Company: FWDI
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0001683168-25-007923
Chunk: 39

Company: Forward Industries, Inc.
Filing Date: 2025-11-03
Form: 424B5
Chunk 39
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protocols by converting a portion of our SOL holdings into Liquid Staking Tokens (“LSTs”). This will allow us to earn
staking rewards while maintaining the liquidity of our underlying SOL and enabling us to use the LSTs in various DeFi applications. We
may manage a mix of traditionally staked SOL and LSTs to optimize liquidity.

Use of Custodians and Storage of SOL

We solely utilize third-party qualified custodians
to hold our SOL, other than the portion of our SOL held through a single non-qualified custodian, as set forth below. We do not self-custody
our SOL. We use qualified custodians that utilize risk management and operational best practices related to hot vs. cold storage, access
controls, custody technology and insurance, among other practices. We are in the process of onboarding with other qualified custodians
to ensure that we mitigate our SOL treasury risk through the use of several qualified custodians.

Our primary custodians generally maintain the
majority of their custodied SOL holdings in cold storage (>95%), with hot wallets used only for limited operational purposes. Custodians
employ SOC 2–audited security controls, geographic redundancy, multi-person approval processes, and conduct key-generation ceremonies
in offline, secure facilities. Private keys are never exposed to networked devices. Custodians maintain insurance coverage, which is in
addition to policies we maintain ourselves. Our custody agreements typically run for one to three years, may be terminated on 30 days’
notice, and include fees for storage and transactions. Our qualified custodians do not rehypothecate or otherwise use our SOL.

Use of DeFi Protocols

We may from time to time interact with DeFi protocols,
either directly or indirectly through staking, validator operations, custody arrangements, or liquidity management activities. DeFi protocols
generally rely on open-source smart contracts deployed on public blockchains, including SOL. While these smart contracts are intended
to operate automatically according to their code, they may contain coding errors, vulnerabilities, or design flaws that can be exploited.
We actively evaluate DeFi opportunities within the Solana ecosystem to enhance treasury productivity, while maintaining robust risk management
practices.

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SOL - The Token of the Solana Blockchain

SOL is the native token of the Solana blockchain.
SOL was created with an initial supply of 500 million SOL, though much of the initial supply was locked or earmarked for various use cases