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Franklin Wireless Corp. (FKWL+11.68%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $17,827,098 from $8,847,779 in the same quarter of the previous year. The increase is attributed to higher demand from major carrier customers in North America.
Cost of goods sold for the quarter was $14,585,036, representing 81.8% of sales, compared to 90.5% in the same quarter of the previous year. This decrease in cost ratio is due to the sale of higher margin products.
The company reported a gross profit of $3,242,062 for the quarter, compared to $837,075 in the previous year, with the increase attributed to the higher sales volume and improved product margins.
Operating expenses for the quarter were $2,446,831, slightly up from $2,393,016 in the previous year. Research and development expenses increased due to higher project activity.
Net income for the quarter was $228,740, compared to a net loss of $764,615 in the previous year. The improvement is due to increased sales and gross profit.
Cash provided by operating activities was $5,412,542, while cash provided by investing activities was $2,631,817, primarily from sales of short-term investments.
Franklin Wireless Corp. had cash and cash equivalents of $20,262,886 as of December 31, 2024. The company believes it has sufficient capital to cover operations for the next twelve months.
The filing also details various legal proceedings, including ongoing litigation related to a product recall and shareholder actions. No liability has been recorded for these litigations as the company believes any such liability is not probable at this time.
Franklin Wireless Corp. continues to focus on its core business of providing wireless solutions and expanding its market presence in North America and Asia.
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 February 14, 2025. To report an error, please email earnings@qz.com.