What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2020-09-17 compared with 2019-09-30 · 75 added, 85 removed, 43 unchanged (79% of the section changed)

BUSINESS OVERVIEW

We are a provider of

intelligent wireless solutions including mobile hotspots, routers and modems as well as innovative hardware and software products

that support machine-to-machine (M2M) applications and the Internet of Things (IoT).

Our M2M and IoT solutions include embedded

modules, modems and gateways built to deliver reliable always-on connectivity supporting a broad spectrum of applications.

products are designed to solve wireless connectivity challenges in a variety of vertical markets including video surveillance,

digital signage, home security, oil and gas exploration, kiosks, fleet management, smart grid, vehicle diagnostics, telematics

and many more.

We are a leading provider

of intelligent wireless solutions including mobile hotspots, routers, trackers, and other devices.

Our designs integrate innovative

hardware and software enabling machine-to-machine (M2M) applications and the Internet of Things (IoT).

Our M2M and IoT solutions

include embedded modules, modems and gateways built to deliver reliable always-on connectivity supporting a broad spectrum of applications

based on fifth generation and fourth generation (5G/4G) wireless technology.

We have a majority

5 unchanged sentences

Our global customer

base extends primarily from the United States to countries in South America, the Caribbean, Europe, the Middle East and Africa

("EMEA") and Asia.

base extends primarily from the United States to countries in Europe, the Middle East and Africa ("EMEA") and Asia.

OUR STRUCTURE

11 unchanged sentences

statements include the accounts of the Company and its subsidiary with a majority voting interest of 66.3% (33.7% is owned by non-controlling

interests) as of June 30, 2019 and 51.8% (48.2% is owned by non-controlling interests) as of June 30, 2018.

In the preparation

of consolidated financial statements of the Company, intercompany transactions and balances are eliminated and net earnings are

reduced by the portion of the net earnings of the subsidiary applicable to non-controlling interests.

The increase in the majority

voting interest in percentage from 51.8% to 64.2% was due to the purchase of an additional 246,663 shares of the subsidiary, at

$0.95 per share by the parent company from three shareholders of the subsidiary.

interests) and 64.2% (35.8% is owned by non-controlling interests) as of June 30, 2020 and as of June 30, 2019, respectively.

the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated and

net earnings are reduced by the portion of the net earnings of the subsidiary applicable to non-controlling interests.

in the majority voting interest in percentage from 64.2% to 66.3% was due to the purchase by the Company of 43,333 shares of the

subsidiary for $75,000 ($1.73 per share) from three non-controlling shareholders.

The purchase decreased the non-controlling interests’

ownership percentage from 35.8% to 33.7%.

Accounting Standards

5 unchanged sentences

have one reportable segment, consisting of the sale of wireless access products.

We generate revenues from four geographic areas,

consisting of the United States, the Caribbean and South America, EMEA and Asia.

The following enterprise-wide disclosure is prepared

on a basis consistent with the preparation of the consolidated financial statements.

The following table contains certain

financial information by geographic area:

We generate revenues from three geographic areas,

consisting of the United States, EMEA and Asia.

The following enterprise-wide disclosure is prepared on a basis consistent with

the preparation of the consolidated financial statements.

The following table contains certain financial information

by geographic area:

Fiscal Year Ended June 30,

United States

Caribbean and South America

Europe, the Middle East and Africa ("EMEA")

3 unchanged sentences

United States

We were the world’s

first supplier of both CDMA EVDO Rev A and dual-mode (CDMA Rev A/WiMAX) Universal Serial Bus (USB) modems.

Our mobile broadband

products include a variety of wireless USB modems as well as Wi-Fi mobile hotspot routers and embedded modules, which operate

over LTE, HSPA, or CDMA networks.

Our products provide consumers with an easy and convenient way in which to wirelessly connect

to the Internet from laptop or desktop computers.

These high-speed devices support the viewing of web pages and sending and receiving

email with large file attachments, as well as downloading pictures, videos and music content.

The following are representative selections

of our current wireless data products:

Mobile Broadband Products:

Mobile hotspots:

Single-mode and dual-mode (3G and 4G) portable Wi-Fi routers that provide wireless

Internet access for multiple devices simultaneously including laptops, tablets and portable gaming devices.

Single-mode and dual-mode modems that plug into the Universal Serial Bus (USB) port

of laptop or desktop computers, providing an easy and convenient way for users to connect to wireless broadband networks.

Connected Devices and IoT Solutions:

IoT Gateway Devices:

Wireless modems and gateway devices deliver

reliable always-on connectivity supporting a broad spectrum of M2M and IoT applications.

Featuring industrial grade ruggedized

housings, these versatile and compact modems and routers provide 3G and 4G connectivity and include Wi-Fi and GPS functionality

and support IoT cloud management.

Embedded Modules:

Include single-mode and dual-mode modules that provide

network connectivity for a wide-variety of products like vending machines, cargo containers, utility meters and video cameras.

The primary market for these devices is original equipment manufacturers (OEMs) who seek reliable embedded module solutions for

their wireless data needs.

Bus Information

Represents a full end-to-end IoT solution

and includes both hardware and software engineered by the Company.

This innovative system features Franklin’s intelligent

gateway that supports GPS, Wi-Fi, OBDII, CCTV and black box integration and includes a fully functional information system.

Voice Device:

Franklin’s Voice Over LTE (VoLTE) device provides a landline alternative connecting

instantly and allows users unlimited local and domestic long distance calling through the carrier’s network.

Vehicle Diagnostics

Franklin Vehicle Diagnostics Solution (VDS) offers GPS-featured

location finding and tracking, automated vehicle diagnosis, driving style analysis and remote vehicle management via cloud-base

web solution.

Customer can easily install OBDII and GPS device in their vehicle.

are a global leader and innovator in providing the latest mobile technologies to the mass market, which includes 5G/4G Mobile Hotspots,

5G/4G Customer Premises Equipment, and MDM solutions.

We are a leading enabler of the Digital Divide initiative, and our

expertise extends to innovation in Internet of Things (IOT) and Machine-to-machine (M2M) applications.

The following is a sample of the products

5G/4G LTE Wireless

Broadband Products

5G/4G LTE Wi-Fi

Mobile Hotspot

o Portable Wi-Fi hotspot routers that provide wireless Internet access with 5G/4G support for multiple

simultaneously connected devices including laptops, tablets, and smart phones.

Our Mobile Hotspot products help remote workers

be productive while on the go and help students and educational institutions support remote learning activities.

5G/4G LTE Consumer Home Gateway

(Customer-Premises Equipment)

o Enhanced routing gateway that can provide support for both wired and wireless connectivity, offering

solutions for consumers looking to replace Cable or DSL service

IoT Tracking Devices and Connected Devices:

Smart IoT tracking device

o Location service devices based on CAT1 and CAT M technology, allowing consumers and businesses

to track virtually any tangible item, anytime and anywhere.

Connected Car

o An all in one connected car solution that provides easy access Wi-Fi Hotspot technology and extensive

added vehicle diagnostics, safety, and security features, as well as location service via OBDII protocol with other applications.

Home Phone Connect

o Franklin’s Voice Over LTE (VoLTE) device provides a landline alternative connecting instantly

and allows users local and domestic long distance calling through the carrier’s network.

IOT Server Platform and Application

o “Pintrac,”

Franklin’s Cloud based telecom grade server platform enables enhanced

remote device functionality.

o Pintrac Mobile Device Management (MDM) for LTE hotspots allows schools, government agencies and to remotely manage and configure

o Pintrac Pet is a complete pet tracking application, allowing monitoring and tracking household pets and their activity using

Franklin’s Trackers.

o Pintrac Auto tracks, locates, and manages vehicles for consumers and businesses using Franklin’s

LTE OBD devices.

Our global customer

base is comprised of wireless operators, strategic partners and distributors located primarily in the United States, the Caribbean

and South America, EMEA and Asia.

base is comprised of wireless operators, strategic partners and distributors located primarily in the United States, EMEA and Asia.

SALES AND MARKETING

We market and sell

our products primarily to wireless operators located in the United States, EMEA, South America and the Caribbean regions mainly

through our internal, direct sales organization and, to a lesser degree, indirectly through strategic partners and distributors.

The sales process is supported with a range of marketing activities, including trade shows, product marketing and public relations.

our products primarily to wireless operators located in the United States, EMEA, and Asia regions mainly through our internal,

direct sales organization and, to a lesser degree, indirectly through strategic partners and distributors.

The sales process is

supported with a range of marketing activities, including trade shows, product marketing and public relations.

All of our wireless

devices must pass Federal Communications Commission (FCC) testing in order to be sold in United States markets.

CDMA Development

Group (“CDG”) test certifications are required in order to launch any CDMA wireless data products with wireless operators

in North America, the Caribbean and South America.

PCS Type Certification Review Board (“PTCRB”) test certifications

are required for all LTE and HSPA/GSM wireless data products.

Other LTE test certifications, as defined by the 3GPP

governing body, are required for LTE wireless data products.

Certifications are issued as being a qualifier of CDG 1, CDG 2 and

CDG 3, PTCRB and 3GPP.

Global Certification

Forum (“GCF”) test certifications are required in order to launch any wireless data products with wireless operators

in North America.

PCS Type Certification Review Board (“PTCRB”) test certifications also are required for all LTE and

HSPA/GSM wireless data products.

Other LTE and 5G test certifications, as defined by the 3GPP governing body, are required for

LTE and 5G wireless data products.

Certifications are issued as being a qualifier of GCF, PTCRB, IEEE, CE, UL, Wi-Fi alliance certification

and 3GPP standards.

PRODUCTION AND MANUFACTURING OPERATIONS

For the fiscal year

ended June 30, 2019, the manufacturing of the majority of our products was contracted out to two companies located in Asia.

ended June 30, 2020, the manufacturing of the majority of our products was performed by two independent companies located in Asia.

As of June 30, 2020,

we had 71 employees.

We also use the services of consultants and contract workers from time to time.

Our employees are not represented

by any collective bargaining organization, and we have never experienced a work stoppage.

we had 71 total employees at Franklin and FTI combined.

We also use the services of consultants and contract workers from time

Our employees are not represented by any collective bargaining organization, and we have never experienced a work stoppage.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business