Company: FWDI
Filing Date: 2025-09-17
Form Type: S-3ASR
Source: 0001683168-25-007043
Chunk: 33

Company: Forward Industries, Inc.
Filing Date: 2025-09-17
Form: S-3ASR
Chunk 33
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 SOL ETPs, we (i) do not seek for our shares of common stock to track the value of the underlying SOL we
hold before payment of expenses and liabilities, (ii) do not benefit from various exemptions and relief under the Securities Exchange
Act of 1934, as amended, including Regulation M, and other securities laws, which enable ETPs to continuously align the value of their
shares to the price of the underlying assets they hold through share creation and redemption, (iii) are a Delaware corporation rather
than a statutory trust, and do not operate pursuant to a trust agreement that would require us to pursue one or more stated investment
objectives, and (iv) are not required to provide daily transparency as to our SOL holdings or our daily net asset value. Furthermore,
recommendations by broker-dealers to buy, hold, or sell complex products and non-traditional ETPs, or an investment strategy involving
such products, may be subject to additional or heightened scrutiny that would not be applicable to broker-dealers making recommendations
with respect to our common stock. Based on how we are viewed in the market relative to ETPs, and other vehicles which offer economic exposure
to SOL, such as SOL futures exchange-traded funds (“ETFs”), leveraged SOL futures ETFs, and similar vehicles offered on international
exchanges, any premium or discount in our common stock relative to the value of our SOL holdings may increase or decrease in different
market conditions.

As a result of the foregoing factors, the availability
of spot ETPs for bitcoin, SOL and other digital assets could have a material adverse effect on the market price of our listed securities.

Digital asset lending arrangements may expose us to risks of borrower default, operational failures and cybersecurity threats.

Although we are not initially planning to lend SOL
to counterparties, from time to time, we may generate income through lending digital assets, which carries significant risks. The volatility
of such digital assets increases the likelihood that borrowers may default due to market downturns, liquidity crises, fraud or other financial
distress. These lending transactions may be unsecured and so may be subordinated to the secured debt of the borrower. If a borrower becomes
insolvent, we may be unable to recover the loaned SOL, leading to substantial financial losses.

Additionally, digital asset lending platforms are
vulnerable to operational and cybersecurity risks. Technical failures, software bugs or system outages could disrupt lending activities,
delay transactions or result in inaccurate record-keeping.