Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 2

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 2
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 Conditions in the Digital Asset Treasury
Business

The digital asset treasury business
is characterized by a dynamic and evolving competitive landscape. Publicly listed digital asset treasury companies primarily pursue strategies
centered on holding digital assets.

As the digital asset treasury
sector evolves, competition is intensifying among companies that diversify their holdings beyond Bitcoin to include other digital assets
(such as Ethereum and SOL). This shift toward a broader range of asset holdings is reshaping the competitive landscape, as treasury companies
seek to distinguish themselves by capitalizing on the unique advantages offered by different digital assets. The increasing variety of
assets under management and deployment strategies is driving new dynamics and heightened competitiveness within the sector.

Periods of market volatility
and downturns may result in financial distress for smaller or less-established digital asset treasury companies, creating opportunities
for larger, more stable participants to pursue accretive mergers and acquisitions and further consolidate the market.

We believe that our focus on
SOL and the Solana ecosystem, combined with our capital markets and onchain strategies, positions us to compete effectively within this
rapidly developing market. However, the competitive conditions described above may impact our ability to achieve our strategic objectives
and could affect the value of our digital asset holdings.

Our Treasury Policy

Our Treasury Policy is intended
to bring value to our shareholders through the following planned initiatives:

·utilizing intelligent capital markets issuances,
including the issuance of equity, preferred stock and debt, to purchase and hold SOL subject to certain factors;

·staking the majority of the SOL in our treasury
to earn a staking yield and help turn our treasury into a productive asset;

·purchasing SOL at a discount to the then-current
spot price, including through over the counter transactions and strategic partnerships;

·actively participating in DeFi protocols and
other onchain strategies;

·selling our SOL holdings, whether on the open
market, through block trades, or other negotiated transactions, for various reasons and at various times, including, in order to repurchase
shares of our Common Stock when our Board of Directors believes such repurchases will result in accretive value creation for our shareholders
and at such times when it is legally permissible to do so.

 2 

We believe that SOL is currently
the fastest and most used public blockchain in the world, processing more transactions and generating more on chain fee revenue than all
other blockchains combined. We believe Solana has established itself as a high-performance blockchain and one of the most active onchain
ecosystems,