Company: FWDI
Filing Date: 2025-11-10
Form Type: 424B5
Source: 0001683168-25-008141
Chunk: 8

Company: Forward Industries, Inc.
Filing Date: 2025-11-10
Form: 424B5
Chunk 8
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 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%), 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.

| S-2 |

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.

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 including the community, the foundation and investors. New SOL are brought into existence primarily through inflationary
rewards distributed to validators and delegators. The SOL staking yield is made up of three primary components: inflationary rewards,
transaction/priority fees and maximal extractable value. Inflationary rewards started out at 8.0%, and are currently 4.3