For the quarter ending 2025-12-31, FKWL had -$4,017,267 decrease in cash & cash equivalents over the period. -$4,091,804 in free cash flow.
| Cash Flow | 2025-12-31 | 2025-09-30 | 2025-06-30 |
|---|---|---|---|
| Net income (loss) | 466,665 | 550,536 | -140,429 |
| Depreciation | 8,185 | 8,243 | 33,125 |
| Amortization of intangible assets | 173,899 | 198,296 | 827,091 |
| Loss from foreign currency transactions | -223,056 | -329,972 | 233,720 |
| Loss from provision for slow-moving inventory | 16,695 | - | - |
| Gain from trading a vehicle | 0 | - | - |
| Stock based compensation | 0 | 0 | 350,593 |
| Bad debt expense | - | - | 158,400 |
| Reserve for allowance slow moving inventories | - | - | 63,846 |
| (gain) from trading vehicle and loss from the disposal of property and equipment and intangible assets | - | - | 3,563 |
| Recovery of litigation settlement with an officer | - | - | 1,000,000 |
| Forgiveness of debt | 397,164 | 15,650 | 247,592 |
| Net change of right use assets and lease liabilities | -12,035 | -6,018 | 349 |
| Deferred tax provision | 0 | 0 | -79,703 |
| Accounts receivable | 3,596,720 | 5,487,322 | 311,767 |
| Inventories | 1,139,134 | -1,358,115 | 993,069 |
| Other current assets | 230,899 | -15,387 | 34,349 |
| Advance to vendors | -51,667 | 56,180 | -18,121 |
| Other assets | - | - | 0 |
| Accounts payable | 605,514 | 1,521,184 | 855,382 |
| Contract liabilities and advance from customers | 5,433 | -9,380 | -33,471 |
| Accrued legal contingency expense | - | - | 0 |
| Income tax payable | - | 30,870 | - |
| Accrued liabilities | -236,090 | 73,039 | 2,615,116 |
| Net cash (used in) provided by operating activities | -4,085,780 | -1,488,908 | 1,844,360 |
| Contribution to a subsidiary by an ems partner | - | - | 2,000,000 |
| Sales of short-term investments | -831,299 | -197,386 | 437,774 |
| Cash proceeds from sales of a vehicle | 0 | - | 10,500 |
| Purchases of property and equipment | 6,024 | 904 | 32,765 |
| Payments for capitalized product development costs and intangible assets | 263,613 | 53,167 | 533,563 |
| Net cash provided by investing activities | 561,662 | 143,315 | 1,006,398 |
| Repayment received from the employee loan | - | - | 0 |
| Payment to repurchase stock option from an officer | - | - | 408,663 |
| Dividend declared and paid | 471,371 | - | - |
| Net cash used in financing activities | -471,371 | - | -408,663 |
| Effect of foreign currency translation | -21,778 | -15,456 | 32,522 |
| Net (decrease) increase in cash and cash equivalents | -4,017,267 | -1,361,049 | 2,474,617 |
| Cash and cash equivalents at beginning of period | 13,380,124 | 14,741,173 | 12,266,556 |
| Cash and cash equivalents at end of period | 9,362,857 | 13,380,124 | 14,741,173 |
FRANKLIN WIRELESS CORP (FKWL)
FRANKLIN WIRELESS CORP (FKWL)