FRANKLIN WIRELESS CORP
For the period ended Jun 30, 2024. Filed Sep 30, 2024.
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FY2024 · Filed Sep 30, 2024
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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 the portion of the net earnings (loss) of the subsidiary applicable to non-controlling interests.
Accounting Standards Codification (“ASC”) 280, “Segment Reporting,” requires public companies to report financial and descriptive information about their reportable operating segments. We identify our operating segments based on how our chief operating decision maker internally evaluates separate financial information, business activities and management responsibility. We have one reportable segment, consisting of the sale of wireless access products. We generate revenues from three geographic areas, consisting of North America and Asia. The following enterprise-wide disclosure is prepared on a basis consistent with the preparation of the consolidated financial statements. The following table contains certain financial information by geographic area:
| Fiscal Year Ended June 30, | ||
|---|---|---|
| Net sales: | 2024 | 2023 |
| North America | $30,699,727 | $45,782,084 |
| Asia | 96,963 | 166,432 |
| Totals | $30,796,690 | $45,948,516 |
| Long-lived assets, net (property and equipment and intangible assets): | June 30, 2024 | June 30, 2023 |
|---|---|---|
| North America | $1,218,139 | $2,083,902 |
| Asia | 206,426 | 198,070 |
| Totals | $1,424,565 | $2,281,972 |
OUR PRODUCTS
We offer a wide variety of innovative integrated wireless solutions utilizing the latest 5G and 4G LTE technologies including mobile hotspots, fixed wireless routers, and mobile device management (MDM) solutions.
5G/4G Wireless Broadband Products
5G/4G LTE Wi-Fi Mobile Hotspot
| o | Portable Wi-Fi hotspot routers that provide wireless Internet access with 5G/4G support for multiple simultaneously connected devices including laptops, tablets, and smart phones. Our Mobile Hotspot products help remote workers be productive while on the go and help students and educational institutions support remote learning activities. |
5G/4G Fixed Wireless Routers
| o | Enhanced routing gateway that can provide support for both wired and wireless connectivity, offering solutions for consumers looking to replace Cable or DSL service ensuring a reliable and high-speed internet access. |
5G/4G Enterprise Gateway CPE
| o | Enhanced routing gateway equipped with enterprise features offering solutions for enterprise customers looking to replace wired service, or wireless back-up for wired connections in a mission-critical environment or instant wireless connection in temporal locations. |
Smart Box Solutions (In Development)
4G/5G M2M Gateway
| o | Enhanced gateway supports both 4G and 5G networks, enabling reliable and secure machine-to-machine communication, essential for industrial applications and remote monitoring systems. |
On-Device Artificial Intelligence (AI)
| o | Integrating advanced AI capabilities directly into the devices, we provide real-time data processing and decision-making at the edge, enhancing efficiency and reducing latency for critical IoT applications. |
Quvo Family Guardian Solutions
Parental Controls
| o | Comprehensive parental control features, ensuring a safe and secure online environment for children by managing and monitoring their internet and application usage. |
Senior Care
| o | Enhancing senior care solutions for the safety and well-being of elderly family members through monitoring and assistance features tailored to their needs. |
JEXtream MDM/NMS Solutions
“JEXtream” is Franklin’s Cloud based telecom grade server platform for 5G devices and routers, enables enhanced remote management of device functionality.
Mobile Device Management (MDM)
| o | Comprehensive management of mobile devices, ensuring security, compliance, and efficient operation across various mobile environments |
Network Management System (NMS)
| o | Robust tools for monitoring, managing, and optimizing network performance, ensuring reliable connectivity and operational excellence. |
CUSTOMERS
Our global customer base is comprised of wireless operators, strategic partners and distributors located primarily in North America and Asia.
SALES AND MARKETING
We market and sell our products primarily to wireless operators located in North America and Asia regions mainly through our internal, direct sales organization and, to a lesser degree, indirectly through strategic partners and distributors. The sales process is supported with a range of marketing activities, including trade shows, product marketing and public relations.
All of our wireless devices must pass Federal Communications Commission (FCC) testing in order to be sold in United States markets. Global Certification Forum (“GCF”) test certifications are required in order to launch any wireless data products with wireless operators in North America. PCS Type Certification Review Board (“PTCRB”) test certifications also are required for all LTE and HSPA/GSM wireless data products. Other LTE and 5G test certifications, as defined by the 3GPP governing body, are required for LTE and 5G wireless data products. Certifications are issued as being a qualifier of GCF, PTCRB, IEEE, CE, UL, Wi-Fi alliance certification and 3GPP standards.
PRODUCTION AND MANUFACTURING OPERATIONS
For the fiscal year ended June 30, 2024, the manufacturing of the majority of our products was performed by two independent companies located in Asia.
EMPLOYEES
As of June 30, 2024, we had 69 total employees at Franklin and FTI combined. We also use the services of consultants and contract workers from time to time. Our employees are not represented by any collective bargaining organization, and we have never experienced a work stoppage.
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