Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1164

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 9B
Chunk 1164
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 opinion.

Our audit included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below
are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to
the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our
especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion
on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions
on the critical audit matters or on the accounts or disclosures to which they relate.

Evaluation of audit evidence pertaining to
the existence and control of the digital assets

We identified the evaluation of audit evidence
pertaining to the existence of the digital assets and whether the Company controls the digital assets as a critical audit matter. The
principal considerations for our determination of the critical audit matter is as the result of especially subjective auditor judgment
was involved in determining the nature and extent of evidence required to assess the existence of the digital assets and whether the Company
controls the digital assets, as control over the digital assets is provided through private cryptographic keys stored using third-party
custodial service.

The following are the primary procedures we performed
to address this critical audit matter. We evaluated the design and implementation of certain internal controls over the digital assets
process, including a control over the comparison of the Company’s records of digital assets held to the custodial records. We performed
micro-movement testing on the wallets held by the Company as well as performed procedures on the micro movements on unstaking and staking
of wallet balances. We obtained confirmation of the Company’s digital assets in custody as of September 30, 2025 and compared the
total digital assets confirmed to the Company’s record of digital asset holdings. We also compared the Company’s record of
digital asset transactions to the records on the public blockchain using a software audit tool. We applied auditor judgment in determining
the nature and extent of audit