Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 57

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 57
---
 is cured. In addition, in the event of bankruptcy
proceedings by or against the Company, the ELOC Agreement will automatically terminate in accordance with the terms of the ELOC Agreement.

Impact on Shareholders of Approval or Disapproval of this Proposal

If this proposal is approved,
existing shareholders will suffer dilution in ownership interests as a result of the issuance of shares of common stock pursuant to the
ELOC Agreement. For example, assuming the issuance of all of the Purchase Shares remaining to be sold under the ELOC Agreement, the Purchaser
would collectively own approximately 5.4 million shares of common stock, assuming the shares to be issued are sold at a price of $6.49
per share (the closing price on the record date), without giving effect to the Beneficial Ownership Limitation. Such shares would constitute
approximately 83% of the outstanding common stock as of the record date. Because 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