Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 295

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1B
Chunk 295
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 to FWDI.

New Digital Asset Treasury Strategy

On September 8, 2025, in connection
with a private placement with certain accredited investors (see Note 8), we announced the launch of our digital asset treasury strategy,
pursuant to which we plan to pursue a number of strategic initiatives to acquire Solana (“SOL”) and other digital assets.
In September 2025, we entered into the Asset Management Agreement with Galaxy Digital Capital Management LP and the Services Agreement
with Galaxy Digital LP (see Note 14) to guide us through the implementation of our new digital assets treasury business.

Under our new treasury policy
and strategy, the principal holding in our treasury reserve on the balance sheet will be allocated to digital assets, primarily SOL by
applying a public-market treasury model to an asset that we believe is earlier in its lifecycle, structurally reflexive, and underexposed
as compared to Bitcoin. Our planned approach involves acquiring SOL directly through market purchases and staking our holdings via our
own or third-party operated validators and generating incremental revenue through strategic partnerships and deployments within the Solana
ecosystem.

In addition to operating our
hardware and software product design and engineering services business, our management will focus its resources on our new treasury policy
and a significant portion of the balance sheet will be allocated to holding SOL and other digital assets in our digital asset treasury.

Reverse Stock Split

The Company’s shareholders
authorized, and the Board of Directors approved, a 1-for-10 reverse stock split, which became effective on June 18, 2024. Any fractional
shares that would have otherwise resulted from the reverse stock split were rounded up to the nearest whole share. Accordingly, all references
made to shares, per share, or common share amounts in the accompanying consolidated financial statements and applicable disclosures have
been retroactively adjusted to reflect the reverse stock split. The reverse stock split did not change the par value of the common stock
nor the authorized number of shares of common stock or any series of preferred stock.

Discontinued Operations

In July 2023, the Company’s
Board of Directors approved the decision to cease operations of its retail distribution segment (“Retail Exit”) and is presenting
the results of operations for this segment within discontinued operations in the periods presented herein. Our retail distribution business
sourced and sold smart-enabled furniture, hot tubs and saunas and a variety of other products through various online retailer websites
to customers predominantly located in the U.S. and Canada. The inventory of