Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 144

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 144
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 and future legislative or regulatory developments, including new CFTC interpretations, could further
impact how SOL and SOL derivatives are classified and traded.

If SOL are further regulated
as a commodity, we may be required to register as a commodity pool operator and register the Company as a commodity pool with the CFTC
through the National Futures Association. Compliance with these additional regulatory requirements could result in substantial, non-recurring
expenses, adversely affecting an investment in our securities. If we determine not to comply with such regulations, we may be forced to
cease certain operations, which could negatively impact our investors.

 13 

We are not subject to legal and regulatory obligations
that apply to investment companies such as mutual funds and exchange-traded funds, or to obligations applicable to investment advisers.

Mutual funds, exchange-traded
funds (ETFs) and their management are subject to extensive regulation as “investment companies” and “investment advisers”
under U.S. federal and state law; this regulation is intended for the benefit and protection of investors. We are not subject to, and
do not otherwise voluntarily comply with, these laws and regulations. This means, among other things, that the execution of our changes
to our digital asset strategy, our use of leverage, our ability to engage in transactions with affiliated parties and our operating and
investment activities generally are not subject to the extensive legal and regulatory requirements and prohibitions that apply to investment
companies and investment advisers.

Due to the unregulated nature and lack of transparency
surrounding the operations of many digital asset trading venues, digital asset trading venues experience greater risk of fraud, market
manipulation and other deceptive marketing practices, as well as security failures or regulatory or operational problems than trading
venues for more established asset classes, which may result in a loss of confidence in digital asset trading venues and adversely affect
the value of digital assets, and the Company’s financial position, operations and prospects.

Digital asset trading venues
are relatively new and, in many cases, unregulated. Furthermore, there are many digital asset trading venues that do not provide the public
with significant information regarding their ownership structure, management teams, corporate practices and regulatory compliance. As
a result, the marketplace may lose confidence in digital asset trading venues, including prominent exchanges that handle a significant
volume of such trading and/or are subject to regulatory oversight, in the event one or more digital asset trading venues cease or pause
for a prolonged period the trading of digital assets, or experience fraud, significant volumes of