Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 31

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 31
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ages of the blockchain.
Any such events could materially and negatively affect the value of SOL, reduce confidence in the network, and impair the ability of the
Company to realize the expected benefits of its investment in SOL.

A cyberattack or other malicious attack on the Solana blockchain
could have a material impact on the value of SOL held by the Company.

Solana and other digital assets
and the entities that provide services to participants in blockchain ecosystems have been, and may in the future be, subject to security
breaches, cyberattacks, or other malicious activities. For example, in October 2021 it was reported that hackers exploited a flaw in the
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