Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 142

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 142
---
 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 hold are
classified as a security, we may be subject to extensive regulation, which could result in significant costs or force us to cease operations.

Regulatory changes or interpretations
that classify digital assets that we hold as a security under the Securities Act of 1933 or the Investment Company Act, could require
us to register as an investment company and comply with additional regulations. Compliance with these requirements could impose extraordinary,
non-recurring expenses on our business. If the costs and regulatory burdens become too great, we may be forced to modify or cease certain
operations, which could be detrimental to our investors.

The SEC has previously indicated
that certain digital assets may