Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 145

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 145
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 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, volatility in our earnings may be significantly more than what we experienced in prior periods, and it may be difficult to
evaluate the Company’s business and future prospects. We also will need to perform an analysis each quarter to identify whether
events or changes in circumstances indicate that our digital assets are impaired.

 14 

Digital asset holdings are less liquid than
cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.

Historically, the digital asset
market has been characterized by significant volatility in price, limited liquidity and trading volumes compared to sovereign currencies
markets, concerns regarding pseudonym