Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1648

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 14
Chunk 1648
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 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 may need to perform an analysis each quarter to identify whether events or changes
in circumstances indicate that our digital assets are impaired.

The Company will face risks relating
to the custody of its digital assets. Cybersecurity threats, including hacking, phishing and other malicious attacks, could result in
the loss, theft or misappropriation of our SOL. If we or our third-party service providers experience a security breach or cyberattack
and unauthorized parties obtain access to our private keys, or if our private keys are lost or destroyed, or other similar circumstances
or events occur, we may lose some or all of our digital assets and our financial condition and results of operations could be materially
adversely affected.

There is no clearing
house for SOL, nor is there a central or major depository for the custody of SOL. There is a risk that some or all of the
Company’s SOL could be lost or stolen. There can be no assurance that our custodians will maintain adequate insurance or that
such coverage will cover any losses with respect to the Company’s SOL. Further, transactions in SOL are irrevocable. Stolen or
incorrectly transferred SOL may be irretrievable. As a result, any incorrectly executed transactions of the Company’s SOL
could adversely affect an investment in the Company’s common stock.

     F-40 

FORWARD INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The  Company’s shareholders have no specific rights to any specific SOL. In the event of the insolvency of the
Company, its assets may be inadequate to satisfy a claim by its shareholders.

The SEC has stated that
certain digital assets may be considered securities under federal securities laws. The test for determining whether a particular digital
asset is a security is complex and difficult to apply, and the outcome is difficult to predict. Future developments could change the
legal status of digital assets we hold. If SOL is determined to be a security under federal or state securities laws or in a proceeding
in a court of law, or otherwise, it may have material adverse consequences for SOL, making it more difficult to be traded, cleared or
custodied compared to other digital assets that are not considered securities. In addition, if SOL is considered a security,