What the changes say
- The risk profile shifted to specifically warn about lithium-ion button battery choking hazards and manufacturing defects.
What changed since the prior 10-K
New
- New
o Choking Hazard: Small lithium-ion button batteries can cause severe chemical burns to the esophagus if ingested
Small lithium-ion button batteries used in products can cause severe chemical burns to the esophagus if ingested.
Dropped
- Dropped
o Manufacturing defects and flaws will occur during device production
Reworded
- 61% rewritten
o Attract, retain, and motivate qualified personnel
Added a warning that manufacturing defects and flaws will occur during device production and noted lithium battery dangers.
All 12 risk factors
Headings as the filing states them, in filing order.
Other
- 01The following risk factors do not purport to be a complete explanation of the risks involved in our business
- 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
- 03o Attract, retain, and motivate qualified personnel61% rewritten
- 04o Choking Hazard: Small lithium-ion button batteries can cause severe chemical burns to the esophagus if ingestedNew
- 05o Hacking and malicious actions by outside parties can damage or alter coding and system integrity
- 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
- 07o If we fail to develop and maintain strategic relationships, we may not be able to penetrate new markets
- 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
- 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
- 10LEGAL AND REGULATORY CHANGES THAT COULD REDUCE OR IMPAIR OUR ABILITY TO OPERATE
- 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
- 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 factors16 risks4 reworded
The software risk now specifically covers vulnerabilities from third-party and open-source components, development tools, and dependencies.
Filed Sep 28, 2026 - FY2024 10-K risk factors12 risks
Franklin Wireless faces operational risks including sole-source component reliance, potential software and hardware defects, and international tariff exposure.
Filed Sep 30, 2024
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.