Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 37

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 37
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 Forward New York and Forward Nevada, which we refer to as the “Merger Agreement.”
Forward Nevada will be the survivor in the Merger, and upon effectiveness of the Merger, each outstanding share of Forward New York common
stock will automatically convert to one share Forward Nevada common stock without any action required by shareholders. The Series A-1
and Series B will also convert to Forward Nevada Series A-1 and Series B on a one-for-one basis.

The proposed Merger Agreement
is included as Annex A. Forms of the Forward Nevada’s Articles of Incorporation and Nevada Bylaws are included as Annex B and Annex C of this Proxy Statement. Please read these documents in full rather than relying on any summary or description
of their terms.

Impact on Our Business

Forward Nevada will carry on our
business as before, with all of the same directors, officers, employees and properties. We will not move any employees or operations to
Nevada. In general, the Nevada Reincorporation itself is not expected to change our business, management, fiscal year, assets or liabilities,
or location of our facilities, which we expect will be the same immediately after the Nevada Reincorporation is completed as immediately
before it is completed.

Other Aspects of the Nevada Reincorporation

In connection with the Nevada
Reincorporation proposal, the Merger has three key components:

| · | the Nevada Articles of Incorporation, Series A-1 Certificate of Designation, Series B Certificate of Designation and the Nevada Bylaws;                                                          |
| · | the Merger Agreement between Forward New York and Forward Nevada; and                                                                                                                            |
| · | Forward Nevada’s assumption of the Company’s benefit plans and equity incentive plans under which grants of equity securities including restricted stock units, rights, and options may be made. |

No Tax or Accounting Effects

Forward Nevada will inherit
Forward New York’s tax and financial history and attributes. While the Nevada Reincorporation is intended to qualify as a tax-free
reorganization under Section 368(a) of the Internal Revenue Code, shareholders should note that there can be no assurance that the Internal
Revenue Service will agree with this tax treatment. However, shareholders should consult their own tax advisors regarding their specific
tax circumstances, as this Proxy Statement does not constitute tax advice.

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Effect on our Outstanding Stock

You will receive one share of
common stock of Forward Nevada in exchange for each existing share of common stock and holders of Series A-1 and Series