2022 Q4 Form 10-Q Financial Statement

#000168316822007736 Filed on November 14, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3 2021 Q3
Revenue $8.984M $8.109M $3.344M
YoY Change 393.18% 142.49% -94.66%
Cost Of Revenue $8.038M $6.515M $2.851M
YoY Change 451.42% 128.51% -94.4%
Gross Profit $946.0K $1.594M $493.0K
YoY Change 159.92% 223.32% -95.78%
Gross Profit Margin 10.53% 19.66% 14.74%
Selling, General & Admin $1.336M $1.240M $1.078M
YoY Change 30.36% 15.01% -29.09%
% of Gross Profit 141.22% 77.78% 218.64%
Research & Development $976.4K $970.1K $1.022M
YoY Change -11.81% -5.07% 4.28%
% of Gross Profit 103.21% 60.87% 207.3%
Depreciation & Amortization $14.21K $15.82K $116.5K
YoY Change -90.85% -86.42% -22.35%
% of Gross Profit 1.5% 0.99% 23.63%
Operating Expenses $2.312M $2.210M $2.100M
YoY Change 8.46% 5.24% -16.01%
Operating Profit -$1.366M -$615.9K -$1.607M
YoY Change -22.72% -61.67% -117.52%
Interest Expense $1.136M -$888.8K $1.920K
YoY Change 59994.18% -46393.23%
% of Operating Profit
Other Income/Expense, Net $1.401M -$914.1K $130.6K
YoY Change 954.09% -799.89%
Pretax Income $35.08K -$1.530M -$1.474M
YoY Change -102.15% 3.78% -116.06%
Income Tax $118.9K -$103.4K -$411.3K
% Of Pretax Income 338.89%
Net Earnings -$378.3K -$1.127M -$1.104M
YoY Change -68.09% 2.12% -115.95%
Net Earnings / Revenue -4.21% -13.9% -33.0%
Basic Earnings Per Share -$0.03 -$0.10 -$0.10
Diluted Earnings Per Share -$0.03 -$0.10 -$95.20K
COMMON SHARES
Basic Shares Outstanding 11.68M shares 11.68M shares 11.59M shares
Diluted Shares Outstanding 11.70M shares 11.68M shares 11.59M shares

Balance Sheet

Concept 2022 Q4 2022 Q3 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $34.53M $40.76M $44.66M
YoY Change -17.95% -8.74% -8.29%
Cash & Equivalents $17.90M $25.50M $39.28M
Short-Term Investments $16.63M $15.26M $5.387M
Other Short-Term Assets $296.7K $178.3K $163.2K
YoY Change 110.93% 9.24% 63.18%
Inventory $7.389M $5.053M $727.9K
Prepaid Expenses
Receivables $8.072M $946.0K $1.562M
Other Receivables $64.57K $28.18K $132.4K
Total Short-Term Assets $50.45M $46.97M $47.25M
YoY Change 10.87% -0.6% -40.49%
LONG-TERM ASSETS
Property, Plant & Equipment $121.4K $116.8K $797.5K
YoY Change -83.15% -85.35% -38.65%
Goodwill $273.3K $273.3K
YoY Change
Intangibles $2.044M $1.670M
YoY Change
Long-Term Investments
YoY Change
Other Assets $128.1K $116.2K $962.3K
YoY Change -91.2% -87.93% -12.52%
Total Long-Term Assets $4.202M $4.004M $3.223M
YoY Change 7.04% 24.23% -12.89%
TOTAL ASSETS
Total Short-Term Assets $50.45M $46.97M $47.25M
Total Long-Term Assets $4.202M $4.004M $3.223M
Total Assets $54.65M $50.97M $50.47M
YoY Change 10.56% 0.99% -39.26%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $11.89M $8.681M $3.562M
YoY Change 236.89% 143.68% -92.07%
Accrued Expenses $507.8K $552.1K $1.039M
YoY Change -47.11% -46.84% 48.38%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $12.99M $9.848M $4.990M
YoY Change 152.04% 97.35% -89.49%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $0.00 $79.95K $391.9K
YoY Change -100.0% -79.6% -67.34%
Total Long-Term Liabilities $0.00 $79.95K $391.9K
YoY Change -100.0% -79.6% -67.34%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.99M $9.848M $4.990M
Total Long-Term Liabilities $0.00 $79.95K $391.9K
Total Liabilities $12.99M $9.928M $6.902M
YoY Change 85.08% 43.85% -86.11%
SHAREHOLDERS EQUITY
Retained Earnings $30.46M $30.84M
YoY Change
Common Stock $14.26K $14.16K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $3.555M $3.555M
YoY Change
Treasury Stock Shares 2.549M shares 2.549M shares
Shareholders Equity $40.10M $39.77M $43.57M
YoY Change
Total Liabilities & Shareholders Equity $54.65M $50.97M $50.47M
YoY Change 10.56% 0.99% -39.26%

Cashflow Statement

Concept 2022 Q4 2022 Q3 2021 Q3
OPERATING ACTIVITIES
Net Income -$378.3K -$1.127M -$1.104M
YoY Change -68.09% 2.12% -115.95%
Depreciation, Depletion And Amortization $14.21K $15.82K $116.5K
YoY Change -90.85% -86.42% -22.35%
Cash From Operating Activities -$6.175M -$1.012M -$6.369M
YoY Change 198.71% -84.11% -169.53%
INVESTING ACTIVITIES
Capital Expenditures $573.4K $26.67K -$42.90K
YoY Change -231.76% -162.18% -46.38%
Acquisitions
YoY Change
Other Investing Activities -$1.374M $1.081M -$590.00
YoY Change 292285.11% -183262.71%
Cash From Investing Activities -$1.948M $553.9K -$43.49K
YoY Change 347.03% -1373.58% -51.68%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $21.60K
YoY Change -99.64%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 134.0K $0.00 21.60K
YoY Change -100.0% -99.64%
NET CHANGE
Cash From Operating Activities -6.175M -$1.012M -6.369M
Cash From Investing Activities -1.948M $553.9K -43.49K
Cash From Financing Activities 134.0K $0.00 21.60K
Net Change In Cash -7.989M -$772.5K -6.390M
YoY Change 219.17% -87.91% -142.35%
FREE CASH FLOW
Cash From Operating Activities -$6.175M -$1.012M -$6.369M
Capital Expenditures $573.4K $26.67K -$42.90K
Free Cash Flow -$6.748M -$1.039M -$6.326M
YoY Change 313.5% -83.58% -168.46%

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StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
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CY2021Q2 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2021Q3 us-gaap Net Income Loss
NetIncomeLoss
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CY2021Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
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CY2021Q3 FKWL Issuance Of Stock Related To Stock Option Exercised
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21595 usd
CY2021Q3 us-gaap Comprehensive Income Net Of Tax Attributable To Noncontrolling Interest
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CY2021Q3 us-gaap Share Based Compensation
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94538 usd
CY2021Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2022Q3 us-gaap Profit Loss
ProfitLoss
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CY2021Q3 us-gaap Profit Loss
ProfitLoss
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CY2022Q3 us-gaap Depreciation
Depreciation
15819 usd
CY2021Q3 us-gaap Depreciation
Depreciation
22786 usd
CY2022Q3 us-gaap Amortization Of Intangible Assets
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179894 usd
CY2021Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
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CY2022Q3 us-gaap Share Based Compensation
ShareBasedCompensation
180745 usd
CY2021Q3 us-gaap Share Based Compensation
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CY2022Q3 us-gaap Operating Lease Right Of Use Asset Amortization Expense
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CY2021Q3 us-gaap Operating Lease Right Of Use Asset Amortization Expense
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CY2022Q3 us-gaap Increase Decrease In Deferred Income Taxes
IncreaseDecreaseInDeferredIncomeTaxes
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CY2021Q3 us-gaap Increase Decrease In Deferred Income Taxes
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CY2022Q3 us-gaap Increase Decrease In Accounts Receivable
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CY2021Q3 us-gaap Increase Decrease In Accounts Receivable
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CY2022Q3 us-gaap Increase Decrease In Inventories
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CY2021Q3 us-gaap Increase Decrease In Inventories
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CY2022Q3 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2021Q3 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2022Q3 us-gaap Increase Decrease In Prepaid Taxes
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CY2021Q3 us-gaap Increase Decrease In Prepaid Taxes
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102055 usd
CY2022Q3 us-gaap Increase Decrease In Deposit Other Assets
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CY2021Q3 us-gaap Increase Decrease In Deposit Other Assets
IncreaseDecreaseInDepositOtherAssets
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CY2022Q3 us-gaap Increase Decrease In Other Operating Assets
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CY2021Q3 us-gaap Increase Decrease In Other Operating Assets
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CY2022Q3 us-gaap Increase Decrease In Accounts Payable
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CY2021Q3 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
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CY2022Q3 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
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CY2021Q3 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-69984 usd
CY2022Q3 FKWL Increase Decrease In Unearned Revenue From Customers
IncreaseDecreaseInUnearnedRevenueFromCustomers
70113 usd
CY2022Q3 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
0 usd
CY2021Q3 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
21595 usd
CY2022Q3 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
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CY2021Q3 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
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CY2022Q3 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
553881 usd
CY2021Q3 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-43485 usd
CY2021Q3 FKWL Increase Decrease In Unearned Revenue From Customers
IncreaseDecreaseInUnearnedRevenueFromCustomers
125701 usd
CY2022Q3 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-76057 usd
CY2021Q3 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-93853 usd
CY2022Q3 us-gaap Increase Decrease In Other Accrued Liabilities
IncreaseDecreaseInOtherAccruedLiabilities
-37767 usd
CY2021Q3 us-gaap Increase Decrease In Other Accrued Liabilities
IncreaseDecreaseInOtherAccruedLiabilities
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CY2022Q3 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-1012140 usd
CY2021Q3 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
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CY2022Q3 FKWL Proceeds From Purchases Of Sale Of Short Term Investments
ProceedsFromPurchasesOfSaleOfShortTermInvestments
-1080659 usd
CY2021Q3 FKWL Proceeds From Purchases Of Sale Of Short Term Investments
ProceedsFromPurchasesOfSaleOfShortTermInvestments
585 usd
CY2022Q3 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
26674 usd
CY2021Q3 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
6032 usd
CY2022Q3 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
493250 usd
CY2021Q3 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
35543 usd
CY2022Q3 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
0 usd
CY2021Q3 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
21595 usd
CY2022Q3 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
-314218 usd
CY2021Q3 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
-127605 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-772477 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-6518081 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
26277418 usd
CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
45796006 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
25504941 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
39277925 usd
CY2022Q3 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
-800 usd
CY2021Q3 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
-200350 usd
CY2022Q3 us-gaap Payments To Acquire Additional Interest In Subsidiaries
PaymentsToAcquireAdditionalInterestInSubsidiaries
0 usd
CY2022 us-gaap Payments To Acquire Additional Interest In Subsidiaries
PaymentsToAcquireAdditionalInterestInSubsidiaries
0 usd
CY2022Q3 us-gaap Minority Interest
MinorityInterest
1270026 usd
CY2022Q3 us-gaap Minority Interest Period Increase Decrease
MinorityInterestPeriodIncreaseDecrease
299579 usd
CY2022Q2 us-gaap Minority Interest
MinorityInterest
1569605 usd
CY2022Q3 us-gaap Minority Interest Period Increase Decrease
MinorityInterestPeriodIncreaseDecrease
299579 usd
CY2022Q3 us-gaap Gain Or Loss On Sale Of Stock In Subsidiary
GainOrLossOnSaleOfStockInSubsidiary
890082 usd
CY2022Q3 us-gaap Revenues
Revenues
8108940 usd
CY2021Q3 us-gaap Revenues
Revenues
3344060 usd
CY2022Q3 FKWL Property And Equipment And Intangible Assets
PropertyAndEquipmentAndIntangibleAssets
1787073 usd
CY2022Q2 FKWL Property And Equipment And Intangible Assets
PropertyAndEquipmentAndIntangibleAssets
1456008 usd
CY2022Q3 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_846_eus-gaap--UseOfEstimates_zuuaZ8HIAyYh" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><span id="xdx_863_zWrObAh1Pa86">Use of Estimates</span> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
CY2022Q2 us-gaap Capitalized Software Development Costs For Software Sold To Customers
CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers
187343 usd
CY2022Q3 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
493250 usd
CY2022Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
0 usd
CY2022Q3 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
946006 usd
CY2022Q2 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
1322619 usd
CY2022Q3 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
441737 usd
CY2022Q2 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
371624 usd
CY2022Q3 us-gaap Capitalized Costs Of Unproved Properties Excluded From Amortization
CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization
166000 usd
CY2021Q3 us-gaap Capitalized Costs Of Unproved Properties Excluded From Amortization
CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization
78000 usd
CY2022Q3 us-gaap Capitalized Software Development Costs For Software Sold To Customers
CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers
680593 usd
CY2021Q3 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
35543 usd
CY2022Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
970120 usd
CY2021Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1021902 usd
CY2021Q3 FKWL Income Tax Benefit
IncomeTaxBenefit
411256 usd
CY2022Q3 us-gaap Increase Decrease In Deferred Income Taxes
IncreaseDecreaseInDeferredIncomeTaxes
104183 usd
CY2022Q3 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
557155 usd
CY2022Q2 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
557155 usd
CY2022Q3 FKWL Schedule Of Property And Equipment Estimated Useful Life
ScheduleOfPropertyAndEquipmentEstimatedUsefulLife
<table cellpadding="0" cellspacing="0" id="xdx_892_ecustom--ScheduleOfPropertyAndEquipmentEstimatedUsefulLife_zkTK1nU0KNG4" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 75%; border-collapse: collapse; margin-right: auto" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Useful lives)"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><span id="xdx_8B4_zRupofYWDzNl" style="display: none">Useful lives of property and equipment</span></td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 42%; text-align: justify"><span style="font-size: 10pt">Machinery</span></td> <td style="width: 58%; text-align: right"><span style="font-size: 10pt"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220701__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EquipmentMember_zgb2u6Iozhn8" title="Estimated useful lives">6</span> years</span></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt">Office equipment</span></td> <td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220701__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember_zlD7XVn0jq51" title="Estimated useful lives">5</span> years</span></td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt">Molds</span></td> <td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220701__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ToolsDiesAndMoldsMember_zwGnqARL2BSi" title="Estimated useful lives">3</span> years</span></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt">Vehicles</span></td> <td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_902_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220701__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_zXDGdYvS1eha" title="Estimated useful lives">5</span> years</span></td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt">Computers and software</span></td> <td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_906_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220701__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_z06D2RZgLJab" title="Estimated useful lives">5</span> years</span></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify"><span style="font-size: 10pt">Furniture and fixtures</span></td> <td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_dtY_c20220701__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zXjYcDgUsXr" title="Estimated useful lives">7</span> years</span></td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="text-align: justify"><span style="font-size: 10pt">Facilities improvements</span></td> <td style="text-align: right"><span style="font-size: 10pt"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentEstimatedUsefulLives_c20220701__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FacilityClosingMember_zICJJ42CtZS7" title="Estimated useful lives">5 years or life of the lease, whichever is shorter</span></span></td></tr> </table>
CY2022Q3 FKWL Income Tax Benefit
IncomeTaxBenefit
103383 usd
CY2021Q3 us-gaap Increase Decrease In Deferred Income Taxes
IncreaseDecreaseInDeferredIncomeTaxes
439568 usd
CY2022Q3 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_84B_eus-gaap--ConcentrationRiskCreditRisk_zUVGTTcNQuP" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><span id="xdx_868_zBYYoiXA25g5">Concentrations</span> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We extend credit to our customers and perform ongoing credit evaluations of such customers. We evaluate our accounts receivable on a regular basis for collectability and provide for an allowance for potential credit losses as deemed necessary.  No reserve was required or recorded for any of the periods presented.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Substantially all of our revenues are derived from sales of wireless data products.  Any significant decline in market acceptance of our products or in the financial condition of our existing customers could impair our ability to operate effectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A significant portion of our revenue is derived from a small number of customers. For the three months ended September 30, 2022, sales to our one largest customer accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_dp_c20220701__20220930__srt--MajorCustomersAxis__custom--Customer1Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zWOpJ8usSgt8" title="Concentration of credit risk">92</span>% of our consolidated net sales, and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_dp_c20220701__20220930__srt--MajorCustomersAxis__custom--Customer2Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zLh8JIGeA8h" title="Concentration of credit risk">0</span>% of our accounts receivable balance as of September 30, 2022. In the same period of 2021, sales to our two largest customers accounted for <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20210930__srt--MajorCustomersAxis__custom--Customer1Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_ztTfMQwO8anj" title="Concentration of credit risk">64</span>% and <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20210930__srt--MajorCustomersAxis__custom--Customer2Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zz9IIpZgDaQa" title="Concentration of credit risk">16</span>% of our consolidated net sales, and <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20210930__srt--MajorCustomersAxis__custom--Customer1Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zfJ5YowVQoS3" title="Concentration of credit risk">0</span>% and <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20210930__srt--MajorCustomersAxis__custom--Customer2Member__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_z2cUxgmG9DFl" title="Concentration of credit risk">33</span>% of our accounts receivable balance as of September 30, 2021. No other customers accounted for more than ten percent of total net sales for the three months ended September 30, 2022 and 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For the three months ended September 30, 2022, we purchased the majority of our wireless data products from two manufacturing companies located in Asia. If these manufacturing companies were to experience delays, capacity constraints or quality control problems, product shipments to our customers could be delayed, or our customers could consequently elect to cancel the underlying product purchase order, which would negatively impact the Company's revenue. For the three months ended September 30, 2022, we purchased wireless data products from these manufacturers in the amount of $<span id="xdx_909_eus-gaap--CostOfRevenue_c20220701__20220930__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_pp0p0" title="Cost of Revenue">7,067,055</span>, or <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_dp_c20220701__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsProductLineMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_zi2pewOA8S6a" title="Concentration of credit risk">99</span>% of total purchases, and had related accounts payable of $<span id="xdx_905_eus-gaap--AccountsPayableCurrent_c20220930__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_pp0p0" title="Accounts Payable, Current">7,990,867</span> as of September 30, 2022. In the same period of 2021, we purchased wireless data products from these manufacturers in the amount of $<span id="xdx_90B_eus-gaap--CostOfRevenue_c20210701__20210930__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_pp0p0" title="Cost of Revenue">2,473,117</span>, or <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_dp_c20210701__20210930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsProductLineMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_zZetY3VpX379" title="Concentration of credit risk">99</span>% of total purchases, and had related accounts payable of $<span id="xdx_90E_eus-gaap--AccountsPayableCurrent_iI_pp0p0_c20210930__us-gaap--NatureOfExpenseAxis__custom--WirelessDataProductsMember_zK4s1g6O2HPa" title="Accounts Payable, Current">3,159,529</span> as of September 30, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We maintain our cash accounts with established commercial banks. Such cash deposits exceed the Federal Deposit Insurance Corporation insured limit of $250,000 for each financial institution. However, we do not anticipate any losses on excess deposits.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"/>
CY2022Q3 us-gaap Basis Of Accounting
BasisOfAccounting
<p id="xdx_801_eus-gaap--BasisOfAccounting_zHnpYfnmfN3k" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>NOTE 3 – <span id="xdx_823_zoioeOdK5nGk">BASIS OF PRESENTATION</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying unaudited consolidated financial statements of Franklin Wireless Corp. have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q. In the opinion of management, the financial statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the financial position, the results of operations and comprehensive income (loss) and cash flows of the Company for the periods presented. These financial statements and notes hereto should be read in conjunction with the financial statements and notes thereto for the fiscal year ended June 30, 2022 included in our Form 10-K filed on September 13, 2022. The operating results or cash flows for the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
CY2022Q3 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
3294893 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
1624627 usd
CY2022Q3 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
1670266 usd
CY2022Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
2794789 usd
CY2022Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
1444733 usd
CY2022Q2 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
1350056 usd
CY2022Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
179894 usd
CY2021Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
93694 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
370841 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
393046 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
183177 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
13981 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
10188 usd
CY2022Q3 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive
18440 usd
CY2022Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
998372 usd
CY2022Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
971698 usd
CY2022Q3 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
881565 usd
CY2022Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
865746 usd
CY2022Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
116807 usd
CY2022Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
105952 usd
CY2022Q3 us-gaap Depreciation
Depreciation
15819 usd
CY2021Q3 us-gaap Depreciation
Depreciation
22786 usd
CY2022Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
11684280 shares
CY2021Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
11593006 shares
CY2021Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
11593006 shares
CY2022Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.10
CY2022Q3 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
52356 usd
CY2022Q2 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
55387 usd
CY2022Q3 us-gaap Accrued Vacation Current
AccruedVacationCurrent
62563 usd
CY2022Q2 us-gaap Accrued Vacation Current
AccruedVacationCurrent
65602 usd
CY2022Q3 FKWL Accrued Undelivered Inventory
AccruedUndeliveredInventory
140000 usd
CY2022Q2 FKWL Accrued Undelivered Inventory
AccruedUndeliveredInventory
140000 usd
CY2022Q3 us-gaap Accrued Sales Commission Current
AccruedSalesCommissionCurrent
37500 usd
CY2022Q2 us-gaap Accrued Sales Commission Current
AccruedSalesCommissionCurrent
40000 usd
CY2022Q3 us-gaap Accrued Salaries Current
AccruedSalariesCurrent
248549 usd
CY2022Q2 us-gaap Accrued Salaries Current
AccruedSalariesCurrent
288306 usd
CY2022Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
11172 usd
CY2022Q2 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
612 usd
CY2022Q3 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
552140 usd
CY2022Q2 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
589907 usd
CY2022Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
756001 shares
CY2021Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
477001 shares
CY2022Q3 us-gaap Income Loss Attributable To Parent
IncomeLossAttributableToParent
-1126991 usd
CY2021Q3 us-gaap Income Loss Attributable To Parent
IncomeLossAttributableToParent
-1103605 usd
CY2021Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.10
CY2022Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.10
CY2021Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.10
CY2022Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
11684280 shares
CY2020Q3 us-gaap Shares Issued
SharesIssued
800000 shares
CY2015Q3 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
23115 usd
CY2022Q3 us-gaap Operating Lease Expense
OperatingLeaseExpense
1930 usd
CY2021Q3 us-gaap Operating Lease Expense
OperatingLeaseExpense
2223 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
241448 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
160965 usd
CY2022Q3 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
402413 usd
CY2022Q3 FKWL Operating Leases Future Minimum Payments Interest Included In Payments
OperatingLeasesFutureMinimumPaymentsInterestIncludedInPayments
-10532 usd
CY2022Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
391881 usd
CY2022Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
180745 usd
CY2021Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
94538 usd
CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
756001 shares
CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
3.17
CY2022Q3 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
1102036 usd
CY2021Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
477001 shares
CY2021Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
3.00
CY2021Q3 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
700605 usd

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