Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 60

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 60
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 floor conversion price of $1.00 and other adjustments as set forth in the
Certificate of Designation, (iii) are mandatorily convertible if certain conditions are met, including, but not limited to, when the closing
price of the common stock exceeds 200% of the conversion price for five consecutive trading days, (iv) have liquidation rights equal to
the greater of: (X) 125% of the conversion amount and (Y) the amount the holder would have received if the holder converted the shares
into common stock immediately prior to liquidation, (v) are not redeemable, (vi) have such voting rights as required by New York law,
including class voting rights on matters affecting the Series B rights and preferences and (vii) have senior rights to all classes of
common stock with respect to dividends, distributions, and liquidation preferences. The Warrants are exercisable for a period of five
years and the exercise price of the Warrants is subject to customary anti-dilution and other adjustments as set forth in the Warrants.
The Series B shares and Warrants contain beneficial ownership limitations preventing any Series B Investor from converting or exercising
if such conversion would result in beneficial ownership exceeding 4.99% of the Company’s outstanding common stock.

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In addition, pursuant to the Series
B Purchase Agreements, the Company entered into a Registration Rights Agreement (the “Series B Registration Rights Agreement”)
with each of the Series B Investors pursuant to which the shares of common stock issuable upon conversion of the Series B and underlying
the Warrants, subject to certain conditions, are entitled to registration under the Securities Act. Pursuant to the Series B Registration
Rights Agreement, the Company is required to, on or before August 21, 2025 (being 90 days following the closing date), file a registration
statement to register the shares underlying the preferred and warrants, unless waived.

Impact on Shareholders of Approval or Disapproval of this Proposal

If this proposal is approved,
existing shareholders will suffer dilution in ownership interests and voting rights as a result of the issuance of shares of common stock
pursuant to the conversion of the Series B or exercise of the Warrants. As of the May 23, 2025 closing date, there were 1,125,998 shares
of our common stock outstanding (this includes the 24,929 Commitment Shares). For example, assuming the conversion of all the Series B
at $4.