Company: FWDI
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0001683168-25-007923
Chunk: 8

Company: Forward Industries, Inc.
Filing Date: 2025-11-03
Form: 424B5
Chunk 8
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validators to achieve a track record of high performance, high yield generation and attractive delegator economics. We will also delegate
to other third-party validators who, in our opinion, have demonstrated a similar track record. We use multiple validators, both our own
and third-party, to seek to maximize the return on our SOL treasury and to mitigate the risk of having only one or two validators for
our treasury staking. We may also negotiate bespoke arrangements with DeFi teams and validator operators to further enhance returns.

We acknowledge that during
the deactivation period, staked SOL is not earning rewards and is not yet liquid. We factor this into our liquidity and risk management
framework.

| S-2 |

Our staking program involves
a temporary loss of transferability of staked SOL during the “deactivation” or cooldown period. Under normal conditions, we
expect to regain complete control over un-staked SOL within approximately 48 hours; however, network conditions could extend this period.
To mitigate liquidity risk, we intend to maintain a portion of our treasury in un-staked SOL and cash to meet short-term obligations.
We may also utilize capital markets instruments, such as structured products and non-dilutive debt, to enhance liquidity and expand our
SOL holdings. Our use of SOL options may involve margin requirements or collateral posting, which could reduce available liquidity. Option
premiums paid or received may also create volatility in our near-term cash flows.

We also intend to participate
in liquid staking 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.

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