Company: FWDI
Filing Date: 2025-08-15
Form Type: DEF 14A
Source: 0001683168-25-006240
Chunk: 10

Company: Forward Industries, Inc.
Filing Date: 2025-08-15
Form: DEF 14A
Chunk 10
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 of the proposed amendment. The increase in authorized
shares will not affect any shareholder’s percentage ownership interest in the Company or proportionate voting power.

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While the increase in authorized
shares will not have an immediate effect on the rights of existing shareholders, it may have a dilutive effect on the Company’s
existing shareholders if additional shares are issued. The perception that there might be additional or future dilution to our existing
shareholders may put pressure on our stock price.

While the issuance of additional
shares of common stock may be deemed to have potential anti-takeover effects, including by delaying or preventing a change in control
of the Company through subsequent issuances of these shares which could make a change in control of the Company more difficult, and therefore,
less likely, this proposal to increase the authorized common stock is not prompted by any specific effort of which we are aware to accumulate
shares of our common stock or obtain control of the Company. A takeover may be beneficial to independent shareholders because, among other
reasons, a potential suitor may offer such shareholders a premium for their shares of common stock as compared to the then-existing market
price. Although the issuance of additional shares of common stock could, under certain circumstances, have an anti-takeover effect, this
proposal to adopt the amendment is not in response to any effort to which the Company is aware to accumulate common stock or obtain control
of the Company, nor is it part of a plan by management to recommend a series of similar amendments to the Board and shareholders.

The additional authorized
shares of common stock, if and when issued, would be part of the existing class of common stock and would have the same rights and privileges
as the shares of common stock currently outstanding. Shareholders do not have preemptive rights with respect to our common stock. Therefore,
should the Board determine to issue additional shares of common stock, existing shareholders would not have any preferential rights to
purchase such shares in order to maintain their proportionate ownership thereof.

If this proposal is not approved
by the shareholders, the Company may not be able to access the capital markets, complete corporate collaborations, partnerships or other
strategic transactions, attract, retain and motivate employees, and pursue other business opportunities integral to the Company’s
growth and success.

Recommendation of the Board

The Board recommends that
the shareholders vote “FOR” the Authorized Share Increase Proposal.

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<div align='center'>PROPOSAL 2. NASDAQ 20% ISSUANCE PRO