Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.3
Segment Reporting
 9 Months Ended
Sep. 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 nine months ended September 30, 2025:

                 
    For the Nine Months ended September 30, 2025  
    Perfecular & Lusher     Corporate & IoT     Total  
Revenue   $ 26,019     $ 228,255     $ 254,274  
Cost of revenue     21,835       215,919       237,754  
Gross profit     4,184       12,336       16,520  
                         
Operating expenses                        
Selling expense     1,165       57,609       58,774  
Compensation – officers and directors     –       375,725       375,725  
Research and development     441,507       686,126       1,127,633  
Professional fees     –       1,224,063       1,224,063  
General and administrative     2,524       1,222,464       1,224,988  
Total operating expense     445,196       3,565,987       4,011,183  
                         
Loss from operations     (441,012 )     (3,553,651 )     (3,994,663 )
                         
Total other income     1       71,261       71,262  
                         
Net loss   $ (441,011 )   $ (3,482,390 )   $ (3,923,401 )

 

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

                   
    For the Nine Months ended September 30, 2024  
    Perfecular & Lusher     Corporate & IoT     Total  
Revenue   $ 21,039     $ 243,915     $ 264,954  
Cost of revenue     23,343       104,343       127,686  
Gross profit (loss)     (2,304 )     139,572       137,268  
                         
Operating expenses                        
Selling expense     24,667       71,360       96,027  
Compensation – officers and directors     –       687,303       687,303  
Research and development     111,600       836,441       948,041  
Professional fees     –       985,368       985,368  
General and administrative     18,077       1,594,658       1,612,735  
Total operating expense     154,344       4,175,130       4,329,474  
                         
Loss from operations     (156,648 )     (4,035,558 )     (4,192,206 )
                         
Total other income     1,329       3,229,924       3,231,253  
                         
Loss from discontinued operations     –       (277,823 )     (277,823 )
                         
Net loss   $ (155,319 )   $ (1,083,457 )   $ (1,238,776 )