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

Segment reporting

v3.25.0.1
Segment reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment reporting

Note 11 –  Segment reporting

 

The Company currently has two operating segments. In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company considers operating segments to be components of the Company’s business for which separate financial information is available and evaluated regularly by Management in deciding how to allocate resources and to assess performance. Management reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has two operating and reportable segments. The Company consists of two types of operations. (1) AVX and Smart AVX (inclusive of the smart IoT Products sales under Smart AVX) cooperatively run our “LED and IoT Installation Services” segment, which handles our LED and IoT installation and management business specializing in high performance and easy to use LED and display systems, audio/video systems, home theaters, lighting control, automation, and integration. This includes the Focus and Focus Shenzhen collectively operate our “Corporate and R&D” segment focused on R&D development for the IoT, 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 these IoT technology products and of our smart products into the commercial and home automation sectors. (2) Perfecular and Lusher jointly operate the SEC Financial Software segment, which involves the development, marketing, and production of our SEC Financial Reporting AI-Driven Automation Software package and also includes our universal smart instruments and devices in the hydroponic and controlled agriculture segments.

 

Asset information by operating segment is not presented as the chief operating decision maker does not review this information by segment. The reporting segments follow the same accounting policies used in the preparation of the Company’s consolidated financial statements. The management team reviews financial information on a consolidated level and allocates resources based on net loss, which also serves as the key metric for evaluating financial performance.

 

The following tables summarize the financial information of each operating segment of the Company for the year ended December 31, 2024:

                 
    For the Year ended December 31, 2024  
    Perfecular & Lusher     Corporate & IoT     Total  
Revenue   $ 26,052     $ 372,085     $ 398,137  
Cost of revenue     39,772       348,164       387,936  
Gross profit (loss)     (13,720 )     23,921       10,201  
                         
Operating expenses                        
Selling expense     24,866       75,323       100,189  
Compensation – officers and directors     –       951,845       951,845  
Research and development     213,487       1,168,450       1,381,937  
Professional fees     –       1,660,590       1,660,590  
General and administrative     19,866       2,096,025       2,115,891  
Total operating expense     258,219       5,952,233       6,210,452  
                         
Loss from operations     (271,939 )     (5,928,312 )     (6,200,251 )
                         
Total other income     1,329       3,277,047       3,278,376  
                         
Loss from discontinued operations, net of tax     –       (278,263 )     (278,263 )
                         
Net loss   $ (270,610 )   $ (2,929,528 )   $ (3,200,138 )

 

The following tables summarize the financial information of each operating segment of the Company for the year ended December 31, 2023:

                   
    For the Year ended December 31, 2023  
    Perfecular & Lusher     Corporate & IoT     Total  
Revenue   $ 44,147     $ 396,396     $ 440,543  
Cost of revenue     36,424       344,460       380,884  
Gross profit     7,723       51,936       59,659  
                         
Operating expenses                        
Selling expense     22,407       96,355       118,762  
Compensation – officers and directors     –       1,082,775       1,082,775  
Research and development     212,037       1,112,401       1,324,438  
Professional fees     –       767,606       767,606  
General and administrative     17,101       1,700,763       1,717,864  
Total operating expense     251,545       4,759,900       5,011,445  
                         
Loss from operations     (243,822 )     (4,707,964 )     (4,951,786 )
                         
Total other income     4,028       237,523       241,551  
                         
Loss from discontinued operations, net of tax     –       (7,907 )     (7,907 )
                         
Net loss   $ (239,794 )   $ (4,478,348 )   $ (4,718,142 )