Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 57

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 57
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 the issuance price of the Purchase Shares may be adjusted, the number
of shares that will actually be issued may be more or less than such number of shares. The ownership interest of the existing shareholders
(other than the Purchaser) would be correspondingly reduced. The number of shares of common stock described above does not give effect
to the future issuance of shares of common stock upon the exercise of outstanding options or warrants, or any other potential future
issuances of common stock. The sale into the public market of these shares also could materially and adversely affect the market price
of our common stock.

If the shareholders do not
approve this proposal, we will be unable to issue any Purchase Shares pursuant to the ELOC Agreement in an amount greater than 19.99%
of the total number of shares of common stock outstanding immediately prior to the execution of the ELOC Agreement, which is a total of
220,103 shares if such sales are, in the aggregate, in an amount less than $7.10 per share. The Company has already issued 24,929 shares
of common stock pursuant to the ELOC Agreement (which reduces the 220,103 shares to 195,174 shares allowed to be sold under the 19.99%
limitation). Accordingly, if shareholder approval of this proposal is not obtained, we will need to seek alternative sources of financing,
which financing may not be available on advantageous terms, or at all, and which may result in the incurrence of additional transaction
expenses.

Our ability to successfully implement
our business plans and ultimately generate value for our shareholders is dependent upon our ability to raise capital and satisfy our ongoing
business needs. If we are unable to issue Purchase Shares pursuant to the ELOC Agreement, we may be unable to fully satisfy our ongoing
business needs on the terms or timeline we anticipate, if at all, the effect of which could materially and adversely impact future operating
results, and may result in the Company seeking liquidation or bankruptcy proceedings.

Required Vote

This proposal requires the affirmative
vote of a majority of the voting power of the capital stock entitled to vote thereon and present in person or represented by proxy at
the Meeting. Abstentions will have the effect of an “AGAINST” on this proposal. Broker non-votes will have no effect.

Recommendation of the Board

The Board recommends that the
shareholders vote “FOR” the Nasdaq 20% Issuance Proposal ELOC.

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<div align='center'>PROPOS