Company: FWDI
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0001683168-25-007923
Chunk: 41

Company: Forward Industries, Inc.
Filing Date: 2025-11-03
Form: 424B5
Chunk 41
---
for speed and security, and is naturally growing into decentralization as hardware and bandwidth costs fall over time, positioning it
well along the Blockchain Trilemma.

While Solana Labs and the Solana Foundation have
played important roles in the development of the Solana ecosystem, no single entity owns or controls the Solana network. However, concentration
of influence in these entities, particularly in early-stage protocol governance, presents risks that investors should consider.

The Solana Ecosystem

Solana’s performance and technical capabilities
enable many use cases from DeFi to decentralized physical infrastructure networks, AI agents, social media, gaming, stablecoins, real-world
assets, among others. We believe Solana is advantaged by best-in-class technology and strong network effects that have attracted a large,
growing, and vibrant ecosystem of users, developers, and decentralized applications.

| 8 |

Regulations

Depending on the regulatory characterization of
Solana, the markets for cryptocurrency in general, and our activities in particular, our business and our Solana acquisition strategy
may be subject to regulation by one or more regulators in the United States and globally. Ongoing and future regulatory actions may alter,
to a materially adverse extent, the nature of digital assets markets, the participation of industry participants, including service providers
and financial institutions in these markets, and our ability to pursue our SOL strategy. Additionally, U.S. state and federal and foreign
regulators and legislatures have taken action against industry participants, including digital assets businesses, and enacted restrictive
regimes in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from digital assets activity.
U.S. federal and state energy regulatory authorities are also monitoring the total electricity consumption of cryptocurrency mining, and
the potential impacts of cryptocurrency mining to the supply and dispatch functionality of the wholesale grid and retail distribution
systems. Many state legislative bodies have passed, or are actively considering, legislation to address the impact of cryptocurrency mining
in their respective states.

The Commodities Futures Trading Commission (the
“CFTC”) takes the position that some digital assets fall within the definition
of a “commodity” under the Commodities Exchange Act of 1936, as amended (the “CEA”).
Under the CEA, the CFTC has broad enforcement authority to police market manipulation and fraud in spot digital assets markets in which
we may transact. Beyond instances of fraud or manipulation, the CFTC generally does not oversee cash or spot market exchanges or transactions
involving