Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 137

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 137
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 protocol changes may require that we incur unanticipated costs and could cause temporary service disruptions
to the Solana network. We may also need to employ third-party service providers in our operations, which may introduce risks outside of
our control, including significant cybersecurity risks. Any of these operational risks could materially and adversely affect our ability
to execute our SOL treasury strategy and may prevent us from realizing positive returns and could severely hurt our financial condition.

 9 

The concentration of our SOL holdings enhances
the risks inherent in our Solana-focused strategy.

We have and intend to purchase
SOL and increase our overall holdings of SOL in the future. The intended concentration of our SOL holdings limits the risk mitigation
that we could achieve if we were to purchase a more diversified portfolio of treasury assets, and the absence of diversification enhances
the risks inherent in our Solana-focused strategy. The price of SOL experienced a significant decline in 2022, and any similar future
significant declines in the price of SOL could have a more pronounced impact on our financial condition than if we used our cash to purchase
a more diverse portfolio of assets. Our initial purchases of SOL were valued at approximately $232 per SOL, or $1.58 billion in the aggregate,
in early September. At September 30, 2025, the fair value of our SOL holdings was approximately $209 per SOL, or $1.43 billion in the
aggregate, and at November 30, 2025, the fair value of our SOL holdings was approximately $133 per SOL, or $920.5 million in the aggregate.

Solana is created and transmitted through the
operations of the peer-to-peer Solana network, a decentralized network of computers running software following the Solana protocol. If
the Solana network is disrupted or encounters any unanticipated difficulties, the value of SOL could be negatively impacted.

If the Solana network is disrupted
or encounters any unanticipated difficulties, then the processing of transactions on the Solana network may be disrupted, which in turn
may prevent us from depositing or withdrawing SOL from our accounts with our custodian or otherwise affecting SOL transactions. Such disruptions
could include, for example: the insolvency, business failure, interruption, default, failure to perform, security breach, or other problems
of participants, custodians, or others; the closing of SOL trading platforms due to fraud, failures, security breaches or otherwise; or
network outages or congestion, power outages, or other problems or disruptions affecting the Sol