Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 40

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 40
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| · | 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.

| 26 |

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 B will receive
one share of Series A-1 and Series B of Forward Nevada in exchange for each existing share of Series A-1 and Series B, respectively. However,
you need not exchange your certificate(s) at any particular time. The Company will record the change in its records and will notify shareholders
if and when certificate exchanges are required. Until such time, existing certificates will be deemed to represent an equivalent number
of shares in Forward Nevada. Under Nevada and New York law, shareholders do not have dissenters’ or appraisal rights, or the right to
receive cash instead of stock, in connection with this reincorporation.

The trading symbol for our common
stock will remain “FORD.” Our common stock will continue to be listed on the Nasdaq Capital Market. We expect no interruption
in trading.

We cannot predict whether the
stock price for our common stock will increase, remain the same, or decrease if and when the Nevada Reincorporation is completed. We do
not expect the reincorporation to have any direct effect on the market price of our stock.

The Reasons for Reincorporating in Nevada

The Board considered many factors
in deciding to approve and recommend the Nevada Reincorporation. The principal reasons were:

| · | Nevada has a modern and flexible corporation law.                                                                                                                                                                                                                                                                                                                                                        |
| · | Nevada’s legislature is responsive to business needs, and we believe it is actively seeking to increase the number of Nevada corporations by making its corporate law attractive.                                                                                                                                                                                                                        |
| · | Nevada’s Eighth Judicial