FRANKLIN WIRELESS CORP 10-K/A

ITEM 2. PROPERTIES We lease approximately 12,775 square feet of office space in San Diego, California, at a monthly rent of $25,754, pursuant to a lease expiring in December 2023. In addition to monthly rent, the lease includes payment for certain common area costs. Our facility is covered by an appropriate level of insurance and we believe it to be suitable for our use and adequate for our present needs. Rent expense related to this property was $298,494 and $277,377 for the years ended June 30, 2020 and 2019, respectively. Our Korea-based subsidiary, FTI, leases approximately 10,000 square feet of office space in Seoul, Korea, at a monthly rent of approximately $8,000, pursuant to a lease expiring in August 2021. FTI also leases additional office space consisting of approximately 2,682 square feet, also located in Seoul, Korea, at a monthly rent of approximately $2,700, pursuant to a lease expiring in August 2021. In addition to monthly rent, the lease provides for periodic cost of living increases in the base rent and payment for certain common area costs. These facilities are covered by an appropriate level of insurance and we believe them to be suitable for our use and adequate for our present needs. Rent expense related to these leases was approximately $128,000 for each of the years ended June 30, 2020 and 2019. We lease one corporate housing facility primarily for our employees who travel, under a non-cancelable operating lease expiring in September 2021. Rent expense related to this lease was $8,789 and $10,066 for the years ended June 30, 2020 and 2019, respectively. 6 ITEM 3. LEGAL PROCEEDINGS Refer to NOTE 8 - COMMITMENTS AND CONTINGENCIES in the Consolidated Financial Statements. ITEM 4. MINE SAFETY DISCLOSURES None. 7 PART II