Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.3
Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting

Note 14 – Segment Reporting

 

The Company currently has three operating segments. First, Focus and Focus Shenzhen collectively operate our “Corporate and R&D” segment, which involves the non-specific financing, executive expense, operations and investor relations of our public entity, and the general shared management and costs across the Company’s subsidiaries that spread across all functional categories and research and development of technology products. Second, Perfecular, AVX (doing business as Smart AVX) and Lusher jointly operate the “IoT Products” segment, which involves the wholesale, marketing, and production of our universal smart instruments and devices in the hydroponic and controlled agriculture segments and of our smart instruments into the commercial and home automation sectors. And third, AVX (exclusive of the smart IoT Products sales under Smart AVX) and AT Tech Systems cooperatively run our “IoT Installation Services” segment, which handles our IoT installation and management business specializing in high performance and easy to use audio/video systems, home theaters, lighting control, automation, and integration.

 

The following tables summarize the performance of each operating segment of the Company for the three months ended September 30, 2023 and the performance of the IoT Installation Service segment broken out between its residential and commercial services for the same period:

Schedules of segment reporting                        
    Three Months Ended September 30, 2023  
   

Corporate

and R&D

    

IoT

Products

    

IoT Installation

Services

     Total  
                         
Revenue   $ –     $ 97,513     $ 220,857     $ 318,370  
Revenue – related party     –       –       –       –  
Total revenue     –       97,513       220,857       318,370  
                                 
Cost of revenue     –       47,855       153,539       201,394  
                                 
Gross Profit     –       49,658       67,318       116,976  
                                 
Operating Expenses                                
Selling expense     6,516       18,677       8,443       33,636  
Compensation – officers and directors     267,002       –       –       267,002  
Research and development     305,872       –       –       305,872  
Professional fees     132,914       –       –       132,914  
General and administrative     358,631       2,503       46,717       407,851  
Total Operating Expenses     1,070,935       21,180       55,160       1,147,275  
                                 
Income (loss) from Operations     (1,070,935 )     28,478       12,158       (1,030,299 )
                                 
Other Income (Expense):                                
Interest income (expense), net     (2,956 )     1       (80 )     (3,035 )
Unrealized loss on marketable equity securities     (17,102 )     –       –       (17,102 )
Realized income on marketable equity securities     12,247       –       –       12,247  
Rental income     40,731       –       –       40,731  
Other income (expense), net     32,209       (8,255 )     5,471       29,425  
Total other income (expense)     65,129       (8,254 )     5,391       62,266  
                                 
Income (loss) before income taxes     (1,005,806 )     20,224       17,549       (968,033 )
                                 
Tax expense     –       –       –       –  
                                 
Net Income (Loss)   $ (1,005,806 )   $ 20,224     $ 17,549     $ (968,033 )

 

                   
    Three Months Ended September 30, 2023  
    Residential     Commercial    

Total IoT Installation

Services

  
                   
Revenue   $ 23,758     $ 197,099     $ 220,857  
Revenue – related party     –       –       –  
Total revenue     23,758       197,099       220,857  
                         
Cost of revenue     45,255       88,815       153,539  
                         
Gross Profit     (21,497 )     88,815       67,318  
                         
Operating Expenses                        
Selling expense     –       8,443       8,443  
General and administrative     3,392       43,325       46,717  
Total Operating Expenses     3,392       51,768       55,160  
                         
Income (loss) from Operations     (24,899 )     37,047       12,158  
                         
Other Income (Expense):                        
Interest income (expense), net     –       (80 )     (80 )
Other income (expense), net     –       5,471       5,471  
Total other income (expense)     –       5,391       5,391  
                         
Income (loss) before income taxes     (24,899 )     42,438       17,549  
                         
Tax expense     –       –       –  
                         
Net Income (Loss)   $ (24,899 )   $ 42,438     $ 17,549  

 

The following tables summarize the performance of each operating segment of the Company for the three months ended September 30, 2022 and the performance of the IoT Installation Service segment broken out between its residential and commercial services for the same period:

                         
    Three Months Ended September 30, 2022  
   

Corporate

and R&D

    

IoT

Products

    

IoT Installation

Services

     Total  
                         
Revenue   $ –     $ 1,444     $ 53,242     $ 54,686  
Revenue – related party     –       –       5,968       5,968  
Total revenue     –       1,444       59,210       60,654  
                                 
Cost of revenue     –       10,167       32,274       42,441  
                                 
Gross Profit     –       (8,723 )     26,936       18,213  
                                 
Operating Expenses                                
Selling expense     75,032       –       1,952       76,984  
Compensation – officers and directors     265,449       –       –       265,449  
Research and development     133,109       –       –       133,109  
Professional fees     150,943       –       –       150,943  
General and administrative     230,001       76,129       59,564       365,694  
Total Operating Expenses     854,534       76,129       61,516       992,179  
                                 
Loss from Operations     (854,534 )     (84,852 )     (34,580 )     (973,966 )
                                 
Other Income (Expense):                                
Interest income (expense), net     363       –       2,272       2,635  
Unrealized income on marketable equity securities     42,101       –       –       42,101  
Realized loss on marketable equity securities     (31,486 )     –       –       (31,486 )
Rental income     39,172       –       –       39,172  
Other income (expense), net     144,547       (160,117 )     (4,906 )     (20,476 )
Total other income (expense)     194,697       (160,117 )     (2,634 )     31,946  
                                 
Loss before income taxes     (659,837 )     (244,969 )     (37,214 )     (942,020 )
                                 
Tax expense     –       –       –       –  
                                 
Net Loss   $ (659,837 )   $ (244,969 )   $ (37,214 )   $ (942,020 )

 

                   
    Three Months Ended September 30, 2022  
    Residential     Commercial    

Total IoT Installation

Services

  
                   
Revenue   $ 53,242     $ –     $ 53,242  
Revenue – related party     5,968       –       5,968  
Total revenue     59,210       –       59,210  
                         
Cost of revenue     32,274       –       32,274  
                         
Gross Profit     26,936       –       26,936  
                         
Operating Expenses                        
Selling expense     1,952       –       1,952  
General and administrative     59,564       –       59,564  
Total Operating Expenses     61,516       –       61,516  
                         
Loss from Operations     (34,580 )     –       (34,580 )
                         
Other Income (Expense):                        
Interest income (expense), net     2,272       –       2,272  
Other income (expense), net     (4,906 )     –       (4,906 )
Total other income (expense)     (2,634 )     –       (2,634 )
                         
Loss before income taxes     (37,214 )     –       (37,214 )
                         
Tax expense     –       –       –  
                         
Net Loss   $ (37,214 )   $ –     $ (37,214 )

 

The following tables summarize the performance of each operating segment of the Company for the nine months ended September 30, 2023 and the performance of the IoT Installation Service segment broken out between its residential and commercial services for the same period:

                       
    Nine Months Ended September 30, 2023  
   

Corporate

and R&D

    

IoT

Products

    

IoT Installation

Services

     Total  
                         
Revenue   $ –     $ 175,661     $ 594,195     $ 769,856  
Revenue – related party     –       –       –       –  
Total revenue     –       175,661       594,195       769,856  
                                 
Cost of revenue     –       104,210       427,187       531,397  
                                 
Gross Profit     –       71,451       167,008       238,459  
                                 
Operating Expenses                                
Selling expense     37,978       51,337       19,255       108,570  
Compensation – officers and directors     827,939       –       –       827,939  
Research and development     925,345       –       –       925,345  
Professional fees     506,878       –       –       506,878  
General and administrative     1,063,509       10,881       138,096       1,212,486  
Total Operating Expenses     3,361,649       62,218       157,351       3,581,218  
                                 
Income (loss) from Operations     (3,361,649 )     9,233       9,657       (3,342,759 )
                                 
Other Income (Expense):                                
Interest income (expense), net     27,635       4       (120 )     27,519  
Gain on bargain purchase     61,747       –       –       61,747  
Unrealized income on marketable equity securities     10,463       –       –       10,463  
Realized loss on marketable equity securities     (2,002 )     –       –       (2,002 )
Rental income     121,024       –       –       121,024  
Other income (expense), net     27,745       (6,256 )     2,077       23,566  
Total other income (expense)     246,612       (6,252 )     1,957       242,317  
                                 
Income (loss) before income taxes     (3,115,037 )     2,981       11,614       (3,100,442 )
                                 
Tax expense     –       –       –       –  
                                 
Net Income (loss)   $ (3,115,037 )   $ 2,981     $ 11,614     $ (3,100,442 )

 

                   
    Nine Months Ended September 30, 2023  
    Residential     Commercial    

IoT Installation

Services

  
                   
Revenue   $ 152,928     $ 441,267     $ 594,195  
Revenue – related party     –       –       –  
Total revenue     152,928       441,267       594,195  
                         
Cost of revenue     116,040       311,147       427,187  
                         
Gross Profit     36,888       130,120       167,008  
                         
Operating Expenses                        
Selling expense     –       19,255       19,255  
Compensation – officers and directors     –       –       –  
Research and development     –       –       –  
Professional fees     –       –       –  
General and administrative     37,345       100,751       138,096  
Total Operating Expenses     37,345       120,006       157,351  
                         
Income (loss) from Operations     (457 )     10,114       9,657  
                         
Other Income (Expense):                        
Interest income (expense), net     –       (120 )     (120 )
Other income (expense), net     –       2,077       2,077  
Total other income (expense)     –       1,957       1,957  
                         
Income (loss) before income taxes     (457 )     12,071       11,614  
                         
Tax expense     –       –       –  
                         
Net Income (loss)   $ (457 )   $ 12,071     $ 11,614  

 

The following tables summarize the performance of each operating segment of the Company for the nine months ended September 30, 2022 and the performance of the IoT Installation Service segment broken out between its residential and commercial services for the same period:

                         
    Nine Months Ended September 30, 2022  
   

Corporate

and R&D

    

IoT

Products

    

IoT Installation

Services

     Total  
                         
Revenue   $ –     $ 49,094     $ 193,581     $ 242,675  
Revenue – related party     –       31,542       8,246       39,788  
Total revenue     –       80,636       201,827       282,463  
                                 
Cost of revenue     –       70,869       172,135       243,004  
                                 
Gross Profit     –       9,767       29,692       39,459  
                                 
Operating Expenses                                
Selling expense     123,117       –       9,754       132,871  
Compensation – officers and directors     874,739       –       –       874,739  
Research and development     862,214       –       –       862,214  
Professional fees     686,150       –       –       686,150  
General and administrative     1,393,703       1,275       191,682       1,586,660  
Total Operating Expenses     3,939,923       1,275       201,436       4,142,634  
                                 
Income (loss) from Operations     (3,939,923 )     8,492       (171,744 )     (4,103,175 )
                                 
Other Income (Expense):                                
Interest income (expense), net     853       (288 )     2320       2,885  
Gain on bargain purchase     –       –       –       –  
Unrealized loss on marketable equity securities     (32,525 )     –       –       (32,525 )
Realized loss on marketable equity securities     (21,205 )     –       –       (21,205 )
Rental income     117,513       –       –       117,513  
Other income (expense), net     172,766       –       (8,506 )     164,260  
Total other income (expense)     237,402       (288 )     (6,186 )     230,928  
                                 
Income (loss) before income taxes     (3,702,521 )     8,204       (177,930 )     (3,872,247 )
                                 
Tax expense     –       –       –       –  
                                 
Net Income (loss)   $ (3,702,521 )   $ 8,204     $ (177,930 )   $ (3,872,247 )

 

                   
    Nine Months Ended September 30, 2022  
    Residential     Commercial    

Total IoT Installation

Services

  
                   
Revenue   $ 193,581     $ –     $ 193,581  
Revenue – related party     8,246       –       8,246  
Total revenue     201,827       –       201,827  
                         
Cost of revenue     172,135       –       172,135  
                         
Gross Profit     29,692       –       29,692  
                         
Operating Expenses                        
Selling expense     9,754       –       9,754  
General and administrative     191,682       –       191,682  
Total Operating Expenses     201,436       –       201,436  
                         
Loss from Operations     (171,744 )     –       (171,744 )
                         
Other Income (Expense):                        
Interest income (expense), net     2,320       –       2,320  
Other income (expense), net     (8,506 )     –       (8,506 )
Total other income (expense)     (6,186 )     –       (6,186 )
                         
Loss before income taxes     (177,930 )     –       (177,930 )
                         
Tax expense     –       –       –  
                         
Net Loss   $ (177,930 )   $ –     $ (177,930 )

 

The following table summarizes the total assets of each operating segment of the Company as of September 30, 2023:

Schedule of segment assets                        
    September 30, 2023  
   

Corporate

and R&D

    

IoT

Products

    

IoT Installation

Services

     Total  
                         
Total Assets   $ 5,732,129     $ 178,682     $ 488,151     $ 6,398,962  

 

The following table summarizes the total assets of each operating segment of the Company as of December 31, 2022:

                         
    December 31, 2022  
   

Corporate

and R&D

    

IoT

Products

    

IoT Installation

Services

     Total  
                         
Total Assets   $ 8,977,993     $ 257,413     $ 87,654     $ 9,323,060