Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 40

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1
Chunk 40
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 specialized knowledge in a rapidly evolving industry. Our design and development business is highly labor intensive, therefore,
our ability to attract and retain professional and technical staff is an important factor in our future success. The market for qualified
engineers is competitive and, from time to time, it may be difficult to attract and retain qualified individuals with the required expertise
within the timeframe demanded by our clients. The loss of the services of any of our key personnel and the process to replace any key
personnel would involve significant time and expense and may significantly delay or prevent the achievement of our business objectives.

If a third party asserts that we are infringing
on its intellectual property, whether successful or not, it could subject us to costly and time-consuming litigation or require us to
obtain expensive licenses, and our business may be adversely affected.

Third party lawsuits alleging
our infringement of patents, trade secrets or other intellectual property rights could cause us to do one or more of the following:

    ·
    stop using technology that contains the allegedly infringing intellectual property;

    ·
    incur significant legal expenses;

    ·
    cause our management to divert substantial time to our defenses;

    ·
    pay substantial damages to the party whose intellectual property rights we may be found to be infringing;

    ·
    indemnify customers; or

    ·
    attempt to obtain a license to the relevant intellectual property from third parties, which may not be available to us on reasonable terms or at all.

Third party lawsuits alleging
our infringement of patents, trade secrets or other intellectual property rights could have a material adverse effect on our business,
results of operations and financial condition. Potential adverse developments involving intellectual property described above may occur
with respect to design customers’ products incorporating the products or services that we render.

 24 

Employee or agent misconduct, or our failure
to comply with anti-bribery and other laws or regulations, could harm our reputation, reduce our revenue and profits, and subject us to
criminal and civil enforcement actions.

Misconduct, fraud, non-compliance
with applicable laws and regulations, or other improper activities by one of our employees or agents could have a significant negative
impact on our business and reputation. Such misconduct could include the failure to comply with various procurement regulations, regulations
regarding the protection of confidential information and personal data, regulations prohibiting bribery and other foreign corrupt practices,
regulations regarding the pricing of labor and other costs in contracts, regulations on lobbying or similar activities, regulations pertaining
to the internal controls over