Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 436

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 2
Chunk 436
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 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 are presenting
the results of operations for this segment within discontinued operations in the current and prior periods presented herein. The discontinuation
of the retail segment represents a strategic shift in the Company’s business. The primary assets of the retail segment are inventory
and accounts receivable. The Company sold, liquidated, or otherwise disposed of the remaining retail inventory and collected the remaining
retail accounts receivable