Company: FWDI
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0001683168-25-007923
Chunk: 10

Company: Forward Industries, Inc.
Filing Date: 2025-11-03
Form: 424B5
Chunk 10
---
when not. Validators are chosen to produce a block in proportion to their stake, which makes it extremely costly for bad actors to attempt
to control the network and add invalid transactions to the blockchain. Validators receive staking rewards for the work they perform, which
further incentivizes validators to behave properly, as they would otherwise miss out on such rewards. Other proof-of-stake networks often
“slash” some or all of a validator’s stake if it intentionally or unintentionally performs its duties poorly, for example,
by double-signing a transaction, though Solana has not implemented slashing at this time. In addition to its use within consensus, SOL
is also a “gas token,” meaning that users of the Solana blockchain pay SOL to validators (and delegators) as compensation
for processing their transactions.

We see three particularly
notable items giving Solana a technical advantage compared to many smart contract blockchain peers. Solana’s proof-of-history gives
validators a notion of time and allows them to produce blocks without requiring the network to first agree upon the current block, resulting
in speed advantages. Further, unlike peer blockchains that often use single-threaded virtual machines, Solana enables parallel transaction
execution to increase throughput and take advantage of future hardware improvements resulting from increased CPU core counts. In addition,
Solana is optimized for speed and security, and is naturally growing into decentralization as hardware and bandwidth costs fall over time,
positioning it well along the Blockchain Trilemma.

While Solana Labs and the
Solana Foundation have played important roles in the development of the Solana ecosystem, no single entity owns or controls the Solana
network. However, concentration of influence in these entities, particularly in early-stage protocol governance, presents risks that investors
should consider.

Solana’s performance
and technical capabilities enable many use cases from DeFi to decentralized physical infrastructure networks, AI agents, social media,
gaming, stablecoins, real-world assets, among others. We believe Solana is advantaged by best-in-class technology and strong network effects
that have attracted a large, growing and vibrant ecosystem of users, developers and decentralized applications.

Depending on the regulatory
characterization of Solana, the markets for cryptocurrency in general, and our activities in particular, our business and our Solana acquisition
strategy may be subject to regulation by one or more regulators in the United States and globally. Ongoing and future regulatory actions
may alter, to a materially adverse extent, the nature of digital assets markets, the participation of industry