Company: FWDI
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0001683168-25-007923
Chunk: 66

Company: Forward Industries, Inc.
Filing Date: 2025-11-03
Form: 424B5
Chunk 66
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 assets through error or theft, we will be unable to revert or otherwise
recover the impacted digital assets, and any such loss could adversely affect our business, results of operations and financial condition.

We will be subject to significant competition in the growing digital asset industry and the Company’s business, operating results, and financial condition may be adversely affected if the Company is unable to compete effectively.

Following the launch of the Company’s proposed
digital asset treasury strategy, the Company will operate in a competitive environment and will compete against other companies and other
entities with similar strategies, including companies with significant holdings in SOL and other digital assets, and the Company’s
business, operating results, and financial condition may be adversely affected if the Company is unable to compete effectively.

Solana faces unique technical, governance and concentration risks that could materially affect its long-term viability.

Solana is a high-throughput Layer 1 blockchain with
architectural features that differ significantly from other blockchains, such as Ethereum. While these features allow for rapid processing
of transactions, they introduce risks that could adversely impact the value of SOL and the stability of the Solana network. Historically,
Solana has suffered network outages, slow operations and validator coordination failures. If such challenges were to persist, the confidence
of the Solana development community and its users will be adversely affected, which could cause a rapid decline in the value of SOL. In
addition, Solana’s consensus mechanism (Proof of History combined with Proof of Stake) is novel and relatively untested at a large
scale over time. Structural flaws could emerge that require a fork, which may have an adverse impact on the Solana network and our holdings.

Solana validators are relatively small in number, compared to some other leading blockchains, which may lead to coordinated censorship.

Solana has fewer validators than certain other blockchains
but has a high Nakamoto coefficient, which refers to the minimum number of validators or node operators that need to cooperate to take
over a blockchain network. In contrast, Ethereum has a higher number of validators. In theory, a malicious actor might more easily be
able to gain control of a network with fewer validators. Such control of the network could allow a malicious actor to censor transactions,
reverse transactions (double-spending), or manipulate block validations.

Solana is subject to technological obsolescence, including competition from emerging blockchain and artificial intelligence protocols.

The digital asset ecosystem is characterized by rapid
technological innovation, short development cycles, and intense competition among blockchains and related infrastructure