Company: FWDI
Filing Date: 2025-09-17
Form Type: S-3ASR
Source: 0001683168-25-007043
Chunk: 98

Company: Forward Industries, Inc.
Filing Date: 2025-09-17
Form: S-3ASR
Chunk 98
---
 staking rewards and transaction
fees may be treated as ordinary income upon receipt, although additional guidance is expected pursuant to the President’s Working
Group July 2025 report “Strengthening American Leadership in Digital Financial Technology.” If regulation or policy changes,
or the interpretation or enforcement thereof, results in adverse tax treatment of rewards from staking SOL, we could be subject to increased
audits by the IRS and additional tax liabilities.

The Solana blockchain experiences a high number of “spam” transactions which can cause periods of congestion or outages or make it difficult for users to have their transactions processed.

Solana’s high throughput and lower transaction
fees compared to other blockchains have made it an attractive target for large volumes of low-value or “spam” transactions,
which are often generated by automated bots or malicious actors seeking to exploit the network’s resources. These spam transactions
can congest the network, delay or prevent the processing of legitimate transactions, and in some cases, cause partial or complete performance
degradation for the blockchain. During periods of high congestion, users may experience significant delays, increased transaction fees,
or failed transactions, which can erode confidence in the network and reduce its utility for both users and developers. In addition, repeated
or prolonged network disruptions may discourage new projects from building on Solana, limit the adoption of decentralized applications,
and negatively impact the value of SOL. The Solana development team and community have implemented, and may in the future implement additional,
technical upgrades or other measures to address these issues, but there can be no assurance that such efforts will be successful or sufficient
to prevent future disruptions.

A high percentage of Solana validators rely on software provided by Jito Labs, a third party unaffiliated with Solana Labs. If Jito Labs were to stop maintaining such software or if such software failed to function properly, it could have an adverse effect on the Solana blockchain and value of SOL.

A significant portion of Solana validators utilize
software developed and maintained by Jito Labs, an independent third party that is not affiliated with Solana Labs or the Solana Foundation.
This reliance on third-party software introduces additional operational and security risks to the Solana network. If Jito Labs were to
discontinue support for its software, experience operational difficulties, or if the software were to contain critical bugs, vulnerabilities,
or backdoors, the performance and security of the Solana network could be compromised. For example, a failure or exploit in the Jito Labs
software could result in network instability