Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 1788

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 16
Chunk 1788
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 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, the Company
could be considered an unregistered investment company under the Investment Company Act of 1940, which could necessitate the Company’s
liquidation. If the Company is required to comply with additional regulatory obligations, it could result in a significant increase in
operating expenses and make it difficult to continue our current operations, which would materially and adversely affect our business,
financial condition and results of operations.

The Company relies on certain
third-party providers to perform certain functions essential to its operations. Any disruptions to the Company’s service providers’
business operations resulting from business failures, financial instability, security failures, government mandated regulation or operational
problems could have an adverse impact on the Company’s ability to access critical services and would be disruptive to the operations
of the Company.

The Company may be subject
to various litigation, regulatory investigations and other proceedings that arise in the ordinary course of business.

NOTE 18        SUBSEQUENT EVENT

On November 3, 2025, the Company’s
Board of Directors authorized a share repurchase program permitting