Franklin Wireless Corp. Files Q3 2024 10-Q

TL;DR

Franklin Wireless Corp. 10-Q filed for Sept 2024 quarter. Financials are in.

AI Summary

Franklin Wireless Corp. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position for the quarter. Specific financial figures and operational details are presented within the report.

Why It Matters

This 10-Q filing provides investors and analysts with the latest financial data for Franklin Wireless Corp., crucial for understanding the company's current performance and future outlook.

Risk Assessment

Risk Level: low — This is a standard financial filing providing historical data, not indicating immediate operational or market risks.

Key Numbers

• 2024-09-30 — Reporting Period End (This is the end date for the financial data presented in the 10-Q.)
• 2024-11-14 — Filing Date (This is the date the 10-Q was officially filed with the SEC.)

Key Players & Entities

• FRANKLIN WIRELESS CORP (company) — Filer
• 0000722572 (company) — Central Index Key
• 20240930 (date) — Reporting Period End Date
• 20241114 (date) — Filing Date

FAQ

Filing Documents

• franklin_i10q-093024.htm (10-Q) — 640KB
• franklin_ex3101.htm (EX-31.1) — 10KB
• franklin_ex3102.htm (EX-31.2) — 10KB
• franklin_ex3201.htm (EX-32.1) — 4KB
• franklin_ex3202.htm (EX-32.2) — 3KB
• 0001683168-24-008127.txt ( ) — 4433KB
• fkwl-20240930.xsd (EX-101.SCH) — 28KB
• fkwl-20240930_cal.xml (EX-101.CAL) — 50KB
• fkwl-20240930_def.xml (EX-101.DEF) — 113KB
• fkwl-20240930_lab.xml (EX-101.LAB) — 324KB
• fkwl-20240930_pre.xml (EX-101.PRE) — 254KB
• franklin_i10q-093024_htm.xml (XML) — 641KB

– Financial Information

PART I – Financial Information Item 1: Consolidated Financial Statements (unaudited) 4 Consolidated Balance Sheets as of September 30, 2024 (unaudited) and June 30, 2024 4 Consolidated Statements of Income (Loss) (unaudited) for the three months ended September 30, 2024 and 2023 5 Consolidated Statements of Stockholders' Equity (unaudited) for the three months ended September 30, 2024 and 2023 6-7 Consolidated Statements of Cash Flows (unaudited) for the three months ended September 30, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2:

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4:

Controls and Procedures

Controls and Procedures 30

– Other Information

PART II – Other Information Item 1:

Legal Proceedings

Legal Proceedings 31 Item 1A:

Risk Factors

Risk Factors 31 Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 3: Defaults Upon Senior Securities 31 Item 4: Mine Safety Disclosures 31 Item 5: Other Information 31 Item 6: Exhibits 31

Signatures

Signatures 32 2 NOTE ON FORWARD LOOKING STATEMENTS You should keep in mind the following points as you read this Report on Form 10-Q: The terms "we," "us," "our," "Franklin," "Franklin Wireless," or the "Company" refer to Franklin Wireless Corp. This Report on Form 10-Q 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 caption "Management's Discussion and Analysis of Financial Condition and Results of Operation," and elsewhere in this Quarterly Report on Form 10-Q. 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 Report on Form 10-K for the year ended June 30, 2024. These forward looking statements are made only as of the date of this Report on Form 10-Q. We do not undertake to update or revise the forward looking statements, whether as a result of new information, future events or otherwise. 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS FRANKLIN WIRELESS CORP. Consolidated Balance Sheets September 30, 2024 (Unaudited) June 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 14,618,062 $ 12,266,556 Short-term investments 26,060,091 25,191,271 Accounts receivable, net 1,800,202 1,155,060 Inventories, net 2,560,672 1,425,685 Other current assets 85,721 107,976 Advance payments to vendors 144,116 73,912 Total current assets 45,268,864 40,220,460 Property and equipment, net 106,459 114,939 Intangible assets, net 1,078,508 1,309,626 Deferred tax assets, non-current 3,137,160 3,184,240 Goodwill 273,285 273,285 Right of use assets, net 1,631,922 1,486,034 Other assets 136,261 131,245 TOTAL ASSETS $ 51,632,459 $ 46,719,829 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 10,818,811 $ 7,262,195 Contract liabilities and advance from customers 170,351 158,771 Accrued liabilities 1,765,370 1,425,146 Lease liabilities, current 349,278 239,727 Total current liabilities 13,103,810 9,085,839 Lease liabilities, non-current 1,288,487 1,257,992 Total liabilities 14,392,297 10,343,831 Commitments and contingencies (Note 6) – Stockholders' equity: Parent Company stockholders' equity Preferred stock, par value $ 0.001 per share, authorized 10,000,000 shares; none issued and outstanding – – Common stock, par value $ 0.001 per share, authorized 50,000,000 shares; 11,784,280 shares issued and outstanding 14,263 14,263 Additional paid-in capital 14,820,684 14,733,300 Retained earnings 25,652,396 25,137,209 Treasury stock, 2,549,208 shares ( 3,554,893 ) ( 3,554,893 ) Accumulated other comprehensive loss ( 1,097,825 ) ( 1,182,825 ) Total Parent Company stockholders' equity 35,834,625 35,147,054 Non-controlling interests 1,405,537 1,228,944 Total stockholders' equity 37,240,162 36,375,998 TOTAL LIABILITIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies of the Company is presented to assist in understanding the Company's consolidated financial statements. The consolidated financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of the consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiary with a majority voting interest of approximately 66.3 % (approximately 33.7 % is owned by non-controlling interests) as of September 30, 2024, and June 30, 2024. In the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated and net earnings are reduced by the portion of the net earnings of the subsidiary applicable to non-controlling interests. Reclassifications Certain amounts on the prior period's consolidated financial statements were regrouped and reclassified to conform to current-year presentation, with no effect on total stockholders' equity. Non-controlling Interest in a Consolidated Subsidiary Noncontrolling interests represent approximately 33.7 % equity interests in FTI held by minority shareholders as of the reporting dates. As of September 30, 2024, the non-controlling interest was $ 1,405,537 , which represents a $ 176,593 increase from $ 1,228,944 as of June 30, 2024. The increase of $ 176,593 in the non-controlling interest consists of $ 133,469 from income in the subsidiary of $ 396,552 and $ 43,124 from foreign exchange translation incurred for the three months ended September 30, 2024. Segment Reporting Accounting Standards Codification ("ASC") 280, "Segment Reporting," requires public companies to report

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View this 10-Q filing on SEC EDGAR