Company: FWDI
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001683168-25-008451
Chunk: 52

Company: Forward Industries, Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 52
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 legislative or regulatory developments, including new CFTC interpretations, could further impact how
SOL and SOL derivatives are classified and traded.

If SOL are further regulated as a commodity, we may
be required to register as a commodity pool operator and register the Company as a commodity pool with the CFTC through the National Futures
Association. Compliance with these additional regulatory requirements could result in substantial, non-recurring expenses, adversely affecting
an investment in our securities. If we determine not to comply with such regulations, we may be forced to cease certain operations, which
could negatively impact our investors.

We are not subject to legal and regulatory obligations that apply to investment companies such as mutual funds and exchange-traded funds, or to obligations applicable to investment advisers.

Mutual funds, exchange-traded funds (ETFs) and their
management are subject to extensive regulation as “investment companies” and “investment advisers” under U.S.
federal and state law; this regulation is intended for the benefit and protection of investors. We are not subject to, and do not otherwise
voluntarily comply with, these laws and regulations. This means, among other things, that the execution of our changes to our digital
asset strategy, our use of leverage, our ability to engage in transactions with affiliated parties and our operating and investment activities
generally are not subject to the extensive legal and regulatory requirements and prohibitions that apply to investment companies and investment
advisers.

Due to the unregulated nature and lack of transparency surrounding the operations of many digital asset trading venues, digital asset trading venues experience greater risk of fraud, market manipulation and other deceptive marketing practices, as well as security failures or regulatory or operational problems than trading venues for more established asset classes, which may result in a loss of confidence in digital asset trading venues and adversely affect the value of digital assets, and the Company’s financial position, operations and prospects.

Digital asset trading venues are relatively new and,
in many cases, unregulated. Furthermore, there are many digital asset trading venues that do not provide the public with significant information
regarding their ownership structure, management teams, corporate practices and regulatory compliance. As a result, the marketplace may
lose confidence in digital asset trading venues, including prominent exchanges that handle a significant volume of such trading and/or
are subject to regulatory oversight, in the event one or more digital asset trading venues cease or pause for a prolonged period the trading
of digital assets, or experience fraud, significant volumes of withdrawal, security failures or operational problems.

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