Company: FWDI
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001683168-25-009068
Chunk: 157

Company: Forward Industries, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 1A
Chunk 157
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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 we are unable to meet anticipated product and service standards imposed by contractual arrangements,
customer expectations, industry practices, regulatory requirements and competitive forces, we may be unable to obtain new or keep our
existing customers, and this would have a material adverse effect on the business, financial condition, and results of operations of our
design business.

If our design teams fail to complete a project
in a timely manner, miss a required performance standard, or otherwise fail to adequately perform on a project, then we may incur a loss
on that project.

Our design engagements often
involve large-scale, complex projects. The quality of our performance on such projects depends in large