Company: FWDI
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0001683168-25-007923
Chunk: 67

Company: Forward Industries, Inc.
Filing Date: 2025-11-03
Form: 424B5
Chunk 67
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 providers. Solana
faces intense competition among existing protocols, such as Aptos, Hyperliquid, Sei and Sui, the Ethereum Layer 2 blockchains such as
Base, and new entrants that are currently being developed. Competitors may in the future offer superior scalability, security, interoperability,
decentralization, programmability and adoption, and may attract developers away from the Solana ecosystem. Advancements in AI and blockchain
technology are likely to accelerate the development of such protocols, including the development of additional networks that natively
integrate AI into consensus mechanisms and other core features. If Solana is unable to evolve to address such increased competition or
if market participants believe that Solana’s core technology stack is outdated or less attractive compared with other blockchain
networks, Solana may be considered technologically obsolete 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