Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 135

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 135
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Technological innovations and new entrants into
the digital asset ecosystem may render Solana obsolete which would materially affect the price of the Company’s stock price and
overall financial position;

·The Company’s financial position and operations
may be dependent on the acceptance of digital assets, which represent a new and rapidly evolving industry;

·The largely unregulated nature of the digital
asset ecosystem may adversely affect the value of digital assets and, consequently, the Company’s financial position;

·We are highly dependent on our new Chairman of
the Board of Directors, members of our executive team, and our Asset Manager, and the loss of any of their services could materially harm
our business.

 8 

Risks Related to the Company’s Digital Assets Strategy and Holdings

We purchase digital assets, including
SOL, the price of which has been, and will likely continue to be, highly volatile. Our operating results and share price may significantly
fluctuate, including due to the highly volatile nature of the price of such digital assets and erratic market movements.

We purchase or otherwise acquire
SOL for the establishment of our digital asset treasury operations. Digital assets, such as SOL, are highly volatile assets, as a result
of many factors including shifts in market sentiment, speculative trading, macroeconomic trends, technology-related disruptions and regulatory
announcements. In addition, digital assets do not pay interest or other returns, unless utilized in staking or financial applications,
and so the ability to generate a return on investment from the net proceeds of any capital raisings will principally depend on whether
there is appreciation in the value of digital assets following our purchases of digital assets with the net proceeds from such capital
raisings. Future fluctuations in digital asset trading prices may result in our converting digital assets into cash with a value substantially
below what we paid for such digital assets.

We adopted a digital asset treasury strategy
with a focus on SOL, and we may be unable to successfully implement this new strategy.

We adopted a digital asset treasury
primarily dedicated to SOL, including SOL acquisitions, staking and other decentralized finance activities. There is no assurance that
we will be able to successfully implement this new strategy or operate Solana-related activities at the scale or profitability currently
anticipated. Solana operates with a proof-of-stake combined with proof-of-history consensus mechanism, which differs significantly from
bitcoin’s proof-of-work mining mechanism. This strategic shift requires specialized employee skillsets and operational, technical
and compliance infrastructure to support SOL and related staking activities. This