Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 166

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 166
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 issued by, or enforcement actions initiated
by, regulatory authorities could cause us to incur substantial costs or require us to change our business practices in a manner materially
adverse to our business.

 26 

We do not expect to pay dividends in the future,
which means that investors may not be able to realize the value of their shares except through a sale.

We do not anticipate that we
will declare or pay a cash dividend. We expect to retain future earnings, if any, for our business and do not anticipate paying dividends
on common stock at any time in the foreseeable future. Because we do not anticipate paying dividends in the future, the only opportunity
for our shareholders to realize the creation of value in our common stock will likely be through a sale of those shares.

Our shares of common stock are available in
tokenized form on the Solana blockchain and such tokenized shares are subject to unique risks including lack of liquidity and limited
utility. 

Our shares of common stock
are issued and maintained in two forms:

·Book-Entry Shares: Traditional uncertificated
shares recorded and maintained by our traditional transfer agent in electronic book-entry form.

·Tokenized Shares: Digital representations of
our common stock recorded on the Solana blockchain, maintained by our digital transfer agent.

All issued shares, regardless
of form, represent identical rights and may have their ownership format updated pursuant to investor discretion and instructions subject
to applicable procedures and requirements and processing times.

In September 2025, we
entered into a Digital Transfer Agency Agreement with Superstate Services LLC (“Superstate”) as our co-transfer agent, pursuant
to which Superstate, at the request of a common shareholder, will tokenize their shares and distribute such tokenized shares to such shareholder’s
digital wallet or custodian, as applicable. Superstate will maintain an “Allowlist” of wallet addresses of individuals and
entities who have completed onboarding requirements and are permitted to hold, transfer and facilitate transfers of our tokenized common
stock. As a result, access to our tokenized common stock will be restricted to holders who have onboarded with Superstate, potentially
limiting investor participation and market depth, and resulting in greater price volatility.

There is little precedent
for the issuance or trading of tokenized equity securities, and it is therefore difficult to foresee all of the complications that such
activity may entail, which could be significant. For example, if the Solana network experiences downtime, congestion, forks, or other
technical issues, holders of tokenized common