Focus Universal Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Discontinued Operation

Discontinued Operation

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Note 10 – Discontinued Operation

On August 5, 2024, the Company and the segment manager of AT Tech Systems LLC reached a tentative oral agreement to terminate his employment and the employment of his two direct report team members. The Company discontinued operations of AT Tech Systems on August 21, 2024, with a termination cost of $22,000.

The carrying amount of assets and liabilities of discontinued operations as of December 31, 2024 and 2023 consist of the following:

Schedule of discontinued operations
	December 31,		December 31,
	2024		2023

Current assets of discontinued operations:
Accounts receivable, net	$	–	$	150,870
Prepaid expenses		–		8,427
Total current assets of discontinued operations	$	–	$	159,297

Current liabilities of discontinued operations:
Accounts payable and accrued liabilities	$	–	$	47,505
Other current liabilities		–		59,092
Total current liabilities of discontinued operations	$	–	$	106,597

The loss from discontinued operations presented in the statement of operations for the years ended December 31, 2024 and 2023 as follows:


	For the Years Ended December 31,
	2024			2023
Revenue	$	50,772		$	611,655
Cost of Revenue		241,327			577,529
Gross Profit (loss)		(190,555	)		34,126

Operating Expenses:
Selling expense		9,834			22,232
General and administrative		81,375			22,915
Total Operating Expenses		91,209			45,147

Loss from Operations		(281,764	)		(11,021	)

Other Income:
Other income, net		3,501			3,114
Total other income, net		3,501			3,114

Net Loss	$	(278,263	)	$	(7,907	)

Total operating cash flows from discontinued operations were $52,700 and $(52,700), respectively, for the years ended December 31, 2024 and 2023, respectively.