FRANKLIN WIRELESS CORP

Franklin Wireless Corp.

Overview

Franklin Wireless Corp. (doing business as Franklin Access) is a global provider of integrated wireless solutions using 5G and 4G LTE technologies. Product lines include mobile hotspots, fixed wireless routers, telecommunications modules, and mobile device management (MDM) solutions. The company is active in IoT and machine-to-machine (M2M) applications and plans to integrate AI-compatible hardware into future products. Key markets are North America and Asia. Franklin is a participant in the Digital Divide initiative.

Corporate structure and ownership

• Incorporated in California in 1982; reincorporated in Nevada on October 25, 2007.
• Headquarters: San Diego, California.
• Principal subsidiaries:
  • Franklin Technology Inc. (FTI): Franklin owns 66.3% (approximately 33.7% noncontrolling interest).
  • Sigbeat Inc. (Sigbeat): Franklin owns 60% (approximately 40% noncontrolling interest).
• Sigbeat joint venture:
  • Formed May 14, 2024 as a Nevada corporation.
  • Ownership: 60% Franklin, 40% Forge International Co., Ltd. (Forge).
  • Purpose: Worldwide sales, marketing, customer support, and operations for telecommunications modules.
  • Initial contributed capital: $5,000,000.
  • Board composition: three members (two appointed by Franklin, one by Forge).
  • Additional fundraising and contributions:
    • July 2024: Sigbeat stock subscription with Forge for 400,000 shares (40% of outstanding common stock).
    • Franklin contributions: $600,000 (Dec 2024) and $2,400,000 (Jan 2025).
    • Forge contribution: $2,000,000 (Jan 2025).

Business model and products

• One reportable operating segment: sale of wireless access products.
• 5G/4G wireless broadband products:
  • 5G/4G LTE Wi‑Fi Mobile Hotspot: portable Wi‑Fi routers for multiple devices.
  • 5G/4G Fixed Wireless Routers: routing gateways for wired and wireless connectivity, positioned as alternatives to Cable/DSL.
• Smart Box solutions:
  • 4G/5G M2M Gateway: supports industrial IoT and remote monitoring.
• Seiona family:
  • Guardian Solutions Parental Controls: tools to manage and protect online activity.
• Senior care: elderly monitoring and assistance features currently in development.
• JEXtream Cloud Solutions: cloud-based telecom-grade server platform for 5G devices and routers that supports enhanced remote device management.

R&D, sales and operations

• FTI: primary design and development services for Franklin’s wireless products.
• Sigbeat: responsible for worldwide sales, marketing, customer support, and operations for telecommunications modules.

Regulatory and manufacturing

• Regulatory certifications and compliance:
  • U.S. sales require FCC testing; PTCRB and 3GPP certifications are required for North American rollout.
  • Products comply with California Prop 65 and other certifications including GCF, PTCRB, IEEE, CE, UL, Wi‑Fi Alliance, and 3GPP.
• Manufacturing:
  • For the fiscal year ended June 30, 2026, the majority of manufacturing was performed by a single independent Asian facility.

Customers

• Customer base: wireless operators, strategic partners, and distributors, primarily in North America and Asia.
• Customer concentration (2026): two largest customers accounted for 60.9% and 27.5% of consolidated net sales.
• Agreements govern product sales but do not obligate purchase quantities.

Geographic and financial highlights (fiscal years ended June 30)

• Net sales by geography:
  • 2026: North America $36,478,002; Asia $36,403; Total $36,514,405.
  • 2025: North America $46,081,244; Asia $5,657; Total $46,086,901.
• Selected consolidated income statement items:
  • Net sales: $36,514,405 (2026) vs $46,086,901 (2025).
  • Cost of goods sold: $(30,259,274) (2026) vs $(38,171,832) (2025).
  • Gross margin (2026): approximately $6,255,131.
  • Selling, general, and administrative expenses: $(5,698,950) (2026) vs $(6,676,078) (2025).
  • Research and development expenses: $(3,233,791) (2026) vs $(4,102,660) (2025).
  • Other segment items: $(4,241,662) (2026) vs $2,723,240 (2025).
  • Net income (loss): $(6,919,272) (2026) vs $(140,429) (2025).
• Long-lived assets, net (property, equipment, intangible assets):
  • North America: $837,722 (2026) vs $929,173 (2025).
  • Asia: $150,463 (2026) vs $157,821 (2025).
  • Total: $988,185 (2026) vs $1,086,994 (2025).

Employees

• Total employees across Franklin, FTI, and Sigbeat: 69 (as of June 30, 2026).
• Use of consultants and contract workers; no union representation and no prior labor stoppages reported.

Facilities and leases

• San Diego corporate office:
  • 11,400 sq ft; lease through May 31, 2029 (65 months remaining from 2024).
  • Base rent first year: $27,789 with 3% annual increases; monthly common area costs.
  • Rent expense: $345,150 in 2026.
• Franklin Technology Inc. (Korea) offices:
  • Approximately 10,000 sq ft at about $6,400/month; additional ~2,682 sq ft at about $2,100/month.
  • Leases extended to August 31, 2028.
  • Rent expense: $102,510 in 2026; $105,889 in 2025.
• Corporate vehicle leases (San Diego):
  • Vehicle 1: Dec 1, 2024 – Nov 30, 2027; rent $5,947 in 2026.
  • Vehicle 2: Apr 28, 2026 – Jul 28, 2029; rent $1,885 in 2026.
• Discount rates used for lease liabilities:
  • San Diego office: 7.0%.
  • Korea office: 6.0%.
  • Vehicles: 7.0% and 3.9% (by inception date).
• Short-term leases (12 months or less) are not capitalized.
• Korea office leases are extensions of prior arrangements with no additional extension provisions.

Risk and operational considerations

• The company faces typical industry challenges, including supply chain issues, regulatory approvals, competition, and exposure from international operations.
• Customer concentration presents risk given the percentage of net sales tied to the two largest customers.
• Product delivery can involve long lead times, often exceeding 160 days.