Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 19

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 19
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 investigations. For example, Galaxy
Digital Inc. agreed to pay $200 million as part of an agreement with the New York Attorney General to resolve civil claims related to
certain investments, trading, and public statements made in connection with the LUNA digital asset from late 2020 to 2022. Separately,
Multicoin Capital Management, LLC and its managing partner Kyle Samani have been named as co-defendants along with Solana Labs in a putative
class-action litigation related to the promotion and sale of SOL for which a motion to dismiss is pending. Certain of these matters have
involved, among other things, allegations of improper marketing practices and misrepresentations, as well as unregistered securities offerings
with respect to SOL and other digital assets. Any adverse outcome in these proceedings or other future litigation or regulatory inquiries
could negatively affect public perception of the Sponsors, the Company, and Solana itself, which could constrain trading activity and
suppress the price and liquidity of SOL. Any such development could materially and adversely affect the value of our digital asset treasury,
the market price of our stock and our ability to execute on our digital asset treasury strategy.

Changes in regulatory interpretations could
require us to register as a money services business or money transmitter, leading to increased compliance costs or operational shutdowns.

The regulatory regime for digital
assets in the U.S. and elsewhere is uncertain. The Company may be unable to effectively react to proposed legislation and regulation of
digital assets, which could adversely affect its business.

If regulatory changes or interpretations
require us to register as a money services business with The Financial Crimes Enforcement Network (FinCEN) under the U.S. Bank Secrecy
Act, or as a money transmitter under state laws, we may be subject to extensive regulatory requirements, resulting in significant compliance
costs and operational burdens. In such a case, we may incur extraordinary expenses to meet these requirements or, alternatively, may determine
that continued operations are not viable. If we decide to cease certain operations in response to new regulatory obligations, such actions
could occur at a time that is unfavorable to investors.

 12 

Multiple states have implemented
or proposed regulatory frameworks for digital asset businesses. Compliance with such state-specific regulations may increase costs or
impact our business operations. Further, if we or our service providers are unable to comply with evolving federal or state regulations,
we may be forced to dissolve or liquidate certain operations, which could materially impact our investors.

If any of the digital assets that we