Company: FWDI
Filing Date: 2025-09-17
Form Type: S-3ASR
Source: 0001683168-25-007043
Chunk: 93

Company: Forward Industries, Inc.
Filing Date: 2025-09-17
Form: S-3ASR
Chunk 93
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 increase or decrease in different
market conditions.

As a result of the foregoing factors, the availability
of spot ETPs for bitcoin, SOL and other digital assets could have a material adverse effect on the market price of our listed securities.

Digital asset lending arrangements may expose us to risks of borrower default, operational failures and cybersecurity threats.

Although we are not initially planning to lend SOL
to counterparties, from time to time, we may generate income through lending digital assets, which carries significant risks. The volatility
of such digital assets increases the likelihood that borrowers may default due to market downturns, liquidity crises, fraud or other financial
distress. These lending transactions may be unsecured and so may be subordinated to the secured debt of the borrower. If a borrower becomes
insolvent, we may be unable to recover the loaned SOL, leading to substantial financial losses.

Additionally, digital asset lending platforms are
vulnerable to operational and cybersecurity risks. Technical failures, software bugs or system outages could disrupt lending activities,
delay transactions or result in inaccurate record-keeping. Cybersecurity threats, including hacking, phishing and other malicious attacks,
pose further risks, potentially leading to the loss, theft or misappropriation of our loaned SOL. A successful cyberattack or security
breach could materially and adversely impact our financial position, reputation and ability to conduct future lending activities.

Decentralized finance arrangements may expose us to risks of smart contract risk, operational failures and cybersecurity threats.

From time to time, we may generate income through
the use of digital assets including SOL or stablecoins in decentralized protocols including decentralized finance (“DeFi”)
applications. DeFi applications include over-collateralized borrow-lend vaults, token-exchange pools, and other financial or commercial
arrangements. Although these protocols are largely designed to limit counterparty risk in transactions, they introduce novel risks relating
to software code bugs, liquidation risks, and governance risks that are designed to operate in decentralized environments but can be subject
to failures or exploits. In addition: (a) network congestion or downtime can increase the likelihood of asset loss or liquidation; (b)
the volatility of digital assets deployed into DeFi applications may increase the likelihood of liquidation due to market downturns, liquidity
crises, governance attacks or other exploits, leading to substantial financial losses; (c) the uncertainty in the accounting treatment
of certain DeFi applications; (d) DeFi applications generally operate on a user-to-protocol basis where a user