Filing Analysis
Franklin Wireless Corp. announced a legal ruling from the Seoul Central District Court against its South Korean subsidiary, Franklin Technology Inc. (FTI). The court ordered FTI to pay approximately $3.67 million in damages plus significant accrued and post-judgment interest.
🚩 Red Flags
- Significant cash outflow requirement due to legal judgment
- High post-judgment interest rate (12% per annum) increases total liability over time
- Legal dispute involving a key international subsidiary (FTI)
📋 Key Facts
- Court Ruling Date: July 28, 2026
- Damages Amount: Approximately $3,673,336 USD
- Accrued Interest: 5% per annum from November 4, 2022, to July 16, 2026
- Post-Judgment Interest: 12% per annum starting July 17, 2026, until full payment is made
- Plaintiff: Partron Co., Ltd.
- Defendant: Franklin Technology Inc. (subsidiary of Franklin Wireless Corp.)
- Nature of Dispute: Commercial contract for device development and production
Franklin Wireless Corp. has appointed Bill Bauer as its new Chief Operating Officer, effective March 25, 2026. Mr. Bauer is an internal promotion, having previously served as the company's General Counsel and Interim CFO.
📋 Key Facts
- Bill Bauer appointed as Chief Operating Officer effective March 25, 2026.
- Bauer has served as General Counsel and Director of Strategic Planning for the company since January 2020.
- Bauer previously served as the company's Interim CFO from September 2022 until January 1, 2025.
- Bauer holds a Master’s degree in Business Administration from San Diego State University and a Juris Doctorate from California Western School of Law.
- Bauer has over 15 years of experience in finance and executive management.
Franklin Wireless Corp. reported the results of its Annual Meeting of Stockholders held on December 22, 2025. The meeting included the election of five directors and the ratification of Simon & Edward, LLP as the independent auditor for fiscal year 2026.
📋 Key Facts
- Annual Meeting of Stockholders held on December 22, 2025.
- Five directors elected to serve until the next annual meeting: OC Kim, Johnathan Chee, Heidy Chow, Kristina Kim, and Ira Greenstein.
- Simon & Edward, LLP ratified as independent registered public accounting firm for fiscal year ending June 30, 2026.
- Voting record shows significant support for all director nominees and the auditor ratification.
Franklin Wireless Corp. has declared a cash dividend of $0.04 per share of common stock. The dividend is payable on December 2, 2025, to shareholders of record as of November 14, 2025.
📋 Key Facts
- Dividend amount: $0.04 per share
- Record date: November 14, 2025
- Payment date: December 2, 2025
- Declaration date: November 4, 2025
Franklin Wireless Corp. entered into an agreement to repurchase 200,000 fully-vested stock options from its CEO and Director, OC Kim, for a total consideration of $746,066.67.
🚩 Red Flags
- Related-party transaction involving the CEO and a Director
- Cash outflow to an insider for equity instruments
📋 Key Facts
- Agreement date: May 8, 2025
- Counterparty: OC Kim (CEO and Director)
- Asset being repurchased: 200,000 fully-vested options to purchase Common Stock
- Transaction value: $746,066.67
- Expected closing date: May 15, 2025
- Options were granted under the Company's 2020 Stock Option Plan
Franklin Wireless Corp. announced a change in its Board of Directors effective February 17, 2025. Ira Greenstein has been appointed to the Board, replacing Gary Nelson who resigned.
📋 Key Facts
- Ira Greenstein appointed to the Board of Directors effective February 17, 2025.
- Gary Nelson resigned from the Board of Directors effective February 17, 2025.
- Mr. Greenstein is a Founding Partner at Pierson Ferdinand LLP and former President of IDT Corporation and Genie Energy Ltd.
Franklin Wireless Corp. announced a change in its executive leadership effective January 1, 2025. The acting CFO has resigned from that specific role but remains with the company as General Counsel, and an interim CFO has been appointed.
🚩 Red Flags
- Transition to an 'Interim' CFO often suggests a period of leadership instability or rapid turnover in the finance department.
📋 Key Facts
- Effective January 1, 2025, Bill Bauer resigned as acting Chief Financial Officer (CFO).
- Bill Bauer will continue to serve as General Counsel and Director of Strategic Planning.
- Reid Granados has been appointed as Interim Chief Financial Officer, effective January 1, 2025.
- The company stated that Bill Bauer's resignation from the CFO role was not due to any disagreement regarding operations, policies, or practices.
Franklin Wireless Corp. held its Annual Meeting of Stockholders on December 4, 2024. The meeting resulted in the election of five directors and the ratification of Simon & Edward, LLP as the independent registered public accounting firm for the fiscal year ending June 30, 2025.
📋 Key Facts
- Annual Meeting held on December 4, 2024, in San Diego, CA.
- Five directors elected: OC Kim, Gary Nelson, Kristina Kim, Johnathan Chee, and Heidy Chow.
- Simon & Edward, LLP ratified as independent registered public accounting firm for fiscal year ending June 30, 2025.
- The meeting was attended by shareholders of record as of September 25, 2024.
Franklin Wireless Corp. announced that its Board of Directors approved a form of Indemnification Agreement on October 2, 2024. These agreements are intended to cover directors and officers for certain legal expenses and liabilities incurred during their service.
📋 Key Facts
- Board approval date: October 2, 2024
- Agreement type: Indemnification Agreement for all directors and officers
- Coverage includes: Reasonable attorneys' fees, judgments, fines, penalties, and settlement amounts (including interest)
- Purpose: To protect directors and officers in legal proceedings arising from their service to the Company.
Franklin Wireless Corp. entered into a settlement agreement to resolve derivative litigation involving its CEO, OC Kim, regarding alleged 'short-swing' profit violations under Section 16(b). The settlement involves significant cash outflows and personal payments from the CEO to the company.
🚩 Red Flags
- Related-party transaction involving a settlement with the CEO.
- Legal/Regulatory risk: Allegations of Section 16(b) 'short-swing' profit violations by the CEO.
- Financial impact: The company is responsible for $550,000 in legal fees despite the CEO paying $1M to the company.
📋 Key Facts
- Settlement Agreement dated June 12, 2024, resolves Nosirrah Management LLC v. Franklin Wireless et al. (Case # 3:21-cv-01316-CAB-JLB).
- The litigation alleged CEO OC Kim violated Section 16(b) of the Securities Exchange Act via 'short-swing' profits.
- A jury previously awarded $2,000,000 in damages plus costs and attorney's fees on February 16, 2024.
- Under the settlement: CEO OC Kim will pay the Company $1,000,000.
- The Company will pay the plaintiff’s attorneys $550,000.
- Mr. Kim has agreed to dismiss his appeal of the judgment.
Franklin Wireless Corp. entered into an agreement on May 14, 2024, to form a new Nevada corporation with MeiG Smart Technology Co., Ltd. The joint venture aims to manage worldwide sales and marketing for telecommunications modules.
🚩 Red Flags
- Significant cash outlay of $3M for a new entity in a micro-cap context.
📋 Key Facts
- Agreement date: May 14, 2024
- Joint venture partner: MeiG Smart Technology Co., Ltd.
- Ownership structure: Franklin Wireless (60%), MeiG (40%)
- Franklin's capital contribution: $3,000,000
- MeiG's capital contribution: $2,000,000
- Board composition: 3 members (2 appointed by Franklin, 1 by MeiG)
- Purpose: Worldwide sales, marketing, customer support, and operations for telecommunications modules provided by MeiG.