Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 30

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 30
---
spam” transactions which can cause periods of congestion or outages or make it difficult for users to have their transactions
processed.

Solana’s high throughput
and lower transaction fees compared to other blockchains have made it an attractive target for large volumes of low-value or “spam”
transactions, which are often generated by automated bots or malicious actors seeking to exploit the network’s resources. These
spam transactions can congest the network, delay or prevent the processing of legitimate transactions, and in some cases, cause partial
or complete network outages or performance degradation. During periods of high congestion, users may experience significant delays, increased
transaction fees, or failed transactions, which can erode confidence in the network and reduce its utility for both users and developers.
In addition, repeated or prolonged network disruptions may discourage new projects from building on Solana, limit the adoption of decentralized
applications, and negatively impact the value of SOL. The Solana development team and community have implemented, and may in the future
implement additional, technical upgrades or other measures to address these issues, but there can be no assurance that such efforts will
be successful or sufficient to prevent future disruptions.

 18 

A high percentage of Solana validators rely
on software provided by Jito Labs, a third party unaffiliated with Solana Labs. If Jito Labs were to stop maintaining such software or
if such software failed to function properly, it could have an adverse effect on the Solana blockchain and value of SOL.

A significant portion of Solana
validators utilize software developed and maintained by Jito Labs, an independent third party that is not affiliated with Solana Labs
or the Solana Foundation. This reliance on third-party software introduces additional operational and security risks to the Solana network.
If Jito Labs were to discontinue support for its software, experience operational difficulties, or if the software were to contain critical
bugs, vulnerabilities, or backdoors, the performance and security of the Solana network could be compromised. For example, a failure or
exploit in the Jito Labs software could result in network instability, validator downtime or other adverse outcomes. The software offered
by Jito Labs has also reduced the impact of “spam” transactions on the Solana blockchain. If Jito Labs were to stop offering
or supporting its software, there could be a far greater impact of “spam” transactions on the Solana network which could congest
the network, delay or prevent the processing of legitimate transactions, and in some cases, cause partial or complete out