Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 62

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 62
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 by shareholders on February
16, 2021. On June 19, 2025, the Board approved the 2021 Plan Amendment to increase the maximum total number of shares of common stock
the Company may issue under the 2021 Plan to 429,100 (an increase of 300,000 shares) because the Company needs to be able to issue equity
awards to directors, management, and service providers in order to retain such persons and to further align their interests with those
of the Company’s shareholders. As of the record date, there were approximately 60 employees, 3 non-employee directors and 12 consultants
eligible to participate in the 2021 Plan. As of the record date, the closing price of the Company’s common stock was $6.49.

The Board, acting as the Compensation Committee (the
“Committee”), approved the 2021 Plan Amendment, subject to approval of the shareholders. If the shareholders do not approve
the 2021 Plan Amendment, the 2021 Plan will remain in effect and unchanged. If approved by the shareholders, the 2021 Plan Amendment will
be effective immediately, subject to any restrictions on the issuance of awards under the 2021 Plan because of a lack of available or
reserved shares of common stock to underlie such awards.

Reason for the Proposal

The 2021 Plan currently authorizes
the issuance of up to 129,100 shares of common stock. As of the record date, there were 146,432 shares of common stock subject to outstanding
restricted stock awards and stock options, which includes 36,441 whose vesting is subject to approval of the 2021 Plan Amendment. No additional
shares are available for issuance under the 2021 Plan.

As of the record date, there
are no shares remaining for future grants under the 2021 Plan. The 2021 Plan Amendment will increase the remaining shares for future grants
under the 2021 Plan to 282,668 shares.

If approved by the shareholders, the 2021 Plan Amendment
will enable the Company to continue to provide stock-based incentives that will enhance the alignment of interests of employees, consultants
and directors with those of the shareholders of the Company. In offering stock ownership and rewarding employees for their achievements,
the Company believes it will continue to motivate employees to achieve superior long-term results. Additionally, as the Company competes
for employees and key personnel in a variety of geographic regions and talent markets, the Company believes