Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 27

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 27
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 custodial bankruptcy, receivership or similar insolvency
proceeding, no assurance can be provided that our custodially held SOL will not become part of the custodian’s bankruptcy estate
if one or more of our custodians enters bankruptcy, receivership or similar insolvency proceedings. The treatment of digital assets in
bankruptcy proceedings remains an evolving area of law. Additionally, if we pursue any strategies to create income streams or otherwise
generate funds using our SOL holdings, we would become subject to additional counterparty risks. We will need to carefully evaluate market
conditions, including price volatility as well as service provider terms and market reputations and performance, among others, prior to
implementing any such strategy, all of which could affect our ability to successfully implement and execute on any such future strategy.
These risks, along with any significant non-performance by counterparties, including in particular the custodian or custodians with which
we will custody substantially all of our SOL, could have a material adverse effect on our business, prospects, financial condition, and
operating results.

We face risks relating to the use of third-party
trading platforms in connection with our Solana-focused strategy.

We use third-party trading platforms,
which we believe are reputable, as well as reputable over-the-counter brokers to purchase SOL for our treasury. As part of our process
in determining transactions with third-party exchanges, we search for reputable exchanges that have industry standard policies and procedures
in place regarding data security and customer diligence related to anti-money laundering (“AML”), Office of Foreign Assets
Control (“OFAC”) sanctions compliance, and know-your-customer (“KYC”) rules and regulations. If any of these third-party
exchanges no longer meet our standards or if there is a decrease in reputable third-party exchanges, we may need to find additional counterparties
and enter into additional agreements that could be on less favorable terms, which could have a material adverse effect on our business,
financial condition or the results of our operations.

The irreversibility of digital asset transactions
exposes us to risks of theft, loss and human error, which could negatively impact our business.

Digital asset transactions are
generally irreversible without the consent and active participation of the recipient of the transaction or, in theory, control of a majority
of the processing power (or, in proof-of-stake networks, a majority of the staked tokens) on that digital asset network. Once a transaction
has been verified and recorded in a block that is added to the blockchain