Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 9 – 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 Executive Officer 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 six months ended June 30, 2025:

                 
    For the Six Months ended June 30, 2025  
    Perfecular & Lusher     Corporate & IoT     Total  
Revenue   $ 26,019     $ 199,566     $ 225,585  
Cost of revenue     21,835       185,618       207,453  
Gross profit     4,184       13,948       18,132  
                         
Operating expenses                        
Selling expense     1,165       55,235       56,400  
Compensation – officers and directors     –       250,744       250,744  
Research and development     271,462       568,093       839,555  
Professional fees     –       902,146       902,146  
General and administrative     2,512       781,062       783,574  
Total operating expense     275,139       2,557,280       2,832,419  
                         
Loss from operations     (270,955 )     (2,543,332 )     (2,814,287 )
                         
Total other income     1       57,260       57,261  
                         
Net loss   $ (270,954 )   $ (2,486,072 )   $ (2,757,026 )

 

The following tables summarize the financial information of each operating segment of the Company for the six months ended June 30, 2024:

                   
    For the Six Months ended June 30, 2024  
    Perfecular & Lusher     Corporate & IoT     Total  
Revenue   $ 2,116     $ 188,623     $ 190,739  
Cost of revenue     2,315       82,841       85,156  
Gross profit (loss)     (199 )     105,782       105,583  
                         
Operating expenses                        
Selling expense     21,917       53,008       74,925  
Compensation – officers and directors     –       112,048       112,048  
Research and development     92,023       547,502       639,525  
Professional fees     –       707,032       707,032  
General and administrative     12,740       1,005,060       1,017,800  
Total operating expense     126,680       2,424,650       2,551,330  
                         
Loss from operations     (126,879 )     (2,318,868 )     (2,445,747 )
                         
Total other income     907       15,176       16,083  
                         
Loss from discontinued operations     –       (251,039 )     (251,039 )
                         
Net loss   $ (125,972 )   $ (2,554,731 )   $ (2,680,703 )