Core Perspective - Franklin Wireless has rebranded itself as Franklin Access to better reflect its mission of providing global connectivity solutions [2][4] Company Overview - Franklin Access focuses on delivering integrated wireless solutions that emphasize reliability, speed, and accessibility for both home and business networks [4] - The company specializes in leveraging 4G LTE and 5G technologies to design connectivity solutions suitable for the digital age [6] Strategic Move - The rebranding is seen as a strategic move to enhance customer satisfaction through innovative network solutions and user-friendly products [2][4] - The transition to Franklin Access will not impact ownership, management, or operations, and the company will continue to be listed on NASDAQ under the symbol FKWL [2] Online Presence - The launch of FranklinAccess.com consolidates all Franklin Access brands into a single online platform, enhancing the company's digital presence [5] Commitment to Service - The company remains dedicated to exceptional service and aims to empower users with seamless network integration across multiple devices [4][6]

Franklin Access focuses on reliability, speed, and accessibility for modern home and business network demands. We empower users with seamless network integration on multiple devices at home, traveling, and even managing IoT systems. We will push the boundaries of network solutions with our customers as the core of everything we do. The rebranding to Franklin Access also brings a unified online presence with the launch of FranklinAccess.com, a website that consolidates all Franklin Access brands into one con ...

Financial Performance - Net sales for the three months ended March 31, 2024, were $6,176,499, a decrease of 47.9% compared to $11,851,971 for the same period in 2023[17] - Gross profit for the three months ended March 31, 2024, was $517,449, down 74.7% from $2,045,510 in the prior year[17] - The company reported a net loss of $1,310,320 for the three months ended March 31, 2024, compared to a net income of $211,639 for the same period in 2023[17] - Comprehensive loss for the three months ended March 31, 2024, was $1,457,081, compared to comprehensive income of $71,887 for the same period in 2023[17] - For the nine months ended March 31, 2024, the net loss was $2,297,180 compared to a net loss of $1,298,722 for the same period in 2023, representing an increase in loss of approximately 77%[25] - Net sales for North America decreased to $24,583,324 for the nine months ended March 31, 2024, down 14% from $28,778,479 in the same period of 2023[32] - Net sales decreased by $5,675,472, or 47.9%, to $6,176,499 for the three months ended March 31, 2024, compared to $11,851,971 for the same period in 2023[142] - Gross profit decreased by $1,528,061, or 74.7%, to $517,449 for the three months ended March 31, 2024, with a gross profit margin of 8.4% compared to 17.3% in 2023[144] - Net loss before income taxes for the three months ended March 31, 2024, was $(26.3%) compared to $(3.1%) for the same period in 2023[141] - Net sales for the nine months ended March 31, 2024, decreased by $4,264,730, or 14.7%, to $24,679,824 from $28,944,554 for the same period in 2023[148] - Gross profit for the nine months ended March 31, 2024, decreased by $1,717,730, or 37.5%, to $2,867,684, with a gross profit margin of 11.6% compared to 15.8% in 2023[150] Assets and Liabilities - Total current assets decreased to $43,547,756 as of March 31, 2024, from $51,857,095 as of June 30, 2023, representing a decline of 16.0%[14] - Total liabilities decreased to $11,773,429 as of March 31, 2024, from $16,512,250 as of June 30, 2023, a reduction of 28.5%[14] - The company’s retained earnings decreased to $26,903,234 as of March 31, 2024, down from $29,101,225 as of June 30, 2023, reflecting a decline of 7.5%[14] - The company’s total stockholders' equity decreased to $38,245,390 as of March 31, 2024, from $40,414,828 as of June 30, 2023, a decrease of 5.4%[14] - The total long-lived assets decreased from $2,281,972 as of June 30, 2023, to $1,711,247 as of March 31, 2024, indicating a decline of approximately 25%[33] - Cash and cash equivalents at the end of the period were $7,004,494, a decrease of 60% from $17,569,754 at the end of the same period in 2023[25] Expenses - Research and development expenses for the three months ended March 31, 2024, were $811,470, a decrease of 22.9% compared to $1,052,672 in the same period of 2023[17] - Operating expenses decreased by $443,488, or 17.6%, to $2,072,617 for the three months ended March 31, 2024, from $2,516,105 for the same period in 2023[145] - Research and development costs for the three months ended March 31, 2024, were $811,470, down from $1,052,672 for the same period in 2023, representing a decrease of approximately 22.9%[56] - The company incurred a depreciation expense of $28,059 for the nine months ended March 31, 2024, compared to $41,341 in the same period of 2023[25] - The company recorded an income tax benefit of $312,764 for the three months ended March 31, 2024, compared to $578,664 for the same period in 2023, reflecting a decrease of approximately 45.9%[70] - Shipping and handling costs for the three months ended March 31, 2024, were $28,441, down from $58,730 in the same period of 2023, indicating a reduction of about 51.6%[58] Cash Flow - The company reported a net cash used in operating activities of $6,972,515 for the nine months ended March 31, 2024, compared to $6,954,199 in the same period of 2023[25] - Net cash provided by investing activities for the nine months ended March 31, 2024, was $1,815,796, mainly from sales of short-term investments totaling $1,995,606[159] - The net cash provided by financing activities for the nine months ended March 31, 2024, was $1,045, attributed to an increase in loan to an employee[161] - For the nine months ended March 31, 2024, the net cash used in operating activities was $6,972,515, primarily due to a decrease in accounts payable of $6,668,572 and a net loss of $2,297,180[157] Inventory and Receivables - As of March 31, 2024, accounts receivable increased to $10,262,320 from $8,949,802 as of June 30, 2023, reflecting a growth of approximately 14.7%[46] - The balance of inventory reserves for obsolete or slow-moving inventories was $74,548 as of March 31, 2024, significantly lower than $585,274 as of June 30, 2023, showing a decrease of approximately 87.3%[61] - Contract liabilities for undelivered products rose to $195,599 as of March 31, 2024, compared to $146,488 as of June 30, 2023, indicating an increase of about 33.5%[47] Leases and Commitments - The company signed a new lease for office space in San Diego, California, at a monthly rent of $23,370, which commenced on January 1, 2024[91] - Future minimum payments under operating leases total $1,874,557, with a remaining lease term of 5.2 years[96] - The total lease expenses for the nine months ended March 31, 2024, were $483,305, an increase from $334,146 in the same period of 2023[96] - The company recorded an additional rent expense of $142,978 for pending charges from a prior landlord for variable cost increases over the last seven years[163] Stock and Equity - The company recorded stock-based compensation of $208,860 for the nine months ended March 31, 2024, down from $536,922 in the same period of 2023[25] - As of March 31, 2024, there were 627,001 stock options outstanding with a weighted average exercise price of $4.22[126] - The aggregate intrinsic value of stock options as of March 31, 2024, was based on a closing stock price of $2.99 per share[127] Legal and Regulatory - A settlement of $2.4 million has been agreed upon in the shareholder litigation, which is reflected in liabilities under "accrued legal contingency expense"[105] - The company believes its products are currently exempt from international tariffs, but potential tariffs of 10%-25% could adversely affect sales and operating results if imposed[121] Miscellaneous - The company has not entered into any related party transactions for the three and nine months ended March 31, 2024, and 2023[129] - No material recognizable subsequent events were identified that required disclosure in the financial statements as of March 31, 2024[130] - The company has not been able to recreate any device failures related to the Verizon recall and believes the Jetpack devices are performing within normal parameters[102]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-14891 3940 Ruffin Road Suite C San Diego, California (Address of principal executive offices) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the regist ...

RESULTS OF OPERATIONS The following table sets forth, for the three months ended September 30, 2023 and 2022, our statements of comprehensive income (loss) including data expressed as a percentage of sales: | --- | --- | --- | |-----------------------------------------------------------------------|---------------------------------|------------------| | | Three Months September \n2023 | Ended 30, \n2022 | | | | | | Net sales | 100.0% | 100.0% | | Cost of goods sold | 84.3% | 80.3% | | Gross profit | 15.7% | ...

The financial statements and the supplementary financial information required by this Item and included in this report are listed in the Index to Financial Statements beginning on page F-1. EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES There have been no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act or in other factors that materially affected or are reasonably likely to materially affect our internal controls and procedures ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 OR Commission file number: 001-14891 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Large accelerated filer ☐ Accelerated filer ☐ Non ...

FORM 10-Q For the quarterly period ended December 31, 2022 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-14891 FRANKLIN WIRELESS CORP. (Exact name of Registrant as specified in its charter) Nevada (State or other jurisdiction of incorporation or organization) 95-3733534 (I.R.S. Employer Identification Number) 9707 Waples Street Suite 150 San Diego, California (Address of principal executive offices) ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-14891 FRANKLIN WIRELESS CORP. (Exact name of Registrant as specified in its charter) | --- | --- | |---------------- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended June 30, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-14891 FRANKLIN WIRELESS CORP. (Exact name of Registrant as specified in its charter) Nevada (State or other jurisdiction of incorporati ...