Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 147

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 147
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 placement basis.

In October of 2025, the SEC approved
the listing and trading of spot SOL exchange-traded products (“ETPs”), the shares of which can be sold in public offerings
and are traded on U.S. national securities exchanges. The first approved SOL ETP commenced trading directly to the public on October 28,
2025, with a trading volume of approximately $55 million on the first trading day and had the highest launch day inflows of any ETP launched
in 2025. The value of our common stock may decline due to investors having a greater range of options to gain exposure to SOL now that
SOL ETPs are approved and investors may prefer to gain such exposure through ETPs rather than our common stock. The listing and trading
of spot ETPs for SOL or other digital assets offers investors another alternative to gain exposure to digital assets, which could result
in a decline in the trading price of SOL as well as a decline in the value of our common stock relative to the value of our SOL.

As a result of the foregoing
factors, the availability of spot ETPs for SOL and other digital assets could have a material adverse effect on the market price of our
listed securities.

Digital asset lending arrangements may expose
us to risks of borrower default, operational failures and cybersecurity threats.

From time to time, we may generate
income through lending digital assets, which carries significant risks. The volatility of such digital assets increases the likelihood
that borrowers may default due to market downturns, liquidity crises, fraud or other financial distress. These lending transactions may
be unsecured and therefore may be subordinated to the secured debt of the borrower in the event of the borrower’s bankruptcy or
insolvency. If a borrower becomes insolvent, we may be unable to recover the loaned SOL, leading to substantial financial losses.

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Additionally, digital asset lending
platforms are vulnerable to operational and cybersecurity risks. Technical failures, software bugs or system outages could disrupt lending
activities, delay transactions or result in inaccurate record-keeping. Cybersecurity threats, including hacking, phishing and other malicious
attacks, pose further risks, potentially leading to the loss, theft or misappropriation of our loaned SOL. A successful cyberattack or
security breach could materially and adversely impact our financial position, reputation and ability to conduct future lending activities.

Decentralized finance arrangements may expose
us to risks of smart contract risk, operational failures and cybersecurity threats.

From time to time