Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 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 three months ended March 31, 2025:

                 
    For the Three Months ended March 31, 2025  
    Perfecular & Lusher     Corporate & IoT     Total  
Revenue   $ 6,624     $ 183,631     $ 190,255  
Cost of revenue     5,373       154,338       159,711  
Gross profit     1,251       29,293       30,544  
                         
Operating expenses                        
Selling expense     1,165       47,815       48,980  
Compensation – officers and directors     –       125,387       125,387  
Research and development     115,890       256,368       372,258  
Professional fees     –       472,991       472,991  
General and administrative     469       281,986       282,455  
Total operating expense     117,524       1,184,547       1,302,071  
                         
Loss from operations     (116,273 )     (1,155,254 )     (1,271,527 )
                         
Total other income     1       20,148       20,149  
                         
Net loss   $ (116,272 )   $ (1,135,106 )   $ (1,251,378 )

 

The following tables summarize the financial information of each operating segment of the Company for the three months ended March 31, 2024:

                   
    For the Three Months ended March 31, 2024  
    Perfecular & Lusher     Corporate & IoT     Total  
Revenue   $ 2,116     $ 177,389     $ 179,505  
Cost of revenue     2,315       86,891       89,206  
Gross profit (loss)     (199 )     90,498       90,299  
                         
Operating expenses                        
Selling expense     2,454       36,831       39,285  
Compensation – officers and directors     –       56,793       56,793  
Research and development     46,810       296,467       343,277  
Professional fees     –       352,611       352,611  
General and administrative     3,175       509,064       512,239  
Total operating expense     52,439       1,251,766       1,304,205  
                         
Loss from operations     (52,638 )     (1,161,268 )     (1,213,906 )
                         
Total other income     335       2,737       3,072  
                         
Loss from discontinued operations     –       (104,763 )     (104,763 )
                         
Net loss   $ (52,303 )   $ (1,263,294 )   $ (1,315,597 )