Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 44

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 44
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entities who have completed onboarding requirements and are permitted to hold, transfer and facilitate transfers of our tokenized common
stock. As a result, access to our tokenized common stock will be restricted to holders who have onboarded with Superstate, potentially
limiting investor participation and market depth, and resulting in greater price volatility.

There is little precedent
for the issuance or trading of tokenized equity securities, and it is therefore difficult to foresee all of the complications that such
activity may entail, which could be significant. For example, if the Solana network experiences downtime, congestion, forks, or other
technical issues, holders of tokenized common shares may be unable to transfer or validate ownership of their shares. Such events could
impair confidence in our securities and adversely affect their value and liquidity.

Holders of tokenized shares of common stock
should be aware that, because currently outstanding shares of the Company’s common stock trade on Nasdaq and there are
no current trading venues for the tokenized shares of common stock, recipients of tokenized shares of common stock may face
potential illiquidity, trading volatility and/or pricing discrepancies when compared to shares of common stock which trade on Nasdaq. These
discrepancies may be substantial and could result in significantly lower valuations for tokenized shares of common stock.

Tokenized shares of common
stock are expected to trade on a peer-to-peer basis initially on the Solana blockchain, until more sophisticated
marketplaces are developed. The trading volumes and market prices for these shares may be significantly lower
than comparable metrics of the common stock listed on Nasdaq, and the holder may therefore face substantial challenges in
liquidating their tokenized shares both as compared to the Company’s Nasdaq-listed common stock and in
general. Although holders may convert their tokenized shares to traditional book-entry shares traded on Nasdaq, such conversion
process could take up to multiple weeks. Holders may be unable to sell their tokenized shares of common stock at any price or at
all. The Company can provide no assurances regarding the liquidity, trading volume or pricing
of tokenized shares of common stock.

 27 

 A trading venue based
on blockchain technology involves substantial technical risks. A tokenized securities trading venue may face difficulties in scaling
to handle a large number of users and transactions, as well