Company: FWDI
Filing Date: 2025-06-24
Form Type: 424B3
Source: 0001683168-25-004724
Chunk: 8

Company: Forward Industries, Inc.
Filing Date: 2025-06-24
Form: 424B3
Chunk 8
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) would exceed 19.99% of the total number of shares of common stock issued and outstanding immediately preceding the execution of the Purchase Agreement (the “Exchange Cap”), subject to adjustment as set forth in the Purchase Agreement, unless and until (i) we obtain the approval of the issuance of such shares by our stockholders in accordance with the applicable stock exchange rules or (ii) the average price paid for all shares of common stock issued under the Purchase Agreement (including Commitment Shares) is equal to or in excess of $7.10 which is the lower of (A) the closing price on the Nasdaq Capital Market on May 15, 2025 and (B) the average of the closing prices of the common stock for the five business days immediately preceding May 16, 2025, as calculated in accordance with the rules of the Nasdaq Capital Market, such that the sales of such common stock to the Selling Stockholder would not count toward the Exchange Cap because they are “at market” under applicable stock exchange rules.

In addition, the Selling Stockholder
is not obligated to buy any shares of common stock pursuant to the Purchase Agreement if such shares of common stock, when aggregated
with all other common stock then beneficially owned by the Selling Stockholder and its affiliates (as calculated pursuant to Section
13(d) of the Securities Exchange Act of 1934, and Rule 13d-3 promulgated thereunder), would result in the Selling Stockholder beneficially
owning common stock in excess of 4.99% of the then-outstanding shares of common stock (the “Beneficial Ownership Limitation”),
provided, however, the Selling Stockholder may increase the Beneficial Ownership Limitation up to 9.99% at its sole discretion upon sixty-one
days’ prior written notice to us.

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The net proceeds under the Purchase
Agreement to us will depend on the frequency and prices at which we sell shares of our stock to the Selling Stockholder. We intend to
use the net proceeds for working capital and general corporate purposes. We will retain broad discretion over the use of the net proceeds
from this offering.

We have the right to terminate
the Purchase Agreement at any time, upon one business days’ notice, at no cost or penalty. During any Suspension Event (as defined
in the Purchase Agreement), while the Selling Stockholder does not have the right to terminate the Purchase Agreement, we may not initiate
any Purchase until such Suspension Event has been cured