Company: FWDI
Filing Date: 2025-09-17
Form Type: S-3ASR
Source: 0001683168-25-007043
Chunk: 94

Company: Forward Industries, Inc.
Filing Date: 2025-09-17
Form: S-3ASR
Chunk 94
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 of a DeFi application does
not know the identity of other parties utilizing the DeFi application; and (e) the use of monitoring and forensics software to mitigate
risks of engaging in DeFi application may not prevent engaging in DeFi pools that are also used by bad actors.

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The reliance on open-source code by digital asset networks exposes us to risks related to competitive networks and products built on such code, the failure of individuals to maintain that code, and discovery of security vulnerabilities that could threaten the ability of such networks to operate.

Digital asset networks are open-source projects and,
although there may be an influential group of leaders in the network community, generally there is no official developer or group of developers
that formally controls the digital asset network. Without guaranteed financial incentives, there may be insufficient resources to address
emerging issues, upgrade security or implement necessary improvements to the network in a timely manner. If the digital asset network’s
software is not properly maintained or developed, it could become vulnerable to security threats, operational inefficiencies and reduced
trust, all of which could negatively impact the digital assets’ long-term viability and our business.

The lack of legal recourse and insurance for digital assets increases the risk of total loss in the event of theft or destruction.

Digital assets that we acquire will not be insured
against theft, loss or destruction. If an event occurs where we lose our digital assets, whether due to cyberattacks, fraud or other malicious
activities, we may not have any viable legal recourse or ability to recover the lost assets. Unlike funds held in insured banking institutions,
our digital assets are not protected by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. If
our digital assets are lost under circumstances that render another party liable, there is no guarantee that the responsible party will
have the financial resources to compensate us. As a result, we and our stockholders could face significant financial losses.

The Company will face risks relating to the custody of its digital assets. If we or our third-party service providers experience a security breach or cyberattack and unauthorized parties obtain access to our private keys, or if our private keys are lost or destroyed, or other similar circumstances or events occur, we may lose some or all of our digital assets and our financial condition and results of operations could be materially adversely affected.

We expect our primary counterparty risk with respect
to our SOL will be custodian performance obligations under the custody arrangements we enter into. A series of recent high-profile bankruptcies,
closures, liquid