Company: FWDI
Filing Date: 2025-09-17
Form Type: S-3ASR
Source: 0001683168-25-007043
Chunk: 28

Company: Forward Industries, Inc.
Filing Date: 2025-09-17
Form: S-3ASR
Chunk 28
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, if we or our service providers are unable to comply with evolving federal or state regulations, we may be forced to dissolve
or liquidate certain operations, which could materially impact our investors.

If any of the digital assets that we hold are classified as a security, we may be subject to extensive regulation, which could result in significant costs or force us to cease operations.

Regulatory changes or interpretations that classify
digital assets that we hold as a security under the Securities Act of 1933, as amended, or the Investment Company Act, could require us
to register and comply with additional regulations. Compliance with these requirements could impose extraordinary, non-recurring expenses
on our business. If the costs and regulatory burdens become too great, we may be forced to modify or cease certain operations, which could
be detrimental to our investors.

| 17 |

The SEC has previously indicated that certain digital
assets may be considered securities depending on their structure and use. Future developments could change the legal status of digital
assets that we may hold, requiring us to comply with securities laws. If we fail to do so, we may be forced to discontinue some or all
of our business activities, negatively impacting investments in our securities.

If the SEC or other regulators determine that digital
assets that we may hold qualify as securities, we may be required to change our operations, wind down our operations, or register as an
investment company under the Investment Company Act. This classification would subject us to additional periodic reporting, disclosure
requirements, and regulatory compliance obligations, significantly increasing our operational costs. Compliance with the requirements
of the Investment Company Act applicable to registered investment companies may make it difficult for us to continue our current operations,
and this would materially and adversely affect our business, financial condition and results of operations. In addition, if SOL or another
digital asset we hold were determined to constitute a security for purposes of the federal securities laws, we would likely take steps
to reduce the percentage of SOL or such other digital assets that constitute investment assets under the Investment Company Act. These
steps may include, among others, selling SOL that we might otherwise hold for the long term and deploying our cash in non-investment assets,
and we may be forced to sell our SOL or other digital assets at unattractive prices, or cease our operations.

Although we do not currently engage in investing,
reinvesting, or trading securities, and we do not hold ourselves out as an investment company, we could inadvertently be deemed one under
the Investment Company Act. If we