Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 164

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 164
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 that our controls will protect us from reckless or criminal acts committed
by our employees or agents. Our failure to comply with applicable laws or regulations or acts of misconduct could subject us to fines
and penalties, including substantial monetary penalties under data privacy laws, and suspension or debarment from contracting, any or
all of which could harm our reputation, reduce our revenue and profits, and subject us to criminal and civil enforcement actions.

If we fail to maintain an effective system of
internal controls over financial reporting, we may not be able to accurately report our financial results. As a result, current and potential
shareholders could lose confidence in our financial reporting, which could harm our business and the trading price of our stock.

Effective internal controls over
financial reporting are necessary for us to provide reliable financial reports. If we cannot maintain effective controls and reliable
financial reports, our business and operating results could be harmed. We continue to work on improvements to our internal controls over
financial reporting. Any failure to implement and maintain internal controls over our financial reporting or difficulties encountered
in the implementation of improvements in our controls, could cause us to fail to meet our reporting obligations. Any failure to improve
our internal controls over financial reporting or to address identified weaknesses in the future, if they were to occur, could also cause
investors to lose confidence in our reported financial information, which could have a negative impact on the trading price of our stock.

We maintain cash balances in our bank accounts
that exceed the FDIC insurance limitation.

We maintain our cash assets at
commercial banks in the U.S. in amounts in excess of the Federal Deposit Insurance Corporation insurance limit of $250,000 per depositor,
per insured bank, for each account ownership category. In the event of a failure at a commercial bank where we maintain our deposits,
money market accounts, or other cash assets, we may incur a loss to the extent such loss exceeds the applicable insurance limitation,
which could have a material adverse effect upon our financial condition and results of operations. As of November 30, 2025, the Company
maintained approximately $40.4 million in uninsured deposits.

 25 

Risks Related to Our Common Stock

Due to factors beyond our control, our stock
price may be volatile.

Any of the following factors
could affect the market price of our common stock:

    ·
    Our failure to increase revenue in each succeeding quarter and achieve and thereafter maintain profitability;

    ·
    Adverse regulatory developments such as the recent actions brought by securities