Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 136

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 136
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 also requires that we implement different security protocols
and treasury management practices. Further, there is ongoing scrutiny and limited formal guidance from regulatory agencies, including
Nasdaq and the SEC, with respect to the treatment of public company cryptocurrency strategies. There is no assurance that we will be able
to execute this strategy by building out the needed infrastructure within the timeframe that we currently anticipate. Errors by key management
could result in significant loss of funds and reduced rewards. As a result, our shift towards SOL could have a material adverse effect
on our business and financial condition. 

Our management relies upon the advice of the
Asset Manager through the Asset Management Agreement to assist in building our new Treasury Policy and the execution of the Company’s
Treasury Policy and may not yield the desired return. 

We have engaged the Asset Manager
to manage our digital assets holdings and provide discretionary investment management services with respect to all of the Company’s
cash, cash equivalents, stablecoins, cryptocurrency and certain other investible assets (the “Treasury Assets”) including
all digital assets, the proceeds of any bona fide capital raise or other financing transaction conducted by or on behalf of the Company
or any of our subsidiaries and any investments of the Treasury Assets. Such Asset Manager (i) will have broad discretion in the application
of our Treasury Policy and management of our Treasury Assets, (ii) will have sole responsibility and authority with respect to the discretionary
investment management of the Treasury Assets and, (iii) from time to time direct the investment and reinvestment of our Treasury Assets.
The Asset Manager’s investments decisions and use of the Treasury Assets could not improve our results of operations or enhance
the value of our common stock. The failure to apply and manage these Treasury Assets effectively could result in financial losses that
could cause the price of our common stock to decline.

Our shift towards a Solana-focused strategy
requires substantial changes in our day-to-day operations and exposes us to significant operational risks.

Our shift towards a SOL treasury-focused
strategy, including staking, liquid staking, and other decentralized finance activities, exposes us to significant operational risks.
To participate in Solana’s Proof-of-Stake consensus mechanism, we must either operate or delegate to validator nodes, and such validator
nodes must keep software updated, maintain validator uptime and employ secure key management. In addition, the Solana ecosystem rapidly
evolves, with frequent upgrades and protocol changes that may require significant adjustments to our operational setup if we are operating
a validator node. The upgrades and