U.S. dollar, traders that mark-to-market their securities, persons subject to the
alternative minimum tax or Medicare contribution tax on net investment income, persons who hold their shares of our common stock as part
of a hedge, straddle, conversion or other risk reduction transaction, persons who hold their shares of our common stock as “qualified
small business stock” under Section 1045 and/or 1202 of the Code, or who acquired their shares of the Company’s common stock
pursuant to the exercise of compensatory stock options, the vesting of previously restricted shares of stock or otherwise as compensation.

The state and local tax consequences
of the Nevada Reincorporation are beyond the scope of this discussion. This discussion should not be