Company: FWDI
Filing Date: 2025-09-17
Form Type: S-3ASR
Source: 0001683168-25-007043
Chunk: 40

Company: Forward Industries, Inc.
Filing Date: 2025-09-17
Form: S-3ASR
Chunk 40
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 a flaw in the account recovery process
and stole from the accounts of at least 6,000 customers of the Coinbase exchange, although the flaw was subsequently fixed and Coinbase
reimbursed affected customers. Similarly, in November 2022, hackers exploited weaknesses in the security architecture of the FTX Trading
digital asset exchange and reportedly stole over $400 million in digital assets from customers. A successful security breach or cyberattack
could result in:

| · | a partial or total loss of our digital assets in a manner that may not be covered by insurance or the liability 
 provisions of the custody agreements with the custodians who hold our digital assets;                           |
| · | harm to our reputation and brand;                                                                               |
| · | improper disclosure of data and violations of applicable data privacy and other laws; or                        |
| · | significant regulatory scrutiny, investigations, fines, penalties, and other legal, regulatory, contractual     
 and financial exposure.                                                                                         |

Further, any actual or perceived data security breach
or cybersecurity attack directed at other companies with digital assets or companies that operate digital asset networks, regardless of
whether we are directly impacted, could lead to a general loss of confidence in the broader Solana ecosystem or in the use of the Solana
network to conduct financial transactions, which could negatively impact us.

| 23 |

Attacks upon systems across a variety of industries,
including industries related to Solana, are increasing in frequency, persistence, and sophistication, and, in many cases, are being conducted
by sophisticated, well organized groups and individuals, including state actors. The techniques used to obtain unauthorized, improper
or illegal access to systems and information (including personal data and digital assets), disable or degrade services, or sabotage systems
are constantly evolving, may be difficult to detect quickly, and often are not recognized or detected until after they have been launched
against a target. These attacks may occur on our systems or those of our third-party service providers or partners. We may experience
breaches of our security measures due to human error, malfeasance, insider threats, system errors or vulnerabilities or other irregularities.
In particular, we expect that unauthorized parties will attempt to gain access to our systems and facilities, as well as those of our
partners and third-party service providers, through various means, such as hacking, social engineering, phishing and fraud. Threats can
come from a variety of sources, including criminal hackers, hacktivists, state intrusions, industrial espionage, and insiders. In addition,