Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 140

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 140
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 the open-source nature of the Solana blockchain means the contributors and developers of the
Solana blockchain are generally not directly compensated for their contributions in maintaining and developing the blockchain, and any
failure to properly monitor and upgrade the Solana blockchain could adversely affect the Solana blockchain and negatively affect the price
of SOL.

The liquidity of SOL may also
be impacted to the extent that changes in applicable laws and regulatory requirements negatively impact the ability of exchanges and trading
venues to provide services for SOL and other digital assets.

In connection with our SOL treasury strategy,
we expect to interact with various smart contracts deployed on the Solana network, which may expose us to risks and technical vulnerabilities.

In connection with our SOL treasury
strategy, including staking, liquid staking, and other decentralized finance activities, we expect to interact with various smart contracts
deployed on the Solana network in order to optimize our strategy and generate income. Smart contracts are self-executing code that operate
without human intervention once deployed. Although smart contracts are integral to the functionality of staking deposit contracts, liquid
staking protocols, and decentralized finance applications, they are subject to many known risks such as technical vulnerabilities, coding
errors, security flaws, and exploits. Any vulnerability in a smart contract we interact with could result in the loss or theft of SOL
or other digital assets, which could have a materially adverse impact on our business. In addition, certain smart contracts are upgradable
or subject to certain governance controls which could result in unforeseen code errors, asset or account freezing, or the loss of digital
assets. A vulnerability in a smart contract could create an unintended and unforeseeable consequence that has adverse financial consequences,
such as the loss of or inability to access funds. There is no assurance that the smart contracts we integrate with or rely upon will function
as intended or remain secure. Exploitation of such vulnerabilities could have a material adverse effect on our business and financial
condition.

 11 

Part of our future business strategy may include
acquisitions and investments in companies with Solana-focused or blockchain strategies, and there are risks associated with the integration
of any assets or operations acquired and our ability to manage those risks. In addition, we may be unable to make attractive acquisitions
or successfully integrate acquired businesses, assets or properties, and any inability to do so may disrupt our business and hinder our
ability to grow.

We intend to pursue a strategy
focused on both SOL accumulation and future acquisitions. Accordingly, in the future we may make acquisitions of