Franklin Wireless (FKWL) risk factors, FY2024 10-K

Franklin Wireless's FY2024 10-K, filed Sep 30, 2024, lists 12 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
120 groups
Section length
3k wordsItem 1A

Franklin Wireless's biggest risks in the FY2024 10-K

  • Franklin Wireless faces operational risks including sole-source component reliance, potential software and hardware defects, and international tariff exposure.

The risks most specific to Franklin Wireless

  • The following risk factors do not purport to be a complete explanation of the risks involved in our business

    The company may need additional financing for product development if funds are unavailable or terms are unsatisfactory.

  • In the event of an unfavorable outcome in such a claim and our inability to either obtain a license from the third party or develop a non-infringing alternative, then our business, operating results and financial condition may be materially adversely affected and we may have to restructure our business

    Unfavorable outcomes in intellectual property infringement claims or the inability to obtain third-party licenses could harm the business.

  • o Manufacturing defects and flaws will occur during device production

    Software code and hardware devices may experience latent design flaws, security defects, and manufacturing errors.

  • Furthermore, if we are unable to further develop distribution channels in countries in North America, the Caribbean and South America, EMEA (Europe, the Middle East and Africa), and Asia, we may not be able to grow our international operations, and our ability to increase our revenue will be negatively impacted

    Tariffs of 10% to 25% could be imposed if current product exemptions in international markets change.

  • o We depend on sole source suppliers for some components used in our products. The availability and sale of those services would be harmed if any of these suppliers is not able to meet our demand and alternative suitable products are not available on acceptable terms, or at all

    The company depends on sole-source suppliers for certain components and is vulnerable to catastrophic events.

  • o We rely on third-party software and other intellectual property to develop and provide our solutions and significant increases in licensing costs or defects in third-party software could harm our business

    Reliance on third-party software and integration risks could lead to increased licensing costs and loss of functionality.

  • LEGAL AND REGULATORY CHANGES THAT COULD REDUCE OR IMPAIR OUR ABILITY TO OPERATE

    Evolving data privacy regulations may increase compliance expenditures and limit product offerings.

All 12 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The following risk factors do not purport to be a complete explanation of the risks involved in our business
  2. 02In the event of an unfavorable outcome in such a claim and our inability to either obtain a license from the third party or develop a non-infringing alternative, then our business, operating results and financial condition may be materially adversely affected and we may have to restructure our business
  3. 03o Attract, retain, and motivate qualified personnel
  4. 04o Manufacturing defects and flaws will occur during device production
  5. 05o Hacking and malicious actions by outside parties can damage or alter coding and system integrity
  6. 06Furthermore, if we are unable to further develop distribution channels in countries in North America, the Caribbean and South America, EMEA (Europe, the Middle East and Africa), and Asia, we may not be able to grow our international operations, and our ability to increase our revenue will be negatively impacted
  7. 07o If we fail to develop and maintain strategic relationships, we may not be able to penetrate new markets
  8. 08o We depend on sole source suppliers for some components used in our products. The availability and sale of those services would be harmed if any of these suppliers is not able to meet our demand and alternative suitable products are not available on acceptable terms, or at all
  9. 09o We rely on third-party software and other intellectual property to develop and provide our solutions and significant increases in licensing costs or defects in third-party software could harm our business
  10. 10LEGAL AND REGULATORY CHANGES THAT COULD REDUCE OR IMPAIR OUR ABILITY TO OPERATE
  11. 11o Weakness or deterioration in global economic conditions or jurisdictions where we have significant foreign operations could have a material adverse effect on our results of operations and financial condition
  12. 12o If financial or industry analysts do not publish research or reports about our business, or if they issue negative or misleading evaluations of our stock, our stock price and trading volume could decline

Other Franklin Wireless 10-Ks

  • FY2026 10-K risk factors
    16 risks4 reworded

    The software risk now specifically covers vulnerabilities from third-party and open-source components, development tools, and dependencies.

    Filed Sep 28, 2026
  • FY2025 10-K risk factors
    12 risks1 new1 dropped1 reworded

    The risk profile shifted to specifically warn about lithium-ion button battery choking hazards and manufacturing defects.

    Filed Sep 29, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.