Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 51

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 51
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 considered as tax or investment advice,
and the tax consequences of the Nevada Reincorporation may not be the same for all U.S. holders. Shareholders should consult their own
tax advisors to understand their individual federal, state, local,and foreign tax consequences.

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Tax Consequences to the Company.The Nevada Reincorporation is intended to constitute a “reorganization” within the meaning of Section 368(a)(1)(F) of
the Code. The tax consequences described below assume that the Nevada Reincorporation is properly characterized as a reorganization.

The Company would not recognize
any taxable income, gain or loss as a result of the Nevada Reincorporation. In addition, the Company does not expect the Nevada Reincorporation
to affect the Company’s ability to utilize the Company’s net operating loss carryforwards.

Tax Consequences to U.S. Holders.U.S. holders generally will not recognize gain or loss as a result of the Nevada Reincorporation. The aggregate tax basis of Forward
Nevada common stock received by each U.S. holder will equal the aggregate tax basis of the Forward New York common stock surrendered by
such U.S. holder in exchange therefor.

The holding period of the Forward
Nevada common stock received by each U.S. holder will include the period during which such U.S. holder held the Forward New York common
stock surrendered in exchange therefor.

Required Vote

This proposal requires the affirmative
vote of a majority of issued and outstanding shares of common stock entitled to vote thereon. Abstentions will have the effect of an “AGAINST”
on this proposal. Broker non-votes will also have the effect of an “AGAINST” on this proposal.

Recommendation of the Board

The Board recommends that the
shareholders vote “FOR” the Nevada Reincorporation.

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<div align='center'>PROPOSAL 4: NASDAQ 20% ISSUANCE PROPOSAL ELOC</div>

Overview

On May 16, 2025, the Company entered
into a securities purchase agreement (the “ELOC Agreement”) with C/M Capital Master Fund, LP (the “Purchaser”),
establishing an equity line of credit pursuant to which the Company may sell shares of common stock to the Purchaser from time to time
in its discretion. Pursuant to the ELOC Agreement, the Company agreed to sell, and the Purchaser agreed to purchase, up to $