FRANKLIN WIRELESS CORP Debt Disclosure
Short-term borrowings consisted of the following as of:
| June 30, 2016 | June 30, 2015 | |||||||
| Loan dated June 2011, due to a financial institution, with monthly interest payments (interest rate of 8.90% per annum), and the principal balance due March 2016 (interest rate of 5.025% per annum as extended). The loan was paid off in full during the year ended June 30, 2016. | $ | – | $ | 148,295 | ||||
| Total | $ | – | $ | 148,295 | ||||
The short-term borrowings of $148,295 as of June 30, 2015 resulted from the consolidation of FTI’s debt.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2016 | Sep 28, 2016 | Showing above |
| 2015 | Sep 28, 2015 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.