Franklin Wireless Corp. Files Q2 2025 10-Q

TL;DR

Franklin Wireless Corp. 10-Q filed for Q2 2025. Financials updated.

AI Summary

Franklin Wireless Corp. filed its 10-Q for the period ending December 31, 2024. The filing covers the second quarter of their fiscal year. Key financial data from previous periods, such as common stock, additional paid-in capital, and retained earnings as of June 30, 2024, and September 30, 2024, are included for comparison.

Why It Matters

This filing provides investors with an update on Franklin Wireless Corp.'s financial performance and position for the second quarter of fiscal year 2025, enabling informed investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial updates and does not indicate any immediate or significant risks.

Key Numbers

• 2024-12-31 — Reporting Period End (This 10-Q covers the period ending December 31, 2024.)
• 2025-02-14 — Filing Date (The report was filed on February 14, 2025.)
• 06-30 — Fiscal Year End (Franklin Wireless Corp.'s fiscal year ends on June 30th.)

Key Players & Entities

• FRANKLIN WIRELESS CORP (company) — Filer
• 2024-12-31 (date) — Reporting Period End Date
• 2025-02-14 (date) — Filing Date
• 0000722572 (company) — Central Index Key
• 3661 (industry_code) — Standard Industrial Classification
• NV (state) — State of Incorporation
• 0630 (date) — Fiscal Year End
• SAN DIEGO (city) — Business Address City
• CA (state) — Business Address State
• 92123 (zip_code) — Business Address Zip

FAQ

Key Financial Figures

• $5,000,000 — ner. The parties contributed a total of $5,000,000 in capital, in accordance with their re
• $2,000,000 — on January 16, 2025, Forge contributed $2,000,000 for Common Stock. Reclassifications

Filing Documents

• franklin_i10q-123124.htm (10-Q) — 793KB
• franklin_ex3101.htm (EX-31.1) — 10KB
• franklin_ex3102.htm (EX-31.2) — 10KB
• franklin_ex3201.htm (EX-32.1) — 3KB
• franklin_ex3202.htm (EX-32.2) — 3KB
• 0001683168-25-001052.txt ( ) — 5065KB
• fkwl-20241231.xsd (EX-101.SCH) — 32KB
• fkwl-20241231_cal.xml (EX-101.CAL) — 54KB
• fkwl-20241231_def.xml (EX-101.DEF) — 137KB
• fkwl-20241231_lab.xml (EX-101.LAB) — 355KB
• fkwl-20241231_pre.xml (EX-101.PRE) — 288KB
• franklin_i10q-123124_htm.xml (XML) — 772KB

– Financial Information

PART I – Financial Information Item 1: Consolidated Financial Statements (unaudited) 4 Consolidated Balance Sheets as of December 31, 2024 (unaudited) and June 30, 2024 4 Consolidated Statements of Income (Loss) (unaudited) for the three and six months ended December 31, 2024 and 2023 5 Consolidated Statements of Stockholders' Equity (unaudited) for the three and six months ended December 31, 2024 and 2023 6-7 Consolidated Statements of Cash Flows (unaudited) for the six months ended December 31, 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 29 Item 3:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4:

Controls and Procedures

Controls and Procedures 34

– Other Information

PART II – Other Information Item 1:

Legal Proceedings

Legal Proceedings 35 Item 1A:

Risk Factors

Risk Factors 35 Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 3: Defaults Upon Senior Securities 35 Item 4: Mine Safety Disclosures 35 Item 5: Other Information 35 Item 6: Exhibits 35

Signatures

Signatures 36 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 statements suggest for various reasons, including those discussed under the caption "Risk Factors" in Item 1A of our Annual 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 December 31, 2024 (Unaudited) June 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 20,262,886 $ 12,266,556 Short-term investments 21,897,186 25,191,271 Accounts receivable, net 1,912,369 1,155,060 Inventories, net 4,169,222 1,425,685 Other current assets 196,402 107,976 Advance payments to vendors 148,283 73,912 Total current assets 48,586,348 40,220,460 Property and equipment, net 82,249 114,939 Intangible assets, net 867,564 1,309,626 Deferred tax assets, non-current 2,969,433 3,184,240 Goodwill 273,285 273,285 Right of use assets, net 1,545,471 1,486,034 Other assets 126,018 131,245 TOTAL ASSETS $ 54,450,368 $ 46,719,829 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 13,762,469 $ 7,262,195 Contract liabilities and advance from customers 164,015 158,771 Accrued liabilities 2,002,924 1,425,146 Lease liabilities, current 351,571 239,727 Total current liabilities 16,280,979 9,085,839 Lease liabilities, non-current 1,193,901 1,257,992 Total liabilities 17,474,880 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 14,903,883 14,733,300 Retained earnings 25,881,136 25,137,209 Treasury stock, 2,549,208 shares ( 3,554,893 ) ( 3,554,893 ) Accumulated other comprehensive loss ( 1,273,253 ) ( 1,182,825 ) Total Parent Company stockholders' equity 35,971,136 35,147,054 Non-controlling interests 1,004,352 1,228,944 Total stockholders' equity 36,975,488 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 Principles of Consolidation As of June 30, 2024, the consolidated financial statements include the accounts of the Company and its subsidiary, Franklin Technology Inc. ("FTI"), with a majority voting interest of 66.3 % (approximately 33.7 % is owned by noncontrolling interests) as of June 30, 2024. As of December 31, 2024, the consolidated financial statements include the accounts of the Company and its subsidiaries, FTI and Sigbeat Inc. ("Sigbeat"), with majority voting interests of 66.3 % and 60.0 %, respectively, (approximately 33.7 % and 40.0 % are owned by noncontrolling interests, respectively). In the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated and net earnings (loss) are reduced by the portion of the net earnings (loss) of the subsidiary or subsidiaries applicable to noncontrolling interests. On May 14, 2024, the Company entered into an Agreement for Formation of Corporation (the "Agreement") with MeiG Smart Technology Co., Ltd., leading supplier of cellular modules, IoT terminals and wireless data solutions ("MeiG"). Under the terms of the Agreement, the parties formed a Nevada corporation, Sigbeat, to be owned 60 % by Franklin and 40% by its supplier partner. The parties contributed a total of $5,000,000 in capital, in accordance with their respective ownership interest percentages. Under the terms of the Agreement, Sigbeat has a B

View Full Filing

View this 10-Q filing on SEC EDGAR