Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 156

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 156
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, particularly on
digital asset trading platforms, and their use as an alternative to digital assets such as bitcoin and SOL could expand further as rules
are promulgated under the GENIUS Act. As of September 30, 2025, two of the seven largest digital assets by market capitalization were
U.S. dollar-pegged stablecoins. Stablecoins are an important aspect of blockchain networks such as Solana and if other blockchains are
deemed more attractive than Solana for the use of stablecoins, that may impact the usefulness of the Solana network and Solana-based blockchain
applications, and therefore the value of SOL.

If we lose key personnel, if we fail to recruit
additional highly skilled personnel, or if we lose the services of our Asset Manager, our ability to operate and manage our digital asset
treasury strategy will be impaired.

Our ability to operate and manage
our digital asset treasury strategy depends upon our ability to attract and retain highly qualified personnel, including our newly appointed
Chairman, Kyle Samani, members of our executive team, or other key personnel. In addition, we rely heavily on the services of our Asset
Manager for the management of our digital asset treasury and for strategic guidance relating to our business, operations, growth initiatives
and industry trends in the crypto technology sector. The loss of the services of any of our executive officers, key employees, or the
Asset Manager, or our inability to find suitable replacements, could result in significant disruptions to our operations and management
of our digital assets.

Risks Relating to Our Design Business

Our design business has experienced recurring losses. We cannot assure
you that we will regain profitability in the future.

Our design business generated
a net loss of approximately $5,159,000 in Fiscal 2025. We can provide no assurance that our design business will not experience losses
in the future. Our design business will need to generate increased revenues to achieve profitability in the future. Despite our efforts,
our design business may not achieve profitability in the future or sustain profitability for a prolonged period of time. If our design
business cannot generate sufficient revenues to operate profitably, we may be forced to cease, limit or suspend operations, or we may
be required to raise additional capital or incur additional debt to maintain or grow our design business. There is no assurance that we
will be able to raise such capital and if so on terms that are not onerous and dilutive to the Company and its shareholders.

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