Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 39

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 39
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 also rely on third-party
providers for bandwidth. We do not control these vendors, and it would take significant time and effort to replace them. We have experienced,
and may experience in the future, website disruptions, outages and other performance problems due to a variety of factors, including infrastructure
changes, human or software errors and capacity constraints.

Our systems are vulnerable to
damage or interruption from terrorist attacks, floods, fires, power loss, telecommunications failures, hurricanes, computer viruses, computer
denial of service attacks or other attempts to harm our systems. Any such damage or interruption would adversely affect our results of
operations.

 23 

Because our networks and IT systems may be vulnerable
to unauthorized persons hacking our systems, it could disrupt our operations and result in the theft of our proprietary information. 

A party who is able to breach
the security measures on our networks could misappropriate either our or our design customers’ proprietary information, or cause
interruptions or malfunctions in our operations. Hacking of companies’ infrastructure is a growing problem. While we have implemented
security measures and maintain an engineering team focused on protecting our systems, no security measures are foolproof, and we cannot
provide absolute assurance against unauthorized access or data breaches. If we grow and obtain more visibility, we may be more vulnerable
to hacking. We may be required to expend significant capital and other resources to protect against such threats or to alleviate problems
caused by breaches in security, which could have a material adverse effect on our financial performance and operating results.

Our design business uses software that is highly
technical, and undetected errors, if any, could adversely affect our business.

Our design business may use software
that is highly technical and complex. Our software has contained, and may now or in the future contain, undetected errors, bugs, flaws,
corrupted data or vulnerabilities. Some errors in our software code may only be discovered after the code has been released. Any errors,
bugs, flaws, or corrupted data could result in damage to our reputation, loss of users, or loss of revenue, any of which could adversely
affect our business and financial results.

Risks Related to Our Business, Liquidity and Operations

If we fail to retain our key personnel, we may
not be able to achieve our anticipated level of growth and our business could suffer.

Our future depends, in part,
on our ability to attract and retain key personnel and the continued contribution of our executive officers. Our digital assets strategy
requires