Franklin Wireless (FKWL) risk factors, FY2026 10-K

Franklin Wireless's FY2026 10-K, filed Sep 28, 2026, lists 16 risk factors. Against the prior year's 16: 4 substantially reworded.

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Risk factors listed
160 groups
New this year
0vs 16 last year
Dropped
0since the prior 10-K
Substantially reworded
4of those kept
Section length
4k wordsItem 1A

What the changes say

  • The software risk now specifically covers vulnerabilities from third-party and open-source components, development tools, and dependencies.
  • Customer concentration remains high: two customers generated 60.9% and 27.5% of fiscal 2026 sales, versus 60.9% and 33.5% previously.
  • The customer risk now includes reduced purchases, not only losing a material customer.
  • The international distribution and legal/regulatory risk disclosures are substantively unchanged.

What changed since the prior 10-K

Reworded

  • 95% rewritten

    WE OPERATE IN THE HIGH-RISK SOFTWARE INDUSTRY

    Expanded to include coding errors, third-party and open-source components, development tools, dependencies, malware, unauthorized access, and exploitation before remediation.

  • 57% rewritten

    WE DEPEND ON COLLABORATIVE ARRANGEMENTS

    Now covers customers reducing purchases, and the second-largest customer’s sales share fell from 33.5% to 27.5%; the largest remained 60.9%.

  • 40% rewritten

    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

    No substantive change: the disclosure still covers potential 10%-80% tariffs and delayed or unavailable regulatory approvals.

  • 24% rewritten

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

    No substantive change: the disclosure still covers data privacy, U.S. fiscal and trade actions, sustainability costs, and intellectual-property claims.

All 16 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. 02WE MAY NEED ADDITIONAL FINANCING FOR PRODUCT DEVELOPMENT
  3. 03In 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
  4. 04WE OPERATE IN AN INTENSIVELY COMPETITIVE MARKET
  5. 05WE OPERATE IN THE HIGH-RISK TELECOM SECTOR
  6. 06o Thermal Runaway
  7. 07o Fires and Explosions
  8. 08o Toxic and Flammable Gases
  9. 09o Hydrofluoric Acid Exposure
  10. 10o Chemical Exposure
  11. 11WE OPERATE IN THE HIGH-RISK SOFTWARE INDUSTRY95% rewritten
  12. 12POTENTIAL DESIGN AND MANUFACTURING DEFECTS COULD OCCUR
  13. 13WE DEPEND ON COLLABORATIVE ARRANGEMENTS57% rewritten
  14. 14OUR PRODUCT-TO-MARKET CHALLENGE IS CRITICAL
  15. 15Furthermore, 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 impacted40% rewritten
  16. 16LEGAL AND REGULATORY CHANGES THAT COULD REDUCE OR IMPAIR OUR ABILITY TO OPERATE24% rewritten

Other Franklin Wireless 10-Ks

  • 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
  • FY2024 10-K risk factors
    12 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.