Company: FWDI
Filing Date: 2025-09-17
Form Type: S-3ASR
Source: 0001683168-25-007043
Chunk: 27

Company: Forward Industries, Inc.
Filing Date: 2025-09-17
Form: S-3ASR
Chunk 27
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 the Sponsors and their affiliates have been, and may continue to be, the subjects of legal and regulatory proceedings and investigations.

Certain of the Sponsors and their affiliates have
been, and may continue to be, the subjects of legal and regulatory proceedings and investigations. For example, Galaxy Digital Inc. agreed
to pay $200 million as part of an agreement with the New York Attorney General to resolve civil claims related to certain investments,
trading, and public statements made in connection with the LUNA digital asset from late 2020 to 2022. Separately, Multicoin Capital Management,
LLC and its managing partner Kyle Samani have been named as co-defendants along with Solana Labs in a putative class-action litigation
related to the promotion and sale of SOL for which a motion to dismiss is pending. Certain of these matters have involved, among other
things, allegations of improper marketing practices and misrepresentations, as well as unregistered securities offerings with respect
to SOL and other digital assets. Any adverse outcome in these proceedings or other future litigation or regulatory inquiries could negatively
affect public perception of the Sponsors, the Company, and Solana itself, which could constrain trading activity and suppress the price
and liquidity of SOL. Any such development could materially and adversely affect the value of our digital asset treasury, the market price
of our stock and our ability to execute on our digital asset treasury strategy.

Changes in regulatory interpretations could require us 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