Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 11 – Segment Reporting

 

The Company currently has two operating and reportable 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 three operating and reportable segments. The Company consists of three 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. (3) Lusher Holding LLC provide commercial real estate property management services.

 

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 three months ended June 30, 2026:

Schedule of segment reporting

                         
    For the Three Months ended June 30, 2026  
    Perfecular & Lusher     Corporate &
IoT		     Lusher Holding LLC     Total  
Revenue   $ –     $ 23,220     $ 651,950     $ 675,170  
                                 
Cost and operating expenses                                
Property operating expenses     –       –       259,663       259,663  
Cost of other revenue     –       17,227       –       17,227  
Depreciation and amortization     –       16,084       184,940       201,024  
Selling expense     –       691       –       691  
Compensation – officers and directors     –       117,638       –       117,638  
Research and development     218,424       143,741       –       362,165  
Professional fees     –       751,144       –       751,144  
General and administrative     848       503,827       10,518       515,193  
Total cost and operating expense     219,272       1,550,352       455,121       2,224,745  
                                 
Income (loss) from operations     (219,272 )     (1,527,132 )     196,829       (1,549,575 )
                                 
Total other income (expense)     –       116,698       (86,081 )     30,617  
                                 
Net loss   $ (219,272 )   $ (1,410,434 )   $ 110,748     $ (1,518,958 )

 

The following tables summarize the financial information of each operating segment of the Company for the three months ended June 30, 2025:

                         
    For the Three Months ended June 30, 2025  
    Perfecular & Lusher     Corporate &
IoT		     Lusher Holding LLC     Total  
Revenue   $ 19,375     $ 15,955     $ –     $ 35,330  
                                 
Cost and operating expenses                                
Property operating expenses     –       –       –       –  
Cost of other revenue     16,462       31,280       –       47,742  
Depreciation and amortization     –       5,506       –       5,506  
Selling expense     –       7,420       –       7,420  
Compensation – officers and directors     –       125,357       –       125,357  
Research and development     155,572       311,725       –       467,297  
Professional fees     –       429,155       –       429,155  
General and administrative     2,043       493,570       –       495,613  
Total cost and operating expense     174,077       1,404,013       –       1,578,090  
                                 
Income (loss) from operations     (154,702 )     (1,388,078 )     –       (1,542,760 )
                                 
Total other income     –       37,112       –       37,112  
                                 
Net loss   $ (154,702 )   $ (1,350,946 )   $ –     $ (1,505,648 )

 

The following tables summarize the financial information of each operating segment of the Company for the six months ended June 30, 2026:

                         
    For the Six Months ended June 30, 2026  
    Perfecular & Lusher     Corporate &
IoT		     Lusher Holding LLC     Total  
Revenue   $ –     $ 71,193     $ 651,950     $ 723,143  
                                 
Cost and operating expenses                                
Property operating expenses     –       –       259,663       259,663  
Cost of other revenue     –       49,956       –       49,956  
Depreciation and amortization     7,083       15,723       184,940       207,746  
Selling expense     –       33,539       –       33,539  
Compensation – officers and directors     –       235,189       –       235,189  
Research and development     283,224       343,738       –       626,962  
Professional fees     –       1,136,349       –       1,136,349  
General and administrative     890       983,617       10,518       995,025  
Total cost and operating expense     291,197       2,798,111       455,121       3,544,429  
                                 
Income (loss) from operations     (291,197 )     (2,726,918 )     196,829       (2,821,286 )
                                 
Total other income (expense)     –       142,331       (86,081 )     56,250  
                                 
Net loss   $ (291,197 )   $ (2,584,587 )   $ 110,748     $ (2,765,036 )

 

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		     Lusher Holding LLC     Total  
Revenue   $ 26,019     $ 199,566     $ –     $ 225,585  
                                 
Cost and operating expenses                                
Property operating expenses     –       –       –       –  
Cost of other revenue     21,835       185,618       –       207,453  
Depreciation and amortization     –       10,959       –       10,959  
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       770,103       –       772,615  
Total cost and operating expense     296,974       2,742,898       –       3,039,872  
                                 
Income (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 )