Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 11 – Segment Reporting

 

The Company currently has three 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) The Company’s “Corporate & IoT” segment includes the operations of AVX, Smart AVX, Focus, and Focus Shenzhen. AVX and Smart AVX provide LED and IoT installation, management, and integration services for LED and display systems, audio/video systems, home theaters, lighting controls, and automation systems. Smart AVX also sells smart IoT products. Focus and Focus Shenzhen conduct research and development of IoT technologies and smart products for commercial and home automation applications. This segment also includes corporate financing activities, executive expenses, public company operating and investor relations expenses, and shared management costs across the Company’s subsidiaries. (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 September 30, 2026:

                       
    For the Three Months ended September 30, 2026  
    Perfecular & Lusher     Corporate &
IoT		     Lusher Holding LLC     Total  
Revenue   $ –     $ 13,300     $ 789,128     $ 802,428  
                                 
Cost and operating expenses                                
Property operating expenses     –       –       400,655       400,655  
Cost of other revenue     –       57,869       –       57,869  
Depreciation and amortization     7,083       6,827       221,928       235,838  
Selling expense     –       2,199       –       2,199  
Compensation – officers and directors     –       117,642       –       117,642  
Research and development     249,532       234,653       –       484,185  
Professional fees     –       303,761       –       303,761  
General and administrative     45       353,537       2,581       356,163  
Total cost and operating expense     256,660       1,076,488       625,164       1,958,312  
                                 
Income (loss) from operations     (256,660 )     (1,063,188 )     163,964       (1,155,884 )
                                 
Total other income (expense)     –       (605 )     (232,936 )     (233,541 )
                                 
Net loss   $ (256,660 )   $ (1,063,793 )   $ (68,972 )   $ (1,389,425 )

                                 
    For the Three Months ended September 30, 2025
    Perfecular & Lusher   Corporate &
IoT		   Lusher Holding LLC   Total
Revenue   $ –     $ 28,689     $ –     $ 28,689  
                                 
Cost and operating expenses                                
Property operating expenses     –       –       –       –  
Cost of other revenue     –       30,301       –       30,301  
Depreciation and amortization     –       –       –       –  
Selling expense     –       2,374       –       2,374  
Compensation – officers and directors     –       124,981       –       124,981  
Research and development     170,045       118,033       –       288,078  
Professional fees     –       321,917       –       321,917  
General and administrative     12       441,402       –       441,414  
Total cost and operating expense     170,057       1,039,008       –       1,209,065  
                                 
Loss from operations     (170,057 )     (1,010,319 )     –       (1,180,376 )
                                 
Total other income     –       14,001       –       14,001  
                                 
Net loss   $ (170,057 )   $ (996,318 )   $ –     $ (1,166,375 )

 

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

                         
    For the Nine Months ended September 30, 2026  
    Perfecular & Lusher     Corporate &
IoT		     Lusher Holding LLC     Total  
Revenue   $ –     $ 84,493     $ 1,441,078     $ 1,525,571  
                                 
Cost and operating expenses                                
Property operating expenses     –       –       660,318       660,318  
Cost of other revenue     –       107,825       –       107,825  
Depreciation and amortization     14,166       22,550       406,868       443,584  
Selling expense     –       35,738       –       35,738  
Compensation – officers and directors     –       352,831       –       352,831  
Research and development     532,756       578,391       –       1,111,147  
Professional fees     –       1,440,110       –       1,440,110  
General and administrative     935       1,337,154       13,099       1,351,188  
Total cost and operating expense     547,857       3,874,599       1,080,285       5,502,741  
                                 
Income (loss) from operations     (547,857 )     (3,790,106 )     360,793       (3,977,170 )
                                 
Total other income (expense)     –       141,726       (319,017 )     (177,291 )
                                 
Net income (loss)   $ (547,857 )   $ (3,648,380 )   $ 41,776     $ (4,154,461 )

 

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		   Lusher Holding LLC   Total
Revenue   $ 26,019     $ 228,255     $ –     $ 254,274  
                                 
Cost and operating expenses                                
Property operating expenses     –       –       –       –  
Cost of other revenue     21,835       215,919       –       237,754  
Depreciation and amortization     –       –       –       –  
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 cost and operating expense     467,031       3,781,906       –       4,248,937  
                                 
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 )