Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 154

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 154
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account recovery process and stole from the accounts of at least 6,000 customers of the Coinbase exchange, although the flaw was subsequently
fixed and Coinbase reimbursed affected customers. Similarly, in November 2022, hackers exploited weaknesses in the security architecture
of the FTX Trading digital asset exchange and reportedly stole over $400 million in digital assets from customers. A successful security
breach or cyberattack could result in:

·a partial or total loss of our digital assets
in a manner that may not be covered by insurance or the liability provisions of the custody agreements with the custodians who hold our
digital assets;

·harm to our reputation and brand;

·improper disclosure of data and violations of
applicable data privacy and other laws; or

·significant regulatory scrutiny, investigations,
fines, penalties, and other legal, regulatory, contractual and financial exposure,

Further, any actual or perceived
data security breach or cybersecurity attack directed at other companies with digital assets or companies that operate digital asset networks,
regardless of whether we are directly impacted, could lead to a general loss of confidence in the broader Solana ecosystem or in the use
of the Solana network to conduct financial transactions, which could negatively impact us.

Attacks upon systems across a
variety of industries, including industries related to Solana, are increasing in frequency, persistence, and sophistication, and, in many
cases, are being conducted by sophisticated, well-organized groups and individuals, including state actors. The techniques used to obtain
unauthorized, improper or illegal access to systems and information (including personal data and digital assets), disable or degrade services,
or sabotage systems are constantly evolving, may be difficult to detect quickly, and often are not recognized or detected until after
they have been launched against a target. These attacks may occur on our systems or those of our third-party service providers or partners.
We may experience breaches of our security measures due to human error, malfeasance, insider threats, system errors or vulnerabilities
or other irregularities. In particular, we expect that unauthorized parties will attempt to gain access to our systems and facilities,
as well as those of our partners and third-party service providers, through various means, such as hacking, social engineering, phishing
and fraud. Threats can come from a variety of sources, including criminal hackers, hacktivists, state intrusions, industrial espionage,
and insiders. In addition, certain types of attacks could harm us even if our systems are left undisturbed. For