Forward Industries reported a $69 million net loss for its fiscal third quarter, equal to $0.80 per share, after large accounting charges tied to its Solana treasury. The Nasdaq-listed company said the result was driven mainly by markdowns required under US GAAP fair-value rules rather than realized sales or cash leaving the business.

Despite the quarterly loss, Forward expanded its Solana position during the period. By June 30, the company held more than 7.55 million SOL, and its SOL per share increased 9% from the prior quarter to 0.0730.

Accounting charges drove the loss

The biggest pressure on the quarter came from two items linked to the company’s digital-asset holdings: a $49.8 million loss on digital assets and a $15.2 million impairment. Together, those charges contributed to an operating loss of $70.3 million for the period.

According to the company, the losses reflect the way US accounting standards treat crypto treasury positions. Under those rules, digital assets must be marked to fair value, meaning reported results can swing with market prices even when the company has not sold the assets.

Solana holdings continued to grow

Forward increased its SOL stack by more than 500,000 tokens during the quarter through a combination of purchases and staking. That brought its holdings to over 7.55 million SOL by the end of the reporting period.

The company also said SOL per share rose quarter over quarter, a metric it has emphasized as it builds out its treasury strategy. Forward described itself as the largest corporate holder of Solana.

Revenue rose sharply on staking and treasury activity

While bottom-line results were heavily affected by writedowns, revenue moved in the opposite direction. Forward reported $10.8 million in revenue, up from $2.5 million in the same quarter a year earlier.

The increase was driven primarily by SOL staking and other treasury-related income. During the quarter, the company also repurchased 2.5 million shares and joined the Russell 2000 and Russell 3000 indexes on June 29.

Management points to post-quarter accumulation

Chairman Kyle Samani characterized the quarter as a period of strong execution despite market volatility. He said the company’s permanent capital base, access to capital, and position as what it called the world’s largest Solana treasury company create an opportunity to keep increasing SOL per share.

Forward said buying continued after the quarter ended. As of August 3, the company reported holdings of 7.8 million SOL and SOL per share of 0.0754. The source article noted Solana was trading near $77 in current markets, underscoring that future reported results may remain sensitive to price moves under the same accounting treatment.

Source: beincrypto.com