<SEC-DOCUMENT>0001003297-14-000155.txt : 20140326
<SEC-HEADER>0001003297-14-000155.hdr.sgml : 20140326
<ACCEPTANCE-DATETIME>20140326162935
ACCESSION NUMBER: 0001003297-14-000155
CONFORMED SUBMISSION TYPE: S-1
PUBLIC DOCUMENT COUNT: 4
FILED AS OF DATE: 20140326
DATE AS OF CHANGE: 20140326
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: FORWARD INDUSTRIES INC
CENTRAL INDEX KEY: 0000038264
STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS PRODUCTS, NEC [3089]
IRS NUMBER: 131950672
STATE OF INCORPORATION: NY
FISCAL YEAR END: 0930
FILING VALUES:
FORM TYPE: S-1
SEC ACT: 1933 Act
SEC FILE NUMBER: 333-194825
FILM NUMBER: 14718943
BUSINESS ADDRESS:
STREET 1: 1801 GREEN ROAD
STREET 2: SUITE E
CITY: POMPANO BEACH
STATE: FL
ZIP: 33064
BUSINESS PHONE: 9544199544
MAIL ADDRESS:
STREET 1: 1801 GREEN RD
STREET 2: SUITE E
CITY: POMPANO BEACH
STATE: FL
ZIP: 33064
FORMER COMPANY:
FORMER CONFORMED NAME: PROGRESS HEAT SEALING CO INC
DATE OF NAME CHANGE: 19721111
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-1
<SEQUENCE>1
<FILENAME>esforwards1.htm
<TEXT>
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<div style='page:WordSection1;'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>As filed with the
Securities and Exchange Commission on March 26, 2014</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right'>Registration No. 333-_______</p>
<div style='border:none;border-top:double windowtext 4.5pt;padding:1.0pt 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";border:none;padding:0in'> </p>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington, DC 20549<br>
____________________________<br>
<br>
FORM
S-1</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center'><b>REGISTRATION
STATEMENT<br>
UNDER<br>
THE SECURITIES ACT OF 1933<br>
____________________________<br>
<br>
<font style="font-size: 22.0pt">Forward Industries, Inc.</font><br>
</b>(Exact Name of Registrant as Specified in Its Charter)</p>
<table class=MsoNormalTable border=0 cellpadding=0
style='border-collapse:collapse' width="100%">
<tr>
<td width=242 valign=top style='width:33%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center'><b>New
York</b><br>
(State or Other Jurisdiction of<br>
Incorporation or Organization)</p>
</td>
<td width=242 valign=top style='width:34%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center'><b>3089</b><br>
(Primary Standard Industrial<br>
Classification Code Number)</p>
</td>
<td width=242 valign=top style='width:33%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center'><b>13-1950672</b><br>
(I.R.S. Employer <br>
Identification Number)</p>
</td>
</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><br>
477 Rosemary Ave., Suite 219</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>West Palm Beach,
FL 33401<br>
(561) 465-0030<br>
</b>(Address, Including Zip Code, and Telephone Number, Including Area Code, of
Registrant’s Principal Executive Offices)</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>____________________________</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>James O. McKenna
III, Vice President and Chief Financial Officer</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Forward
Industries, Inc.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>477 Rosemary Ave.,
Suite 219</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>West Palm Beach,
FL 33401</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>(561) 465-0030</b><br>
(Name, Address Including Zip Code, and Telephone Number, Including Area Code, of
Agent for Service)</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center'>____________________________<br>
<br>
Copies to:</p>
<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
style='width:100.0%;border-collapse:collapse'>
<tr>
<td width="31%" valign=top style='width:31.2%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b> </b></p>
</td>
<td width="39%" valign=top style='width:39.22%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Adam W. Finerman,
Esq.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Olshan Frome
Wolosky LLP</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Park Avenue
Tower</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>65 East 55th
Street</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>New York, New
York 10022</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Telephone: (212)
451-2300</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Facsimile: (212)
451-2222</b></p>
</td>
<td width="29%" valign=top style='width:29.58%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b> </b></p>
</td>
</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:4.0pt;text-align:center'>____________________________<br>
<br>
</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;margin-bottom:10.0pt;text-indent:.5in'>Approximate
Date of Commencement of Proposed Sale to the Public: From time to time after
the effective date of this registration statement.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;margin-bottom:10.0pt;text-indent:.5in'>
If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933 check the following box. <font face="Wingdings 2">T</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;margin-bottom:10.0pt;text-indent:.5in'>If this Form
is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. <font face="Wingdings">¨</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;'><font style="font-size: 9.0pt"> </font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>If this Form
is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. <font face="Wingdings">¨</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>If this Form
is a post-effective amendment filed pursuant to Rule 462(d) under the
Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. <font face="Wingdings">¨</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>Indicate by
check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the
definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check one):</p>
<table border="0" width="100%">
<tr>
<td width="50%" nowrap>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>
Large accelerated filer <font size="2" face="Wingdings">¨</font></p>
</td>
<td width="50%" nowrap><font size="2" face="Times New Roman,serif">Accelerated filer
</font><font size="2" face="Wingdings">¨</font></td>
</tr>
<tr>
<td width="50%" nowrap>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>
Non-accelerated filer <font face="Wingdings">¨</font> (Do not check if a
smaller reporting company) </p>
</td>
<td width="50%" nowrap><font size="2" face="Times New Roman,serif">Smaller reporting company
</font><font size="2" face="Wingdings 2">T</font></td>
</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<b>CALCULATION OF REGISTRATION
FEE </b></p>
<div align=center>
<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="96%"
style='width:96.3%;border-collapse:collapse'>
<tr>
<td width="45%" style='width:45.64%;border-top:double windowtext 1.5pt;
border-left:none;border-bottom:solid black 1.0pt;border-right:solid windowtext 1.0pt;
padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td width="13%" style='width:13.44%;border-top:double windowtext 1.5pt;
border-left:none;border-bottom:solid black 1.0pt;border-right:solid windowtext 1.0pt;
padding:0in 0in 0in 0in'></td>
<td width="13%" style='width:13.42%;border-top:double windowtext 1.5pt;
border-left:none;border-bottom:solid black 1.0pt;border-right:solid windowtext 1.0pt;
padding:0in 0in 0in 0in'></td>
<td width="14%" style='width:14.08%;border-top:double windowtext 1.5pt;
border-left:none;border-bottom:solid black 1.0pt;border-right:solid windowtext 1.0pt;
padding:0in 0in 0in 0in'></td>
<td width="13%" style='width:13.42%;border-top:double windowtext 1.5pt;
border-left:none;border-bottom:solid black 1.0pt;border-right:none;
padding:0in 0in 0in 0in'></td>
</tr>
<tr>
<td valign=bottom style='border-top:none;border-left:none;border-bottom:solid black 1.0pt;
border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 7.5pt">Title of each class of<br>
securities to be registered</font></b></p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
solid black 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 7.5pt">Amount<br>
to be<br>
Registered (1)(2)</font></b></p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
solid black 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 7.5pt">Proposed<br>
Maximum<br>
Offering Price<br>
Per Share </font></b></p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
solid black 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 7.5pt">Proposed<br>
Maximum<br>
Aggregate<br>
Offering Price</font></b></p>
</td>
<td nowrap valign=bottom style='border:none;border-bottom:solid black 1.0pt;
padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 7.5pt">Amount of<br>
Registration Fee</font></b></p>
</td>
</tr>
<tr style='height:22.65pt'>
<td valign=top style='border-top:none;border-left:none;border-bottom:solid black 1.0pt;
border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:22.65pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:12.0pt;text-indent:-12.0pt'>Common
stock, par value $0.01 per share, issuable upon the conversion of 6% Senior Convertible
Preferred Stock</p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
solid black 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;
height:22.65pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:.75pt;text-align:center'>692,919</p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
solid black 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;
height:22.65pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$1.54(3)</p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
solid black 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;
height:22.65pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$1,067,095(3)</p>
</td>
<td nowrap valign=bottom style='border:none;border-bottom:solid black 1.0pt;
padding:0in 0in 0in 0in;height:22.65pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$137.44 </p>
</td>
</tr>
<tr style='height:29.4pt'>
<td valign=top style='border-top:none;border-left:none;border-bottom:solid black 1.0pt;
border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:29.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:12.0pt;text-indent:-12.0pt'>Common
stock, par value $0.01 per share, issuable upon exercise of warrants</p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
solid black 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;
height:29.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:.75pt;text-align:center'>648,846</p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
solid black 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;
height:29.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$1.84(4)</p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
solid black 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;
height:29.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$1,193,877(4)</p>
</td>
<td nowrap valign=bottom style='border:none;border-bottom:solid black 1.0pt;
padding:0in 0in 0in 0in;height:29.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$153.78 </p>
</td>
</tr>
<tr style='height:18.15pt'>
<td valign=top style='border-top:none;border-left:none;border-bottom:double windowtext 1.5pt;
border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:18.15pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:35.0pt;text-indent:-12.0pt'>Total</p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
double windowtext 1.5pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;
height:18.15pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:.75pt;text-align:center'>1,341,765</p>
</td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
double windowtext 1.5pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;
height:18.15pt'></td>
<td nowrap valign=bottom style='border-top:none;border-left:none;border-bottom:
double windowtext 1.5pt;border-right:solid windowtext 1.0pt;padding:0in 0in 0in 0in;
height:18.15pt'></td>
<td nowrap valign=bottom style='border:none;border-bottom:double windowtext 1.5pt;
padding:0in 0in 0in 0in;height:18.15pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$291.22</p>
</td>
</tr>
</table>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<table border="0" width="100%">
<tr>
<td valign="top" width="3%"><font size="2">(1) </font></td>
<td valign="top" width="97%">
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-bottom:6.0pt;
'>Pursuant to Rule 416 under the
Securities Act of 1933, as amended (the “<u>Securities Act</u>”), there are
also being registered hereby such additional indeterminate number of securities
as may become issuable to prevent dilution resulting from stock splits, stock
dividends, or similar transactions. </p>
</td>
</tr>
<tr>
<td valign="top" width="3%"><font size="2">(2)</font></td>
<td valign="top" width="97%">
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-bottom:6.0pt;
'>Consists of 692,919 shares issuable to the selling stockholders upon the conversion of the registrant’s 6%
Senior Convertible Preferred Stock and 648,846 shares issuable to the selling
stockholders upon the exercise of the registrant’s common stock purchase
warrants.</p>
</td>
</tr>
<tr>
<td valign="top" width="3%"><font size="2">(3)</font></td>
<td valign="top" width="97%">
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-bottom:6.0pt;
'>Estimated solely for the purpose
of calculating the amount of the registration fee pursuant to Rule 457(c) of
the Securities Act. The proposed maximum offering price per share and the
proposed maximum aggregate offering price are based upon the closing trading
price of the registrant’s common stock on March 21, 2014 of $1.54 per share, as
reported on the NASDAQ SmallCap Market.</p>
</td>
</tr>
<tr>
<td valign="top" width="3%"><font size="2">(4)</font></td>
<td valign="top" width="97%">
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-bottom:6.0pt;
'>Pursuant to Rule 457(g) under
the Securities Act, as amended, calculated based upon the exercise price of the
warrants, which is $1.84 per share, held by the selling stockholders.</p>
</td>
</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>
<b>The
registrant hereby amends this registration statement on such date or dates as
may be necessary to delay its effective date until the registrant shall file a
further amendment which specifically states that this registration statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933, as amended, or until the registration statement shall
become effective on such date as the Commission, acting pursuant to said
Section 8(a), may determine.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt"> </font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
</div>
<p style="page-break-before:always"> </p>
<div style='page:WordSection2;'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>
<font color="#990000">The
information in this preliminary prospectus is not complete and may be changed. The
selling stockholders may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is effective. This
preliminary prospectus is not an offer to sell these securities and the selling
stockholders are not soliciting an offer to buy these securities in any
jurisdiction where the offer or sale is not permitted.</font></p>
<div align="center">
<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
style='border-collapse:collapse;border:none'>
<tr style='height:15.25pt'>
<td width=217 style='width:162.9pt;border-top:solid windowtext 1.0pt;
border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
padding:0in 5.4pt 0in 5.4pt;height:15.25pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:3.0pt;margin-right:0in;margin-bottom:
3.0pt;margin-left:0in'><font color="#990000">PRELIMINARY
PROSPECTUS</font></p>
</td>
<td width=210 style='width:157.5pt;border-top:solid windowtext 1.0pt;
border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
padding:0in 5.4pt 0in 5.4pt;height:15.25pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:3.0pt;margin-right:0in;margin-bottom:
3.0pt;margin-left:0in'><font color="#990000">SUBJECT TO
COMPLETION</font></p>
</td>
<td width=211 style='width:2.2in;border-top:solid windowtext 1.0pt;
border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
padding:0in 5.4pt 0in 5.4pt;height:15.25pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:3.0pt;margin-right:0in;margin-bottom:
3.0pt;margin-left:0in' align="center"><font color="#990000">DATED MARCH
26, 2014</font></p>
</td>
</tr>
</table>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 8.0pt"> </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<img border="0" src="forward.gif" width="209" height="41"></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt;text-align:center'><b><font style="font-size: 16.0pt">Forward Industries, Inc.</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 12.0pt">1,341,765 Shares of Common Stock</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt;text-align:center'>_______________</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt;text-indent:.5in'>This prospectus
covers the resale of up to 1,341,765 shares of common stock, $0.01 par value
per share, of Forward Industries, Inc., a New York corporation, by the selling
stockholders listed in this prospectus or their permitted transferees from time
to time. The shares of common stock being offered by the selling stockholders
consist of (i) 692,919 shares of common stock issuable to the selling
stockholders upon conversion of outstanding shares of 6% Senior Convertible Preferred
Stock, par value $0.01 per share (the “<u>Convertible Preferred Stock</u>”) and
(ii) 648,846 shares of common stock issuable upon the exercise of outstanding
warrants (the “<u>Warrants</u>,” and together with the Convertible Preferred
Stock, the “<u>Securities</u>”). The Securities were originally issued to
accredited investors in a series of private placements completed on June 28,
2013, August 7, 2013, and August 14, 2013. Please refer to the section of this
prospectus entitled “Description of the Private Placements” for a description
of the Securities and the section entitled “Selling Stockholders” for
additional information.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt;text-indent:.5in'>We will not
receive any proceeds from the sale of shares of our common stock by the selling
stockholders. However, we will receive payment in cash upon any exercise of the
warrants, and any proceeds we receive will be used for general corporate
purposes, including working capital and in connection with potential
acquisition targets that would be complementary to our existing business and
allow us to further leverage our operating infrastructure, if any are
identified and acquired. We will bear the costs and fees of the registration of
the shares, and the selling stockholders will bear all commissions and
discounts, if any, attributable to the sales of the shares.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt;text-indent:.5in'>Subject to the
restrictions described in this prospectus, the selling stockholders (directly,
or through agents or dealers designated from time to time) may sell the shares
of our common stock being offering by this prospectus from time to time, on
terms to be determined at the time of sale. The prices at which the selling
stockholders may sell the shares will be determined by the prevailing market
price for the shares or in negotiated transactions. Please see the section
titled “Plan of Distribution” for more information regarding the offering of
the shares.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Our common stock is listed on the
NASDAQ Capital Market under the trading symbol “FORD.” On March 21, 2014, the
last reported sale price for our common stock as reported on the NASDAQ Capital
Market was $1.54 per share.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 8.0pt">_______________</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 8.0pt"> </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><b>Investing in our common stock
involves a high degree of risk. You should carefully read and evaluate the
cautionary statements concerning risk factors included in our periodic reports
and other information that we file with the Securities and Exchange Commission
(the “<u>SEC</u>” or “<u>Commission</u>”). See “Risk Factors” beginning on page
4.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 8.0pt">_______________</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 8.0pt"> </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt;text-indent:.5in'><b>Neither the
SEC nor any state securities commission has approved or disapproved of these
securities or passed upon the adequacy or accuracy of this prospectus. Any
representation to the contrary is a criminal offense. </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><b>THIS PROSPECTUS IS NOT AN OFFER
TO SELL SECURITIES, NOR IS IT A SOLICITATION OF AN OFFER TO BUY SECURITIES, IN
ANY STATE OR COUNTRY WHERE THE OFFER OR SALE IS NOT PERMITTED.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 8.0pt">_______________</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>The date of this prospectus is ,
2014</b></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
</div>
<p style="page-break-before:always"> </p>
<div style='page:WordSection3;'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='mso-style-name:"Center Bold Head";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>TABLE OF CONTENTS </p>
<p style='mso-style-name:"Right Bold Head";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:right;font-size:10.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>Page</p>
<table border="0" width="100%">
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Prospectus_Summary_">Prospectus
Summary..................................................................................................................................................</a></p>
</td>
<td align="right"><font face="Times New Roman,serif" size="2">1</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Risk_Factors_">Risk Factors.................................................................................................................................................................</a></p>
</td>
<td align="right"><font face="Times New Roman,serif" size="2">4</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Cautionary_Note_Regarding_Forward-Looking_Statements_">Cautionary
Note Regarding Forward-Looking Statements..................................................................................</a></p>
</td>
<td align="right"><font face="Times New Roman,serif" size="2">5</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Use_of_Proceeds">Use of
Proceeds..........................................................................................................................................................</a></p>
</td>
<td align="right"><font size="2">5</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Market_for_Common_Equity_and_Related_Stockholder_Matters_">Market for
Common Equity and Related Stockholder Matters...........................................................................</a></p>
</td>
<td align="right"><font size="2">6</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Dividend_Policy">Dividend
Policy..........................................................................................................................................................</a></p>
</td>
<td align="right"><font size="2">6</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Principal_Stockholders">Principal
Stockholders...............................................................................................................................................</a></p>
</td>
<td align="right"><font size="2">6</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#The_Selling_Stockholders_">The Selling
Stockholders..........................................................................................................................................</a></p>
</td>
<td align="right"><font size="2">8</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#DESCRIPTION_OF_THE_PRIVATE_PLACEMENTS_">Description
of the Private Placements....................................................................................................................</a></p>
</td>
<td align="right"><font size="2">10</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Plan_of_Distribution__">Plan of
Distribution...................................................................................................................................................</a></p>
</td>
<td align="right"><font size="2">13</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Description_of_Capital_Stock_">Description
of Capital Stock....................................................................................................................................</a></p>
</td>
<td align="right"><font size="2">15</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Legal_Matters_">Legal
Matters.............................................................................................................................................................</a></p>
</td>
<td align="right"><font size="2">18</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Experts">Experts.........................................................................................................................................................................</a></p>
</td>
<td align="right"><font size="2">18</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Where_You_Can_Find_More_Information_">Where You
Can Find More Information................................................................................................................</a></p>
</td>
<td align="right"><font size="2">18</font></td>
</tr>
<tr>
<td width="1128">
<p style='margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;font-size:10.0pt;font-family:"Times New Roman","serif";'>
<a href="#Incorporation_of_Certain_Information_By_Reference_">Incorporation
of Certain Information By Reference..............................................................................................</a></p>
</td>
<td align="right"><font size="2">19</font></td>
</tr>
</table>
<p style='mso-style-name:"Hard TOC";margin-top:0in;margin-right:.5in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>You should rely only on the
information provided in this prospectus or in any free writing prospectus prepared
by or on behalf of us or to which we have referred you. We have not authorized
anyone to provide you with different information. The information contained in
this prospectus is accurate only as of the date of this prospectus, regardless
of the time of delivery of this prospectus or of any sale of our common stock.
Our business, financial condition, results of operations and prospects may have
changed since that date.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Persons outside the United States
who come into possession of this prospectus must inform themselves about, and
observe any restrictions relating to, the offering of the shares of common stock
and the distribution of this prospectus outside of the United States.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>We obtained statistical data,
market data and other industry data and forecasts used throughout this
prospectus from market research, publicly available information and industry
publications. While we believe that the statistical data, industry data and
forecasts and market research are reliable, we have not independently verified
the data, and we do not make any representation as to the accuracy of the
information.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 9.0pt">i</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
</div>
<p style="page-break-before:always"> </p>
<div style='page:WordSection4;'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'><a name="_Toc378154259"> </a></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<table border="1" width="100%">
<tr>
<td>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'> </h1>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif"><a name="Prospectus_Summary_">Prospectus Summary</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'><i>This summary
highlights certain information contained elsewhere in this prospectus and does
not contain all of the information that you should consider in making an
investment decision. We urge you to read this entire prospectus carefully,
including the “Risk Factors” section beginning on page 4 and the other
information and documents incorporated by reference into this prospectus,
including our consolidated financial statements and related notes, before
making an investment decision. </i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'><i>Unless the
context provides otherwise, all references in this prospectus to “Forward,” “we,”
“us,” “our,” the “Company,” the “Registrant” or similar terms, refer to Forward
Industries, Inc.</i></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Forward
Industries, Inc.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>General</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>We design, market, and distribute
carry and protective solutions, primarily for hand held electronic devices,
including soft-sided carrying cases, bags, clips, hand straps, protective
plates and other accessories made of leather, nylon, vinyl, plastic, PVC and
other synthetic materials. Our principal customer market is original equipment
manufacturers, or “<u>OEMs</u>” (or the contract manufacturing firms of these
OEM customers), that either package our products as accessories “in box”
together with their branded product offerings, or sell them through their
retail distribution channels. Our OEM products include carrying cases and other
accessories for blood glucose monitoring kits and a variety of other portable
electronic and non-electronic products (such as sporting and recreational
products, bar code scanners, smartphones, GPS and location devices, tablets,
firearms and other products). Our carrying cases are designed to enable these
devices to be stowed in a pocket, handbag, briefcase, or backpack, clipped to a
belt or shoulder strap, or strapped to an arm, while protecting the consumer
electronic or other product from scratches, dust, and mishandling. Our OEM
customers are located in the Americas, Europe, and the Asia Pacific Region, or
“<u>APAC Region</u>.” We do not manufacture any of our OEM products and source
substantially all of our OEM products from independent suppliers in China.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>On June 21, 2012, we determined to
exit our global retail business and focus solely on growing our OEM business.
Our decision to eliminate the global retail division was primarily driven by
the longer than estimated path to bring it to profitability and the strong net
sales growth and cost rationalizations in the OEM business. We have
substantially completed the exit of our global retail business and have not
had, and do not expect to have, any continuing involvement in the global retail
business after this date.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>Corporate History</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Forward Industries was incorporated
in 1961 under the laws of the State of New York as a manufacturer and
distributer of advertising specialty and promotional products. In 1989, we
acquired Forward US (then known as Koszegi Industries, Inc.), a manufacturer of
soft-sided carrying cases. The carrying case business became our predominant
business, and in September 1997, we sold the assets relating to the production
of advertising specialty and promotional products, ceasing to operate in that
segment.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>In May 2001, we formed Forward
Switzerland to facilitate distribution of aftermarket products under our
licenses for cell phone cases with a major North American multinational and to
further develop our OEM European business presence. After the expiration of
the last of these licenses in March 2009, staff at Forward Switzerland was
significantly reduced and in recent years has primarily served our OEM
customers in Europe.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>Products</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><i>Diabetic Products</i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif"; text-indent:0.5in; margin-left:0in; margin-right:0in; margin-top:0in'>We sell carrying cases for blood glucose diagnostic kits (“<u>Diabetic
Products</u>”) directly to OEMs (or their contract manufacturers) of these
electronic monitoring kits made for use by diabetics. We typically sell these
cases at prices ranging from approximately $0.50 to $6.00 per unit. Unit
volumes are sold predominantly at the lower end of this price range. The OEM
customer (or its contract manufacturer) packages our carry cases “in box” as a
custom accessory for the OEM’s blood glucose testing and monitoring kits, or to
a much lesser extent, sells them through their retail distribution channels.
These kits typically include a small, electronic blood glucose monitor, testing
strips, lancets for drawing a drop of blood and our carrying case, customized
with the manufacturer’s logo and designed to fit and secure the glucose
monitor, testing strips, and lancets in separate straps, pouches, and holders.
As the kits and technology change, our carrying case designs change to
accommodate the changes in size, shape and layout of the electronic monitoring
device, strips and lancet. For our fiscal year ended September 30, 2013 (“<u>Fiscal
2013</u>”), our Diabetic Products accounted for approximately 78% of our total
net sales.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
</tr>
</table>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<font style="font-size: 9.0pt">1</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<table border="1" width="100%">
<tr>
<td>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><i>Other Products</i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>We also sell carrying and
protective solutions to OEMs for a diverse array of other portable electronic
and other products (“<u>Other Products</u>”), including sporting and
recreational products, bar code scanners, smartphones, GPS and location
devices, tablets, and firearms, on a made-to-order basis that are customized to
fit the products sold by our OEM customers. Our selling prices for these products
also vary across a broad range, depending on the size and nature of the product
for which we design and sell the carry solution. For Fiscal 2013, our Other
Products accounted for approximately 22% of our total net sales.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><i>Product Development</i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>In our OEM business, the product
life cycle in distributing and selling our technology solutions to our OEM
customers is as described below. We typically receive requests to submit
product designs in connection with a customer’s introduction and rollout to market
of a new product that the customer has determined to accessorize and customize
with a carry solution. Our OEM customers furnish the desired functionality,
size and other basic specifications for the carrying solutions or other
product, including the OEM’s identifying logo imprint on the product. Our
design and production resources develop more detailed product specifications
and design options for our customer’s evaluation. We then furnish the customer
with product samples. Working with our suppliers and the customer, samples are
modified and refined. Once approved for commercial introduction and order by
our customer, we work with our suppliers to ensure conformity of commercial
production to the definitive product samples and specifications. Manufacture
and delivery of products in production quantities are coordinated with the
customer’s manufacturing and shipment schedules so that our carry solution
products are available with the customer’s product (and included “in box,” as
the case may be) prior to shipment and sale, or to a lesser extent sold by our
customer through its retail distribution channels.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>Company Information</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Our principal executive offices are
located at 477 Rosemary Avenue, Suite 219, West Palm Beach, Florida 33401, and
our telephone number is (561) 465-0030.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
</td>
</tr>
</table>
<p align="center"><font style="font-size: 9.0pt" face="Times New Roman,serif">2</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='mso-style-name:"Left Bold Head";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman","serif";font-weight:bold;'> </p>
<table class=MsoNormalTable border=0 cellpadding=0 width="100%"
style='border-collapse:collapse'>
<tr style='page-break-inside:avoid'>
<td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center;
page-break-after:avoid'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center;
page-break-after:avoid'><b>The
Offering</b></p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'>On June 28, 2013, August 7, 2013 and August 14, 2013, the
Company completed private placements (the “<u>Private Placements</u>”) of a
total of 648,846 shares of Convertible Preferred Stock and Warrants to purchase
648,846 shares of common stock to accredited investors (the “<u>Investors</u>”).</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'>The total purchase price paid by the Investors for each
share of Convertible Preferred Stock and Warrant purchased was $1.965,
consisting of (i) fair values ranging from $1.105 to $1.145 in respect of the
Convertible Preferred Stock, plus (ii) fair values ranging from $0.82 to $0.86
in respect of the Warrants. The Warrants have an initial exercise price of
$1.84 per share, subject to adjustment upon the occurrence of certain customary
events. The Warrants are exercisable at any time on or after January 1, 2014
(the “<u>Initial Exercise Date</u>”) and terminate on the 10-year anniversary
of the Initial Exercise Date. Each share of Convertible Preferred Stock is
convertible into one share of our common stock at an initial conversion price
of $1.84 per share, subject to adjustment upon the occurrence of certain
customary events (the “<u>Conversion Price</u>”). At the initial Conversion
Price, the total of 648,846 shares of Convertible Preferred Stock issued in the
Private Placements are convertible into an aggregate of 692,919 shares of
Common Stock.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'>We received gross proceeds of approximately $1,275,000 from
the Private Placements, which we have used and will use for general corporate
purposes, including working capital and in connection with potential
acquisition targets that would be complementary to our existing business and
allow us to further leverage our operating infrastructure, if any are
identified and acquired. We filed the registration statement of which this
prospectus is a part to fulfill certain of our contractual obligations under the
registration rights agreements we entered into with the Investors.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'>As of March 17, 2014, there were 8,195,808 shares of our
common stock outstanding (6,289,989 shares held by non-affiliates). Up to 1,341,765
shares are offered hereby. If all 1,341,765 shares offered by the selling
stockholders hereby were issued and outstanding as of the date hereof, such
shares would represent approximately 16.4% of our total common stock
outstanding, or 21.3% of total common stock outstanding held by non-affiliates,
as adjusted, as of the date hereof. </p>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="50%" valign=top style='border-left:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
</td>
<td width="50%" valign=top style='border-right:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="50%" valign=top style='border-left:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<font size="2" face="Times New Roman,serif">Securities Offered</font></td>
<td width="50%" valign=top style='border-right:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="50%" valign=top style='border-left:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
</td>
<td width="50%" valign=top style='border-right:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="50%" valign=top style='border-left:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'><i>Common stock to be offered
by the selling stockholder</i></p>
</td>
<td width="50%" valign=top style='border-right:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>1,341,765 shares of common
stock, par value $0.01 per share.</p>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="50%" valign=top style='border-left:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'><i>Common stock outstanding
prior to this offering</i></p>
</td>
<td width="50%" valign=top style='border-right:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>8,195,808 shares</p>
</td>
</tr>
<tr style='page-break-inside:avoid;height:65.25pt'>
<td width="50%" valign=top style='border-left:1px solid #000000; border-bottom:1px solid #000000; height:65.25pt; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'><i>Common stock to be
outstanding after giving effect to the issuance of <u>1,341,765</u>
upon the conversion of the Convertible Preferred Stock and the exercise of
the Warrants</i></p>
</td>
<td width="50%" valign=top style='border-right:1px solid #000000; border-bottom:1px solid #000000; height:65.25pt; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>9,537,573 shares</p>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="50%" valign=top style='border-left:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'><i>Use of Proceeds</i></p>
</td>
<td width="50%" valign=top style='border-right:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>We will not receive any
proceeds from the sale of shares of our common stock by the selling
stockholders. However, we will receive payment in cash upon any exercise of
the warrants, and any proceeds we receive will be used for working capital
and general corporate purposes. See “Use of Proceeds.”</p>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="50%" valign=top style='border-left:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'><i>Risk factors</i></p>
</td>
<td width="50%" valign=top style='border-right:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>This investment involves a
high degree of risk. See “Risk Factors” for a discussion of factors you
should consider carefully before making an investment decision.</p>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="50%" valign=top style='border-left:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'><i>NASDAQ ticker symbol</i></p>
</td>
<td width="50%" valign=top style='border-right:1px solid #000000; border-bottom:1px solid #000000; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>FORD</p>
</td>
</tr>
</table>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<font style="font-size: 9.0pt">3</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
</div>
<p style="page-break-before:always"> </p>
<div style='page:WordSection5;'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'><a name="_Toc378154260"> </a></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif"><a name="Risk_Factors_">Risk Factors</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><i>Investing in our common stock
involves a high degree of risk. You should carefully consider the following
risk factors and those set forth in our most recent Annual Report on Form 10-K (including
our consolidated financial statements and the related notes thereto) on file
with the SEC, which are incorporated by reference into this prospectus, as well
as the other information in this prospectus or in any accompanying prospectus
supplement, before deciding whether to purchase shares of our common stock. Any
of these risks, either alone or taken together, as well as other risks and
uncertainties not known to us or that we believe to be immaterial, could harm
our financial condition, results of operations or cash flows. This prospectus,
and any documents that we may incorporate by reference into this prospectus,
may contain forward-looking statements that involve risks and uncertainties.
Our operating results could differ materially from those anticipated in these
forward-looking statements as a result of certain risk factors, including the
risks we face as described below and elsewhere in this prospectus. We cannot
assure you of a profit or protect you against a loss on the shares of our
common stock that you purchase in our Company.</i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center;
page-break-after:avoid'><b>Risks
Related to the Offering</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b><i>Sales of shares issuing in this offering may cause the
market price of our shares to decline.</i></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b><i> </i></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>On June 28,
2013, August 7, 2013 and August 14, 2013, the Company completed Private
Placements of a total of 648,846 shares of Convertible Preferred Stock and
Warrants to purchase 648,846 shares of common stock to the Investors. We have
agreed to register with the SEC the shares of common stock underlying the
Securities issued in the Private Placements for resale. The registration statement
of which this prospectus forms a part has been filed to satisfy this
obligation. Upon the effectiveness of the registration statement, an aggregate
of 1,341,765 shares of common stock issuable upon the conversion of the
Convertible Preferred Stock and issuable upon exercise of the Warrants are
expected to be freely tradable in the open market. The sale of a significant
amount of these shares of common stock in the open market, or the perception
that these sales may occur, could cause the market price of our common stock to
decline or become highly volatile.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>4</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif">
<a name="Cautionary_Note_Regarding_Forward-Looking_Statements_">Cautionary Note Regarding
Forward-Looking Statements</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>The SEC encourages companies to
disclose forward-looking information so that investors can better understand a
company’s future prospects and make informed investment decisions. This
prospectus contains such “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements may be made
directly in this prospectus, and they may also be made a part of this
prospectus by reference to other documents filed with the SEC, which is known
as “incorporation by reference.”</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>These “forward-looking statements”
are not based on historical fact and involve assessments of certain risks,
developments, and uncertainties in our business looking to the future. Such
forward looking statements can be identified by the use of forward-looking
terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “estimate,”
“intend,” “continue,” or “believe,” or the negatives or other variations of
these terms or comparable terminology. Forward-looking statements may include
projections, forecasts, or estimates of future performance and developments.
Forward-looking statements contained in this prospectus are based upon
assumptions and assessments that we believe to be reasonable as of the date of
this prospectus. Whether those assumptions and assessments will be realized
will be determined by future factors, developments, and events, which are
difficult to predict and may be beyond our control. Actual results, factors,
developments, and events may differ materially from those we assumed and
assessed. Risks, uncertainties, contingencies, and developments, including
those identified under the heading “Risk Factors” beginning on page 4, could
cause our future operating results to differ materially from those set forth in
any forward looking statement. There can be no assurance that any such forward
looking statement, projection, forecast or estimate contained can be realized
or that actual returns, results, or business prospects will not differ
materially from those set forth in any forward looking statement.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Given these uncertainties, readers
are cautioned not to place undue reliance on such forward-looking statements.
The Company disclaims any obligation to update any such factors or to publicly
announce the results of any revisions to any of the forward-looking statements
contained or incorporated by reference herein to reflect future results, events
or developments.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;'>
<font face="Times New Roman,serif"><a name="Use_of_Proceeds">Use of Proceeds</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>This prospectus relates to shares
of our common stock that may be offered and sold from time to time by the
selling stockholders. We will not receive any proceeds from the sale of shares
of our common stock by the selling stockholders. However, we will receive
payment in cash upon any exercise of the warrants, and any proceeds we receive
will be used for working capital and general corporate purposes.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>The selling stockholders will pay
any underwriting discounts and commissions and expenses incurred by the selling
stockholders for brokerage, accounting, tax or legal services or any other
expenses incurred by the selling stockholders in disposing of the shares. We
will bear the costs, fees and expenses incurred to effect the registration of
the shares covered by this prospectus, including all registration and filing
fees, NASDAQ Capital Market listing fees and fees and expenses of counsel and
our independent registered public accounting firm.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>5</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;'>
<font face="Times New Roman,serif">
<a name="Market_for_Common_Equity_and_Related_Stockholder_Matters_">Market for Common Equity and Related Stockholder Matters</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>The principal market for our common
stock is the NASDAQ Capital Market. Our common stock is traded under the symbol
“FORD.” The following table sets forth the high and low sales prices for our
common stock on the NASDAQ Capital Market for the periods indicated.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="97%"
style='width:97.86%;border-collapse:collapse'>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td colspan=4 valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b>NASDAQ Capital market</b></p>
</div>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b>High</b></p>
</div>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b>Low</b></p>
</div>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b><u>Fiscal 2012</u></b></p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>1st Quarter</p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 2.24</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.55</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>2nd Quarter</p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 3.24</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.65</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>3rd Quarter</p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 2.83</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.68</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>4th Quarter</p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.83</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.02</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b><u>Fiscal 2013</u></b></p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>1st Quarter</p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.50</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.08</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>2nd Quarter</p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 2.17</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.43</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>3rd Quarter</p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 2.14</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.70</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>4th Quarter</p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.99</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.66</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b><u>Fiscal 2014</u></b></p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>1st Quarter </p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.89</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.41</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td width="48%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>2nd Quarter (through March 17, 2014)</p>
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.99</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td width="13%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 1.52</p>
</td>
<td width="11%" valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>As of December 5, 2013, there were
approximately 110 holders of record of our common stock, excluding approximately
6,939 beneficial holders of common stock whose shares are held in street name. On
March 21, 2014, the last reported sale price for our common stock as reported
on the NASDAQ SmallCap Market was $1.54 per share.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;'>
<font face="Times New Roman,serif"><a name="Dividend_Policy">Dividend Policy</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>We have not paid any cash dividends
on our common stock since 1987 and do not plan to pay cash dividends in the
foreseeable future. The payment of dividends in the future, if any, will depend
upon our results of operations, as well as our short-term and long-term cash
availability, working capital, working capital needs, and other factors, as
determined by our Board of Directors. However, on June 28, 2013, August 7, 2013
and August 14, 2013, we completed the Private Placements of the Securities. The
first dividend payment with respect to the Convertible Preferred Stock was made
on September 30, 2013.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>Currently,
except as may be provided by applicable laws, there are no contractual or other
restrictions on our ability to pay dividends on our common stock if we were to decide
to declare and pay them.</p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif"><a name="Principal_Stockholders">Principal
Stockholders</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Set forth below is information, as
of March 17, 2014, with respect to the beneficial ownership of our common stock
by (i) each director, (ii) each shareholder who, based on publicly available
records, is known by the Company to own beneficially more than five percent
(5%) of our common stock and (iii) all our current directors and executive
officers, as a group (eight persons). Unless otherwise stated, the address of
each person in the table below is c/o Forward Industries, Inc., 477 Rosemary
Ave., Suite 219, West Palm Beach, FL 33401.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>6</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<table class=MsoNormalTable border=0 cellpadding=0
style='margin-left:.35pt;border-collapse:collapse' width="95%">
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>Identity of Beneficial Owner</b></p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Number of Shares
<br>
of Common Stock</b></p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Percent of Class
(a)</b></p>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><i>Directors and Executive Officers:</i></p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="2">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Robert Garrett Jr. (b)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>401,157</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> 4.7%</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>James O. McKenna III (c)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>176,953</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> 2.1%</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Frank LaGrange (Grange) Johnson (d) (e) (f)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>202,855</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>2.4%</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Owen P.J. King (d) (f)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>45,000</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>*</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>John F. Chiste (d) (f)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>45,000</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>*</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Timothy Gordon (f) (g) (h)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>113,427</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>1.4%</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Howard Morgan (f) (h)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>25,000</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>*</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Terence Wise (f) (h) (i)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>1,608,541</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>19.6%</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><i>5% or Greater Shareholders:</i></p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Jenny P. Yu (j)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>444,217</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>5.4%</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>BlackRock, Inc. (k)</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>420,476</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>5.1%</p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid;height:7.65pt'>
<td valign=bottom style='height:7.65pt; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 8.0pt"> </font></p>
</td>
<td valign=bottom style='height:7.65pt; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 8.0pt"> </font></p>
</td>
<td valign=bottom style='height:7.65pt; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='height:7.65pt; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 8.0pt"> </font></p>
</td>
<td valign=bottom style='height:7.65pt; padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
<tr style='page-break-inside:avoid'>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>All directors and executive officers <br>
as a group (8 persons) (l)</b></p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>2,617,933</b></p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>29.8%</b></p>
</td>
<td valign=bottom style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
</td>
</tr>
</table>
<p style='mso-style-name:"Left Text";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:9.0pt;margin-right:0in;margin-bottom:9.0pt;
margin-left:0in'>*Less than 1 percent</p>
<table border="0" width="100%">
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(a)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>As of March 17,
2014, there were 8,195,808 shares of common stock outstanding.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(b)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Includes (i)
24,492 shares of restricted common stock previously granted under Forward’s
equity plans, (ii) 293,332 shares of common stock subject to options that are
currently exercisable or will be exercisable within 60 days of March 17, 2014
and (iii) 83,333 shares of restricted common stock that vest through November
8, 2015.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(c)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Includes (i) 1,425
shares of common stock held by Mr. McKenna’s spouse, as separate property, (ii)
38,028 shares of restricted common stock previously granted under Forward’s equity
plans, (iii) 62,000 shares of common stock subject to options exercisable within
60 days of March 17, 2014 and (iv) 70,000 shares of restricted common stock
that vest through November 8, 2015.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(d)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Includes 30,000 shares
of common stock subject to options exercisable within 60 days of March 17, 2014.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(e)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Includes (i) 81,520
shares of common stock issuable upon the conversion of 76,335 shares of
Convertible Preferred Stock owned by Mr. Johnson and (ii) 76,335 shares of
common stock issuable upon the exercise of the Warrant held by Mr. Johnson.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(f)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Includes 15,000
shares of restricted common stock that vest over one year beginning on December
8, 2013.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(g)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Includes (i) 40,760
shares of common stock issuable upon the conversion of 38,167 shares of
Convertible Preferred Stock owned by Mr. Gordon and (ii) 38,167 shares of
common stock issuable upon the exercise of the Warrant held by Mr. Gordon and
(iii) 3,000 shares of common stock held in trust for Mr. Gordon’s minor children.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(h)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Includes 10,000
shares of common stock subject to options exercisable within 60 days of March
17, 2014.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(i)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Derived from an
amendment to Schedule 13D, filed with the SEC on March 18, 2013. The address
of Mr. Wise is Brambledown, 8 Valley Way, Gerrards Cross, Buckinghamshire SL9
7PN, United Kingdom.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(j)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Derived from an
amended to Schedule 13D filed with the SEC on May 2, 2013. The address of Ms.
Yu is 9255 Doheny Road Apt. 2905, West Hollywood, CA 90069.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(k)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Derived from an
amendment to Schedule 13G/A filed with the SEC on September 10, 2013. The
address of BlackRock, Inc. is 40 East 52nd Street, New York, NY 10022.</p>
</td>
</tr>
<tr>
<td valign="top" width="4%"><font size="2" face="Times New Roman,serif">
(l)</font></td>
<td width="95%" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:9.0pt'>Includes (i) 475,332
shares of common stock subject to options that are either currently exercisable
or that are expected to be exercisable within 60 days of March 17, 2014, (ii) 122,280
shares of common stock issuable upon the conversion of 114,502 shares of
Convertible Preferred Stock and (iii) 114,502 shares of common stock issuable
upon the conversion of Warrants.</p>
</td>
</tr>
</table>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>7</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif"><a name="The_Selling_Stockholders_">The Selling Stockholders</a></font></h1>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'>This prospectus covers an aggregate of 1,341,765 shares of
our common stock, consisting of (i) 692,919 shares issuable upon the conversion
of the Convertible Preferred Stock and (ii) 648,846 shares issuable upon the
exercise of the Warrants. The foregoing outstanding shares of Convertible
Preferred Stock and Warrants were issued under securities purchase agreements
in the Private Placements.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'>We are registering the shares of common stock in
accordance with the terms of the registration rights agreements we entered into
with the selling stockholders as part of the Private Placements in order to
permit the selling stockholders to offer the shares of common stock for resale
from time to time. The selling stockholders may from time to time offer and sell
pursuant to this prospectus any or all of the below listed shares of common
stock owned by them. The registration of these shares does not require that any
of the shares be offered or sold by the selling stockholders. The selling
stockholders may from time to time offer and sell all or a portion of their
shares in the over-the-counter market, in negotiated transactions, or
otherwise, at prices then prevailing or related to the then current market
price or at negotiated prices.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'>The registered shares may be sold directly or through
brokers or dealers, or in a distribution by one or more underwriters on a firm
commitment or best efforts basis. To the extent required, the names of any
agent or broker-dealer and applicable commissions or discounts and any other required
information with respect to any particular offer will be set forth in a
prospectus supplement. Please see “Plan of Distribution.” The selling
stockholders and any agents or broker-dealers that participate with the selling
stockholders in the distribution of registered shares may be deemed to be
“underwriters” within the meaning of the Securities Act, and any commissions
received by them and any profit on the resale of the registered shares may be
deemed to be underwriting commissions or discounts under the Securities Act.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>The following table sets
forth:</p>
<blockquote>
<ul>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>the names of the selling stockholders;</p>
</li>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>the number of shares of common stock beneficially owned by each
selling stockholder that may be offered for the account of such selling
stockholder under this prospectus; and</p></li>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>the number of shares of common stock beneficially owned by each
selling stockholder upon completion of this offering. Because the selling
stockholders are not required to sell any of the shares being registered under
this prospectus, the following table assumes the selling stockholders will sell
all of the shares listed in this prospectus.</p></li>
</ul>
</blockquote>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'>Such information was obtained from the selling stockholders.
Unless otherwise stated, none of the selling stockholders or any of their
respective affiliates has held a position or office, or had any other material
relationship, with us. The term “selling stockholder” includes each entity
listed below and its transferees, pledgees, donees or other successors.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>8</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<table class=MsoNormalTable border=0 cellpadding=0
style='border-collapse:collapse' width="100%">
<tr>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 9.0pt"> </font></b></p>
</td>
<td colspan=2 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 9.0pt">Shares Beneficially Owned</font></b></p>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b><font style="font-size: 9.0pt">Before Offering</font></b></p>
</div>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b><font style="font-size: 9.0pt"> </font></b></p>
</div>
</td>
<td colspan=3 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 9.0pt">Shares Beneficially Owned</font></b></p>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b><font style="font-size: 9.0pt">After Offering</font></b></p>
</div>
</td>
</tr>
<tr>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";border:none;padding:0in'><b><font style="font-size: 9.0pt">Selling Stockholder</font></b></p>
</div>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b><font style="font-size: 9.0pt">Number</font></b></p>
</div>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b><font style="font-size: 9.0pt">Percent</font></b></p>
</div>
</td>
<td colspan=2 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 9.0pt">Shares to be Sold
<br>
in the Offering</font></b></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b><font style="font-size: 9.0pt">Number</font></b></p>
</div>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;border:none;
padding:0in'><b><font style="font-size: 9.0pt">Percent</font></b></p>
</div>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Grange Johnson (a)</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">202,855</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">2.4%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">157,855</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">45,000</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Timothy Gordon (b)</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">113,427</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.4%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">78,927</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">34,500</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Cibelli Management, LLC</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">26,308</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">26,308</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Groservice Acquisition Corp.</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">157,855</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.9%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">157,855</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Robert A. Guida</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.3%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Mario Rodriguez</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.3%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Jaime Lester</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">157,855</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.9%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">157,855</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Allan S. Gordon (c)</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">78,926</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.0%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">78,926</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Julie Richardson</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.3%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Michael Spain</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.3%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Joseph E. Reece</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">157,855</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.9%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">157,855</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">Robert Neal</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">1.3%</font></p>
</td>
<td colspan=2 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">105,237</font></p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">0</font></p>
</td>
<td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">*</font></p>
</td>
</tr>
</table>
<p style='mso-style-name:"Table Note Divider";margin-top:3.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman","serif";'>___________</p>
<p style='mso-style-name:"Left Text";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;font-size:10.0pt;font-family:"Times New Roman","serif";'>*Less than 1 percent</p>
<table border="0" width="100%">
<tr>
<td valign="top"><font size="2">(a) </font></td>
<td width="1822" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>Includes (i) 30,000 shares of common stock
subject to options exercisable within 60 days of March 17, 2014, (ii) 81,520
shares of common stock issuable upon the conversion of 76,335 shares of
Convertible Preferred Stock owned by Mr. Johnson, (iii) 76,335 shares of common
stock issuable upon the exercise of the Warrant held by Mr. Johnson. Mr.
Johnson has been Chairman of our Board of Directors since August 2010 and (iv)
15,000 shares of restricted stock that vest over one year beginning December 8,
2013.</p>
</td>
</tr>
<tr>
<td valign="top"><font size="2">(b)</font></td>
<td width="1822" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>Includes (i) 40,760 shares of common stock issuable upon the conversion of 38,167 shares of Convertible Preferred Stock
owned by Mr. Gordon, (ii) 38,167 shares of common stock issuable upon the
exercise of the Warrant held by Mr. Gordon, (iii) 3,000 shares of common stock
held in trust for Mr. Gordon’s minor children, (iv) 10,000 shares of common
stock subject to options exercisable within 60 days of March 17, 2014 and (v)
15,000 shares of restricted stock that vest over one year beginning December 8,
2013. Mr. Gordon has been a member of the Board of Directors since April 2012. Mr.
Gordon disclaims beneficial ownership of all securities of the Company owned by
Allan S. Gordon, his father.</p>
</td>
</tr>
<tr>
<td valign="top"><font size="2">(c)</font></td>
<td width="1822" valign="top">
<p style='mso-style-name:"Table Note";margin-top:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>Allan S. Gordon is the father of Timothy
Gordon, a member of our Board of Directors. Allan S. Gordon disclaims
beneficial ownership of all securities of the Company owned by Timothy Gordon.</p>
</td>
</tr>
</table>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>9</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;'>
<font face="Times New Roman,serif">
<a name="DESCRIPTION_OF_THE_PRIVATE_PLACEMENTS_">DESCRIPTION OF THE PRIVATE PLACEMENTS</a></font></h1>
<p style='mso-style-name:"Left Bold Head";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman","serif";font-weight:bold;'>General</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
27.35pt'>On June 28, 2013, the Company completed the sale of <a name="_DV_C4">(i)
</a>381,674 shares of its newly authorized Convertible Preferred Stock and (ii)
Warrants to purchase a total of<a name="_DV_M17"></a> 381,674 shares of the
Company’s common stock to accredited investors in a private placement pursuant
to the terms of securities purchase agreements, dated June 28, 2013, by and
between the Company and each Investor. The June 28, 2013 private placement included
purchases of Securities by Grange Johnson and Timothy Gordon, directors of the
Company, who, in the aggregate, purchased 114,502 shares of Convertible
Preferred Stock and Warrants.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
27.35pt'>On August 7, 2013, the Company completed the sale of (i) an additional
216,282 shares of its Convertible Preferred Stock and (ii) Warrants to purchase
a total of 216,282 shares of the Company’s Common Stock to accredited investors
in a private placement pursuant to the terms of a securities purchase
agreement, dated August 7, 2013, by and between the Company and such accredited
investors.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
27.35pt'>On August 14, 2013, the Company completed the sale of (i) an
additional 50,890 shares of its Convertible Preferred Stock and (ii) Warrants
to purchase a total of 50,890 shares of the Company’s Common Stock to
accredited investors in a private placement pursuant to the terms of a
securities purchase agreement, dated August 14, 2013, by and between the
Company and such accredited investors.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>The total aggregate purchase price paid by accredited investors via the
June 28, 2013, August 7, 2013 and August 14, 2013 private placements for each
share of Convertible Preferred Stock and Warrant was $1.965. The June 28, 2013,
August 7, 2013 and August 14, 2013 Private Placements resulted in gross proceeds
of approximately $<a name="_DV_C8">1,275,000</a><a name="_DV_M18"></a> <a
name="_DV_M19"></a>to the Company. The Company has sold a total of 648,846
shares of Convertible Preferred Stock and Warrants to purchase 648,846 shares
of Common Stock through these Private Placements. The Company may sell
additional shares of Convertible Preferred Stock, together with related
Warrants, in one or more subsequent transactions.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>The total purchase price paid by the Investors for each share of
Convertible Preferred Stock and Warrant purchased in the closings was $1.965,
consisting of (i) fair values ranging from $1.105 to $1.145 in respect of the
Convertible Preferred Stock, plus (ii) fair values ranging from $0.82 to $0.86
in respect of the Warrant. The Warrants have an initial exercise price of $1.84
per share, subject to adjustment upon the occurrence of certain customary
events. The Warrants are exercisable at any time on or after January 1, 2014 and
terminate on the 10-year anniversary of the Initial Exercise Date. Each share
of Convertible Preferred Stock is convertible into one share of common stock at
an initial conversion price of $1.84 per share, subject to adjustment upon the
occurrence of certain customary events. At the initial Conversion Price, the
total of 648,846 shares of Convertible Preferred Stock issued in the Private
Placement as of the date of the Closing are convertible into an aggregate of
692,919 shares of our common stock. The proceeds from these Private Placements
of $1,275,000 have been allocated to the Convertible Preferred Stock and the
Warrants based upon their fair values assigned (net of issuance costs of
approximately $69,000) of approximately $693,000 and $513,000, respectively, as
of the dates of issuance.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>As of December 31, 2013 and September 30, 2013, the carrying value of
the Convertible Preferred Stock was approximately $746,000 and $717,000,
respectively, and is included on the Company’s <a name="_DV_M20"></a><a
name="_DV_M21"></a><a name="_DV_M29"></a><a name="_DV_M30"></a>consolidated
balance sheets as temporary equity. The change in the carrying value, or
accretion, of the Convertible Preferred Stock from the issuance dates to December
31, 2013 is classified as a preferred stock dividend in the amount of
approximately $24,000 and is included as a component of “Net income applicable
to common equity” in calculating income per share, which was approximately
$30,000 for the three month period ended December 31, 2013. As a result of the
Convertible Preferred Stock containing a beneficial conversion feature, whereby
the accounting conversion price is lower than the fair value of our common
stock, the Company recorded a preferred stock dividend in the amount of
approximately $508,000 for the fiscal year ended September 30, 2013. This
amount has also been recorded as an increase to additional paid in capital.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>10</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>Dividends on the Convertible Preferred Stock are payable, on a
cumulative basis, in cash, at the rate per annum of 6% of the Liquidation
Preference (as defined below) and are payable quarterly, in arrears, on each
March 31, June 30, September 30 and December 31, commencing on September 30,
2013. The Company is prohibited from paying any dividend with respect to shares
of our common stock or other junior securities in any quarter unless full
dividends are paid on the Convertible Preferred Stock in such quarter.
Dividends on the Convertible Preferred Stock totaled approximately $19,000 for the
three months ended December 31, 2013. These dividends, in addition to the
accretion, totaled $49,000 for the three months ended December 31, 2013.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>In the event of a liquidation (or deemed liquidation, as described
below) of the Company, the holders of the Convertible Preferred Stock will
receive in preference to the holders of Common Stock and any junior securities
of the Company an amount (the “<u>Liquidation Preference</u>”) equal to (i)
$1.965 (the “<u>Original Issue Price</u>”) per each outstanding share of Convertible
Preferred Stock (subject to adjustment upon the occurrence of certain customary
events), plus (ii) any accrued but unpaid dividends. A Change of Control of the
Company (as defined in the Certificate of Amendment of our Certificate of
Incorporation) will be treated as a liquidation at the option of the holders of
a majority of the Convertible Preferred Stock; provided that the amount paid to
holders of Convertible Preferred Stock in such event will be equal to 101% of
the Original Issue Price, plus accrued but unpaid dividends.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>Each share of Convertible Preferred Stock is convertible at any time,
at the option of the holder, into shares of our common stock at the then
applicable Conversion Price. In addition, upon the consent of 80% of the
holders of the Convertible Preferred Stock, the Convertible Preferred Stock
automatically will be converted to shares of our common stock at the
then-applicable Conversion Price.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>On or after June 28, 2018, the Company may, at its option and upon at
least 30 days prior written notice to the holders of the Convertible Preferred
Stock, redeem all or any portion of the outstanding Convertible Preferred Stock
in cash at a redemption price equal to the full Liquidation Preference as of
the redemption date. In addition, at any time on or after June 28, 2023, each
holder of the Convertible Preferred Stock will have the right to require the
Company to redeem (provided that funds are legally available to do so) all or
any portion of such holder’s outstanding Convertible Preferred Stock at a
redemption price equal to the full Liquidation Preference of such shares of
Convertible Preferred Stock as of the redemption date.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>The Convertible Preferred Stock will vote together with our common
stock on an as-converted basis on all matters except as required by law. In
addition, for so long as 50% of the shares of Convertible Preferred Stock
remains outstanding, without the approval of the holders of a majority of the
Convertible Preferred Stock, voting as a separate class, the Company may not:
(i) authorize or issue any equity security senior to the Convertible Preferred
Stock; (ii) declare or pay any dividends on our common stock or any series of
preferred stock that ranks junior to the Convertible Preferred Stock; (iii)
increase or decrease the total number of authorized shares of Convertible
Preferred Stock; (iv) alter or change the rights, preferences or privileges of
the Convertible Preferred Stock so as to affect materially and adversely the
Convertible Preferred Stock; or (v) increase the authorized capitalization of
the Company, or otherwise amend its certificate of incorporation or bylaws in a
manner which adversely affects the rights or preferences of the Convertible
Preferred Stock. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>As of December 31, 2013 and September 30, 2013, the liability
associated with the Warrants was approximately $412,000 and $464,000 (net of
issuance costs) and is included in the “Accrued expenses and other current
liabilities” line of the Company’s consolidated balance sheets.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt;page-break-after:avoid'>The fair value of the Warrants was determined
using a Black-Scholes closed-form call option pricing model, which is
considered a level 3 instrument under the fair value hierarchy. The fair value
of the Warrants were estimated using the following assumptions as of December
31, 2013 and September 30, 2013:</p>
<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="94%"
style='width:94.1%;margin-left:27.9pt;border-collapse:collapse'>
<tr>
<td width="49%" valign=top style='width:49.5%;padding:0in 5.4pt 0in 5.4pt'></td>
<td width="26%" valign=top style='width:26.26%;padding:0in 5.4pt 0in 5.4pt'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid;
border:none;padding:0in'><b>December 31, 2013</b></p>
</div>
</td>
<td width="24%" valign=top style='width:24.24%;padding:0in 0in 0in 0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid;
border:none;padding:0in'><b>September 30, 2013</b></p>
</div>
</td>
</tr>
<tr>
<td width="49%" valign=top style='width:49.5%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:justify;page-break-after:avoid'>Risk-free
interest rate</p>
</td>
<td width="26%" valign=top style='width:26.26%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid'>3.0%</p>
</td>
<td width="24%" valign=top style='width:24.24%;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid'>2.6%</p>
</td>
</tr>
<tr>
<td width="49%" valign=top style='width:49.5%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:justify;page-break-after:avoid'>Dividend
yield</p>
</td>
<td width="26%" valign=top style='width:26.26%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid'>--</p>
</td>
<td width="24%" valign=top style='width:24.24%;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid'>--</p>
</td>
</tr>
<tr>
<td width="49%" valign=top style='width:49.5%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:justify;page-break-after:avoid'>Volatility</p>
</td>
<td width="26%" valign=top style='width:26.26%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid'>32.9%</p>
</td>
<td width="24%" valign=top style='width:24.24%;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid'>30.0%</p>
</td>
</tr>
<tr>
<td width="49%" valign=top style='width:49.5%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:justify'>Expected term (in years)</p>
</td>
<td width="26%" valign=top style='width:26.26%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right'>10.0</p>
</td>
<td width="24%" valign=top style='width:24.24%;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right'>10.3</p>
</td>
</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:31.7pt'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>11</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:31.7pt'>The change in the
fair value of the convertible preferred stock warrant liability for the three
months ended December 31, 2013 is summarized below: </p>
<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="80%"
style='width:80.62%;margin-left:27.9pt;border-collapse:collapse'>
<tr>
<td valign=top style='width:82%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:justify;page-break-after:avoid'>Balance
at September 30, 2013</p>
</td>
<td valign=top style='width:16%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid'>$493,123</p>
</td>
</tr>
<tr>
<td valign=top style='width:82%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:justify;page-break-after:avoid'>Decrease
in fair value</p>
</td>
<td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:16%;border-bottom:
1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:right;page-break-after:avoid'>(51,908)</p>
</td>
</tr>
<tr>
<td valign=top style='width:82%;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:justify'>Closing balance</p>
</td>
<td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:16%;border-bottom:
1.5pt double windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:right;
text-indent:-.25in;page-break-after:avoid'><b>$441,215</b></p>
</td>
</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in;text-align:justify;text-indent:31.7pt'>The following
table presents the Company’s fair value hierarchy for liabilities, consisting
of a warrant liability, measured at fair value and prior to issuance costs, on
a recurring basis at December 31, 2013 and September 30, 2013:</p>
<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="80%"
style='width:80.62%;margin-left:27.9pt;border-collapse:collapse'>
<tr>
<td width="46%" valign=top style='width:46.64%;padding:0in 5.4pt 0in 5.4pt'></td>
<td width="15%" valign=top style='width:15.16%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><u>Level 1</u></b></p>
</td>
<td width="12%" valign=top style='width:12.82%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><u>Level 2</u></b></p>
</td>
<td width="12%" valign=top style='width:12.82%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><u>Level 3</u></b></p>
</td>
<td width="12%" valign=top style='width:12.56%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><u>Total</u></b></p>
</td>
</tr>
<tr>
<td width="46%" valign=top style='width:46.64%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Warrant liability at December 31, 2013</p>
</td>
<td width="15%" valign=top style='width:15.16%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$ —</p>
</td>
<td width="12%" valign=top style='width:12.82%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$ —</p>
</td>
<td width="12%" valign=top style='width:12.82%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$441,215</p>
</td>
<td width="12%" valign=top style='width:12.56%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>$441,215</b></p>
</td>
</tr>
<tr>
<td width="46%" valign=top style='width:46.64%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>Warrant liability at September 30, 2013</p>
</td>
<td width="15%" valign=top style='width:15.16%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$ —</p>
</td>
<td width="12%" valign=top style='width:12.82%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$ —</p>
</td>
<td width="12%" valign=top style='width:12.82%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>$493,123</p>
</td>
<td width="12%" valign=top style='width:12.56%;padding:0in 5.4pt 0in 5.4pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b>$493,123</b></p>
</td>
</tr>
</table>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>12</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;'>
<font face="Times New Roman,serif"><a name="Plan_of_Distribution__">Plan of Distribution
</a> </font> </h1>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:10.0pt;font-family:"Times New Roman","serif";'>The common stock offered by this prospectus is being
offered by the selling stockholders. The common stock may be sold or
distributed from time to time by the selling stockholders directly to one or
more purchasers or through brokers, dealers, or underwriters who may act solely
as agents at market prices prevailing at the time of sale, at prices related to
the prevailing market prices, at negotiated prices, or at fixed prices, which
may be changed. The sale of the common stock offered by this prospectus may be
effected in one or more of the following methods:</p>
<blockquote>
<ul>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>ordinary brokers’ transactions;</p>
</li>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>transactions involving cross or block trades;</p>
</li>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>through brokers, dealers, or underwriters who may act solely as
agents;</p></li>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>“at the market” into an existing market for the common stock;</p>
</li>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>in other ways not involving market makers or established business
markets, including direct sales to purchasers or sales effected through agents;</p>
</li>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>in privately negotiated transactions; or</p>
</li>
<li>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:10.0pt;font-family:"Times New Roman","serif"'>any combination of the foregoing.</p>
</li>
</ul>
</blockquote>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>The selling
stockholders may, from time to time, pledge or grant a security interest in
some or all of the shares of common stock owned by them and, if they default in
the performance of their secured obligations, the pledgees or secured parties
may offer and sell the shares of common stock, from time to time, under this
prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or
other applicable provision of the Securities Act, amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest
as selling stockholders under this prospectus. The selling stockholders also
may transfer the shares of common stock in other circumstances, in which case
the transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>In connection
with the sale of our common stock or interests therein, the selling
stockholders may enter into hedging transactions with broker-dealers or other
financial institutions, which may in turn engage in short sales of the common
stock in the course of hedging the positions they assume. The selling
stockholders may also sell shares of our common stock short and deliver these
securities to close out their short positions, or loan or pledge the common
stock to broker-dealers that in turn may sell these securities. The selling
stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more
derivative securities which require the delivery to such broker-dealer or other
financial institution of shares offered by this prospectus, which shares such
broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>The aggregate
proceeds to the selling stockholders from the sale of the common stock offered
by them will be the purchase price of the common stock less discounts or
commissions, if any. Each of the selling stockholders reserves the right to
accept and, together with their agents from time to time, to reject, in whole
or in part, any proposed purchase of common stock to be made directly or
through agents. We will not receive any of the proceeds from this offering. However,
we will receive payment in cash upon any exercise of the warrants, and any
proceeds we receive will be used for general corporate purposes, including
working capital and in connection with potential acquisition targets that would
be complementary to our existing business and allow us to further leverage our
operating infrastructure, if any are identified and acquired.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>The selling
stockholders also may resell all or a portion of the shares in open market
transactions in reliance upon Rule 144 under the Securities Act, provided that
they meet the criteria and conform to the requirements of that rule.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>13</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>The selling
stockholders and any underwriters, broker-dealers or agents that participate in
the sale of the common stock or interests therein may be “underwriters” within
the meaning of Section 2(11) of the Securities Act. Any discounts, commissions,
concessions or profit they earn on any resale of the shares may be underwriting
discounts and commissions under the Securities Act. Selling stockholders who
are “underwriters” within the meaning of Section 2(11) of the Securities Act
will be subject to the prospectus delivery requirements of the Securities Act.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>To the extent
required, the shares of our common stock to be sold, the names of the selling
stockholders, the respective purchase prices and public offering prices, the
names of any agents, dealers or underwriters and any applicable commissions or
discounts with respect to a particular offer will be set forth in an
accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement that includes this prospectus.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>In order to
comply with the securities laws of certain states, if applicable, the shares of
common stock may be sold in these jurisdictions only through registered or
licensed brokers or dealers. In addition, in certain states the shares of common
stock may not be sold unless they have been registered or qualified for sale or
an exemption from the registration or qualification requirements is available
and complied with.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>We have
advised the selling stockholders that the anti-manipulation rules of Regulation
M under the Securities Exchange Act of 1934, as amended (the “<u>Exchange Act</u>”),
may apply to sales of shares in the market and to the activities of the selling
stockholders and their affiliates. In addition, to the extent applicable we
will make copies of this prospectus (as it may be supplemented or amended from
time to time) available to the selling stockholders for the purpose of
satisfying the prospectus delivery requirements of the Securities Act. The
selling stockholders may indemnify any broker-dealer that participates in
transactions involving the sale of the shares against certain liabilities,
including liabilities arising under the Securities Act.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-indent:.5in'>We have agreed
to indemnify the selling stockholders against certain liabilities, including
liabilities under the Securities Act, the Exchange Act and other federal or state
securities laws, relating to the registration of the shares offered by this
prospectus.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>We have agreed with the selling
stockholders to keep the registration statement of which this prospectus
constitutes a part effective until the earlier of (i) such time as all of the
shares of common stock covered by the registration statement have been sold
publicly or (ii) such time as all of the shares of common stock covered by the
registration statement may be sold by the selling stockholders during a
three-month period without registration pursuant to Rule 144 or another similar
exemption under the Securities Act.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>14</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif"><a name="Description_of_Capital_Stock_">Description of Capital Stock</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>The following description of our
capital stock is a summary and is subject to and qualified in its entirety by
the provisions of our Amended and Restated Certificate of Incorporation, as
amended (the “<u>Certificate of Incorporation</u>”), our Third Amended and
Restated By-Laws, as amended (the “<u>By-Laws</u>”), and the relevant
provisions of the law of the State of New York.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>General </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>We are authorized to issue up to
44,000,000 shares of capital stock, $0.01 par value, of which 40,000,000 may be
common stock and 4,000,000 may be preferred stock.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>Common Stock</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>As of March 17, 2014, there were 8,195,808
shares of our common stock issued and outstanding, held of record by approximately
110 holders of record. The holders of common stock are entitled to ratably
receive dividends, if any, as and when declared from time to time by our Board
of Directors out of funds legally available therefor, subject to the dividend
provisions applicable to holders of our preferred stock as described below. Upon
liquidation, dissolution or winding up of our affairs, the holders of common
stock will be entitled to participate ratably in our net assets available for
distribution to holders of common stock, subject to the liquidation provisions
applicable to holders of our preferred stock as described below. Our common
stock is not redeemable, has no subscription or conversion rights and does not
entitle the holder to any preemptive rights. In addition, the holders of our
common stock are not subject to any calls or assessments.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Each holder of our common stock is
entitled to one vote for each share of our common stock owned. Holders of our
common stock do not have cumulative voting rights. Shares of our common stock
are traded on the Nasdaq Capital Market under the symbol “FORD.”</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Our Certificate of Incorporation
provides that the number of directors shall be not less than three and not more
than seven.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Our By-Laws provide that special
meetings of the shareholders may be called at any time by (i) our President,
(ii) the Chairman of our Board of Directors, (iii) our Board of Directors
pursuant to a resolution adopted by a majority of our entire Board of Directors,
or (iv) qualified shareholders holding at least thirty percent (30%) of all the
votes entitled to be cast on any issue proposed to be considered at the special
meeting. A qualified shareholder is a person who has been a shareholder of Forward
for at least six months immediately preceding the request for a special
meeting.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>Preferred Stock</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>We may issue from time to time up
to 4,000,000 shares of preferred stock in one or more series, and in connection
with the creation of each such series, fix the number of shares of such series,
and the designations, relative rights, preferences, and limitations of such
series. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><i>Series A Participating Preferred Stock</i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif"; text-indent:0.5in; margin-left:0in; margin-right:0in; margin-top:0in'>On April 26, 2013, in connection
with our Board of Directors adopting a shareholder rights plan, we created a
new class of preferred stock designated as Series A Participating Preferred
Stock (the “<u>Series A Preferred</u>”), of which none is issued and
outstanding. On the same day, our Board of Directors declared a dividend
distribution of one right (a “<u>Right</u>”) for each outstanding share of our
common stock to shareholders of record at the close of business on May 6, 2013,
and for each share of common stock issued (including shares distributed from
the treasury) by the Company thereafter and prior to the Distribution Date (as
defined below). Each Right entitled the registered holder, subject to the terms
of the rights agreement entered into on April 26, 2013 between the Company and
American Stock Transfer & Trust Company, LLC, as rights agent (the “<u>Rights
Agreement</u>”), to purchase from the Company one one-thousandth of a share of
Series A Preferred, $0.01 par value per share, at an exercise price of $4.00
per one one-thousandth of a share of Series A Preferred, subject to adjustment.
Subject to certain exceptions specified in the Rights Agreement, the Rights
will separate from the common stock and become exercisable on the distribution
date (the “<u>Distribution Date</u>”), which will occur on the earlier of (i)
the 10th business day (or such later date as may be determined by the Board of
Directors) after the public announcement that an acquiring person (as further
described in the Rights Agreement) has acquired beneficial ownership of 20% or
more of the common stock then outstanding or (ii) the 10th business day (or
such later date as may be determined by the Board of Directors) after a person
or group announces a tender or exchange offer that would result in a person or
group of affiliated and associated persons beneficially owning 20% or more of
the common stock then outstanding.</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>15</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>The holders of Series A Preferred
are also entitled to quarterly dividends, as and when declared by our Board of
Directors, payable in cash on the last day of March, June, September and
December (each, a “<u>Quarterly Dividend Payment Date</u>”) in each year in an
amount per share equal to the greater of $1.00 and 1,000 times the aggregate
per share amount of all cash dividends, and 1,000 times the aggregate per share
amount of all non-cash dividends or other distributions other than a dividend
payable in shares of common stock or a subdivision thereof, declared on our
common stock since the immediately preceding Quarterly Dividend Payment Date.
The Company must declare a dividend or distribution on the Series A Preferred
immediately after it declares a dividend or distribution on the common stock
(other than a dividend payable in shares of common stock), except that in the
event no dividend or distribution is declared on the common stock between any Quarterly
Dividend Payment Date and the next, a dividend of $1.00 per share on the Series
A Preferred must nevertheless be paid on the next Quarterly Dividend Payment Date.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Upon liquidation, dissolution or
winding up of our affairs, no distribution will be made to holders of shares of
capital stock ranking junior to the Series A Preferred unless, prior thereto,
the holders of shares of Series A Preferred will have received an amount equal
to $1,000 per share of Series A Preferred, plus an amount equal to accrued and
unpaid dividends and distributions thereon, whether or not declared, to the date
of such payment (the “<u>Series A Liquidation Preference</u>”). Following such
payment, no additional distributions will be made to holders of shares of
Series A Preferred unless, prior thereto, the holders of shares of our common
stock will have received an amount per share equal to the quotient obtained by
dividing (i) the Series A Liquidation Preference by (ii) 1,000 (as
appropriately adjusted to reflect events as stock splits, stock dividends and
recapitalizations with respect to our common stock) (such number in clause
(ii), the “<u>Adjustment Number</u>”). Following the payments referred to in
the immediately preceding two sentences, holders of Series A Preferred and
holders of shares of our common stock will receive their ratable and
proportionate share of the remaining assets to be distributed in the ratio of
the Adjustment Number to one with respect to such preferred stock and common
stock, on a per share basis, respectively.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Each share of Series A Preferred
entitles the holder thereof to 1,000 votes on all matters submitted to a vote
of the shareholders of the Company. In the event dividends on any Series A
Preferred is in arrears in an amount equal to six quarterly dividends thereon,
then during such period until all accrued and unpaid dividends have been declared
and paid for or set apart for payment, all holders of preferred stock
(including Series A Preferred) with dividends in arrears in an amount equal to
six quarterly dividends thereon will have the right (voting as a single class
irrespective of series) to elect two directors to our Board of Directors.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><i>6% Senior Convertible Preferred Stock</i></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> On June 28, 2013, we created a new class of
preferred stock designated as 6% Senior Convertible Preferred Stock, or the
Convertible Preferred Stock, of which 648,846 shares are issued and
outstanding. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'> Dividends on the Convertible Preferred Stock are payable, on a
cumulative basis, in cash, at the rate per annum of 6% of the Liquidation
Preference and are payable quarterly, in arrears, on each March 31, June 30, September
30 and December 31, commencing on September 30, 2013. The Company is prohibited
from paying any dividend with respect to shares of our common stock or other
junior securities (including the Series A Preferred) in any quarter unless full
dividends are paid on the Convertible Preferred Stock in such quarter.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:justify;text-indent:
31.7pt'>In the event of a liquidation or deemed liquidation of the Company, the
holders of the Convertible Preferred Stock will receive in preference to the
holders of Common Stock and any junior securities of the Company the Liquidation
Preference. A Change of Control of the Company will be treated as a
liquidation at the option of the holders of a majority of the Convertible
Preferred Stock; provided that the amount paid to holders of Convertible Preferred
Stock in such event will be equal to 101% of the Original Issue Price, plus
accrued but unpaid dividends.</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>16</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:31.7pt'>The Convertible Preferred Stock
will vote together with our common stock on an as-converted basis on all
matters except as required by law. In addition, for so long as 50% of the
shares of Convertible Preferred Stock remains outstanding, without the approval
of the holders of a majority of the Convertible Preferred Stock, voting as a
separate class, the Company may not: (i) authorize or issue any equity security
senior to the Convertible Preferred Stock; (ii) declare or pay any dividends on
our common stock or any series of preferred stock that ranks junior to the
Convertible Preferred Stock; (iii) increase or decrease the total number of
authorized shares of Convertible Preferred Stock; (iv) alter or change the
rights, preferences or privileges of the Convertible Preferred Stock so as to
affect materially and adversely the Convertible Preferred Stock; or (v)
increase the authorized capitalization of the Company, or otherwise amend its
certificate of incorporation or bylaws in a manner which adversely affects the
rights or preferences of the Convertible Preferred Stock.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b>Anti-Takeover Provisions</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>As of March 17, 2014, there are 648,846
shares of preferred stock issued and outstanding, of which all were shares of
Convertible Preferred Stock and none of Series A Preferred. Our ability to
issue the authorized but unissued shares of preferred stock, including the
Series A Preferred, could be used to impede takeovers of our company. Under
certain circumstances, the issuance of the preferred stock could make it more
difficult for a third party to gain control of Forward, adversely affect the
voting power or other rights of the holders of our common stock, discourage
bids for the common stock at a premium, or otherwise adversely affect the
market price of our common stock.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>In addition, as described above, on
April 26, 2013, our Board of Directors adopted a shareholder rights plan
pursuant to the Rights Agreement in order to encourage anyone seeking to
acquire us to negotiate with our Board of Directors prior to attempting a
takeover. While the plan is designed to guard against coercive or unfair
tactics to gain control of us, the plan may have the effect of making more
difficult or delaying any attempts by others to obtain control of us.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'><b> </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>17</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif"><a name="Legal_Matters_">Legal Matters</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>The validity of the securities
offered by this prospectus will be passed upon for us by Olshan Frome Wolosky
LLP, New York, New York.</p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif"><a name="Experts">Experts</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>The consolidated financial
statements of Forward Industries, Inc. and Subsidiaries as of September 30, 2013
and 2012 have been incorporated by reference into this prospectus and in the registration
statement in reliance upon the report of CohnReznick LLP, independent registered
public accounting firm, and upon the authority of said firm as experts in auditing
and accounting.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif">
<a name="Where_You_Can_Find_More_Information_">Where You
Can Find More Information</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>This prospectus is part of a
registration statement on Form S-1 that we filed with the SEC. Certain
information in the registration statement has been omitted from this prospectus
in accordance with the rules of the SEC. Statements contained in this
prospectus as to the contents of any contract, agreement or other document are
summaries of the material terms of that contract, agreement or other document.
With respect to each of these contracts, agreements or other documents filed or
incorporated by reference as an exhibit to the registration statement,
reference is made to the exhibits for a more complete description of the matter
involved.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>We are a reporting company and file
annual, quarterly and current reports, proxy statements and other information
with the SEC. You may read and copy any document we file with the SEC at the
SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549.
Please call the SEC at 1-800-SEC-0330 for more information about the operation
of the Public Reference Room. Our SEC filings are also available at the SEC’s
website at www.sec.gov. We maintain a website at www.forwardindustries.com.
Information contained in or accessible through our website is not and should
not be considered a part of this prospectus and you should not rely on that
information in deciding whether to invest in our common stock, unless that
information is also in or incorporated by reference in this prospectus.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>18</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<h1 style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-align:center;text-indent:0in;page-break-after:avoid;font-size:10.0pt;font-family:"Times New Roman Bold";text-transform:uppercase;font-weight:bold;margin-left:0in;text-indent:0in'>
<font face="Times New Roman,serif">
<a name="Incorporation_of_Certain_Information_By_Reference_">Incorporation of Certain
Information By Reference</a></font></h1>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>The SEC allows us to “incorporate
by reference” information we file with it into our registration statement on
Form S-1 of which this prospectus is a part, which means that we can disclose
important information to you by referring you to other documents. The
information incorporated by reference is an important part of this prospectus.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>We incorporate by reference the
documents listed below:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<blockquote>
<ul>
<li>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:0in;margin-bottom:0;
'>our Annual Report on Form 10-K for the fiscal year ended September
30, 2013, filed on January 14, 2014; </p></li>
<li>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:0in'>our Quarterly Report on Form 10-Q for the quarter ended December
31, 2013, filed on February 13, 2014; and</p></li>
<li>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:0in'>our Current Reports on Form 8-K filed with the SEC on October 15,
2013, December 11, 2013, December 17, 2013, January 17, 2014 and February 18,
2014 (other than portions of those documents designated as “furnished”).</p>
</li>
</ul>
</blockquote>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>You may request a copy of these
filings incorporated by reference in this prospectus, other than an exhibit to
these filings unless we have specifically incorporated that exhibit by
reference into the filing, at no cost, by writing or telephoning us at the
following address and telephone number:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>Forward Industries,
Inc.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>477 Rosemary Ave., Suite
219</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>West Palm Beach, FL
33401</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>(561) 465-0030</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Any statement contained in a
document incorporated or deemed to be incorporated by reference in this
prospectus will be deemed modified, superseded or replaced for purposes of this
prospectus to the extent that a statement contained in this prospectus or in
any subsequently filed document that also is or is deemed to be incorporated by
reference in this prospectus modifies, supersedes or replaces such statement.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>19</p>
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<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
</div>
<div style='page:WordSection6;'>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 16.0pt">1,341,765 Shares of Common Stock</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-align:center'>
<img border="0" src="forward.gif" width="209" height="41"></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:center'><b><font style="font-size: 16.0pt">Forward Industries, Inc.</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div align="center">
<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
style='border-collapse:collapse;border:none' width="100%">
<tr>
<td width=213 style='width:33%;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in'><font style="font-size: 12.0pt"> </font></p>
</td>
<td width=213 style='width:34%;border-top:1.0pt solid windowtext;
border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:9.0pt;margin-right:0in;
margin-bottom:9.0pt;margin-left:0in;text-align:center'><font style="font-size: 12.0pt">PROSPECTUS</font></p>
</td>
<td width=213 style='width:33%;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:6.0pt;margin-right:0in;margin-bottom:
6.0pt;margin-left:0in'><font style="font-size: 12.0pt"> </font></p>
</td>
</tr>
</table>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 12.0pt">March 17, 2014</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><b> </b></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt"> </font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
</div>
<p style="page-break-before:always"> </p>
<div style='page:WordSection7;'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center'>
<b>PART
II<br>
<br>
<a name="INFORMATION_NOT_REQUIRED_IN_PROSPECTUS_">INFORMATION NOT REQUIRED IN PROSPECTUS</a></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;page-break-after:avoid'><b>Item
13. Other Expenses of Issuance and Distribution.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>The following table sets forth the
approximate amount of expenses (other than underwriting discounts and
commissions) in connection with the offering of the securities being registered,
all of which are to be paid by the Registrant. With the exception of the SEC
registration fee, all of the amounts shown are estimates.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<table class=MsoNormalTable border=0 cellpadding=0
style='border-collapse:collapse' width="85%">
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>
SEC registration
fee............................................................................</p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>$ 291</p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>
Legal fees and
expenses....................................................................</p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> 10,000</p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>
Accounting fees and
expenses........................................................</p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> 5,500</p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>
Printing
expenses...............................................................................</p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> 1,000</p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18">
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>
Miscellaneous
expenses...................................................................</p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="18" align="right">
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";border:none;padding:0in'> 2,500</p>
</div>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.75in;margin-bottom:
0in;margin-left:.75in;margin-bottom:.0001pt'>
Total.............................................................................</p>
</td>
<td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
<div style='border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";border:none;padding:0in'>$ 19,291</p>
</div>
</td>
</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;page-break-after:avoid'><b>Item
14. Indemnification of Directors and Officers.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Section 721 of the New York
Business Corporation Law (the “<u>NYBCL</u>”) provides that, in addition to
indemnification provided in Article 7 of the NYBCL, a corporation may indemnify
a director or officer by a provision contained in the certificate of
incorporation or by-laws or by a duly authorized resolution of its shareholders
or directors or by agreement, provided that no indemnification may be made to
or on behalf of any director or officer if a judgment or other final
adjudication adverse to the director or officer establishes that his acts were
committed in bad faith or were the result of active and deliberate dishonesty
and material to the cause of action, or that such director or officer
personally gained in fact a financial profit or other advantage to which he was
not legally entitled. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Section 722(a) of the NYBCL
provides that a corporation may indemnify a director or officer made, or
threatened to be made, a party to any action other than a derivative action,
whether civil or criminal, against judgments, fines, amounts paid in settlement
and reasonable expenses, including attorneys’ fees, actually and necessarily
incurred as a result of such action or proceeding or any appeal therein, if
such director or officer acted in good faith, for a purpose which he reasonably
believed to be in, or not opposed to, the best interests of the corporation
and, in criminal actions or proceedings, in addition, had no reasonable cause
to believe that his conduct was unlawful. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Section 722(c) of the NYBCL
provides that a corporation may indemnify a director or officer, made or
threatened to be made a party in a derivative action, against amounts paid in
settlement and reasonable expenses, including attorneys’ fees, actually and
necessarily incurred by him in connection with the defense or settlement of
such action or in connection with an appeal therein if such director or officer
acted in good faith, for a purpose which he reasonably believed to be in, or
not opposed to, the best interests of the corporation, except that no indemnification
will be available under Section 722(c) of the NYBCL in respect of a threatened
or pending action which is settled or otherwise disposed of, or any claim as to
which such director or officer shall have been adjudged liable to the
corporation, unless and only to the extent that the court in which the action
was brought, or, if no action was brought, any court of competent jurisdiction,
determines, upon application, that, in view of all the circumstances of the
case, the director or officer is fairly and reasonably entitled to indemnity
for such portion of the settlement amount and expenses as the court deems
proper. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Section 723 of the NYBCL specifies
the manner in which payment of indemnification under Section 722 of the NYBCL
or indemnification permitted under Section 721 of the NYBCL may be authorized
by the corporation. It provides that indemnification may be authorized by the
corporation. It provides that indemnification by a corporation is mandatory in
any case in which the director or officer has been successful, whether on the
merits or otherwise, in defending an action. In the event that the director or
officer has not been successful or the action is settled, indemnification must
be authorized by the appropriate corporate action as set forth in Section 723. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 9.0pt">II-1</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Section 724 of the NYBCL provides
that, upon application by a director or officer, indemnification may be awarded
by a court to the extent authorized. Section 722, Section 723 and Section 725
of the NYBCL contain certain other miscellaneous provisions affecting the
indemnification of directors and officers. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Section 726 of the NYBCL authorizes
the purchase and maintenance of insurance to indemnify (1) a corporation for
any obligation which it incurs as a result of the indemnification of directors
and officers under the provisions of Article 7 of the NYBCL, (2) directors and
officers in instances in which they may be indemnified by the corporation under
the provisions of Article 7 of the NYBCL, and (3) directors and officers in
instances in which they may not otherwise be indemnified by the corporation
under the provisions of Article 7 of the NYBCL, provided the contract of
insurance covering such directors and officers provides, in a manner acceptable
to the New York State Superintendent of Insurance, for a retention amount and
for co-insurance. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Article Eleventh of the Certificate
of Incorporation provides, in part, as follows: </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>“To the fullest extent permitted by
the New York Business Corporation Law as presently in effect or hereafter amended,
a director of the Corporation shall not be personally liable to the Corporation
or its shareholders for damages for any breach of duty as a director. Any
repeal or modification of this Article by the shareholders of the Corporation
shall not adversely affect any right or protection of a director of the
Corporation existing hereunder with respect to any act or omission occurring
prior to such repeal or modification.”</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Article V, of the By-Laws provides as
follows:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'>“<font size="2">ARTICLE
V. INDEMNIFICATION. Section 501. The Corporation shall, to the fullest
extent permitted by applicable law, indemnify any person made or threatened to
be made a party to any action or proceeding, whether civil, criminal,
administrative or investigative (and whether or not (i) by or in the right of
the Corporation to procure a judgment in its favor or (ii) by or in the right
of any Other Entity (as defined below) which such person served in any capacity
at the request of the Corporation, to procure a judgment in its favor), by
reason of the fact that such person, or his or her testator or intestate, is or
was a director or officer of the Corporation or served such Other Entity in any
capacity at the request of the Corporation, against all judgments, fines,
amounts paid in settlement and all expenses, including attorneys’ and other
experts’ fees, costs and disbursements, actually and reasonably incurred by
such person as a result of such action or proceeding, or any appeal therein, or
actually and reasonably incurred by such person (a) in making an application
for payment of such expenses before any court or other governmental body, or
(b) in otherwise seeking to enforce the provisions of this Section 501, or (c)
in securing or enforcing such person’s rights under any policy of director or officer
liability insurance provided by the Corporation, if such person acted in good
faith, for a purpose which he or she reasonably believed to be in, or, in the
case of services for any Other Entity, not opposed to, the best interests of
the Corporation and, in criminal actions or proceedings, in addition, had no
reasonable cause to believe that his or her conduct was unlawful. The
termination of any action or proceeding by judgment, settlement, conviction or
upon a plea of nolo contendere, or its equivalent, shall not in itself create a
presumption that such person did not act in good faith, for a purpose which he
or she reasonably believed to be in, or, in the case of service for any Other
Entity, not opposed to, the best interests of the Corporation or that he or she
had reasonable cause to believe that his or her conduct was unlawful.</font></p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'><font size="2">However,
(i) no indemnification may be made to or on behalf of any such person if a
judgment or other final adjudication adverse to such person establishes that
his or her acts were committed in bad faith or were the result of active and
deliberate dishonesty and were material to the cause of action so adjudicated,
or that he or she personally gained in fact a financial profit or other
advantage to which he or she was not legally entitled; (ii) no indemnification
may be made if there has been a settlement approved by the court and the
indemnification would be inconsistent with any condition with respect to
indemnification expressly imposed by the court in approving the settlement; and
(iii) in the event of a proceeding by or in the right of the Corporation to
procure a judgment in its favor, no indemnification may be made if it is
settled or otherwise disposed of or such person shall have been finally
adjudged liable to the Corporation, unless (and only to the extent that) the
court in which the action was brought, or if no action was brought, any court
of competent jurisdiction, determines upon application that, in view of all
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such portion of the settlement amount and expenses as the court
deems proper. </font> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 9.0pt">II-2</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'><font size="2">Any
expense described in the first paragraph of this Section 501 that is incurred
by any person entitled to indemnification under this Section 501 shall be paid
or reimbursed to such person by the Corporation in advance of the final
disposition of any related action or proceeding upon receipt of an undertaking
by or on behalf of such person to repay such amount to the Corporation to the extent,
if any, that such person (i) is ultimately found not to be entitled to
indemnification or (ii) receives reimbursement for such expenses under a policy
of insurance paid for by the Corporation. Such advances shall be paid by the
Corporation to such person within twenty days following delivery of a written
request therefor by such person to the Corporation. No payment made by the
Corporation pursuant to this paragraph shall be deemed or construed to relieve
the issuer of any insurance policy of any obligation or liability which, but
for such payment, such insurer would have to the Corporation or to any director
or officer of the Corporation or other individual to whom or on whose behalf
such payment is made by the Corporation. </font> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'><font size="2">The
indemnification and advancement of expenses provided by this Section 501: (i)
shall continue as to the person entitled to indemnification hereunder even
though he or she may have ceased to serve in the capacity that entitles him or
her to indemnification at the time of the action or proceeding and (ii) shall
inure to the benefit of the heirs, executors and administrators of such person.</font></p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'><font size="2">A
person who has been successful, on the merits or otherwise, in the defense of a
civil or criminal action or proceeding of the character described in this
Section 501 shall be entitled to (i.e., has a legally binding right against the
Corporation to) the indemnification authorized by this Section 501. Except as
provided in the immediately preceding sentence, any indemnification provided
for in this Section 501 (unless ordered by a court under Section 724 of the
Business Corporation Law), shall be made by the Corporation only if authorized
in the specific case:</font></p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
..5in'><font size="2">(1)
By the board of directors acting by a quorum consisting of directors who are
not parties to such action or proceeding for which indemnification is sought,
upon a finding that the person seeking indemnification has met the standard of
conduct set forth in the first two paragraphs of this Section 501, or, </font> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
..5in'><font size="2">(2)
If a quorum under the immediately preceding subparagraph is not obtainable or,
even if obtainable, a quorum of disinterested directors so directs: </font> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
1.0in'><font size="2">(A)
by the board upon the opinion in writing of independent legal counsel that
indemnification is proper in the circumstances because the applicable standard
of conduct set forth in said first two paragraphs has been met by such person,
or </font> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
1.0in'><font size="2">(B)
by the shareholders upon a finding that the person has met the applicable
standard of conduct set forth in said first two paragraphs. </font> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'><font size="2">Notwithstanding
any other provision hereof, no amendment or repeal of this Section 501, or any
other corporate action or agreement which prohibits or otherwise limits the
right of any person to indemnification or advancement or reimbursement of
reasonable expenses hereunder, shall be effective as to any person until the
60th day following notice to such person of such action, and no such amendment
or repeal or other corporate action or agreement shall deprive any person of
any right hereunder arising out of any alleged or actual act or omission
occurring prior to such 60th day. </font> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'><font size="2">The
Corporation is hereby authorized, but shall not be required, to enter into
agreements with any of its directors, officers or employees providing for
rights to indemnification and advancement and reimbursement of reasonable
expenses, including attorneys’ fees, to the extent permitted by law, but the
Corporation’s failure to do so shall not in any manner affect or limit the
rights provided for by this Section 501 or otherwise. </font> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'> </p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:
0in;text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 9.0pt">II-3</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>For purposes of this Section 501,
the term “the Corporation” shall include any legal successor to the
Corporation, including any corporation which acquires all or substantially all
of the assets of the Corporation in one or more transactions, and the term
“Other Entity” shall mean a corporation (other than the Corporation) of any
type or kind, domestic or foreign, or any partnership, joint venture, trust,
employee benefit plan or other enterprise. For purposes of this Section 501,
the Corporation shall be deemed to have requested a person to serve an employee
benefit plan where the performance by such person of his or her duties to the
Corporation or any subsidiary thereof also imposes duties on, or otherwise
involves services by, such person to the plan or participants or beneficiaries
of the plan; excise taxes assessed on a person with respect to an employee
benefit plan pursuant to applicable law shall be considered fines; and action
taken or omitted by a person with respect to any employee benefit plan in the
performance of such person’s duties for a purpose reasonably believed by such
person to be in the interest of the participants and beneficiaries of the plan
shall be deemed to be for a purpose which is not opposed to the best interests
of the Corporation.”</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Forward has purchased liability
insurance for its officers and directors as permitted by Section 726 of the
NYBCL.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;page-break-after:avoid'><b>Item
15. Recent Sales of Unregistered Securities.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>Between June 28, 2013 and August
14, 2013, we issued a total of 648,846 shares of Convertible Preferred Stock
and Warrants to purchase 648,846 shares of common stock to accredited investors
in the Private Placements as described elsewhere in this registration
statement. Please refer to the section of this registration statement entitled
“Description of the Private Placements” for a description of the Securities and
the section entitled “Selling Stockholders” for additional information. Pursuant
to the registration rights agreements entered into with the Investors, we have
filed this registration statement with the SEC covering the shares of common
stock that may be issued to the selling stockholders under securities purchase
agreements. The issuance of the Securities in the Private Placements was made
in reliance upon the exemption from registration provided by Section 4(2) of
the Securities Act and the provisions of Regulation D promulgated thereunder. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;page-break-after:avoid'><b>Item
16. Exhibits and Financial Statements Schedules.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:10.0pt;
margin-left:1.0in;text-indent:-.5in;page-break-after:avoid'>(a)
Exhibits: </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:10.0pt;
margin-left:1.0in;text-indent:-.5in;page-break-after:avoid'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 9.0pt">II-4</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<table class=MsoNormalTable border=0 cellpadding=0 width="95%"
style='border-collapse:collapse;margin-left:27pt
'>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>3.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Articles of Incorporation and
By-Laws</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>3(i)</p>
</td>
<td width="91%" valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Amended and Restated
Certificate of Incorporation (incorporated by reference to Exhibit 3 to the
Company's Annual Report on Form 10-K, as filed with the Commission on
December 8, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>3(ii)</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Third Amended and Restated
By-Laws of Forward Industries, Inc., as of August 10, 2010 (incorporated by
reference to Exhibit 3 to the Company's Annual Report on Form 10-K, as filed
with the Commission on December 8, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>3(iii)</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Amendment to the Third Amended
and Restated By-Laws of Forward Industries, Inc. (incorporated by reference
to Exhibit 3.1 to Form 8-K, as filed with the Commission on February 14,
2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>3(iv)</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Certificate of Amendment of
the Certificate of Incorporation of Forward Industries, Inc., as filed with
the Department of State of the State of New York on April 26, 2013
(incorporated by reference to Exhibit 3.1 to the Company’s Current Report on
Form 8-K, as filed with the Commission on April 26, 2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>3(v)</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Certificate of Amendment of
the Certificate of Incorporation of Forward Industries, Inc. filed with the
Department of State of the State of New York on June 28, 2013 (incorporated
by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, as
filed with the Commission on July 3, 2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>4.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Instruments Defining the
Rights of Security Holders</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;
margin-bottom:.0001pt;text-indent:-.25in;page-break-after:avoid'>
<font size="2">4.1 </font></p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Rights
Agreement, dated as of April 26, 2013, by and between Forward Industries,
Inc. and American Stock Transfer & Trust Company LLC, as Rights Agent
(incorporated by reference to Exhibit 4.1 to the Company’s Current Report on
Form 8-K, as filed with the Commission on April 26, 2013).</font></p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">4.2</font></p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Form of 6%
Senior Convertible Preferred Stock Certificate (incorporated by reference to
Exhibit 4.1 to the Company’s Current Report on Form 8-K, as filed with the
Commission on July 3, 2013).</font></p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">4.3</font></p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:9.0pt;margin-left:
0in;text-align:justify'><font size="2">Form
of Common Stock Purchase Warrant (incorporated by reference to Exhibit 4.2 to
the Company’s Current Report on Form 8-K, as filed with the Commission on
July 3, 2013).</font></p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>5.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Opinion re Legality</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>5.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Opinion of Olshan Frome
Wolosky LLP*</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.1pt'>10.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Material Contracts</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>1996 Stock Incentive Plan of
Forward Industries, Inc. (incorporated by reference to Exhibit 4 to the
Registration Statement on Form S-8 of the Company, as filed on April 25,
2003).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.2</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Forward Industries, Inc. 2007
Equity Incentive Plan, as amended (incorporated by reference to Exhibit 4.1
to the Registration Statement on Form S-8 of the Company, Reg. File No.
333-165075, as filed with the Commission on February 25, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.3</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Settlement Agreement, dated as
of August 10, 2010, by and among Forward Industries, Inc., LaGrange Capital
Partners, L.P., and certain Affiliates of LaGrange Capital Partners, L.P.
(incorporated by reference to Exhibit 10.1 to the Company’s Current Report on
Form 8-K, as filed with the Commission on August 16, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.4</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Severance and Release
Agreement, dated as of August 10, 2010, by and between Douglas W. Sabra and
Forward Industries, Inc. (incorporated by reference to Exhibit 10.2 to the
Company’s Current Report on Form 8-K, as filed with the Commission on August
16, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.5</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Retention Agreement, dated as
of August 10, 2010, between Forward Industries, Inc. and James O. McKenna III,
(incorporated by reference to Exhibit 10.4 to the Company’s Current Report on
Form 8-K, as filed with the Commission on August 16, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.6</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Amended Employment Agreement,
dated as of April 1, 2011, between Forward Industries, Inc. and James O.
McKenna III, (incorporated by reference to Exhibit 10.7 to the Company's
Quarterly Report on Form 10-Q, as filed with the Commission on May 11, 2011).</p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="3">
<p> </td>
</tr>
</table>
<p align="center"><font size="2">II-5</font></p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<table class=MsoNormalTable border=0 cellpadding=0 width="95%"
style='border-collapse:collapse;margin-left:27pt
'>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.7</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Letter Agreement, dated
October 31, 2011, between Forward Industries, Inc. and RGJR Capital Partners
LLC, (incorporated by reference to Exhibit 99.1 to the Company’s Current
Report on Form 8-K, as filed with the Commission on November 7, 2011).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt'>10.8†</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Memorandum of Understanding,
dated August 30, 2011, between Forward Industries, Inc. and G-Form LLC
(incorporated by reference to the Annual Report on Form 10-K, as filed with
the Commission on December 15, 2011).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.9†</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Buying Agency and Supply
Agreement between Forward Industries, Inc. and Seaton Global Corporation, a
British Virgin Islands corporation, dated as of March 7, 2012 (incorporated
by reference to the Form 10-Q, as filed with the Commission on May 10, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.10</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Employment Agreement by and
between Forward Industries, Inc. and Robert Garrett, Jr., effective as of
March 1, 2012 (incorporated by reference to Form 8-K, as filed with the
Commission on April 6, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.11</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Employment Agreement by and
between Forward Industries, Inc. and Brett Johnson, effective as of March 1,
2012 (incorporated by reference to Form 8-K, as filed with the Commission on
April 6, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.12</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Memorandum of Understanding,
dated June 21, 2012, between Forward Industries, Inc. and G-Form LLC
(incorporated by reference to Form 10-Q, as filed with the Commission on
August 20, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.13</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Amended Employment Agreement,
dated as of November 8, 2012, between Forward Industries, Inc. and James O.
McKenna III (incorporated by reference to Form 10-K, as filed with the
Commission on December 20, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.14</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Investment Management
Agreement by and between Forward Industries, Inc. and LaGrange Capital
Administration, L.L.C., dated as of February 1, 2013 (incorporated by
reference to Form 8-K, as filed with the Commission on April 19, 2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.15</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Forward Industries, Inc. 2011
Long Term Incentive Plan (incorporated by reference to Exhibit A to the
Company’s Proxy Statement, Definitive 14A as filed with the Commission on
January 26, 2011).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.16</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Form of Securities Purchase
Agreement, dated as of June 28, 2013, between Forward Industries, Inc. and
the investors signatory thereto (incorporated by reference to Exhibit 10.1 to
the Company’s Current Report on Form 8-K, as filed with the Commission on
July 3, 2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.17</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Form of Registration Rights
Agreement, dated as of June 28, 2013, among Forward Industries, Inc. and the
investors signatory thereto (incorporated by reference to Exhibit 10.2 to the
Company’s Current Report on Form 8-K, as filed with the Commission on July 3,
2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'>21.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Subsidiaries of the Registrant</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>21.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>List of Subsidiaries of
Forward Industries, Inc. (incorporated by reference to Exhibit 21.1 to the Company’s
Annual Report on Form 10-K, as filed with the Commission on January 14,
2014).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'>23.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Consents of Experts and
Counsel</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>23.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Consent of CohnReznick LLP*</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>23.2</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Consent of Olshan Frome
Wolosky LLP (contained in its opinion under Exhibit 5.1)</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'>24.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Power of Attorney</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>24.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Power of attorney, included on
signature page</p>
</td>
</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:98.6pt;text-indent:-22.3pt'>† Portions have been omitted pursuant
to request for confidential treatment and the omitted portions have been
separately filed with the Commission.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:99.0pt;text-indent:-22.5pt'>* Filed
herewith.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-indent:-.25in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;page-break-after:avoid'><b>Item
17. Undertakings.</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>(a)
The undersigned registrant hereby undertakes:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> (1)
To file, during any period in which offers or sales of securities are being
made, a post-effective amendment to this registration statement:</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> (i)
To include any prospectus required by Section 10(a)(3) of the Securities Act of
1933;</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 9.0pt">II-6</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> (ii)
To reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume of securities
offered (if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the “Calculation of Registration Fee”
table in the effective registration statement.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> (iii)
To include any material information with respect to the plan of distribution
not previously disclosed in the registration statement or any material change
to such information in the registration statement;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> (2)
That, for the purpose of determining any liability under the Securities Act of
1933, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> (3)
To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> (4)
That, for the purpose of determining liability under the Securities Act of 1933
to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a
registration statement relating to an offering, other than registration
statements relying on Rule 430B or other than prospectuses filed in reliance on
Rule 430A, shall be deemed to be part of and included in the registration
statement as of the date it is first used after effectiveness. <i>Provided,
however</i>, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated
or deemed incorporated by reference into the registration statement or
prospectus that is part of the registration statement will, as to a purchaser
with a time of contract of sale prior to such first use, supersede or modify
any statement that was made in the registration statement or prospectus that
was part of the registration statement or made in any such document immediately
prior to such date of first use.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>(b) The undersigned
registrant hereby undertakes to deliver or cause to be delivered with the
prospectus, to each person to whom the prospectus is sent or given, the latest
annual report to security holders that is incorporated by reference in the
prospectus and furnished pursuant to and meeting the requirements of Rule 14a-3
or Rule 14c-3 under the Securities Exchange Act of 1934; and, where interim
financial information required to be presented by Article 3 of Regulation S-X
are not set forth in the prospectus, to deliver, or cause to be delivered to
each person to whom the prospectus is sent or given, the latest quarterly
report that is specifically incorporated by reference in the prospectus to
provide such interim financial information.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>(c) Insofar as
indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act of
1933 and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act of 1933 and will be governed by the final adjudication of such
issue.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'><font style="font-size: 9.0pt">II-7</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center;
line-height:96%'><b>SIGNATURES</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt'> Pursuant to the
requirements of the Securities Act of 1933, the Registrant has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of New York, State of New York on the 26 day of March,
2014.</p>
<div align="right">
<table border="0" width="50%">
<tr>
<td>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:97%; margin-right:0in; margin-top:0in'>FORWARD INDUSTRIES,
INC.<br>
</p>
</td>
</tr>
<tr>
<td>
<font size="2">By: </font><u><font size="2">/s/ Robert Garrett, Jr.
</font>
</u>
</td>
</tr>
<tr>
<td>
<font size="2">Name: Robert Garrett, Jr.</font></td>
</tr>
<tr>
<td>
<font size="2">Title: President and Chief Executive Officer </font>
</td>
</tr>
<tr>
<td>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:97%; margin-right:0in; margin-top:0in'> (Principal Executive Officer) </p>
</td>
</tr>
</table>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:3.0in;line-height:97%'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-align:center;
line-height:96%'><b>Power of Attorney</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> Each person whose signature appears below
authorizes Frank LaGrange Johnson and Robert Garrett, Jr., and each of them,
each of whom may act without joinder of the other, as his true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for him and in his name, place and stead, in any and all
capacities to execute in the name of each such person who is then an officer or
director of Forward Industries, Inc., and to file any amendments (including
post effective amendments) to this Registration Statement and any registration
statement for the same offering filed pursuant to Rule 462 under the Securities
Act of 1933, and to file the same, with all exhibits thereto and all other
documents in connection therewith, with the Commission, granting unto said
attorneys-in-fact and agents full power and authority to do and perform each
and every act and thing appropriate or necessary to be done, as fully and for
all intents and purposes as he might or could do in person, hereby ratifying
and confirming all that said attorneys-in-fact and agents or their substitute
or substitutes may lawfully do or cause to be done by virtue hereof.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:10.0pt;text-indent:.5in'>Pursuant to
the requirements of the Securities Act of 1933, this Registration Statement has
been signed by the following persons in the capacities and on the dates
indicated.</p>
<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
style='border-collapse:collapse;border:none' width="100%">
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt;text-align:center;
line-height:97%'><b><u>Signature</u></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt;text-align:center;
line-height:97%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt;text-align:center;
line-height:97%'><b><u>Title</u></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt;text-align:center;
line-height:97%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt;text-align:center;
line-height:97%'><b><u>Date</u></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt;text-align:center;
line-height:97%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%;border:none;padding:0in'>/s/ Frank LaGrange Johnson</p>
</div>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Chairman of the Board</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'>March
26, 2014</p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Frank LaGrange Johnson</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%;border:none;padding:0in'>/s/ Robert Garrett, Jr.</p>
</div>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>President, Chief Executive Officer</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'>March
26, 2014</p>
</td>
</tr>
<tr style='height:16.65pt'>
<td valign=top style='border:medium none;height:16.65pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Robert Garrett, Jr.</p>
</td>
<td valign=top style='border:medium none;height:16.65pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:97%'>and Director (Principal Executive
Officer)</p>
</td>
<td valign=top style='border:medium none;height:16.65pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%;border:none;padding:0in'>/s/ James O. McKenna
III</p>
</div>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Vice President and Chief Financial</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'>March
26, 2014</p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>James O. McKenna
III</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Officer (Principal Financial
Officer and Principal Accounting Officer)</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%;border:none;padding:0in'>/s/John Chiste</p>
</div>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Director</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'>March
26, 2014</p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>John Chiste</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%;border:none;padding:0in'>
/s/ Timothy Gordon</p>
</div>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<font size="2">Director</font></td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'>March
26, 2014</p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="20">
<font size="2">Timothy Gordon</font></td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="20">
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' height="20">
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%;border:none;padding:0in'>/s/ Owen P.J. King</p>
</div>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Director</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'>March
26, 2014</p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Owen P.J. King</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%;border:none;padding:0in'>/s/ Howard Morgan</p>
</div>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Director</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'>March
26, 2014</p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Howard Morgan</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%;border:none;padding:0in'>
/s/ Terence Wise</p>
</div>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Director</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'>March
26, 2014</p>
</td>
</tr>
<tr>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'>Terence Wise</p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:96%'> </p>
</td>
<td valign=top style='border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:96%'> </p>
</td>
</tr>
</table>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<font style="font-size: 9.0pt">II-8</font></p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
</div>
<div style='page:WordSection8;'>
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt;text-align:center'>
<b>Exhibit
Index</b></p>
<table class=MsoNormalTable border=0 cellpadding=0 width="95%"
style='border-collapse:collapse;margin-left:27pt
'>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>3.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Articles of Incorporation and
By-Laws</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>3(i)</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Amended and Restated
Certificate of Incorporation (incorporated by reference to Exhibit 3 to the
Company's Annual Report on Form 10-K, as filed with the Commission on
December 8, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>3(ii)</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Third Amended and Restated
By-Laws of Forward Industries, Inc., as of August 10, 2010 (incorporated by
reference to Exhibit 3 to the Company's Annual Report on Form 10-K, as filed
with the Commission on December 8, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>3(iii)</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Amendment to the Third Amended
and Restated By-Laws of Forward Industries, Inc. (incorporated by reference
to Exhibit 3.1 to Form 8-K, as filed with the Commission on February 14,
2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>3(iv)</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Certificate of Amendment of
the Certificate of Incorporation of Forward Industries, Inc., as filed with
the Department of State of the State of New York on April 26, 2013
(incorporated by reference to Exhibit 3.1 to the Company’s Current Report on
Form 8-K, as filed with the Commission on April 26, 2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>3(v)</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Certificate of Amendment of
the Certificate of Incorporation of Forward Industries, Inc. filed with the
Department of State of the State of New York on June 28, 2013 (incorporated
by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, as
filed with the Commission on July 3, 2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>4.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Instruments Defining the
Rights of Security Holders</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;
margin-bottom:.0001pt;text-indent:-.25in;page-break-after:avoid'>
<font size="2">4.1 </font></p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Rights
Agreement, dated as of April 26, 2013, by and between Forward Industries,
Inc. and American Stock Transfer & Trust Company LLC, as Rights Agent
(incorporated by reference to Exhibit 4.1 to the Company’s Current Report on
Form 8-K, as filed with the Commission on April 26, 2013).</font></p>
<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS","sans-serif";margin:0in;margin-bottom:.0001pt;text-align:justify'> </p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">4.2</font></p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Form of 6%
Senior Convertible Preferred Stock Certificate (incorporated by reference to
Exhibit 4.1 to the Company’s Current Report on Form 8-K, as filed with the
Commission on July 3, 2013).</font></p>
<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS","sans-serif";margin:0in;margin-bottom:.0001pt;text-align:justify'> </p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">4.3</font></p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:0in;margin-right:0in;margin-bottom:9.0pt;margin-left:
0in;text-align:justify'><font size="2">Form
of Common Stock Purchase Warrant (incorporated by reference to Exhibit 4.2 to
the Company’s Current Report on Form 8-K, as filed with the Commission on
July 3, 2013).</font></p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>5.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Opinion re Legality</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>5.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Opinion of Olshan Frome
Wolosky LLP*</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.1pt'>10.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Material Contracts</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>1996 Stock Incentive Plan of
Forward Industries, Inc. (incorporated by reference to Exhibit 4 to the
Registration Statement on Form S-8 of the Company, as filed on April 25,
2003).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.2</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Forward Industries, Inc. 2007
Equity Incentive Plan, as amended (incorporated by reference to Exhibit 4.1
to the Registration Statement on Form S-8 of the Company, Reg. File No.
333-165075, as filed with the Commission on February 25, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.3</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Settlement Agreement, dated as
of August 10, 2010, by and among Forward Industries, Inc., LaGrange Capital
Partners, L.P., and certain Affiliates of LaGrange Capital Partners, L.P.
(incorporated by reference to Exhibit 10.1 to the Company’s Current Report on
Form 8-K, as filed with the Commission on August 16, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.4</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Severance and Release
Agreement, dated as of August 10, 2010, by and between Douglas W. Sabra and
Forward Industries, Inc. (incorporated by reference to Exhibit 10.2 to the
Company’s Current Report on Form 8-K, as filed with the Commission on August
16, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.5</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Retention Agreement, dated as
of August 10, 2010, between Forward Industries, Inc. and James O. McKenna III,
(incorporated by reference to Exhibit 10.4 to the Company’s Current Report on
Form 8-K, as filed with the Commission on August 16, 2010).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:4%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.6</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Amended Employment Agreement,
dated as of April 1, 2011, between Forward Industries, Inc. and James O.
McKenna III, (incorporated by reference to Exhibit 10.7 to the Company's
Quarterly Report on Form 10-Q, as filed with the Commission on May 11, 2011).</p>
</td>
</tr>
<tr>
<td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' colspan="3">
<p> </td>
</tr>
</table>
<p align="center"> </p>
<hr color="#000080">
<p style="page-break-before:always"> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:10.0pt;
margin-left:1.0in;text-indent:-.5in;page-break-after:avoid'> </p>
<table class=MsoNormalTable border=0 cellpadding=0 width="95%"
style='border-collapse:collapse;margin-left:27pt
'>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.7</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Letter Agreement, dated
October 31, 2011, between Forward Industries, Inc. and RGJR Capital Partners
LLC, (incorporated by reference to Exhibit 99.1 to the Company’s Current
Report on Form 8-K, as filed with the Commission on November 7, 2011).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:12.0pt'>10.8†</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Memorandum of Understanding,
dated August 30, 2011, between Forward Industries, Inc. and G-Form LLC
(incorporated by reference to the Annual Report on Form 10-K, as filed with
the Commission on December 15, 2011).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.9†</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Buying Agency and Supply
Agreement between Forward Industries, Inc. and Seaton Global Corporation, a
British Virgin Islands corporation, dated as of March 7, 2012 (incorporated
by reference to the Form 10-Q, as filed with the Commission on May 10, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.10</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Employment Agreement by and
between Forward Industries, Inc. and Robert Garrett, Jr., effective as of
March 1, 2012 (incorporated by reference to Form 8-K, as filed with the
Commission on April 6, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.11</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Employment Agreement by and
between Forward Industries, Inc. and Brett Johnson, effective as of March 1,
2012 (incorporated by reference to Form 8-K, as filed with the Commission on
April 6, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.12</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Memorandum of Understanding,
dated June 21, 2012, between Forward Industries, Inc. and G-Form LLC
(incorporated by reference to Form 10-Q, as filed with the Commission on
August 20, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.13</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Amended Employment Agreement,
dated as of November 8, 2012, between Forward Industries, Inc. and James O.
McKenna III (incorporated by reference to Form 10-K, as filed with the
Commission on December 20, 2012).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.14</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Investment Management
Agreement by and between Forward Industries, Inc. and LaGrange Capital
Administration, L.L.C., dated as of February 1, 2013 (incorporated by
reference to Form 8-K, as filed with the Commission on April 19, 2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.15</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Forward Industries, Inc. 2011
Long Term Incentive Plan (incorporated by reference to Exhibit A to the
Company’s Proxy Statement, Definitive 14A as filed with the Commission on
January 26, 2011).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.16</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Form of Securities Purchase
Agreement, dated as of June 28, 2013, between Forward Industries, Inc. and
the investors signatory thereto (incorporated by reference to Exhibit 10.1 to
the Company’s Current Report on Form 8-K, as filed with the Commission on
July 3, 2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>10.17</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Form of Registration Rights
Agreement, dated as of June 28, 2013, among Forward Industries, Inc. and the
investors signatory thereto (incorporated by reference to Exhibit 10.2 to the
Company’s Current Report on Form 8-K, as filed with the Commission on July 3,
2013).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'>21.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Subsidiaries of the Registrant</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>21.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>List of Subsidiaries of
Forward Industries, Inc. (incorporated by reference to Exhibit 21.1 to the Company’s
Annual Report on Form 10-K, as filed with the Commission on January 14,
2014).</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'>23.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Consents of Experts and
Counsel</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>23.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Consent of CohnReznick LLP*</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>23.2</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Consent of Olshan Frome
Wolosky LLP (contained in its opinion under Exhibit 5.1)</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-right:-1.4pt'>24.</p>
</td>
<td width="95%" colspan=2 valign=top style='width:95.02%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Power of Attorney</p>
</td>
</tr>
<tr>
<td width="4%" valign=top style='width:4.98%;padding:0in 5.75pt 0in 5.75pt'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'> </p>
</td>
<td valign=top style='width:3%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'>24.1</p>
</td>
<td valign=top style='width:91%;padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-bottom:6.0pt'>Power of attorney, included on
signature page</p>
</td>
</tr>
</table>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:0in;margin-bottom:6.0pt;
margin-left:27pt;'>† Portions have been omitted
pursuant to request for confidential treatment and the omitted portions have
been separately filed with the Commission.</p>
<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:27pt;margin-right:0in; margin-top:0in'>* Filed
herewith.</p>
</div>
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</p>
<p style="font-size: 10.0pt; font-family: 'Times New Roman',serif; text-indent: -22pt; margin-left: 98pt; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt"> </p>
</body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5
<SEQUENCE>2
<FILENAME>es5-1.htm
<TEXT>
<html>
<head>
<!-- Document Prepared With EDGARSTAR Software-->
<!-- Copyright 2007 EDGARSTAR TRADEMARK-->
<!-- All rights reserved EDGAR2.com -->
<title>5.1</title>
</head>
<body lang=EN-US>
<div style='page:WordSection1;'>
<p style='mso-style-name:ogfrwDate;margin-top:0in;margin-right:0in;margin-bottom:.5in;margin-left:0in;text-align:center;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-name:ogfrwDate;margin-top:0in;margin-right:0in;margin-bottom:.5in;margin-left:0in;text-align:center;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='mso-style-name:ogfrwDate;margin-top:0in;margin-right:0in;margin-bottom:.5in;margin-left:0in;text-align:center;font-size:12.0pt;font-family:"Times New Roman","serif";'>March 26, 2014</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:0in;margin-bottom:.0001pt;text-indent:
0in'>Forward Industries, Inc.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:0in;margin-bottom:.0001pt;text-indent:
0in'>477 Rosemary Ave.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:0in;margin-bottom:.0001pt;text-indent:
0in'>Suite 219</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:0in;margin-bottom:.0001pt;text-indent:
0in'>West Palm Beach, Florida 33401</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:0in;margin-bottom:.0001pt;text-indent:
0in'> </p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:1.0in'>Re: <u>Registration
Statement on Form S-1</u></p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:0in'>Ladies and Gentlemen:</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'>We have acted as counsel to
Forward Industries, Inc., a New York corporation (the “Company”), in connection
with the preparation and filing of a Registration Statement on Form S-1 (as may
be amended from time to time, the “Registration Statement”) with the Securities
and Exchange Commission (the “Commission”) under the Securities Act of 1933, as
amended (the “Act”), relating to the offer and resale from time to time by the
selling stockholders identified in the Prospectus constituting a part of the
Registration Statement of an aggregate of up to 1,341,765 shares (the “Shares”)
of the Company’s common stock, $0.01 par value, which have been authorized for
issuance, and will be issued, to the selling stockholders named in the
Registration Statement upon the (i) conversion of 648,846 shares of the
Company’s 6% Senior Convertible Preferred Stock and (ii) exercise of warrants to
purchase 648,846 Shares and, in each case, for payment of dividends thereupon.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'>As a basis for rendering the
opinion contained herein, we have examined the following documents: (i) the
Registration Statement, (ii) the Amended and Restated Certificate of
Incorporation and Third Amended and Restated By-Laws of the Company, each as
amended, and (iii) certain resolutions adopted by the Board of Directors of the
Company. We have also examined and relied upon the original or certified copies
of such records of the Company and such agreements, certificates of public
officials, certificates of officers or representatives of the Company and
others, and such other documents as we deem relevant and necessary as a basis
for the opinion hereinafter expressed. In such examination, we have assumed,
without inquiry, the legal capacity of all natural persons, the authenticity of
all documents submitted to us as originals, the genuineness of all signatures
on original documents, the conformity with originals of all documents submitted
to us as certified or photostatic copies, and the correctness of all statements
of fact contained in the documents examined. As to various questions of fact
material to our opinion, we have relied upon statements or certificates of
public officials, certificates of officers or representatives of the Company
and others.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'>Based upon the foregoing and in
reliance thereon and subject to the assumptions, qualifications and limitations
set forth herein, we are of the opinion that the Shares have been duly
authorized and, when issued in accordance with the terms of the Amended and
Restated Certificate of Incorporation, as amended, will have been duly and
validly issued, fully paid and non-assessable.</p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<br
clear=all style='page-break-before:always'>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='mso-style-link:"Header Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'>We are members of the Bar of the
State of New York. We express no opinion as to the effects of any laws,
statutes, regulations or ordinances other than the laws of the States of New
York and the federal laws of the United States of America as in effect on the
date of this letter, and we are expressing no opinion as to the effect of the
laws of any other jurisdiction or as of any later date.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'>This opinion letter is limited
to the matters set forth herein, and no opinion may be inferred or implied
beyond the matters expressly set forth herein. This opinion letter is not a
guaranty nor may one be inferred or implied. This opinion letter speaks as of
the date hereof and we assume no obligation to update or supplement this
opinion letter to reflect any facts or circumstances that may hereafter come to
our attention or any changes in fact or law that may hereafter occur.</p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify'> </p>
<div align="right">
<table border="0" width="50%">
<tr>
<td>
<p style='mso-style-name:ogfrwSignature;margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:12.0pt;font-family:"Times New Roman","serif"'>Very truly yours,</p>
</td>
</tr>
<tr>
<td>
<p style='mso-style-name:ogfrwSignature;margin-top:0in;margin-right:0in;margin-bottom:12.0pt;font-size:12.0pt;font-family:"Times New Roman","serif"'>/s/ Olshan Frome Wolosky LLP</p>
</td>
</tr>
<tr>
<td>
<p style='mso-style-link:"Footer Char";margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif"; margin-right:0in; margin-top:0in'> OLSHAN FROME WOLOSKY LLP</p>
</td>
</tr>
</table>
</div>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<p style='mso-style-link:"Footer Char";margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'> </p>
<div style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-bottom:0in;margin-bottom:
..0001pt;text-align:center;text-indent:0in'>
<hr size=2 width="100%" noshade style='color:navy' align=center>
</div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='mso-style-link:"Body Text Char";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:0in;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:3.0in'> </p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>3
<FILENAME>es23-1.htm
<TEXT>
<html>
<head>
<title>Exhibit 23.1</title>
</head>
<body>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'> </p>
<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'><b>Exhibit 23.1</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-indent:-.25in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-align:center;
text-indent:-.25in'><b>Consent of Independent Registered Public Accounting Firm</b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-indent:-.25in'> </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";margin-left:.25in;text-indent:-.25in'><font style="font-size: 11.0pt"> </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">We consent to the
incorporation by reference in this Registration Statement on Form S-1 of
Forward Industries, Inc. of our report dated January 14, 2014, on our audits of
the consolidated balance sheets of Forward Industries, Inc. and Subsidiaries as
of September 30, 2013 and 2012, and the related consolidated statements of
operations and comprehensive loss, shareholders’ equity, and cash flows, for
the years then ended which report appears in the annual report on Form 10-K of
Forward Industries, Inc. for the year ended September 30, 2013.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt"> </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">We also consent to the
reference to us under the caption “Experts” in this Registration Statement on
Form S-1.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt"> </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">/s/ CohnReznick LLP</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt"> </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">March 26, 2014</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt">New York, New York</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 11.0pt"> </font></p>
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</DOCUMENT>
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<SEQUENCE>4
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>