Franklin Wireless Corp. Files 2024 Annual Report

TL;DR

Franklin Wireless Corp. 10-K filed for FY24. Full financial picture released.

AI Summary

Franklin Wireless Corp. filed its 10-K for the fiscal year ending June 30, 2024, reporting on its operations in the telephone and telegraph apparatus industry. The company, formerly known as Franklin Telecommunications Corp., is incorporated in Nevada and headquartered in San Diego, California. This filing provides a comprehensive overview of the company's financial performance and business activities for the period.

Why It Matters

This 10-K filing provides investors and stakeholders with a detailed look into Franklin Wireless Corp.'s financial health and strategic direction for the fiscal year ending June 30, 2024.

Risk Assessment

Risk Level: low — This filing is a standard annual report and does not contain immediate, high-impact risk disclosures.

Key Numbers

• 2024-06-30 — Fiscal Year End (The end date for the reporting period covered by the 10-K.)
• 2023-06-30 — Prior Fiscal Year End (The end date for the previous fiscal year, used for comparison.)
• 2024-09-30 — Filing Date (The date the 10-K was officially filed with the SEC.)

Key Players & Entities

• FRANKLIN WIRELESS CORP (company) — Filer
• FRANKLIN TELECOMMUNICATIONS CORP (company) — Former company name
• ABM COMPUTER SYSTEMS (company) — Former company name
• AUTOMATED BUSINESS MACHINES INC (company) — Former company name
• 3661 (industry_code) — Standard Industrial Classification
• NV (state) — State of Incorporation
• SAN DIEGO (city) — Business and Mail Address City
• CA (state) — Business and Mail Address State
• 92123 (zip_code) — Business and Mail Address Zip
• 858-623-0000 (phone_number) — Business Phone

FAQ

Filing Documents

• franklin_i10k-063024.htm (10-K) — 1000KB
• franklin_ex1001.htm (EX-10.1) — 36KB
• franklin_ex1009.htm (EX-10.9) — 53KB
• franklin_ex1010.htm (EX-10.10) — 7KB
• franklin_ex1011.htm (EX-10.11) — 7KB
• franklin_ex1012.htm (EX-10.12) — 7KB
• franklin_ex1013.htm (EX-10.13) — 13KB
• franklin_ex2301.htm (EX-23.1) — 2KB
• franklin_ex2302.htm (EX-23.2) — 2KB
• franklin_ex3101.htm (EX-31.1) — 7KB
• franklin_ex3102.htm (EX-31.2) — 7KB
• franklin_ex3201.htm (EX-32.1) — 3KB
• franklin_ex3202.htm (EX-32.2) — 4KB
• franklin_ex9700.htm (EX-97) — 28KB
• franklinlogo.jpg (GRAPHIC) — 4KB
• image_002.jpg (GRAPHIC) — 2KB
• image_005.jpg (GRAPHIC) — 14KB
• image_006.jpg (GRAPHIC) — 2KB
• 0001683168-24-006754.txt ( ) — 5774KB
• fkwl-20240630.xsd (EX-101.SCH) — 34KB
• fkwl-20240630_cal.xml (EX-101.CAL) — 70KB
• fkwl-20240630_def.xml (EX-101.DEF) — 116KB
• fkwl-20240630_lab.xml (EX-101.LAB) — 382KB
• fkwl-20240630_pre.xml (EX-101.PRE) — 297KB
• franklin_i10k-063024_htm.xml (XML) — 782KB

Business

Business 1 Item 1A:

Risk Factors

Risk Factors 4 Item 1B: Unresolved Staff Comments 10 Item 1C: Cybersecurity 11 Item 2:

Properties

Properties 11 Item 3:

Legal Proceedings

Legal Proceedings 12 Item 4: Mine Safety Disclosures 12 PART II Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 13 Item 6:

Selected Financial Data

Selected Financial Data 13 Item 7:

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 7A:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 21 Item 8:

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 21 Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 21 Item 9A:

Controls and Procedures

Controls and Procedures 21 Item 9B: Other Information 22 Item 9C: Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 22 PART III Item 10: Directors, Executive Officers and Corporate Governance 23 Item 11:

Executive Compensation

Executive Compensation 25 Item 12:

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 28 Item 13: Certain Relationships and Related Transactions, and Director Independence 29 Item 14: Principal Accountant Fees and Services 29 PART IV Item 15: Exhibits, Financial Statement Schedules 30 Item 16: Form 10-K Summary 30

Signatures

Signatures 31 Index to Financial Statements F-1 i NOTE ON FORWARD LOOKING STATEMENTS You should keep in mind the following points as you read this Report on Form 10-K: o the terms "we," "us," "our," "Franklin," "Franklin Wireless," or the "Company" refer to Franklin Wireless Corp. o our fiscal year ends on June 30; references to fiscal 2024 and fiscal 2023 and similar constructions refer to the fiscal year ended on June 30 of the applicable year. This Annual Report on Form 10-K contains statements which, to the extent they do not recite historical fact, constitute "forward looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements are used under the captions "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this Annual Report on Form 10-K. You can identify these statements by the use of words like "may," "will," "could," "should," "project," "believe," "anticipate," "expect," "plan," "estimate," "forecast," "potential," "intend," "continue," and variations of these words or comparable words. Forward looking statements do not guarantee future performance and involve risks and uncertainties. Actual results may differ substantially from the results that the forward looking statements suggest for various reasons, including those discussed under the caption "Risk Factors." These forward looking statements are made only as of the date of this Annual Report on Form 10-K. We do not undertake to update or revise the forward looking statements, whether as a result of new information, future events or otherwise. ii PART I

BUSINESS

ITEM 1. BUSINESS. BUSINESS OVERVIEW Doing business as "FranklinAccess", we are a leading global provider of integrated wireless solutions utilizing the latest 5G (fifth generation) and 4G LTE (fourth generation long-term evolution) technologies including mobile hotspots, fixed wireless routers, and mobile device management (MDM) solutions. We are a leading enabler of the Digital Divide initiative, and our expertise extends to innovation in Internet of Things (IOT) and machine-to-machine (M2M) applications, driving forward seamless communication and connectivity for both individuals and enterprises. We have majority ownership of Franklin Technology Inc. (FTI), a research and development company based in Seoul, South Korea. FTI primarily provides design and development services for our wireless products. Our products are generally marketed and sold directly to wireless operators and indirectly through strategic partners and distributors. Our primary markets are in North America and Asia. OUR STRUCTURE We incorporated in 1982 in California and reincorporated in Nevada on January 2, 2008. The reincorporation had no effect on the nature of our business or our management. Our headquarters are located in San Diego, California. This office provides marketing, sales, operations, finance and administrative support. It is also responsible for all customer-related activities, such as marketing communications, product planning, product management and customer support, along with sales and business development activities worldwide. Our consolidated financial statements include accounts for the Company and its subsidiary, Franklin Technology Inc. ("FTI"). We have a majority voting interest of approximately 66.3% (approximately 33.7% is owned by non-controlling interests) in FTI as of June 30, 2024, and 2023. In the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated and net earnings (loss) are reduced by

: RISK FACTORS

ITEM 1A: RISK FACTORS. The following risk factors do not purport to be a complete explanation of the risks involved in our business. WE MAY NEED ADDITIONAL FINANCING FOR PRODUCT DEVELOPMENT. Our financial resources are sufficient for our current operational needs; however, the amount of funding required to develop and commercialize our products and technologies is highly uncertain. Adequate funds may not be available when needed or on terms satisfactory to us. Lack of funds may cause us to delay, reduce and/or abandon certain or all aspects of our development and commercialization programs. We may seek additional financing through the issuance of equity or convertible debt securities. In such event, the percentage preferences, and privileges senior to those of our Common Stock. There can be no assurance that additional financing will be available on terms favorable to us or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to fund our expansion, take advantage of desirable acquisition opportunities, develop, or enhance services or products or respond to competitive pressures. Such inability could have a materially adverse effect on our business, results of operations and financial conditions. WE MAY INFRINGE THE INTELLECTUAL PROPERTY RIGHTS OF OTHERS. The industry in which we operate has many participants that own, or claim to own, proprietary intellectual property. In the past we have received, and in the future may receive, claims from third parties alleging that we, and possibly our customers, violate their intellectual property rights. Rights to intellectual property can be difficult to verify and litigation may be necessary to establish whether or not we have infringed the intellectual property rights of others. In many cases, these third parties are companies with substa

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