Company: FWDI
Filing Date: 2025-11-10
Form Type: 424B5
Source: 0001683168-25-008141
Chunk: 56

Company: Forward Industries, Inc.
Filing Date: 2025-11-10
Form: 424B5
Chunk 56
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 to register as a money services business or money transmitter, leading to increased compliance costs or operational shutdowns.

The regulatory regime for digital assets in the U.S.
and elsewhere is uncertain. The Company may be unable to effectively react to proposed legislation and regulation of digital assets, which
could adversely affect its business.

If regulatory changes or interpretations require
us to register as a money services business with The Financial Crimes Enforcement Network (FinCEN) under the U.S. Bank Secrecy Act, or
as a money transmitter under state laws, we may be subject to extensive regulatory requirements, resulting in significant compliance costs
and operational burdens. In such a case, we may incur extraordinary expenses to meet these requirements or, alternatively, may determine
that continued operations are not viable. If we decide to cease certain operations in response to new regulatory obligations, such actions
could occur at a time that is unfavorable to investors.

Multiple states have implemented or proposed regulatory
frameworks for digital asset businesses. Compliance with such state-specific regulations may increase costs or impact our business operations.
Further, if we or our service providers are unable to comply with evolving federal or state regulations, we may be forced to dissolve
or liquidate certain operations, which could materially impact our investors.

If any of the digital assets that we hold are classified as a security, we may be subject to extensive regulation, which could result in significant costs or force us to cease operations.

Regulatory changes or interpretations that classify
digital assets that we hold as a security under the Securities Act of 1933, as amended, or the Investment Company Act, could require us
to register and comply with additional regulations. Compliance with these requirements could impose extraordinary, non-recurring expenses
on our business. If the costs and regulatory burdens become too great, we may be forced to modify or cease certain operations, which could
be detrimental to our investors.

| 17 |

The SEC has previously indicated that certain digital
assets may be considered securities depending on their structure and use. Future developments could change the legal status of digital
assets that we may hold, requiring us to comply with securities laws. If we fail to do so, we may be forced to discontinue some or all
of our business activities, negatively impacting investments in our securities.

If the SEC or other regulators determine that digital
assets that we may hold qualify as securities, we may be required to change our operations, wind down our operations, or register as an
investment company under the Investment Company Act. This classification would subject us