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Item 1. Business

2025-09-29 compared with 2024-09-30 · 79 added, 66 removed, 42 unchanged (78% of the section changed)

BUSINESS OVERVIEW

Doing business

as “FranklinAccess”, we are a leading global provider of integrated wireless solutions utilizing the latest 5G (fifth generation)

and 4G LTE (fourth generation long-term evolution) technologies including mobile hotspots, fixed wireless routers, and mobile device management

(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, driving forward seamless communication and connectivity for both individuals and enterprises.

majority ownership of Franklin Technology Inc.

Doing business as “Franklin

Access”, we are a leading global provider of integrated wireless solutions utilizing the latest 5G (fifth generation) and 4G LTE

(fourth generation long-term evolution) technologies including mobile hotspots, fixed wireless routers, and mobile device management (MDM)

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, driving forward seamless communication and connectivity for both individuals and enterprises.

We hold a 66.3% ownership

in Franklin Technology Inc.

(“FTI”), a research and development company based in Seoul, South Korea.

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design and development services for our wireless products.

Our products are generally

marketed and sold directly to wireless operators and indirectly through strategic partners and distributors.

Our primary markets are in

North America and Asia.

We hold a 60% ownership interest in Sigbeat Inc., based in San Diego, California

(“Sigbeat”), which will engage in worldwide sales, marketing, customer support and operations for telecommunications modules.

Our products are generally marketed and sold directly to wireless operators and indirectly through strategic partners and distributors.

Our primary markets are in North America and Asia.

OUR STRUCTURE

We incorporated in 1982 in California

and reincorporated in Nevada on January 2, 2008.

We incorporated in 1982 in

California and reincorporated in Nevada on January 2, 2008.

The reincorporation had no effect on the nature of our business or our management.

headquarters are located in San Diego, California.

Our headquarters are located in San Diego, California.

This office provides marketing, sales, operations, finance and administrative support.

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customer support, along with sales and business development activities worldwide.

Our consolidated financial statements

include accounts for the Company and its subsidiary, Franklin Technology Inc.

We have a majority voting interest

of approximately 66.3% (approximately 33.7% is owned by non-controlling interests) in FTI as of June 30, 2024, and 2023.

In the preparation

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

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

Accounting Standards Codification

(“ASC”) 280, “Segment Reporting,” requires public companies to report financial and descriptive information about

their reportable operating segments.

We identify our operating segments based on how our chief operating decision maker internally evaluates

separate financial information, business activities and management responsibility.

We have one reportable segment, consisting

of the sale of wireless access products.

We generate revenues from three geographic areas, consisting of North America 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,

As of June 30, 2025, our

consolidated financial statements include the accounts of the Company and its subsidiaries, FTI and Sigbeat Inc.

with majority voting interests of 66.3% and 60.0%, respectively, (approximately 33.7% and 40.0% are owned by noncontrolling interests,

respectively), and, as of June 30, 2024, our consolidated financial statements include the accounts of the Company and its subsidiary,

Franklin Technology Inc.

(“FTI”), with a majority voting interest of 66.3% (approximately 33.7% is owned by noncontrolling

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

and net earnings (loss) are reduced by the portion of the net earnings (loss) of the subsidiary or subsidiaries applicable to noncontrolling

On May 14, 2024, the Company

entered into an Agreement for Formation of a Joint Venture Corporation (the “Agreement”).

Under the terms of the Agreement,

the parties formed a Nevada corporation, Sigbeat, to be owned 60% by Franklin and 40% by its Electronic Manufacturing Services (“EMS”)

partner (Refer to Note 6-Commitments and Contingencies, Joint Venture Agreement).

Accounting Standards Codification (“ASC”)

280, “Segment Reporting,” requires public companies to report financial and descriptive information about their reportable

operating segments.

We identify our operating segments based on how our chief operating decision maker internally evaluates separate

financial information, business activities and management responsibility.

We have one reportable segment, consisting of the sale of wireless

access products.

The Chief Operating Decision Maker (“CODM”) assesses performance for the segment and allocates resources

based on the consolidated net income (loss) of the company.

The CODM uses the consolidated net income (loss) to evaluate the return on

assets in deciding on resource allocation, monitor performance against budgets, and benchmark performance against competitors.

We generate revenues from

two geographic areas, consisting of North America 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 and the reconciliation of total segment sales less disclosed significant expenses to the segment's measure of net income or loss.

Fiscal Years Ended June 30,

North America

Fiscal Years Ended June 30,

Cost of goods sold

(38,171,832 )

(27,288,340 )

Selling, general, and administrative expenses

Research and development expenses

Other segment items

$ (4,166,671 )

Long-lived assets, net (property and equipment and intangible assets):

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North America

We offer a wide variety of innovative

integrated wireless solutions utilizing the latest 5G and 4G LTE technologies including mobile hotspots, fixed wireless routers, and mobile

device management (MDM) solutions.

We offer a wide variety of

innovative integrated wireless solutions utilizing the latest 5G and 4G LTE technologies including mobile hotspots, fixed wireless routers,

and mobile device management (MDM) solutions.

5G/4G Wireless Broadband Products

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Enhanced routing gateway that can provide support for both wired and wireless connectivity, offering solutions for consumers looking to replace Cable or DSL service ensuring a reliable and high-speed internet access.

5G/4G Enterprise Gateway CPE

Enhanced routing gateway equipped with enterprise features offering solutions for enterprise customers looking to replace wired service, or wireless back-up for wired connections in a mission-critical environment or instant wireless connection in temporal locations.

Smart Box Solutions (In Development)

4G/5G M2M Gateway

o Enhanced gateway supports both 4G and 5G networks, enabling reliable and secure machine-to-machine communication,

essential for industrial applications and remote monitoring systems.

On-Device Artificial

Intelligence (AI)

o Enhanced gateway that supports both 4G and 5G networks, enabling reliable and secure machine-to-machine

communication, essential for industrial applications and remote monitoring systems.

On-Device Artificial Intelligence

o Integrating advanced AI capabilities directly into the devices, we provide real-time data processing and

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JEXtream MDM/NMS Solutions

“JEXtream” is Franklin’s

Cloud based telecom grade server platform for 5G devices and routers, enables enhanced remote management of device functionality.

“JEXtream” is Franklin’s Cloud

based telecom grade server platform for 5G devices and routers, which enables enhanced remote management of device functionality.

Device Management (MDM)

o Comprehensive management of mobile devices, ensuring security, compliance, and efficient operation across

various mobile environments

Network Management

o Comprehensive mobile device management platform that ensures security, compliance, and efficient operation

across various mobile environments

Network Management System

o Robust tools for monitoring, managing, and optimizing network performance, ensuring reliable connectivity

and operational excellence.

Our global customer base is comprised

of wireless operators, strategic partners and distributors located primarily in North America and Asia.

Our global customer base is

comprised of wireless operators, strategic partners and distributors located primarily in North America and Asia.

SALES AND MARKETING

We market and sell our products

primarily to wireless operators located in North America and Asia regions mainly through our internal, direct sales organization and,

primarily to wireless operators located in the North America and Asia regions mainly through our internal, direct sales organization and,

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

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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.

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.

All of our wireless devices

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

PCS Type Certification Review

Board (“PTCRB”) test certifications are required for all LTE and HSPA/GSM wireless data products to launch with wireless operators

in North America.

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

Certifications are issued as being a qualifier of GCF, PTCRB, IEEE, CE, UL, Wi-Fi alliance certification and 3GPP standards.

Our devices also comply with the requirements of California's Proposition 65 (“Prop 65”), Safe Drinking Water and Toxic Enforcement

PRODUCTION AND MANUFACTURING OPERATIONS

For the fiscal year ended June

30, 2024, the manufacturing of the majority of our products was performed by two independent companies located in Asia.

For the fiscal year ended

June 30, 2025, the manufacturing of the majority of our products was performed by two independent companies located in Asia.

As of June 30, 2025, we had

total employees at Franklin and FTI combined.

67 total employees at Franklin, FTI, and Sigbeat combined.

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.

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