| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting
policies of the Company is presented to assist in understanding the Company’s consolidated financial statements. The consolidated
financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity.
These accounting policies conform to GAAP and have been consistently applied in the preparation of the consolidated financial statements. Principles of Consolidation The consolidated financial statements
include the accounts of the Company and its subsidiary with a majority voting interest of approximately 66.3 33.7 Reclassifications Certain amounts on the prior period’s
consolidated financial statements were regrouped and reclassified to conform to current-year presentation, with no effect on total stockholders’
equity. Non-controlling Interest in a Consolidated Subsidiary Noncontrolling interests represent
approximately 33.7 1,405,537 176,593 1,228,944 176,593 133,469 396,552 43,124 Segment Reporting 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 revenue 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:
Schedule of financial information by geographic
area
Three Months Ended September 30,
Net sales: 2024 2023
North America $ 13,322,448 $ 9,655,546
Asia 464 –
Totals $ 13,322,912 $ 9,655,546
Schedule of long-lived assets, net
Long-lived assets, net (property and equipment and intangible assets): September 30, 2024 June 30, 2024
North America $ 983,018 $ 1,218,139
Asia 201,949 206,426
Totals $ 1,184,967 $ 1,424,565 Fair Value of Financial Instruments Fair value accounting is applied
for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the
consolidated financial statements on a recurring basis (at least annually). Assets and liabilities recorded at fair value in the financial
statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical
levels, which are directly related to the amount of subjectivity, associated with the inputs to the valuation of these assets or liabilities
are as follows:
· Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.
· Level 2 – Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
· Level 3 – Unobservable inputs that cannot be directly corroborated by observable market data and that typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. The carrying amounts of financial
instruments such as cash equivalents, short-term investments, accounts receivable, other current assets, accounts payable, and accrued
liabilities approximate the related fair values due to the short-term nature of these instruments. We invest our excess cash into financial
instruments which are readily convertible into cash, such as money market funds and certificates of deposit Use of Estimates The preparation of the consolidated
financial statements in conformity with accounting principles generally accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could materially differ from those estimates. Allowance for Doubtful Accounts On July 1, 2023, we adopted ASU
2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred
loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology.
The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including
loan receivables and held to maturity debt securities. It also applies to Off-Balance Sheet (“OBS”) credit exposures not accounted
for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments
and leases recognized by a lessor in accordance with Topic 842 on leases. Upon adoption of ASC 326 and based upon our review of our collection
history as well as the current balances associated with all significant customers and associated invoices, as of September 30, 2024, we
did no Cash Flows Reporting We follow ASC 230, Statements
of Cash Flows, for cash flows reporting, which classifies cash receipts and payments according to whether they stem from operating, investing,
or financing activities and provides definitions of each category. We use the indirect or reconciliation method (“Indirect method”)
as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile
it to net cash flow from operating activities by removing the effects of all deferrals of past operating cash receipts and payments and
all accruals of expected future operating cash receipts and payments and all items that are included in net income (loss) that do not
affect operating cash receipts and payments. Related Parties We follow ASC 850, “Related
Party Disclosures,” for the identification of related parties and disclosure of related party transactions. Related parties are
any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of
our management and policies of the Company. (Refer to NOTE 9–RELATED PARTY TRANSACTIONS) Foreign Currency Translations We have a majority-owned subsidiary
in a foreign country, South Korea. Fluctuations in foreign currency impact the amount of total assets, liabilities, earnings and cash
flows that we report for our foreign subsidiary upon the translation of these amounts into U.S. Dollars for, and as of the end of, each
reporting period. In particular, the strengthening of the U.S. Dollar generally will reduce the reported amount of our foreign-denominated
cash, cash equivalents, total revenues and total expense that we translate into U.S. Dollars and report in our consolidated financial
statements for, and as of the end of, each reporting period. However, a majority of our consolidated revenue is denominated in U.S. Dollars,
and therefore, our revenue is not directly subject to foreign currency risk. In accordance with ASC 830, when
an operation has transactions denominated in a currency other than its functional currency, they are measured in the functional currency.
Changes in the expected functional currency cash flows caused by changes in exchange rates are included in net income (loss) for the period. Leases In accordance with ASC 842, we
determine whether an arrangement contains a lease at inception. A lease is a contract that provides the right to control an identified
asset for a period of time in exchange for consideration. For identified leases, we determine whether it should be classified as an operating
or finance lease. Operating leases are recorded in the balance sheet as right-of-use asset (“ROU asset”) and operating lease
obligation. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent
our obligation to make lease payment arising from the lease ROU assets and operating lease liabilities are recognized at the commencement
date of the lease and measure based on the present value of lease payment over the lease term. The ROU asset also includes deferred rent
liabilities. Our lease arrangement generally does not provide an implicit interest rate. As a result, in such situations, we use its incremental
borrowing rate based on the information available at commencement date in determining the present value of lease payments. We include
options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its ROU
assts and liabilities. Lease expense for operating leases
is recognized on a straight-line basis over the lease term. We are also electing not to apply the recognition requirements to short-term
leases of twelve months or less and instead will recognize lease payments as expense on a straight-line basis over the lease term. Revenue Recognition The Company accounts for its revenue
according to ASC 606, “Revenue from Contracts with Customers”, pursuant to which, revenue is recognized when the control of
the promised goods or services is transferred to the customers, and the performance obligations under the contract have been satisfied,
in an amount that reflects the consideration expected to be entitled to in exchange for those goods or services. The Company determines revenue
recognition through the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations
in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the
contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Contracts with Customers Revenue from sales of products
and services is derived from contracts with customers. The products and services promised in contracts primarily consist of hotspot routers.
Contracts with each customer generally state the terms of the sale, including the description, quantity and price of each product or service.
Payment terms are stated in the contract, primarily in the form of a purchase order. Since the customer typically agrees to a stated rate
and price in the purchase order that does not vary over the life of the contract, the majority of our contracts do not contain variable
consideration. We establish a provision for estimated warranty and returns. Using historical averages, those provisions for the quarters
ended September 30, 2024 and 2023 were not material. Disaggregation of Revenue In accordance with Topic 606,
we disaggregate revenue from contracts with customers into geographical regions and by the timing of when goods and services are transferred.
We determined that disaggregating revenue into these categories meets the disclosure objective in Topic 606, which is to depict how the
nature, amount, timing and uncertainty of revenue and cash flows are affected by regional economic factors. Contract Balances We perform our obligations under
a contract with a customer by transferring products in exchange for consideration from the customer. We typically invoice our customers
as soon as control of an asset is transferred, and a receivable is established. We, however, recognize a contract liability when a customer
prepays for goods and/or services, or we have not delivered goods under the contract since we have not yet transferred control of the
goods and/or services. The balances of our trade receivables
are as follows:
Schedule of trade receivables
September 30, 2024 June 30, 2024
Accounts Receivable $ 1,800,202 $ 1,155,060 The balance of contract assets
was immaterial as we did not have a significant amount of un-invoiced receivables in the periods ended September 30, 2024, and June 30,
2024. Our contract liabilities are as
follows:
Schedule of contract liabilities
September 30, 2024 June 30, 2024
Undelivered products $ 170,351 $ 158,771 Performance Obligations A performance obligation is a
promise in a contract to transfer a distinct good or service to the customer and is the unit of measurement in Topic 606. At contract
inception, we assess the products and services promised in our contracts with customers. We then identify performance obligations to transfer
distinct products or services to the customer. In order to identify performance obligations, we consider all the products or services
promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Our performance obligations are
primarily satisfied at a point in time. Revenue from products transferred to customers at a single point in time accounted for 99.9 0.1 As of September 30, 2024 and 2023,
our contracts do not contain any unsatisfied performance obligations, except for undelivered products. Cost of Goods Sold All costs associated with our
contract manufacturers, as well as distribution, fulfillment and repair services, are included in our cost of goods sold. Cost of goods
sold also includes amortization expenses of approximately $ 245,233 239,624 Capitalized Product Development Costs Accounting Standards Codification
(“ASC”) Topic 350, “Intangibles - Goodwill and Other” includes software that is part of a product or process to
be sold to a customer and is accounted for under Subtopic 985-20. Our products contain embedded software internally developed by FTI,
which is an integral part of these products because it allows the various components of the products to communicate with each other and
the products are clearly unable to function without this coding. The costs of product development
that are capitalized once technological feasibility is determined (noted as technology in progress in the Intangible Assets table in NOTE
4-INTANGIBLE ASSETS, NET) include related licenses, certification costs, payroll, employee benefits, and other headcount-related expenses
associated with product development. We determine that technological feasibility for our products is reached after all high-risk development
issues have been resolved. Once the products are available for general release to our customers, we cease capitalizing the product development
costs and any additional costs, if any, are expensed. The capitalized product development costs are amortized on a product-by-product
basis using the straight-line amortization. The amortization begins when the products are available for general release to our customers. As of September 30, 2024, and
June 30, 2024, capitalized product development costs in progress were $ 14,000 0 14,000 22,500 Research and Development Costs Costs associated with research and development are
expensed as incurred. Research and development costs were $ 1,024,312 866,955 Warranties We provide a warranty for a period
of twelve (12) to eighteen (18) months, which is covered by our vendors and manufacturers under purchase agreements between the Company
and the vendors. As a result, we believe we do not have any net warranty exposure and do not accrue any warranty expenses. Historically,
the Company has not experienced any material net warranty expenditures. Shipping and Handling Costs Costs associated with product
shipping and handling are expensed as incurred. Shipping and handling costs, which are included in selling, general and administrative
expenses on the consolidated statements of comprehensive income (loss), were $ 78,113 52,450 Cash and Cash Equivalents For purposes of the consolidated
statements of cash flow, we consider all highly liquid investments purchased with original maturities of three months or less to be cash
equivalents. We invest our excess cash into financial instruments which management believes are readily convertible into cash, such as
money market funds that are readily convertible to cash and have a $1.00 net asset value. Short Term Investments We have invested excess funds
in short-term liquid assets, such as certificates of deposit and government bonds, etc. Inventories, Net Our inventories consist of finished
goods and are stated at the lower of cost or net realizable value, cost being determined on a first-in, first-out basis. We assess the
inventory carrying value and reduce it, if necessary, to its net realizable value based on customer orders on hand, and internal demand
forecasts using management’s best estimates given information currently available. Our customer demand is highly unpredictable and
can fluctuate significantly caused by factors beyond the control of the Company. We may write down our inventory value for potential obsolescence
and excess inventory. As of September 30, 2024, and June 30, 2024, we have recorded inventory reserves in the amount of $ 91,482 Property and Equipment, Net Property and equipment are recorded
at cost. Significant additions or improvements extending the useful lives of assets are capitalized. Expenditures for maintenance and
repairs are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated useful lives as
follows:
Schedule of estimated useful lives
Machinery 6 years
Office equipment 5 years
Molds 3~6 years
Vehicles 5 years
Computers and software 5 years
Furniture and fixtures 7 years
Facilities improvements 5 years or life of the lease, whichever is shorter Goodwill and Intangible Assets Goodwill and certain intangible
assets were recorded in connection with the FTI acquisition in October 2009, and were accounted for in accordance with ASC 805, “Business
Combinations.” Goodwill represents the excess of the purchase price over the fair value of the tangible and intangible net assets
acquired. Intangible assets are recorded at their fair value at the date of acquisition. Goodwill and other intangible assets are accounted
for in accordance with ASC 350, “Goodwill and Other Intangible Assets.” Goodwill and other intangible assets are tested for
impairment at least annually and any related impairment losses are recognized in earnings when identified. No Impairment of Long-lived Assets In accordance with ASC 360, “Property,
Plant, and Equipment,” we review for impairment of long-lived assets and certain identifiable intangibles whenever events or circumstances
indicate that the carrying amount of assets may not be recoverable. We consider the carrying value of assets may not be recoverable based
upon our review of the following events or changes in circumstances: the asset’s ability to continue to generate income from operations
and positive cash flow in future periods; loss of legal ownership or title to the assets; significant changes in our strategic business
objectives and utilization of the asset; or significant negative industry or economic trends. An impairment loss would be recognized when
estimated future cash flows expected to result from the use of the asset are less than its carrying amount. As of September 30, 2024, and
June 30, 2024, we were not aware of any events or changes in circumstances that would indicate that the long-lived assets are impaired. Stock-based Compensation We account for stock options and
other equity-based compensation issued in accordance with ASC 718 “Stock Compensation”, which requires the measurement and
recognition of compensation expense related to the fair value of equity-based compensation awards that are ultimately expected to vest.
Stock-based compensation expense recognized includes the compensation cost for all share-based compensation payments granted to employees
and non-employees, net of estimated forfeitures, over the employees’ requisite service period or the non-employees’ performance
period based on the grant date fair value estimated in accordance with the provision of ASC 718. ASC 718 is also applied to awards modified,
repurchased, or cancelled during the periods reported. Income Taxes We use the asset and liability
method of accounting for income taxes. Accordingly, deferred tax assets and liabilities are determined based on the difference between
the financial statement and income tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences
are expected to reverse. A valuation allowance is recorded to reduce the carrying amount of deferred tax assets, unless it is more likely
than not such assets will be realized. Current income taxes are based on the year’s taxable income for federal and state income
tax reporting purposes and the annual change in deferred taxes. We assess income tax positions
and record tax benefits based upon management’s evaluation of the facts, circumstances, and information available at the reporting
date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we record the largest amount of tax
benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority having full knowledge of
all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no
tax benefit is recognized in the financial statements. We classify interest and penalties associated with such uncertain tax positions
as a component of income tax expense. As of September 30, 2024, we have
no material unrecognized tax benefits. We recorded income tax provisions of $ 47,880 50,060 47,880 50,860 Earnings (loss) per Share Attributable to Common
Stockholders In accordance with ASC 260, basic
earnings (loss) per share are calculated by dividing the net income (loss) by the weighted-average number of common shares that were outstanding
for the period, without considering any potential future issuance of common shares. Diluted earnings (loss) per share is calculated by
dividing the net income (loss) by the sum of the weighted-average number of dilutive potential common shares outstanding for the period
determined using the treasury-stock method or the as-converted method. Potentially dilutive shares are comprised of common stock options
outstanding under our stock plan. Diluted EPS excludes all dilutive potential common shares if their
effect is nondilutive. Concentrations We extend credit to our customers
and perform ongoing credit evaluations of such customers. We evaluate our accounts receivable on a regular basis for collectability and
provide for an allowance for potential credit losses as deemed necessary. No reserve was required or recorded for any of the
periods presented. Substantially all of our revenues
are derived from sales of wireless data products. Any significant decline in market acceptance of our products or in the financial
condition of our existing customers could impair our ability to operate effectively. A significant portion of our revenue
is derived from a small number of customers. For the three months ended September 30, 2024, sales to our two largest customers accounted
for 93.6 71.2 90.6 97.8 For the three months ended September
30, 2024, we purchased the majority of our wireless data products from two manufacturing companies located in Asia. If these manufacturing
companies were to experience delays, capacity constraints or quality control problems, product shipments to our customers could be delayed,
or our customers could consequently elect to cancel the underlying product purchase order, which would negatively impact the Company's
revenue. For the three months ended September 30, 2024, we purchased wireless data products from these manufacturers in the amount of
$ 11,653,180 99.9 10,186,585 6,361,553 99.8 6,917,202 We maintain our cash accounts
with established commercial banks. Such cash deposits exceed the Federal Deposit Insurance Corporation insured limit of $250,000 for each
financial institution. However, we do not anticipate any losses on excess deposits. Recently Issued Accounting Pronouncements In December 2023, the FASB issued
ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s
effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis
for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet
been issued or made available for issuance. This ASU will likely result in the required additional disclosures being included in our consolidated
financial statements once adopted. In November 2024, the FASB
issued ASU No. 2024-03, Expense Disaggregation Disclosures (Subtopic 220-40). The ASU requires disclosure of specified information
about certain costs and expenses. This includes purchases of inventory, employee compensation, depreciation, and intangible asset
amortization. The ASU is effective on a prospective or retrospective basis for annual reporting period beginning after
December 15, 2026, and interim reporting period beginning after December 15, 2027. Early adoption is permitted. This ASU
will likely result in the required additional disclosures being included in our consolidated financial statements once adopted. |
