Company: FWDI
Filing Date: 2025-11-14
Form Type: 424B5
Source: 0001683168-25-008451
Chunk: 53

Company: Forward Industries, Inc.
Filing Date: 2025-11-14
Form: 424B5
Chunk 53
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18 |

Negative perception, a lack of stability in the broader
digital asset markets and the closure, temporary shutdown or operational disruption of digital asset trading venues, lending institutions,
institutional investors, institutional miners, custodians, or other major participants in the digital asset ecosystem, due to fraud, business
failure, cybersecurity events, government-mandated regulation, bankruptcy, or for any other reason, may result in a decline in confidence
in digital assets and the broader digital asset ecosystem and greater volatility in the price of digital assets. The price of our listed
securities may be affected by the value of our future digital asset holdings, and the failure of a major participant in the ecosystem
could have a material adverse effect on the market price of our listed securities.

Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our proposed holdings of digital assets. Accordingly, it may be difficult to evaluate the Company’s business and future prospects, and the Company may not be able to achieve or maintain profitability in any given period.

Our historical financial statements do not reflect
the potential variability in earnings that we may experience in the future from holding or selling digital assets. The price of digital
assets generally has historically been subject to dramatic price fluctuations and is highly volatile. We will need to perform an analysis
each quarter to identify whether events or changes in circumstances indicate that our digital assets are impaired. As a result, volatility
in our earnings may be significantly more than what we experienced in prior periods.

Digital asset holdings are less liquid than cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.

Historically, the digital asset market has been
characterized by significant volatility in price, limited liquidity and trading volumes compared to sovereign currencies markets, concerns
regarding pseudonymity of digital asset addresses, a developing regulatory landscape, potential susceptibility to market abuse and manipulation,
compliance and internal control failures at exchanges, and various other risks inherent in its entirely electronic, virtual form and
decentralized network. During times of market instability, we may not be able to sell our digital assets at favorable prices or at all.
As a result, digital asset holdings may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.
Further, digital assets we hold with our custodians and transact with our trade execution partners do not enjoy the same protections
or insurance as are available to cash