Company: FWDI
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0001683168-25-007923
Chunk: 63

Company: Forward Industries, Inc.
Filing Date: 2025-11-03
Form: 424B5
Chunk 63
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 other malicious attacks,
pose further risks, potentially leading to the loss, theft or misappropriation of our loaned SOL. A successful cyberattack or security
breach could materially and adversely impact our financial position, reputation and ability to conduct future lending activities.

Decentralized finance arrangements may expose us to risks of smart contract risk, operational failures and cybersecurity threats.

From time to time, we may generate income through
the use of digital assets including SOL or stablecoins in decentralized protocols including decentralized finance (“DeFi”)
applications. DeFi applications include over-collateralized borrow-lend vaults, token-exchange pools, and other financial or commercial
arrangements. Although these protocols are largely designed to limit counterparty risk in transactions, they introduce novel risks relating
to software code bugs, liquidation risks, and governance risks that are designed to operate in decentralized environments but can be subject
to failures or exploits. In addition: (a) network congestion or downtime can increase the likelihood of asset loss or liquidation; (b)
the volatility of digital assets deployed into DeFi applications may increase the likelihood of liquidation due to market downturns, liquidity
crises, governance attacks or other exploits, leading to substantial financial losses; (c) the uncertainty in the accounting treatment
of certain DeFi applications; (d) DeFi applications generally operate on a user-to-protocol basis where a user of a DeFi application does
not know the identity of other parties utilizing the DeFi application; and (e) the use of monitoring and forensics software to mitigate
risks of engaging in DeFi application may not prevent engaging in DeFi pools that are also used by bad actors.

The reliance on open-source code by digital asset networks exposes us to risks related to competitive networks and products built on such code, the failure of individuals to maintain that code, and discovery of security vulnerabilities that could threaten the ability of such networks to operate.

Digital asset networks are open-source projects and,
although there may be an influential group of leaders in the network community, generally there is no official developer or group of developers
that formally controls the digital asset network. Without guaranteed financial incentives, there may be insufficient resources to address
emerging issues, upgrade security or implement necessary improvements to the network in a timely manner. If the digital asset network’s
software is not properly maintained or developed, it could become vulnerable to security threats, operational inefficiencies and reduced
trust, all of which could negatively impact the digital assets’ long-term viability