Company: FWDI
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001683168-25-008451
Chunk: 45

Company: Forward Industries, Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 45
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 a Solana-focused strategy requires substantial changes in our day-to-day operations and exposes us to significant operational risks.

Our shift towards a SOL treasury-focused strategy,
including staking, liquid staking, and other decentralized finance activities, exposes us to significant operational risks. To participate
in Solana’s Proof-of-Stake consensus mechanism, we must either operate or delegate to validator nodes, and such validator nodes
must keep software updated, maintain validator uptime and employ secure key management. In addition, the Solana ecosystem rapidly evolves,
with frequent upgrades and protocol changes that may require significant adjustments to our operational setup if we are operating a validator
node. The upgrades and protocol changes may require that we incur unanticipated costs and could cause temporary service disruptions to
the Solana network. We may also need to employ third-party service providers in our operations, which may introduce risks outside of our
control, including significant cybersecurity risks. Any of these operational risks could materially and adversely affect our ability to
execute our SOL treasury strategy and may prevent us from realizing positive returns and could severely hurt our financial condition.

The concentration of our SOL holdings enhances the risks inherent in our Solana-focused strategy.

We have and intend to purchase SOL and increase our
overall holdings of SOL in the future. The intended concentration of our SOL holdings limits the risk mitigation that we could achieve
if we were to purchase a more diversified portfolio of treasury assets, and the absence of diversification enhances the risks inherent
in our Solana-focused strategy. The price of SOL experienced a significant decline in 2022, and any similar future significant declines
in the price of SOL could have a more pronounced impact on our financial condition than if we used our cash to purchase a more diverse
portfolio of assets.

Solana is created and transmitted through the operations of the peer-to-peer Solana network, a decentralized network of computers running software following the Solana protocol. If the Solana network is disrupted or encounters any unanticipated difficulties, the value of SOL could be negatively impacted.

If the Solana network is disrupted or encounters
any unanticipated difficulties, then the processing of transactions on the Solana network may be disrupted, which in turn may prevent
us from depositing or withdrawing SOL from our accounts with our custodian or otherwise affecting SOL transactions. Such disruptions could
include, for example: the insolvency, business failure, interruption, default, failure to perform, security breach, or other problems
of participants, custodians, or others; the closing of SOL trading platforms due to fraud