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Franklin Wireless Corp (FKWL-0.80%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $13,322,912 from $9,655,546 in the same quarter the previous year. The increase is attributed to higher sales of wireless products to two major carrier customers.
Cost of goods sold for the quarter was $11,251,410, representing 84.5% of sales, compared to 84.3% in the same quarter of the previous year. This slight increase in cost ratio is due to a decline in the proportion of high-margin sales.
The company reported a gross profit of $2,071,502 for the quarter, compared to $1,513,160 in the previous year, with the increase attributed to higher sales volume.
Selling, general, and administrative expenses increased to $1,419,973 from $1,230,722, primarily due to increased legal and payroll expenses.
Research and development expenses rose to $1,024,312 from $866,955, mainly due to increased sample generations for new product testing.
Net income for the quarter was $648,656, compared to a loss of $337,201 in the previous year. After accounting for noncontrolling interests, net income attributable to the Parent Company was $515,187, compared to a loss of $257,696 in the previous year.
Cash provided by operating activities was $2,670,900, while cash used in investing activities was $334,785.
Franklin Wireless had a working capital of $40,678,153 as of September 30, 2024. The company believes it has sufficient capital to cover its operations and obligations for at least one year from the filing date.
The filing also details various legal proceedings, including shareholder litigation and a recall issue with Verizon (VZ+1.15%).
Franklin Wireless continues to focus on expanding its customer base and improving its product offerings, particularly in the North American and Asian markets.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Franklin Wireless Corp. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.