Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 151

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 151
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 any such loss could adversely affect our business, results of operations
and financial condition.

We will be subject to significant competition
in the growing digital asset industry and the Company’s business, operating results, and financial condition may be adversely affected
if the Company is unable to compete effectively.

Following the launch of the Company’s
digital asset treasury strategy, the Company will operate in a competitive environment and will compete against other companies and other
entities with similar strategies, including companies with significant holdings in SOL and other digital assets, and the Company’s
business, operating results, and financial condition may be adversely affected if the Company is unable to compete effectively.

 17 

Solana faces unique technical, governance and
concentration risks that could materially affect its long-term viability.

Solana is a high-throughput Layer
1 blockchain with architectural features that differ significantly from other blockchains, such as Ethereum. While these features allow
for rapid processing of transactions, they introduce risks that could adversely impact the value of SOL and the stability of the Solana
network. Historically, Solana has suffered network outages, slow operations and validator coordination failures. If such challenges were
to persist, the confidence of the Solana development community and its users would be adversely affected, which could cause a rapid decline
in the value of SOL. In addition, Solana’s consensus mechanism (Proof of History combined with Proof of Stake) is novel and relatively
untested at a large scale over time. Structural flaws could emerge that require a fork, which may have an adverse impact on the Solana
network and our holdings.

Solana validators are relatively small in number,
compared to some other leading blockchains, which may lead to coordinated censorship.

Solana has fewer validators than
certain other blockchains but has a high Nakamoto coefficient, which refers to the minimum number of validators or node operators that
would need to collude to compromise or take control of a blockchain network. In contrast, Ethereum has a higher number of validators.
Despite the higher Nakamoto coefficient, a malicious actor might more easily be able to gain control of a network with fewer validators.
Such control of the network could allow a malicious actor to censor transactions, reverse transactions (double-spending), or manipulate
block validations.

Solana is subject to technological obsolescence,
including competition from emerging blockchain and artificial intelligence protocols.

The digital asset ecosystem is
characterized by rapid technological innovation, short development cycles, and intense competition among blockchains and related infrastructure
providers. Solana