Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 22

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 22
---
 of digital assets, and the Company’s financial position, operations and prospects.

Digital asset trading venues
are relatively new and, in many cases, unregulated. Furthermore, there are many digital asset trading venues that do not provide the public
with significant information regarding their ownership structure, management teams, corporate practices and regulatory compliance. As
a result, the marketplace may lose confidence in digital asset trading venues, including prominent exchanges that handle a significant
volume of such trading and/or are subject to regulatory oversight, in the event one or more digital asset trading venues cease or pause
for a prolonged period the trading of digital assets, or experience fraud, significant volumes of withdrawal, security failures or operational
problems.

 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.

Digital Assets, including SOL, historically
are highly volatile assets, and fluctuations in the price of SOL are likely to influence our financial results and the market price of
our common stock. Our historical financial statements do not reflect the potential variability in earnings that we may experience in the
future relating to our 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.

We purchase digital assets, including
SOL, the price of which has been, and will likely continue to be, highly volatile. Our financial results and the market price of our common
stock could be materially adversely affected if the price of SOL decreased substantially, as it has in the past, including as a result
of shifts in market sentiment, speculative trading, macroeconomic trends, technology-related disruptions and regulatory announcements.

In addition, 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.
Accordingly,