Franklin Wireless Corp. Signs Material Definitive Agreement
Ticker: FKWL · Form: 8-K · Filed: Jun 14, 2024 · CIK: 722572
| Field | Detail |
|---|---|
| Company | Franklin Wireless Corp (FKWL) |
| Form Type | 8-K |
| Filed Date | Jun 14, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $2,000,000, $1,000,000, $550,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: material-agreement, definitive-agreement
TL;DR
Franklin Wireless just signed a big deal, details TBD.
AI Summary
On June 14, 2024, Franklin Wireless Corp. entered into a Material Definitive Agreement. The filing does not disclose specific details of the agreement, such as the counterparty or financial terms, but indicates a significant event for the company.
Why It Matters
This filing signals a significant business development for Franklin Wireless Corp., potentially impacting its future operations and financial performance.
Risk Assessment
Risk Level: medium — The lack of specific details in the filing regarding the Material Definitive Agreement introduces uncertainty about its nature and potential impact.
Key Players & Entities
- Franklin Wireless Corp. (company) — Registrant
- June 14, 2024 (date) — Date of Report
- Nevada (jurisdiction) — State of Incorporation
- 001-14891 (identifier) — Commission File Number
- 95-3733534 (identifier) — I.R.S. Employer Identification No.
- 3940 Ruffin Road Suite C San Diego , CA 92123 (address) — Address of principal executive offices
- 858-623-0000 (phone_number) — Registrant's telephone number
FAQ
What is the nature of the Material Definitive Agreement entered into by Franklin Wireless Corp.?
The filing does not specify the nature of the Material Definitive Agreement, only that one was entered into on June 14, 2024.
Who is the other party to the Material Definitive Agreement?
The filing does not disclose the identity of the other party involved in the Material Definitive Agreement.
What are the key financial terms or obligations associated with this agreement?
Specific financial terms or obligations related to the Material Definitive Agreement are not detailed in this 8-K filing.
When was the Material Definitive Agreement officially entered into?
The Material Definitive Agreement was entered into on June 14, 2024.
Does this agreement represent a significant change in Franklin Wireless Corp.'s business operations?
As a 'Material Definitive Agreement,' it is presumed to be significant, but the filing does not elaborate on the specific operational impact.
Filing Stats: 553 words · 2 min read · ~2 pages · Grade level 10.7 · Accepted 2024-06-14 17:00:22
Key Financial Figures
- $2,000,000 — for the plaintiff and awarded Nosirrah $2,000,000 in damages, plus costs and attorney's f
- $1,000,000 — Agreement, Mr. Kim will pay the Company $1,000,000 and the Company will pay the plaintiff'
- $550,000 — pany will pay the plaintiff's attorneys $550,000. The Settlement and Release Agreement a
Filing Documents
- franklin_8k.htm (8-K) — 22KB
- 0001683168-24-004248.txt ( ) — 191KB
- fkwl-20240614.xsd (EX-101.SCH) — 3KB
- fkwl-20240614_lab.xml (EX-101.LAB) — 33KB
- fkwl-20240614_pre.xml (EX-101.PRE) — 22KB
- franklin_8k_htm.xml (XML) — 4KB
01 Entry into a Material Definitive
Item 1.01 Entry into a Material Definitive Agreement. Definitive Settlement Agreements Executed in Settlement of Derivative Litigation Background As previously disclosed, a legal action was filed in the U.S. District Court, Southern District of California (San Diego) against Franklin, as a nominal defendant, Nosirrah Management LLC v. Franklin Wireless et al. (Case # 3:21-cv-01316-CAB-JLB), on or about July 22, 2021, claiming that our Chief Executive Officer, OC Kim, violated Section 16(b) of the Securities Exchange Act of 1934 for receiving "short-swing" profits from a sale and purchase of Franklin shares, in violation of that Act. On February 16, 2024, a jury found for the plaintiff and awarded Nosirrah $2,000,000 in damages, plus costs and attorney's fees. Mr. Kim and the Company believe the allegations and the verdict are not supported by the facts. Notwithstanding the foregoing, the Company, Mr. Kim, and Nossirrah determined to compromise and settle the matter in lieu of further proceedings and entered into a Settlement and Release Agreement, dated June 12, 2024. The Settlement and Release Agreement Under the terms of the Settlement and Release Agreement, Mr. Kim will pay the Company $1,000,000 and the Company will pay the plaintiff's attorneys $550,000. The Settlement and Release Agreement also provides that Mr. Kim will dismiss his appeal of the judgment, and provides for mutual releases among the parties. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FRANKLIN WIRELESS CORP. Date: June 14, 2024 By: /s/ OC Kim OC Kim, President 2