Company: FWDI
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0001683168-25-007923
Chunk: 124

Company: Forward Industries, Inc.
Filing Date: 2025-11-03
Form: 424B5
Chunk 124
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 to companies operating in the digital asset industry,
the closure or liquidation of certain financial institutions that provided lending and other services to the digital assets industry,
SEC enforcement actions against other providers, or placement into receivership or civil fraud lawsuit against digital asset industry
participants have highlighted the perceived and actual counterparty risk applicable to digital asset ownership and trading. Legal precedent
created in these bankruptcies and other proceedings may increase the risk of future rulings adverse to our interests in the event one
or more of our custodians becomes a debtor in a bankruptcy case or is the subject of other liquidation, insolvency or similar proceedings.

While our custodians will be subject to regulatory
regimes intended to protect customers in the event of a custodial bankruptcy, receivership or similar insolvency proceeding, no assurance
can be provided that our custodially held SOL will not become part of the custodian’s insolvency estate if one or more of our custodians
enters bankruptcy, receivership or similar insolvency proceedings. Additionally, if we pursue any strategies to create income streams
or otherwise generate funds using our SOL holdings, we would become subject to additional counterparty risks. We will need to carefully
evaluate market conditions, including price volatility as well as service provider terms and market reputations and performance, among
others, prior to implementing any such strategy, all of which could affect our ability to successfully implement and execute on any such
future strategy. These risks, along with any significant non-performance by counterparties, including in particular the custodian or custodians
with which we will custody substantially all of our SOL, could have a material adverse effect on our business, prospects, financial condition,
and operating results.

We face risks relating to the use of third-party trading platforms in connection with our Solana-focused strategy.

We intend to use third-party trading platforms,
which we believe are reputable, as well as reputable over-the-counter brokers to purchase SOL for our treasury. As part of our process
in determining transactions with third-party exchanges, we search for reputable exchanges that have industry standard policies and procedures
in place regarding data security and customer diligence related to anti-money laundering, Office of Foreign Assets Control and know-your
client rules and regulations. If any of these third-party exchanges no longer meet our standards or if there is a decrease in reputable
third-party exchanges, we may need to find additional counterparties and enter into additional agreements that could be on less favorable
terms, which could have a material adverse effect on our business, financial