Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 173

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 173
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 primary treasury reserve asset. On November 17, 2025, the Company changed its ticker symbol on the Nasdaq
Capital Market from FORD to FWDI.

New Digital Asset Treasury Strategy

On September 8, 2025, in connection
with a private placement with certain accredited investors, we announced the launch of our digital asset treasury strategy, pursuant to
which we plan to pursue a number of strategic initiatives to acquire SOL and other digital assets. On September 10, 2025, we entered into
the Asset Management Agreement and Services Agreement with Galaxy Digital Capital Management LP (“Galaxy Digital”) to guide
us through the implementation of our new digital assets treasury business. On September 15, 2025, we announced our initial liquid SOL
purchases of 6,822,000 SOL at an average price of $232 per SOL, or approximately $1.58 billion in the aggregate.

Under our new treasury policy
and strategy (the “Treasury Policy”), the principal holding in our treasury reserve on the balance sheet will be allocated
to digital assets, primarily SOL. Our strategy involves applying a public-market treasury model to an asset that we believe is earlier
in its lifecycle, structurally reflexive, and underexposed as compared to Bitcoin. Our approach involves acquiring SOL directly through
market purchases, staking our holdings via our own or third-party operated validators and generating incremental revenue through strategic
partnerships and deployments within the Solana ecosystem.

In addition to operating our
hardware and software product design and engineering services business, our management will focus its resources on our Treasury Policy,
and a significant portion of the balance sheet will be allocated to holding SOL and other digital assets in our digital asset treasury.
As of November 30, 2025, we estimated that our digital asset holdings comprised more than 90% of our total assets.

Reverse Stock Split

In June 2024, the Company’s
shareholders authorized, and the Company’s Board of Directors approved, a 1-for-10 reverse stock split of our common stock, which became
effective on June 18, 2024. Accordingly, all references made to share, per share, or common share amounts in the accompanying consolidated
financial statements and applicable disclosures have been retroactively adjusted to reflect the reverse stock split.

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Discontinued Operations

Considering the recurring losses
incurred by the retail segment, in July 2023, the Company decided to cease operations of our retail distribution segment, and we