RELATED PARTY TRANSACTIONS

6 Months Ended

Dec. 31, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 9 – RELATED PARTY TRANSACTIONS

On May 14, 2024, the Company entered into an Agreement for Formation of Corporation (the “Agreement”) with MeiG Smart Technology Co., Ltd., leading supplier of cellular modules, IoT terminals and wireless data solutions (“MeiG”). Under the terms of the Agreement, the parties formed a Nevada corporation, Sigbeat, to be owned 60% by Franklin and 40% by its supplier partner. The parties contributed a total of $5,000,000 in capital, in accordance with their respective ownership interest percentages. Under the terms of the Agreement, Sigbeat has a Board of Directors consisting of three members, of whom two are to be appointed by the Company and one appointed by MeiG. Sigbeat will engage in worldwide sales, marketing, customer support and operations for telecommunications modules under such brands or designations as the Board of Directors of Sigbeat determine.

Pursuant to the Agreement, in July 2024, Sigbeat entered into a stock subscription agreement with an affiliate of MeiG, Forge International Co., Ltd. (“Forge”), for the purchase of 400,000 shares of Common Stock, representing 40% of the total outstanding Common Stock of Sigbeat. On December 23, 2024, and January 9, 2025, the Company contributed $600,000 and $2,400,000 for Common Stock, respectively, and, on January 16, 2025, Forge contributed $2,000,000 for Common Stock.

On June 20, 2024 the Company entered into a Purchase and Supply Agreement with Forge. This Agreement outlines the terms under which Company purchases certain products from Forge for resale to the Company’s customers.

For the three and six months ended December 31, 2024, the Company purchased wireless data products from Forge in the amount of approximately $5.5 million and $7 million, respectively, and had related accounts payable of approximately $5.5 million as of December 31, 2024, and approximately $177,000 as of June 30, 2024. Excluding what was previously described, there have not been any transactions entered into or been a participant in which a related person had or will have a direct or indirect material interest.