Company: FWDI
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001683168-25-008451
Chunk: 61

Company: Forward Industries, Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 61
---
 by the next generation of protocols. The decline in the Solana network would
materially impact the market value of SOL and adversely affect the value of our SOL treasury holdings and our stock price.

The Company may be subject to additional tax liability if regulation or policy changes adversely affect the tax treatment of rewards from staking SOL.

The U.S. federal income tax treatment of rewards
from staking digital assets such as SOL or utilizing liquid staking tokens remains uncertain and is currently the subject of debate and
regulatory attention. Under current guidance by the Internal Revenue Service (“IRS”), staking rewards and transaction
fees may be treated as ordinary income upon receipt, although additional guidance is expected pursuant to the President’s Working
Group July 2025 report “Strengthening American Leadership in Digital Financial Technology.” If regulation or policy changes,
or the interpretation or enforcement thereof, results in adverse tax treatment of rewards from staking SOL, we could be subject to increased
audits by the IRS and additional tax liabilities.

| 22 |

The Solana blockchain experiences a high number of “spam” transactions which can cause periods of congestion or outages or make it difficult for users to have their transactions processed.

Solana’s high throughput and lower transaction
fees compared to other blockchains have made it an attractive target for large volumes of low-value or “spam” transactions,
which are often generated by automated bots or malicious actors seeking to exploit the network’s resources. These spam transactions
can congest the network, delay or prevent the processing of legitimate transactions, and in some cases, cause partial or complete performance
degradation for the blockchain. During periods of high congestion, users may experience significant delays, increased transaction fees,
or failed transactions, which can erode confidence in the network and reduce its utility for both users and developers. In addition, repeated
or prolonged network disruptions may discourage new projects from building on Solana, limit the adoption of decentralized applications,
and negatively impact the value of SOL. The Solana development team and community have implemented, and may in the future implement additional,
technical upgrades or other measures to address these issues, but there can be no assurance that such efforts will be successful or sufficient
to prevent future disruptions.

A high percentage of Solana validators rely on software provided by Jito Labs, a third party unaffiliated with Solana Labs. If Jito Labs were to stop maintaining such software or if such software failed to function properly, it could have an adverse effect on the Solana blockchain and value of SOL.