Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 43

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 43
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 to time, we may receive
inquiries from regulators regarding our compliance with laws and other matters. In 2019, we incurred significant expenses responding to
an SEC investigation into potential insider trading by certain insiders of the Company. Although that investigation has concluded with
no enforcement action taken against the Company, responding to or defending against other such regulatory inquiries or investigations
would cause us to incur substantial expenses and divert our management’s attention.

Violation of existing or future
regulatory orders or consent decrees could subject us to substantial monetary fines and other penalties that could negatively affect our
financial condition and results of operations. In addition, it is possible that future orders issued by, or enforcement actions initiated
by, regulatory authorities could cause us to incur substantial costs or require us to change our business practices in a manner materially
adverse to our business.

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We do not expect to pay dividends in the future,
which means that investors may not be able to realize the value of their shares except through a sale.

We do not anticipate that we
will declare or pay a cash dividend. We expect to retain future earnings, if any, for our business and do not anticipate paying dividends
on common stock at any time in the foreseeable future. Because we do not anticipate paying dividends in the future, the only opportunity
for our shareholders to realize the creation of value in our common stock will likely be through a sale of those shares.

Our shares of common stock are available in
tokenized form on the Solana blockchain and such tokenized shares are subject to unique risks including lack of liquidity and limited
utility. 

Our shares of common stock
are issued and maintained in two forms:

·Book-Entry Shares: Traditional uncertificated
shares recorded and maintained by our traditional transfer agent in electronic book-entry form.

·Tokenized Shares: Digital representations of
our common stock recorded on the Solana blockchain, maintained by our digital transfer agent.

All issued shares, regardless
of form, represent identical rights and may have their ownership format updated pursuant to investor discretion and instructions subject
to applicable procedures and requirements and processing times.

In September 2025, we
entered into a Digital Transfer Agency Agreement with Superstate Services LLC (“Superstate”) as our co-transfer agent, pursuant
to which Superstate, at the request of a common shareholder, will tokenize their shares and distribute such tokenized shares to such shareholder’s
digital wallet or custodian, as applicable. Superstate will maintain an “Allowlist” of wallet addresses of individuals and