Focus Universal Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting (Tables)

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2023

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

Schedule of segment assets

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