-- The Company had a substantial sales increase of modem in Latin America
for the three months ended December 31, 2006.
-- The Company had a profit increase due to the sales increase.
-- The Company received $400,000 in advance from an unaffiliated company
for common stock during the six months ended December 31, 2006.
-- The Company issued 15,000,000 shares of its common stock, at $0.0091
per share approximately, the total valued at $136,364.
About Franklin Wireless
Franklin Wireless Corporation (
FRANKLIN WIRELESS CORP.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
------------------------- -------------------------
2006 2005 2006 2005
------------ ----------- ------------ -----------
Net sales $ 1,800,622 $ 80,500 $ 2,770,150 $ 160,390
Cost of goods sold 1,318,750 42,700 1,994,600 60,200
------------ ----------- ------------ -----------
Gross profit 481,872 37,800 775,550 100,190
------------ ----------- ------------ -----------
Operating expenses:
Selling, general,
and administrative 275,450 181,638 474,714 285,372
Research and
development - - - 36,300
------------ ----------- ------------ -----------
Total operating
expenses 275,450 181,638 474,714 321,672
------------ ----------- ------------ -----------
Income (Loss) from
operations 206,422 (143,838) 300,836 (221,482)
Other income (expense):
Interest income 6,944 245 12,229 275
Other income 293 14,925 318 14,942
Other expenses - (356) - (705)
------------ ----------- ------------ -----------
Total other income
(expense), net 7,237 14,814 12,547 14,512
------------ ----------- ------------ -----------
Net income (loss)
before income taxes 213,659 (129,024) 313,383 (206,970)
Provision for income
taxes - 800 800 800
------------ ----------- ------------ -----------
Net income (loss) $ 213,659 $ (129,824) $ 312,583 $ (207,770)
------------ ----------- ------------ -----------
Basic earnings (loss)
per share $ 0.0002 $ (0.0002) $ 0.0004 $ (0.0003)
Diluted earnings (loss)
per share $ 0.0002 $ (0.0002) $ 0.0004 $ (0.0003)
Weighted average common
shares outstanding –
basic 894,237,852 816,116,973 888,105,624 804,515,460
Weighted average common
shares outstanding –
diluted 894,237,852 816,116,973 888,105,624 804,515,460
FRANKLIN WIRELESS CORP.
Consolidated Balance Sheets
------------- -------------
(Unaudited)
December 31, June 30,
2006 2006
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,014,689 $ 568,387
Inventory 307,670 –
Accounts receivable 114,135 1,750
------------- -------------
Total current assets 1,436,494 570,137
Property and equipment, net 12,444 12,715
Intangible assets, net 118,617 104,195
Other assets 4,452 4,452
------------- -------------
TOTAL ASSETS $ 1,572,007 $ 691,499
------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 213,240 $ 585
Accrued liabilities 146,240 190,968
Other current liability 263,636 –
Notes payable to stockholders,
current portion 540,000 540,000
------------- -------------
Total current liabilities 1,163,116 731,553
------------- -------------
Stockholders’ equity
Common stock, no par value, authorized
900,000,000 shares and Preferred stock,
no par value, authorized 10,000,000
shares; Common stock issued and
outstanding – 897,040,050 and 882,040,050
as of December 31, 2006 and June 30,
2006, respectively, and no Preferred
stock issued and outstanding – –
Additional paid-in capital 4,765,756 4,629,393
Stock subscription receivable (17,394) (17,395)
Accumulated deficit (4,339,471) (4,652,052)
------------- -------------
Total stockholders’ equity (deficit) 408,891 (40,054)
------------- -------------
Total liabilities and stockholders’ equity $ 1,572,007 $ 691,499
------------- -------------
FRANKLIN WIRELESS CORP.
Consolidated Statements of Cash Flows
(Unaudited)
------------------------
Six Months Ended
December 31,
------------------------
2006 2005
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss) $ 312,583 $ (207,770)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation 2,844 3,100
Amortization of intangible assets 39,358 22,500
Increase (decrease) in cash due to change
in:
Accounts receivable (112,385) (10,250)
Inventory (307,670) –
Accounts payable 212,654 13,075
Accrued liabilities (44,729) 44,434
----------- -----------
Net cash provided (used) by operating activities 102,655 (134,911)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (2,573) –
Purchases of intangible assets (53,780) (1,837)
----------- -----------
Net cash used in investing activities (56,353) (1,837)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment received for future stock issuance 263,636 (30,000)
Proceeds from issuance of common stock 136,364 335,000
----------- -----------
Net cash provided by financing activities 400,000 305,000
----------- -----------
Net increase in cash and cash equivalents 446,302 168,252
Cash and cash equivalents, beginning of period 568,387 39,542
----------- -----------
Cash and cash equivalents, end of period $ 1,014,689 $ 207,794
----------- -----------
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest $ – $ –
Income taxes $ – $ –
Contact Information: Contact: Franklin Wireless Rosalyn Guido (858) 623-0000 Email Contact