Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 34

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 34
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in the future. Our design business will need to generate increased revenues to achieve profitability in the future. Despite our efforts,
our design business may not achieve profitability in the future or sustain profitability for a prolonged period of time. If our design
business cannot generate sufficient revenues to operate profitably, we may be forced to cease, limit or suspend operations, or we may
be required to raise additional capital or incur additional debt to maintain or grow our design business. There is no assurance that we
will be able to raise such capital and if so on terms that are not onerous and dilutive to the Company and its shareholders.

 20 

The loss of any of, or a material reduction
in orders from, our largest design customers would materially and adversely affect our design business results of operations and financial
condition. 

Our design business can at times
be concentrated with certain larger customers. In Fiscal 2024, our largest design customer accounted for over 30% of our consolidated
net revenues In December 2024, our largest design customer notified the Company of its plan to discontinue their insulin patch program,
on which the Company was working. We expect this to continue to cause a material decrease in our revenues relative to Fiscal 2024. We
have implemented cost reduction efforts to mitigate this reduction in design revenue.

Although our design customer
concentration changes from year to year, and we continue our efforts to diversify our design business, we cannot provide any assurance
that we will be successful. The loss of any of these customers would have a material adverse effect on the financial condition, liquidity
and results of operations of our design business.

If we are unable to provide our design customers
with high-quality products and services or if we are unable to deliver our products and/or services to our customers in a timely manner,
the financial condition, and results of operations of our design business may be materially adversely affected.

In order to maintain our existing
design business customer base and obtain business from new customers, we must demonstrate our ability to develop, design and produce products
and services at the level of quality, responsiveness, timeliness, and cost that our customers require. If our products or services are
provided at what customers believe are of a substandard quality, if they are not delivered on time, if we are not responsive to our customers’
demands or cannot meet their needs, our reputation as a reliable supplier of high-quality products and a sophisticated product designer
and developer would likely be damaged. If