Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 146

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 146
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ity of digital asset addresses, a developing regulatory landscape, potential susceptibility to market
abuse and manipulation, compliance and internal control failures at exchanges, and various other risks inherent in its entirely electronic,
virtual form and decentralized network. During times of market instability, we may not be able to sell our digital assets at favorable
prices or at all. As a result, digital asset holdings may not be able to serve as a source of liquidity for us to the same extent as cash
and cash equivalents. Further, digital assets we hold with our custodians and transact with our trade execution partners do not enjoy
the same protections or insurance as are available to cash or securities deposited with or transacted by institutions subject to regulation
by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Additionally, we may be unable to enter
into term loans or other capital raising transactions collateralized by our unencumbered digital assets or otherwise generate funds using
our digital asset holdings, including in particular during times of market instability or when the price of digital assets has declined
significantly. If we are unable to sell our digital assets, enter into additional capital raising transactions, including capital raising
transactions using SOL as collateral, or otherwise generate funds using our SOL holdings, or if we are forced to sell our digital assets
at a significant loss, in order to meet our working capital requirements, our business and financial condition could be negatively impacted.

The availability of spot ETPs for SOL and other
digital assets may adversely affect the market price of our listed securities.

Although bitcoin, SOL and other
digital assets have experienced a surge of investor attention since bitcoin was developed in 2008, until recently investors in the United
States had limited means to gain direct exposure to SOL through traditional investment channels, and instead generally were only able
to hold SOL through “hosted” wallets provided by digital asset service providers or through “unhosted” wallets
that expose the investor to risks associated with loss or hacking of their private keys. Given the relative novelty of digital assets,
general lack of familiarity with the processes needed to hold SOL directly, as well as the potential reluctance of financial planners
and advisers to recommend direct SOL holdings to their retail customers, some investors have sought exposure to bitcoin, SOL and other
digital assets through investment vehicles that hold bitcoin, SOL and other digital assets and issue shares representing fractional undivided
interests in their underlying digital asset holdings. These vehicles, which were previously offered only to “accredited investors”
on a private