Stockholder issues letter to Franklin Wireless requesting the board return cash to shareholders in the form of a special dividend and a stock buyback. Sinnet Capital also urges the board to act as a public company by issuing Press Releases to widely available sources.

CLAYTON, Mo., Dec. 28, 2023 /PRNewswire/ -- Sinnet Capital Partners, along with Managing Partner Timothy Hasara, collectively own 380,000 shares or 3.2% of the outstanding shares of Franklin Wireless (NASDAQ: FKWL), and today issued the following public letter to the Company's Board of Directors: 

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December 28, 2023
Franklin Wireless Board of Directors 
Gary Nelson, O.C. Kim, Kristina Kim, Heidy Chow, Jonathan Chase 

Dear Members of the Board, 

Franklin Wireless has generated cash over time, and specifically since the beginning of Covid. The cash has grown from $12.9 million in March 2020, at the beginning of the pandemic, to $33.6 million at the end of the most recent quarter, ending September 2023. However, the stock performance is basically unchanged since this period of time!

Franklin Wireless has no debt and approximately $2.86 per share in cash.

Shareholders should be rewarded with this cash generation – returned in the form of a special dividend and stock buyback.

Sinnet Capital Partners recommends the Board of Directors take the following actions: 

1. The company pays a special dividend of $1.00 per share.
2. The company executes a $10 million Dutch tender buyback of the stock. 
3. The company hires an IR firm to issue Press Releases for significant events and earnings filings. 

Franklin Wireless has had a number of great accomplishments over the last 12 months. However, investors have to reach far and wide to find out about these achievements. The company has been awarded four (4) contracts since last December that Sinnet Capital believes were significant, but they did not issue a Press Release in any of the national news services utilized by most investors.

The four contracts that were released only on their website are as follows: 

1. December 6, 2022 – Franklin Brings the First 5G Mobile Hotspot to Metro by T-Mobile 
2. December 12, 2022 – Franklin Wireless Launches Its First AT&T Mobile 4G Hotspot
3. February 8, 2023 – Franklin Wireless Introduces New 5G Hotspot with AT&T 
4. March 20, 2023 – Franklin 5G Mobile Hotspot Now Available Nationwide at T-Mobile 

Following the company for many years, I would note that AT&T and Metro by T-Mobile are new customers to Franklin Wireless. As evidenced from their most recent 10-Qs and 10-K, the business associated with these four contracts appears to be significant, warranting a widely distributed Press Release.

The 4^th quarter ending June 2023 was a great quarter, with revenue up 40% to $17 million and cash from operations up $5.16 million. Yet, the 10-K recently filed on September 28, 2023, does not break down the 4th quarter results and forces the investor to back into the numbers by reviewing the prior 10-Q filings. In addition, no Press Releases were issued breaking down the results for the 4th quarter and the fiscal year end. The fiscal year 2023 revenue increased 91% from $23,997,762 to $45,948,516. 

Franklin Wireless did issue Press Releases on a national news service in the past, GlobeNewswire, but stopped doing so in 2021. The stock closed the end of 2022 at $4.46 per share and the stock closed at $3.03 on December 22, 2023. Sinnet Capital believes the stock has not performed well over the last year, down primarily as the result of the company not issuing Press Releases regarding their contract announcements and earnings.

Sinnet Capital urges the board to pay a $1 special dividend, execute a $10 million dollar Dutch tender buyback and hire an IR firm to issue Press Releases.

Sincerely, 

Timothy Hasara
Managing Partner 
Sinnet Capital Partners

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SOURCE Sinnet Capital