Company: FWDI
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001683168-25-008451
Chunk: 62

Company: Forward Industries, Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 62
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A significant portion of Solana validators utilize
software developed and maintained by Jito Labs, an independent third party that is not affiliated with Solana Labs or the Solana Foundation.
This reliance on third-party software introduces additional operational and security risks to the Solana network. If Jito Labs were to
discontinue support for its software, experience operational difficulties, or if the software were to contain critical bugs, vulnerabilities,
or backdoors, the performance and security of the Solana network could be compromised. For example, a failure or exploit in the Jito Labs
software could result in network instability, validator downtime or other adverse outcomes. The software offered by Jito Labs has also
reduced the impact of “spam” transactions on the Solana blockchain. If Jito Labs were to stop offering or supporting its software,
there could be a far greater impact of “spam” transactions on the Solana network which could congest the network, delay or
prevent the processing of legitimate transactions, and in some cases, cause partial or complete outages of the blockchain. Any such events
could materially and negatively affect the value of SOL, reduce confidence in the network, and impair the ability of the Company to realize
the expected benefits of its investment in SOL.

A cyberattack or other malicious attack on the Solana blockchain could have a material impact on the value of SOL held by the Company.

Solana and other digital assets and the entities
that provide services to participants in blockchain ecosystems have been, and may in the future be, subject to security breaches, cyberattacks,
or other malicious activities. For example, in October 2021 it was reported that hackers exploited 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,