Company: FWDI
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001683168-25-008451
Chunk: 54

Company: Forward Industries, Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 54
---
 or securities deposited with or transacted by institutions subject to regulation by the Federal
Deposit Insurance Corporation or the Securities Investor Protection Corporation. Additionally, we may be unable to enter into term loans
or other capital raising transactions collateralized by our unencumbered digital assets or otherwise generate funds using our digital
asset holdings, including in particular during times of market instability or when the price of digital assets has declined significantly.
If we are unable to sell our digital assets, enter into additional capital raising transactions, including capital raising transactions
using SOL as collateral, or otherwise generate funds using our SOL holdings, or if we are forced to sell our digital assets at a significant
loss, in order to meet our working capital requirements, our business and financial condition could be negatively impacted.

The availability of spot ETPs for SOL and other digital assets may adversely affect the market price of our listed securities.

Although bitcoin, SOL and other digital assets have
experienced a surge of investor attention since bitcoin was developed in 2008, until recently investors in the United States had limited
means to gain direct exposure to SOL through traditional investment channels, and instead generally were only able to hold SOL through
“hosted” wallets provided by digital asset service providers or through “unhosted” wallets that expose the investor
to risks associated with loss or hacking of their private keys. Given the relative novelty of digital assets, general lack of familiarity
with the processes needed to hold SOL directly, as well as the potential reluctance of financial planners and advisers to recommend direct
SOL holdings to their retail customers because of the manner in which such holdings are custodied, some investors have sought exposure
to bitcoin, SOL and other digital assets through investment vehicles that hold bitcoin, SOL and other digital assets and issue shares
representing fractional undivided interests in their underlying digital asset holdings. These vehicles, which were previously offered
only to “accredited investors” on a private placement basis, have in the past traded at substantial premiums (and sometimes
discounts) to net asset value, possibly due to the relative scarcity of traditional investment vehicles providing investment exposure
to digital assets.

On January 10, 2024, the SEC approved the listing
and trading of spot bitcoin exchange-traded products (“ETPs”), the shares of which can be sold in public offerings
and are traded on U.S. national securities exchanges. The approved ETPs commenced trading directly to the public on January 11, 2024,
with a trading volume of $4.6 billion