Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 12, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55247 | |
Entity Registrant Name | FOCUS UNIVERSAL INC | |
Entity Central Index Key | 0001590418 | |
Entity Tax Identification Number | 46-3355876 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 2311 E. Locust Court | |
Entity Address, City or Town | Ontario | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91761 | |
City Area Code | (626) | |
Local Phone Number | 272-3883 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | FCUV | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 43,423,517 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash | $ 6,660,408 | $ 8,678,665 |
Accounts receivable, net | 167,622 | 177,315 |
Accounts receivable – related party | 88,270 | 15,176 |
Inventory | 56,258 | 22,889 |
Other receivables | 0 | 13,057 |
Prepaid expenses | 197,719 | 301,270 |
Marketable equity securities | 163,490 | 0 |
Deposit - current portion | 5,968 | 5,968 |
Total Current Assets | 7,339,735 | 9,214,340 |
Property and equipment, net | 4,310,125 | 4,353,340 |
Operating lease right-of-use asset | 215,750 | 420,137 |
Deposits | 36,235 | 33,933 |
Total Assets | 11,901,845 | 14,021,750 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 187,266 | 293,354 |
Other current liabilities | 12,898 | 23,902 |
Loan, current portion | 0 | 132,618 |
Lease liability, current portion | 114,119 | 121,568 |
Total Current Liabilities | 314,283 | 571,442 |
Non-Current Liabilities: | ||
Lease liability, less current portion | 231,271 | 302,387 |
Loan, less current portion | 0 | 25,929 |
Other liability | 14,735 | 0 |
Total Non-Current Liabilities | 246,006 | 328,316 |
Total Liabilities | 560,289 | 899,758 |
Stockholders' Equity: | ||
Common stock, par value $0.001 per share, 75,000,000 shares authorized; 43,413,517 shares issued and outstanding as of June 30, 2022 and 43,259,741 shares issued and outstanding as of December 31, 2021 | 43,413 | 43,259 |
Additional paid-in capital | 26,480,424 | 24,093,075 |
Shares to be issued, common shares | 684,920 | 1,922,753 |
Accumulated deficit | (15,867,318) | (12,937,091) |
Accumulated other comprehensive income (loss) | 117 | (4) |
Total Stockholders' Equity | 11,341,556 | 13,121,992 |
Total Liabilities and Stockholders' Equity | $ 11,901,845 | $ 14,021,750 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, issued | 43,413,517 | 43,259,741 |
Common stock, outstanding | 43,413,517 | 43,259,741 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total Revenue | $ 64,642 | $ 261,680 | $ 221,809 | $ 625,143 |
Cost and Operating Expenses: | ||||
Cost of revenue, excluding depreciation & amortization | 57,472 | 208,583 | 200,563 | 500,846 |
Selling expense | 17,548 | 446 | 55,887 | 958 |
Compensation - officers | 34,000 | 34,000 | 110,040 | 73,100 |
Research and development | 167,361 | 47,222 | 729,105 | 110,372 |
Professional fees | 174,341 | 186,765 | 535,207 | 457,475 |
General and administrative | 819,268 | 448,199 | 1,720,216 | 865,120 |
Total Operating Expenses | 1,269,990 | 925,215 | 3,351,018 | 2,007,871 |
Loss from Operations | (1,205,348) | (663,535) | (3,129,209) | (1,382,728) |
Other Income (Expense): | ||||
Interest income (expense), net | 256 | (15,223) | 250 | (22,756) |
Unrealized loss on marketable equity securities | (74,626) | 0 | (74,626) | 0 |
Realized gain on marketable equity securities | 0 | 0 | 10,281 | 0 |
Other income (expense), net | 218,421 | 198,613 | 263,077 | 242,823 |
Total other income (expense) | 144,051 | 183,390 | 198,982 | 220,067 |
Loss before income taxes | (1,061,297) | (480,145) | (2,930,227) | (1,162,661) |
Income tax expense | 0 | 0 | 0 | 0 |
Net Loss | (1,061,297) | (480,145) | (2,930,227) | (1,162,661) |
Other comprehensive items | ||||
Foreign currency translation gain and (loss) | (431) | 0 | 121 | 0 |
Total comprehensive loss | (1,061,728) | (480,145) | (2,930,106) | (1,162,661) |
Revenue [Member] | ||||
Total Revenue | 62,364 | 256,730 | 187,989 | 610,002 |
Revenue Related Party [Member] | ||||
Total Revenue | $ 2,278 | $ 4,950 | $ 33,820 | $ 15,141 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Weighted Average Number of Shares Outstanding, Basic | 43,396,719 | 40,959,741 | 43,328,608 | 40,959,741 |
Weighted Average Number of Shares Outstanding, Diluted | 43,396,719 | 40,959,741 | 43,328,608 | 40,959,741 |
Earnings Per Share, Basic | $ (0.02) | $ (0.01) | $ (0.07) | $ (0.03) |
Earnings Per Share, Diluted | $ (0.02) | $ (0.01) | $ (0.07) | $ (0.03) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Shares To Be Issued Common Shares [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance - December 31, 2020 at Dec. 31, 2020 | $ 40,959 | $ 14,381,058 | $ 98,709 | $ (9,716,114) | $ 4,804,612 | |
Beginning balance, shares at Dec. 31, 2020 | 40,959,741 | |||||
Stock based compensation - options | 213,675 | 213,675 | ||||
Common stock to be issued for services | 24,000 | 24,000 | ||||
Net loss | (1,162,661) | (1,162,661) | ||||
Balance – June 30, 2021 at Jun. 30, 2021 | $ 40,959 | 14,594,733 | 122,709 | (10,878,775) | 3,879,626 | |
Shares, Outstanding, Ending Balance at Jun. 30, 2021 | 40,959,741 | |||||
Balance - December 31, 2020 at Mar. 31, 2021 | $ 40,959 | 14,487,896 | 110,709 | (10,398,630) | 4,240,934 | |
Beginning balance, shares at Mar. 31, 2021 | 40,959,741 | |||||
Stock based compensation - options | 106,837 | 106,837 | ||||
Common stock to be issued for services | 12,000 | 12,000 | ||||
Net loss | (480,145) | (480,145) | ||||
Balance – June 30, 2021 at Jun. 30, 2021 | $ 40,959 | 14,594,733 | 122,709 | (10,878,775) | 3,879,626 | |
Shares, Outstanding, Ending Balance at Jun. 30, 2021 | 40,959,741 | |||||
Balance - December 31, 2020 at Dec. 31, 2021 | $ 43,259 | 24,093,075 | 1,922,753 | (12,937,091) | (4) | 13,121,992 |
Beginning balance, shares at Dec. 31, 2021 | 43,259,741 | |||||
Stock based compensation - options | 456,750 | 456,750 | ||||
Stock based compensation - shares | 692,920 | 692,920 | ||||
Common stock to be issued for services | $ 154 | 1,930,599 | (1,930,753) | |||
Common stock to be issued for services, shares | 153,776 | |||||
Other comprehensive loss | 121 | 121 | ||||
Net loss | (2,930,227) | (2,930,227) | ||||
Balance – June 30, 2021 at Jun. 30, 2022 | $ 43,413 | 26,480,424 | 684,920 | (15,867,318) | 117 | 11,341,556 |
Shares, Outstanding, Ending Balance at Jun. 30, 2022 | 43,413,517 | |||||
Balance - December 31, 2020 at Mar. 31, 2022 | $ 43,259 | 24,321,450 | 2,587,123 | (14,806,021) | 548 | 12,146,359 |
Beginning balance, shares at Mar. 31, 2022 | 43,259,741 | |||||
Stock based compensation - options | 228,375 | 228,375 | ||||
Stock based compensation - shares | 28,550 | 28,550 | ||||
Common stock to be issued for services | $ 154 | 1,930,599 | (1,930,753) | |||
Common stock to be issued for services, shares | 153,776 | |||||
Other comprehensive loss | (431) | (431) | ||||
Net loss | (1,061,297) | (1,061,297) | ||||
Balance – June 30, 2021 at Jun. 30, 2022 | $ 43,413 | $ 26,480,424 | $ 684,920 | $ (15,867,318) | $ 117 | $ 11,341,556 |
Shares, Outstanding, Ending Balance at Jun. 30, 2022 | 43,413,517 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net Loss | $ (2,930,227) | $ (1,162,661) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Bad debt expense | 57,147 | 5,749 |
Inventory fair value adjustments | (25,617) | (1,329) |
Depreciation expense | 82,063 | 80,872 |
Unrealized loss on marketable equity securities | 74,626 | 0 |
Realized gain on marketable equity securities | (10,281) | 0 |
Gain on forgiveness of debt | (158,547) | (151,500) |
Stock-based compensation – shares | 692,920 | 0 |
Stock-based compensation – services | 0 | 24,000 |
Stock option compensation – options | 456,750 | 213,675 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (47,454) | 40,219 |
Accounts receivable - related party | (73,094) | (5,016) |
Inventories | (7,752) | 32,248 |
Other receivable | 13,057 | (2,400) |
Prepaid expenses | 103,083 | (98,821) |
Deposit | (4,008) | 100,000 |
Operating lease right-of-use asset | 190,790 | 23,553 |
Accounts payable and accrued liabilities | (106,104) | 32,400 |
Accounts payable - related party | 0 | (17,471) |
Other current liabilities | (17,135) | 164 |
Customer deposit | 6,131 | (52,751) |
Lease liabilities | (60,576) | (25,228) |
Other liabilities | 14,736 | 0 |
Net cash flows used in operating activities | (1,749,492) | (964,297) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (39,702) | 0 |
Purchase of marketable securities | (708,359) | 0 |
Proceeds from sale of marketable securities | 480,524 | 0 |
Net cash flows used in investing activities | (267,537) | 0 |
Cash flows from financing activities: | ||
Proceeds from SBA loan | 0 | 267,297 |
Repayment on SBA loan | 0 | (227) |
Proceeds from bank loan | 0 | 1,500,000 |
Prepayment on bank loan | 0 | (4,663) |
Net cash flows provided by financing activities | 0 | 1,762,407 |
Effect of exchange rate | (1,228) | 0 |
Net change in cash | (2,018,257) | 798,110 |
Cash beginning of period | 8,678,665 | 583,325 |
Cash end of period | 6,660,408 | 1,381,435 |
Supplemental cash flow disclosure: | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | $ 6,153 | $ 19,267 |
Organization and Operations
Organization and Operations | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization and Operations | Note 1 – Organization and Operations Focus Universal Inc. (“Focus”) was incorporated under the laws of the State of Nevada on December 4, 2012 (“Inception”). Focus Universal Inc. is a universal smart instrument developer and manufacturer focused on the internet of things (“IoT”) industry, headquartered in Ontario, California, specializing in the development and commercialization of novel and proprietary universal smart technologies and instruments that solve problems plaguing the internet of things (“IoT”) industry by: (1) increasing overall chip integration by shifting it to the device level; (2) creating a faster 5G cellular technology by using Ultra-narrowband technology; (3) leveraging ultra-narrowband power line communication (“PLC”) technology; and (4) User Interface Machine auto generation technology. Universal smart technology is an off-the-shelf technology utilizing an innovative hardware integrated platform. The Focus platform provides a unique and universal combined wired and wireless solution for embedded design, industrial control, functionality test, and parameter measurement instruments and functions. The Company’s smart technology software utilizes a smartphone, computer, or a mobile device as an interface platform and display that communicates and works in tandem with a group of external sensors or probes, or both. The external sensors and probes may be manufactured by different vendors, but the universal smart technology functions in a manner that does not require the user to have extensive knowledge of the unique characteristics of the function of each of the sensors and probes. The universal smart instrument Focus developed (the “Ubiquitor”) consists of a reusable foundation component which includes a wireless gateway (which allows the instrument to connect to the smartphone via Bluetooth and WiFi technology), universal smart application software (“Application”) which is installed on the user’s smartphone or other mobile device and allows monitoring of the sensor readouts on the smartphone screen. The Ubiquitor also connects to a variety of individual scientific sensors that collect data, from moisture, light, airflow, voltage, and a wide variety of applications. The data is then sent through a wired or wireless connection, or a combination thereof to the smartphone or other mobile device and the data is organized and displayed on the smartphone screen. The smartphone or other mobile device, foundation, and sensor readouts together perform the functions of many traditional scientific and engineering instruments and are intended to replace the traditional, wired stand-alone instruments at a fraction of their cost. Focus Universal is also developing ultra-narrow band technology that is hopefully capable of overcoming the noise problems communicating through power lines that have hindered the industry for over a century. Focus Universal’s wireless communication technology may allow for longer-range coverage, might be more energy effective and management believes has much faster data sending speeds than the current 5G technology speeds being used. Perfecular Inc. (“Perfecular”), a wholly-owned subsidiary of Focus, was founded in September 2009 and is headquartered in Ontario, California, and is engaged in designing certain digital sensor products and sells a broad selection of horticultural sensors and filters in North America and Europe. AVX Design & Integration, Inc. (“AVX”) was incorporated on June 16, 2000 in the state of California. AVX is an IoT installation and management company specializing in high performance and easy to use Audio/Video, Home Theater, Lighting Control, Automation and Integration. Services provided by AVX include full integration of houses, apartment, commercial complex, office spaces with audio, visual and control systems to fully integrate devices in the low voltage field. AVX’s services also include partial equipment upgrade and installation. On December 23, 2021, Focus set up a branch in Shenzhen China, Focus Universal (Shenzhen) Technology Company LTD. The subsidiary was registered to be engaged in IoT research and development, equipment sales, and application services, software development and sales, software outsourcing, intelligent agricultural management, intelligent instrumentation sales, and information consulting services. This excludes any projects subject to approval or that require a separate business license in accordance with the local laws. China allows foreign entities to setup wholly owned limited liability companies in China, also known as Wholly Foreign Owned Enterprises (WFOEs), in non “restricted” or “prohibited” industries and business activities. The subsidiary’s business operation has been approved by the local government in Shenzhen to be qualified as a WFOE entity in China. The entity is 100% owned by Focus Universal, Inc. On January 5, 2022, the Company founded a wholly owned subsidiary named Lusher Bioscientific, Inc. (“Lusher”) Lusher Bioscientific was founded to market to the hydroponic and controlled agriculture market and to assist in the product development of IoT technology products within this sector. As of the date of this filing, the Company has only founded the subsidiary and activities are in the introductory phase. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Focus and its wholly-owned subsidiaries, Perfecular Inc., AVX Design & Integration, Inc., Focus Universal (Shenzhen) Technology Co., LTD and Lusher Bioscientific (collectively, the “Company”, “we”, “our”, or “us”). All intercompany balances and transactions have been eliminated upon consolidation. The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Going Concern In the long term, the continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to repay its debt obligations, to obtain necessary equity financing to continue operations, and the attainment of profitable operations. For the six months ended June 30, 2022, the Company had a net loss of $ 2,930,227 1,749,492 3,152,618 Segment Reporting The Company currently has two operating segments. In accordance with ASC 280, Segment Reporting Asset information by operating segment is not presented as the chief operating decision maker does not review this information by segment. The reporting segments follow the same accounting policies used in the preparation of the Company’s unaudited condensed consolidated financial statements. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the accompanying unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Significant estimates in the accompanying financial statements include the lease term impacting right-of use asset and lease liability, useful lives of property and equipment, useful lives of intangible assets, allowance for doubtful accounts, inventory reserves, debt discounts, valuation of derivatives, and the valuation allowance on deferred tax assets. The Company regularly evaluates its estimates and assumptions. Cash The Company considers all highly liquid investments with a maturity of three months or less to be cash. At times, such investments may be in excess of Federal Deposit Insurance Corporation (FDIC) insurance limit. As of June 30, 2022 and December 31, 2021, approximately $ 5,719,087 7,464,846 Accounts Receivable The Company grants credit to clients that sell the Company’s products or engage in construction service under credit terms that it believes are customary in the industry and do not require collateral to support customer receivables. The accounts receivable balances are generally collected within 30 to 90 days of the product sale. Allowance for doubtful accounts The Company estimates an allowance for doubtful accounts based on historical collection trends and review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. As of June 30, 2022 and December 31, 2021, allowance for doubtful accounts amounted to $ 143,782 86,635 Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by investing its cash with high credit quality financial institutions. Inventory Inventory consists primarily of parts and finished goods and is valued at the lower of the inventory’s cost or net realizable value under the first-in-first-out method. Management compares the cost of inventory with its market value and a fair value adjustment is made to write down inventory to market value, if lower. Inventory allowances are recorded for obsolete or slow-moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions and specific identification of items, such as discontinued products. These estimates could vary significantly from actual requirements, for example, if future economic conditions, customer inventory levels or competitive conditions differ from expectations. The Company regularly reviews the value of inventory based on historical usage and estimated future usage. If estimated realized value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. As of June 30, 2022 and December 31, 2021, inventory fair value adjustments amounted to $ 43,323 68,940 Marketable Securities The Company invests part of its excess treasury cash in equity securities and money market funds according to company treasury and investment policies. Marketable securities represent trading securities bought and held primarily for sale in the near-term to generate income on short-term price differences and are stated at fair value. Realized and unrealized gains and losses are recorded in other income (expense), net. Property and Equipment Property and equipment are stated at cost. The cost and accumulated depreciation of assets sold or retired are removed from the respective accounts and any gain or loss is included in earnings. Maintenance and repairs are expensed currently. Major renewals and betterments are capitalized. Depreciation is computed using the straight-line method. Estimated useful lives are as follows: Schedule of estimated useful lives of property, plant and equipment Fixed assets Useful life Furniture 5 Equipment 5 Warehouse 39 Improvement 5 Land N/A Long-Lived Assets The Company applies the provisions of FASB ASC Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that those fair values are reduced for the cost of disposal. Long-term assets of the Company are reviewed when circumstances warrant as to whether their carrying value has become impaired. The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. The Company also re-evaluates the periods of amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Based on its review at June 30, 2022 and December 31, 2021, the Company believes there was no Share-based Compensation The Company accounts for stock-based compensation to employees in conformity with the provisions of ASC Topic 718, Stock-Based Compensation. Stock-based compensation to employees consist of stock options, grants, and restricted shares that are recognized in the statement of operations based on their fair values at the date of grant. The measurement of stock-based compensation is subject to periodic adjustments as the underlying equity instruments vest and is recognized as an expense over the period during which services are received. The Company calculates the fair value of option grants utilizing the Black-Scholes pricing model and estimates the fair value of the stock based upon the estimated fair value of the common stock. The amount of stock-based compensation recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. The resulting stock-based compensation expense for both employee and non-employee awards is generally recognized on a straight- line basis over the requisite service period of the award. Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The fair value of the warrants was estimated using a Black-Scholes pricing model (see Note 11). The Company does not have any outstanding warrants as of June 30, 2022 and December 31, 2021, respectively. Fair Value of Financial Instruments The Company follows paragraph ASC 825-10-50-10 for disclosures about fair value of its financial instruments and paragraph ASC 820-10-35-37 (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: ☐ Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. ☐ Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. ☐ Level 3: Pricing inputs that are generally unobservable inputs and not corroborated by market data. The following table summarize financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022: Schedule of Fair Value Assets And Liabilities Measured On Recurring Basis June 30, 2022 (unaudited) Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Marketable securities: Stock $ 163,490 $ – $ – $ 163,490 Total assets measured at fair value $ 163,490 $ – $ – $ 163,490 The carrying amount of the Company’s financial assets and liabilities, such as cash, accounts receivable, inventories, other receivable, prepaid expenses, deposit, accounts payable and accrued expenses, other current liabilities, customer deposit, approximate their fair value because of the short maturity of those instruments. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. However, it is not practical to determine the fair value of advances from stockholders, if any, due to their related party nature. Comprehensive Income (Loss) Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive loss for the six months ended June 30, 2022 and for the years ended December 31, 2021 was comprised of foreign currency translation adjustments. Revenue Recognition On September 1, 2018, the Company adopted ASC 606 – Revenue from Contracts with Customers using the modified retrospective transition approach. The core principle of ASC 606 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for exchange of those goods or services. The Company’s updated accounting policies and related disclosures are set forth below, including the disclosure for disaggregated revenue. The impact of adopting ASC 606 was not material to the Consolidated Financial Statements. Revenue from the Company is recognized under Topic 606 in a manner that reasonably reflects the delivery of its services and products to customers in return for expected consideration and includes the following elements: · executed contracts with the Company’s customers that it believes are legally enforceable; · identification of performance obligations in the respective contract; · determination of the transaction price for each performance obligation in the respective contract; · Allocation of the transaction price to each performance obligation; and · recognition of revenue only when the Company satisfies each performance obligation. These five elements, as applied to each of the Company’s revenue category, is summarized below: · Product sales – revenue is recognized at the time of sale of equipment to the customer. · Service sales – revenue is recognized based on the service provided to the customer. Revenue from our project construction is recognized over time using the percentage-of-completion method under the cost approach. The percentage of completion is determined by estimating stage of work completed. Under this approach, recognized contract revenue equals the total estimated contract revenue multiplied by the percentage of completion. Our construction contracts are unit priced, and an account receivable is recorded for amounts invoiced based on actual units produced. Cost of Revenue, excluding depreciation & amortization Cost of revenue includes the cost of services, labor and product incurred to provide product sales, service sales and project sales. Research and development Research and development costs are expensed as incurred. Research and development costs primarily consist of efforts to refine existing product models and develop new product models. Related Parties The Company follows ASC 850-10 for the identification of related parties and disclosure of related party transactions. Pursuant to ASC 850-10-20 the related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of ASC 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The unaudited condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of unaudited condensed consolidated financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the unaudited condensed consolidated financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Commitments and Contingencies The Company follows ASC 450-20 to report accounting for contingencies. Certain conditions may exist as of the date the unaudited condensed consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s unaudited condensed consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Income Tax Provision The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, the Company does not foresee generating taxable income in the near future and utilizing its deferred tax asset, therefore, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company has no material uncertain tax positions for any of the reporting periods presented. Income taxes are accounted for using the asset and liability method. Deferred income taxes are provided for temporary differences in recognizing certain income, expense and credit items for financial reporting purposes and tax reporting purposes. Such deferred income taxes primarily relate to the difference between the tax basis of assets and liabilities and their financial reporting amounts. Deferred tax assets and liabilities are measured by applying enacted statutory tax rates applicable to the future years in which deferred tax assets or liabilities are expected to be settled or realized. There was no material deferred tax asset or liabilities as of June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, the Company did no Basic and Diluted Net Income (Loss) Per Share Net income (loss) per share is computed pursuant to ASC 260-10-45. Basic net income (loss) per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) by the weighted average number of shares of stock and potentially outstanding shares of stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. Due to the net loss incurred by the Company, potentially dilutive instruments would be anti-dilutive. Accordingly, diluted loss per share is the same as basic loss for all periods presented. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive. Schedule of anti dilutive shares Six Months Ended June 30, 2022 2021 Stock options 367,787 262,500 Total 367,787 262,500 Reclassification Certain reclassifications have been made to the unaudited condensed consolidated financial statements for prior years to the current year’s presentation. Such reclassifications have no effect on net income as previously reported. Foreign Currency Translation and Transactions The reporting and functional currency of Focus is the USD. The functional currency of Focus Universal (Shenzhen) Technology Co. LTD, a wholly owned subsidiary of Focus located in China, is the Renminbi (“RMB”). For financial reporting purposes, the financial statements of the Company’s Chinese subsidiary, which are prepared using the RMB, are translated into the Company’s reporting currency, USD. Assets and liabilities are translated using the exchange rate on the balance sheet date. Revenue and expenses are translated using average exchange rates prevailing during each reporting period. Stockholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive loss in stockholders’ equity. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange difference, presented as foreign currency transaction loss, is included in the accompanying unaudited condensed consolidated statements of operations. The exchange rates used for unaudited condensed consolidated financial statements are as follows: Schedule Of Intercompany Foreign Currency Balances Average Rate for the Six Months Ended June 30, 2022 (Unaudited) 2021 (Unaudited) China Yuan (RMB) RMB 6.4749 RMB 6.4721 United States Dollar ($) $ 1.0000 $ 1.0000 Exchange Rate at June 30, 2022 (Unaudited) December 31, 2021 China Yuan (RMB) RMB 6.6964 RMB 6.3641 United States Dollar ($) $ 1.0000 $ 1.0000 |
Recent Accounting Pronouncement
Recent Accounting Pronouncement | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncement | Note 3 – Recent Accounting Pronouncement In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans and other instruments. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on its financial position and results of operations. Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 4 – Inventory At June 30, 2022 and December 31, 2021, inventory consisted of the following: Schedule of Inventory June 30, 2022 December 31, 2021 Parts $ 21,480 $ 12,470 Finished goods 34,778 10,419 Inventory $ 56,258 $ 22,889 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2022 | |
Deposits [Abstract] | |
Deposits | Note 5 – Deposits Deposit balance as of June 30, 2022 amounted to $ 42,203 39,901 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 6 – Property and Equipment At June 30, 2022 and December 31, 2021, property and equipment consisted of the following: Schedule of property and equipment June 30, 2022 December 31, 2021 Warehouse $ 3,789,773 $ 3,789,773 Land 731,515 731,515 Building improvement 240,256 238,666 Furniture and fixture 38,103 27,631 Equipment 98,109 71,368 Software 1,995 1,995 Total cost 4,899,751 4,860,948 Less accumulated depreciation (589,626 ) (507,608 ) Property and equipment, net $ 4,310,125 $ 4,353,340 Depreciation expense for the six months ended June 30, 2022 and 2021 amounted to $ 82,063 80,872 The Company purchased a warehouse in Ontario, California in September 2018 and leased an unused portion to a third party. The tenant paid $ 12,335 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 7 – Related Party Transactions Revenue generated from Vitashower Corp., a company owned by the Chief Executive Officer’s wife, amounted to $ 31,542 15,141 85,992 15,176 0 0 0 0 Service revenue generated from one of the Company’s directors, amounted to $ 2,278 0 2,278 0 Compensation for services provided by the President and Chief Executive Officer for the six months ended June 30, 2022 and 2021 amounted to $ 60,000 60,000 |
Business Concentration and Risk
Business Concentration and Risks | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Business Concentration and Risks | Note 8 – Business Concentration and Risks Major customers Three customers accounted for 34 48 54 78 Major vendors One vendor, Tianjin Guanglee, accounted for 0 0 24 77 |
Lease
Lease | 6 Months Ended |
Jun. 30, 2022 | |
Lease | |
Lease | Note 9 – Lease The Company recorded its operating lease expense of $ 237,045 32,590 On April 8, 2015, AVX Design & Integration Inc. entered an eighty-six month commercial lease with a third party for an approximately 2,592 square foot office space. The lease commenced on July 1, 2015, and will end on August 31, 2022. The monthly rent is $4,536 with approximately a 3% increase rate in each additional year. The incremental borrowing rate for a lease is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar term, which is 15%. Lease expense for the lease is recognized on a straight-line basis over the lease term. As of August, the company has not entered into any new commercial lease for AVX Design & Integration Inc. On December 7, 2021, Focus Universal (Shenzhen) Technology Co. LTD entered into a thirty-eight month commercial lease with a third party for an approximately 5,895 square foot office space. The lease commenced on December 25, 2021 and will end on February 28, 2025. The monthly rent is RMB70,097 (approximately $11,053) with approximately an 11.1% to 12.5% increase rate in each additional year. The incremental borrowing rate for a lease is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar term, which is 10%. Lease expense for the lease is recognized on a straight-line basis over the lease term. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As of June 30, 2022 and December 31, 2021, operating lease right-of use assets and lease liabilities were as follows: Schedule of operating Right-of-use asset and liability June 30, 2022 December 31, 2021 Operating lease right-of-use assets $ 215,750 $ 420,137 Lease liabilities, current portion $ 114,119 $ 121,568 Lease liabilities, less current portion $ 231,271 $ 302,387 Lease term and discount rate: Schedule Lease term and discount rate June 30, 2022 December 31, 2021 Weighted average remaining lease term Operating lease 0.17 2.67 0.67 3.17 Weighted average discount rate Operating lease 10 15 10 15 The minimum future lease payments are as follows: Schedule of maturity of lease liabilities Amount Year ending December 31, 2022 $ 73,964 Year ending December 31, 2023 140,008 Year ending December 31, 2024 155,709 Year ending December 31, 2025 26,170 Total minimum lease payment 395,851 Less: imputed interest (50,463 ) Present value of future minimum lease payments $ 345,389 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Loans | Note 10 – Loans Paycheck Protection Program On March 2, 2021, Perfecular Inc. entered into an agreement to receive a U.S. Small Business Administration Loan (“SBA Loan”) from Wells Fargo related to the COVID-19 pandemic in the amount of $ 158,547 1 158,547 1,570 Schedule of debt June 30, 2022 December 31, 2021 SBA Loan $ – $ 158,547 Less: current portion – (132,618 ) Long term portion $ – $ 25,929 Interest expense incurred from the loans amounted to $ 288 22,827 |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 11 – Stockholders’ Equity Shares authorized Upon formation, the total number of shares of all classes of stock that the Company is authorized to issue is seventy-five million ( 75,000,000 0.001 Common stock During the six months ended June 30, 2022, the Company issued 153,776 On April 4, 2022, the Company issued 121,149 6.25 1,776,044 On May 2, 2022, the Company issued 32,627 154,709 During the year ended December 31, 2021, the Company issued 2,300,000 shares of common stock. On September 2, 2021, the Company closed its initial public offering (“IPO”) under a registration statement effective August 30, 2021, in which it issued and sold 2,000,000 5.00 On September 2, 2021, the Company closed on the IPO’s overallotment option, selling an additional 300,000 5.00 10.3 As of June 30, 2022 and December 31, 2021 and 2020, the Company had 43,413,517 43,259,741 Shares to be issued for compensation The Company entered into agreements with third party consultants for financing and management consulting. The Company has incurred consulting service fees not paid in cash amounting to $ 8,000 154,709 On August 30, 2021, the Company entered into a Representative Common Stock Purchase Warrant agreement (“Warrant Agreement”) with its placement agent, Boustead for 161,000 shares and the exercise price is $6.25. Boustead exercised the warrants on September 7, 2021. The fair value of the warrants was $ 1,041,670 2,326,450 1,284,780 These warrants were valued using a Black-Scholes pricing model with the following assumptions: Schedule of assumptions August 30, 2021 (Initial September 7, Measurement) 2021 Risk-free interest rate 0.77 0.82 Expected term 5 5 Expected volatility 194.37 204.27 Expected dividend yield 0 0 Fair value of units (using Black-Scholes) $ 6.47 $ 14.45 This Warrant Agreement allowed for cashless exercise option, which is calculated by the percentage difference between exercise and trading price, which resulted in a reduced number of warrants being exercisable. On September 7, 2021, Boustead exercised 121,149 warrants with fair value of $1,776,044 upon cashless exercise option of warrants related to completion of the Company’s public offering. The shares will be issued six months after these warrants have been exercised. For the year ended December 31, 2021, the Company has a gain on settlement of derivative liability which amounted to $550,406. 121,149 shares were issued to Boustead which amounted to $17,776,044 as of June 30, 2022. Employee compensation On February 11, 2022 (“Vesting Date”), the Company entered into a Restricted Stock Award Agreement (“Award Agreement”) with nine employees for 290,000 58,000 609,580 In November 2021, the Company entered into a one-year employment agreement with VP of Finance and Head of Investor Relations of the Company, pursuant to which the Company rewards 10,000-share bonus consisting of shares of $0.001 par value voting common stock, which will be granted in 2,500 blocks every quarter based on certain performance metrics. During the six months ended June 30, 2022, the Company recognized VP of Finance and Head of Investor Relations of the Company employee compensation amount of $ 75,340 684,920 0 Stock options On August 6, 2019, each member of the Board was granted 30,000 5.70 On January 4, 2021, each member of the Board was granted 15,000 3.00 On December 31, 2021, each member of the Board was granted 15,000 8.86 As of December 31, 2021, there were 420,000 315,288 104,713 420,000 For the six months ended June 31, 2022 and 2021, the Company’s stock option compensation expenses amounted to $ 456,750 213,675 The fair value of the stock options listed above was determined using the Black-Scholes option pricing model with the following assumptions: Schedule of option activity June 30, 2022 June 30, 2021 Risk-free interest rate 0.93 1.52 0.93 Expected life of the options 10 10 Expected volatility 122.93 148.18 122.93 Expected dividend yield 0 0 The following is a summary of the option activity from December 31, 2021 to June 30, 2022: Schedule of options by exercise price Options Shares Weighted average exercise price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2021 420,000 $ 5.82 8.56 – Granted – $ – – – Exercised – $ – – – Forfeited or expired – $ – – – Outstanding at June 30, 2022 420,000 $ 5.82 8.56 2,354,100 Vested as of June 30, 2022 367,787 $ 5.38 8.35 2,220,435 Exercisable at June 30, 2022 367,787 $ 5.38 8.35 2,220,435 |
Segment reporting
Segment reporting | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment reporting | Note 12 – Segment reporting The Company consists of two types of operations. Focus Universal, Inc. (“Corporate”) involves operations related to research and development of technology products, non-specific financing, executive expense, operations and investor relations of the public entity, and general shared management and costs across subsidiary units which spread across all functional categories. Perfecular Inc. (“Perfecular”) involve wholesale, marketing, and production of universal smart instrument and devices in the hydroponic and controlled agricultural segments. AVX Design & Integration, Inc. (“AVX”) is an IoT installation and management company specializing in high performance and easy to use audio/video, home theater, lighting control, automation, and integration. The table below discloses income statement information by segment. Segment Reporting Six Months Ended June 30, 2022 Corporate Perfecular AVX Total Revenue $ – $ 47,650 $ 140,339 $ 187,989 Revenue - related party – 31,542 2,278 33,820 Total revenue – 79,192 142,617 221,809 Cost and Operating Expenses Cost of Revenue, excluding depreciation & amortization – 60,702 139,861 200,563 Selling expense – 48,085 7,802 55,887 Compensation - officers and directors 110,040 – – 110,040 Research and development 729,105 – – 729,105 Professional fees 522,546 – 12,661 535,207 General and administrative 446,576 1,141,522 132,118 1,720,216 Total Cost and Operating Expenses 1,808,267 1,250,309 292,442 3,351,018 Loss from Operations (1,808,267 ) (1,171,117 ) (149,825 ) (3,129,209 ) Other Income (Expense): Interest income (expense), net 490 (288 ) 48 250 Unrealized loss on marketable equity securities (74,626 ) – – (74,626 ) Realized gain on marketable equity securities 10,281 – – 10,281 Other income (expense), net 105,560 160,117 (3,600 ) 263,077 Total other income (expense) 42,705 159,829 (3,552 ) 198,982 Loss before income taxes (1,765,562 ) (1,011,288 ) (153,377 ) (2,930,227 ) Tax expense – – – – Net Loss $ (1,765,562 ) $ (1,011,288 ) $ (153,377 ) $ (2,930,227 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 – Commitments and Contingencies In the normal course of business or otherwise, the Company may become involved in legal proceedings. The Company will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. The accrual for a litigation loss contingency might include, for example, estimates of potential damages, outside legal fees, and other directly related costs expected to be incurred. There were no recorded litigation loss contingencies as of June 30, 2022 and December 31, 2021. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 – Subsequent Events Regarding election of directors, on August 10, 2022, the Board of Directors appointed Sean Warren to serve on the Board of Directors as an independent director. The appointment of Mr. Warren fills a board seat previously vacated by Mr. Greg Butterfield. As a director, Mr. Warren’s term begins August 10, 2022, and expires at the annual meeting of the stockholders to be held in 2023. It has been determined and accepted that Mr. Warren will serve as a member on the audit and compensation committees of the Board of Directors. Mr. Warren will have the same compensation arrangement for his service as the other independent directors. That compensation currently consists of cash compensation and an option grant. Mr. Sean Warren is a seasoned executive with over 25 years of experience in technology and enterprise technology systems and has previously served on Focus Universal’s board of directors beginning on June 8, 2018. His areas of expertise include software development, cloud management, enterprise infrastructure development and full spectrum of IT compliance. Mr. Warren currently serves as the Vice President of OPSA Change Delivery for Wells Fargo and has since 2019. From 2016 to 2018, he served as Director of IT Operations at Domo, Inc. Mr. Warren has also previous served as the CIO of Mountain Medical, Veyo Medical and Vice President of IT at Larry Miller. He has also worked for technology companies including Omniture, Adobe. Mr. Warren graduated from Florida State University with a degree in accounting. He is qualified to serve as a director because of his accounting experience, his experience serving on public company boards and experience with the financial industry and information technology. The Company has evaluated other subsequent events through the date these unaudited condensed consolidated financial statements were issued and determined that there were no other subsequent events or transactions other than this election of director event that require recognition or disclosures in the unaudited condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Focus and its wholly-owned subsidiaries, Perfecular Inc., AVX Design & Integration, Inc., Focus Universal (Shenzhen) Technology Co., LTD and Lusher Bioscientific (collectively, the “Company”, “we”, “our”, or “us”). All intercompany balances and transactions have been eliminated upon consolidation. The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Going Concern | Going Concern In the long term, the continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to repay its debt obligations, to obtain necessary equity financing to continue operations, and the attainment of profitable operations. For the six months ended June 30, 2022, the Company had a net loss of $ 2,930,227 1,749,492 3,152,618 |
Segment Reporting | Segment Reporting The Company currently has two operating segments. In accordance with ASC 280, Segment Reporting Asset information by operating segment is not presented as the chief operating decision maker does not review this information by segment. The reporting segments follow the same accounting policies used in the preparation of the Company’s unaudited condensed consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the accompanying unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Significant estimates in the accompanying financial statements include the lease term impacting right-of use asset and lease liability, useful lives of property and equipment, useful lives of intangible assets, allowance for doubtful accounts, inventory reserves, debt discounts, valuation of derivatives, and the valuation allowance on deferred tax assets. The Company regularly evaluates its estimates and assumptions. |
Cash | Cash The Company considers all highly liquid investments with a maturity of three months or less to be cash. At times, such investments may be in excess of Federal Deposit Insurance Corporation (FDIC) insurance limit. As of June 30, 2022 and December 31, 2021, approximately $ 5,719,087 7,464,846 |
Accounts Receivable | Accounts Receivable The Company grants credit to clients that sell the Company’s products or engage in construction service under credit terms that it believes are customary in the industry and do not require collateral to support customer receivables. The accounts receivable balances are generally collected within 30 to 90 days of the product sale. |
Allowance for doubtful accounts | Allowance for doubtful accounts The Company estimates an allowance for doubtful accounts based on historical collection trends and review of the current status of trade accounts receivable. It is reasonably possible that the Company’s estimate of the allowance for doubtful accounts will change. As of June 30, 2022 and December 31, 2021, allowance for doubtful accounts amounted to $ 143,782 86,635 |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company limits its exposure to credit loss by investing its cash with high credit quality financial institutions. |
Inventory | Inventory Inventory consists primarily of parts and finished goods and is valued at the lower of the inventory’s cost or net realizable value under the first-in-first-out method. Management compares the cost of inventory with its market value and a fair value adjustment is made to write down inventory to market value, if lower. Inventory allowances are recorded for obsolete or slow-moving inventory based on assumptions about future demand and marketability of products, the impact of new product introductions and specific identification of items, such as discontinued products. These estimates could vary significantly from actual requirements, for example, if future economic conditions, customer inventory levels or competitive conditions differ from expectations. The Company regularly reviews the value of inventory based on historical usage and estimated future usage. If estimated realized value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. As of June 30, 2022 and December 31, 2021, inventory fair value adjustments amounted to $ 43,323 68,940 |
Marketable Securities | Marketable Securities The Company invests part of its excess treasury cash in equity securities and money market funds according to company treasury and investment policies. Marketable securities represent trading securities bought and held primarily for sale in the near-term to generate income on short-term price differences and are stated at fair value. Realized and unrealized gains and losses are recorded in other income (expense), net. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. The cost and accumulated depreciation of assets sold or retired are removed from the respective accounts and any gain or loss is included in earnings. Maintenance and repairs are expensed currently. Major renewals and betterments are capitalized. Depreciation is computed using the straight-line method. Estimated useful lives are as follows: Schedule of estimated useful lives of property, plant and equipment Fixed assets Useful life Furniture 5 Equipment 5 Warehouse 39 Improvement 5 Land N/A |
Long-Lived Assets | Long-Lived Assets The Company applies the provisions of FASB ASC Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that those fair values are reduced for the cost of disposal. Long-term assets of the Company are reviewed when circumstances warrant as to whether their carrying value has become impaired. The Company considers assets to be impaired if the carrying value exceeds the future projected cash flows from related operations. The Company also re-evaluates the periods of amortization to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Based on its review at June 30, 2022 and December 31, 2021, the Company believes there was no |
Share-based Compensation | Share-based Compensation The Company accounts for stock-based compensation to employees in conformity with the provisions of ASC Topic 718, Stock-Based Compensation. Stock-based compensation to employees consist of stock options, grants, and restricted shares that are recognized in the statement of operations based on their fair values at the date of grant. The measurement of stock-based compensation is subject to periodic adjustments as the underlying equity instruments vest and is recognized as an expense over the period during which services are received. The Company calculates the fair value of option grants utilizing the Black-Scholes pricing model and estimates the fair value of the stock based upon the estimated fair value of the common stock. The amount of stock-based compensation recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. The resulting stock-based compensation expense for both employee and non-employee awards is generally recognized on a straight- line basis over the requisite service period of the award. |
Warrants | Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in FASB ASC 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The fair value of the warrants was estimated using a Black-Scholes pricing model (see Note 11). The Company does not have any outstanding warrants as of June 30, 2022 and December 31, 2021, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows paragraph ASC 825-10-50-10 for disclosures about fair value of its financial instruments and paragraph ASC 820-10-35-37 (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: ☐ Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. ☐ Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. ☐ Level 3: Pricing inputs that are generally unobservable inputs and not corroborated by market data. The following table summarize financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022: Schedule of Fair Value Assets And Liabilities Measured On Recurring Basis June 30, 2022 (unaudited) Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Marketable securities: Stock $ 163,490 $ – $ – $ 163,490 Total assets measured at fair value $ 163,490 $ – $ – $ 163,490 The carrying amount of the Company’s financial assets and liabilities, such as cash, accounts receivable, inventories, other receivable, prepaid expenses, deposit, accounts payable and accrued expenses, other current liabilities, customer deposit, approximate their fair value because of the short maturity of those instruments. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. However, it is not practical to determine the fair value of advances from stockholders, if any, due to their related party nature. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive loss for the six months ended June 30, 2022 and for the years ended December 31, 2021 was comprised of foreign currency translation adjustments. |
Revenue Recognition | Revenue Recognition On September 1, 2018, the Company adopted ASC 606 – Revenue from Contracts with Customers using the modified retrospective transition approach. The core principle of ASC 606 is that revenue should be recognized in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for exchange of those goods or services. The Company’s updated accounting policies and related disclosures are set forth below, including the disclosure for disaggregated revenue. The impact of adopting ASC 606 was not material to the Consolidated Financial Statements. Revenue from the Company is recognized under Topic 606 in a manner that reasonably reflects the delivery of its services and products to customers in return for expected consideration and includes the following elements: · executed contracts with the Company’s customers that it believes are legally enforceable; · identification of performance obligations in the respective contract; · determination of the transaction price for each performance obligation in the respective contract; · Allocation of the transaction price to each performance obligation; and · recognition of revenue only when the Company satisfies each performance obligation. These five elements, as applied to each of the Company’s revenue category, is summarized below: · Product sales – revenue is recognized at the time of sale of equipment to the customer. · Service sales – revenue is recognized based on the service provided to the customer. Revenue from our project construction is recognized over time using the percentage-of-completion method under the cost approach. The percentage of completion is determined by estimating stage of work completed. Under this approach, recognized contract revenue equals the total estimated contract revenue multiplied by the percentage of completion. Our construction contracts are unit priced, and an account receivable is recorded for amounts invoiced based on actual units produced. |
Cost of Revenue, excluding depreciation & amortization | Cost of Revenue, excluding depreciation & amortization Cost of revenue includes the cost of services, labor and product incurred to provide product sales, service sales and project sales. |
Research and development | Research and development Research and development costs are expensed as incurred. Research and development costs primarily consist of efforts to refine existing product models and develop new product models. |
Related Parties | Related Parties The Company follows ASC 850-10 for the identification of related parties and disclosure of related party transactions. Pursuant to ASC 850-10-20 the related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of ASC 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The unaudited condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of unaudited condensed consolidated financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the unaudited condensed consolidated financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and Contingencies | Commitments and Contingencies The Company follows ASC 450-20 to report accounting for contingencies. Certain conditions may exist as of the date the unaudited condensed consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s unaudited condensed consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Income Tax Provision | Income Tax Provision The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, the Company does not foresee generating taxable income in the near future and utilizing its deferred tax asset, therefore, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company has no material uncertain tax positions for any of the reporting periods presented. Income taxes are accounted for using the asset and liability method. Deferred income taxes are provided for temporary differences in recognizing certain income, expense and credit items for financial reporting purposes and tax reporting purposes. Such deferred income taxes primarily relate to the difference between the tax basis of assets and liabilities and their financial reporting amounts. Deferred tax assets and liabilities are measured by applying enacted statutory tax rates applicable to the future years in which deferred tax assets or liabilities are expected to be settled or realized. There was no material deferred tax asset or liabilities as of June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, the Company did no |
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share Net income (loss) per share is computed pursuant to ASC 260-10-45. Basic net income (loss) per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) by the weighted average number of shares of stock and potentially outstanding shares of stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants. Due to the net loss incurred by the Company, potentially dilutive instruments would be anti-dilutive. Accordingly, diluted loss per share is the same as basic loss for all periods presented. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive. Schedule of anti dilutive shares Six Months Ended June 30, 2022 2021 Stock options 367,787 262,500 Total 367,787 262,500 |
Reclassification | Reclassification Certain reclassifications have been made to the unaudited condensed consolidated financial statements for prior years to the current year’s presentation. Such reclassifications have no effect on net income as previously reported. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The reporting and functional currency of Focus is the USD. The functional currency of Focus Universal (Shenzhen) Technology Co. LTD, a wholly owned subsidiary of Focus located in China, is the Renminbi (“RMB”). For financial reporting purposes, the financial statements of the Company’s Chinese subsidiary, which are prepared using the RMB, are translated into the Company’s reporting currency, USD. Assets and liabilities are translated using the exchange rate on the balance sheet date. Revenue and expenses are translated using average exchange rates prevailing during each reporting period. Stockholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive loss in stockholders’ equity. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange difference, presented as foreign currency transaction loss, is included in the accompanying unaudited condensed consolidated statements of operations. The exchange rates used for unaudited condensed consolidated financial statements are as follows: Schedule Of Intercompany Foreign Currency Balances Average Rate for the Six Months Ended June 30, 2022 (Unaudited) 2021 (Unaudited) China Yuan (RMB) RMB 6.4749 RMB 6.4721 United States Dollar ($) $ 1.0000 $ 1.0000 Exchange Rate at June 30, 2022 (Unaudited) December 31, 2021 China Yuan (RMB) RMB 6.6964 RMB 6.3641 United States Dollar ($) $ 1.0000 $ 1.0000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of property, plant and equipment | Schedule of estimated useful lives of property, plant and equipment Fixed assets Useful life Furniture 5 Equipment 5 Warehouse 39 Improvement 5 Land N/A |
Schedule of Fair Value Assets And Liabilities Measured On Recurring Basis | Schedule of Fair Value Assets And Liabilities Measured On Recurring Basis June 30, 2022 (unaudited) Fair Value Carrying Level 1 Level 2 Level 3 Value Assets Marketable securities: Stock $ 163,490 $ – $ – $ 163,490 Total assets measured at fair value $ 163,490 $ – $ – $ 163,490 |
Schedule of anti dilutive shares | Schedule of anti dilutive shares Six Months Ended June 30, 2022 2021 Stock options 367,787 262,500 Total 367,787 262,500 |
Schedule Of Intercompany Foreign Currency Balances | Schedule Of Intercompany Foreign Currency Balances Average Rate for the Six Months Ended June 30, 2022 (Unaudited) 2021 (Unaudited) China Yuan (RMB) RMB 6.4749 RMB 6.4721 United States Dollar ($) $ 1.0000 $ 1.0000 Exchange Rate at June 30, 2022 (Unaudited) December 31, 2021 China Yuan (RMB) RMB 6.6964 RMB 6.3641 United States Dollar ($) $ 1.0000 $ 1.0000 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Schedule of Inventory June 30, 2022 December 31, 2021 Parts $ 21,480 $ 12,470 Finished goods 34,778 10,419 Inventory $ 56,258 $ 22,889 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Schedule of property and equipment June 30, 2022 December 31, 2021 Warehouse $ 3,789,773 $ 3,789,773 Land 731,515 731,515 Building improvement 240,256 238,666 Furniture and fixture 38,103 27,631 Equipment 98,109 71,368 Software 1,995 1,995 Total cost 4,899,751 4,860,948 Less accumulated depreciation (589,626 ) (507,608 ) Property and equipment, net $ 4,310,125 $ 4,353,340 |
Lease (Tables)
Lease (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Lease | |
Schedule of operating Right-of-use asset and liability | Schedule of operating Right-of-use asset and liability June 30, 2022 December 31, 2021 Operating lease right-of-use assets $ 215,750 $ 420,137 Lease liabilities, current portion $ 114,119 $ 121,568 Lease liabilities, less current portion $ 231,271 $ 302,387 |
Schedule Lease term and discount rate | Schedule Lease term and discount rate June 30, 2022 December 31, 2021 Weighted average remaining lease term Operating lease 0.17 2.67 0.67 3.17 Weighted average discount rate Operating lease 10 15 10 15 |
Schedule of maturity of lease liabilities | Schedule of maturity of lease liabilities Amount Year ending December 31, 2022 $ 73,964 Year ending December 31, 2023 140,008 Year ending December 31, 2024 155,709 Year ending December 31, 2025 26,170 Total minimum lease payment 395,851 Less: imputed interest (50,463 ) Present value of future minimum lease payments $ 345,389 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Schedule of debt June 30, 2022 December 31, 2021 SBA Loan $ – $ 158,547 Less: current portion – (132,618 ) Long term portion $ – $ 25,929 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of assumptions | Schedule of assumptions August 30, 2021 (Initial September 7, Measurement) 2021 Risk-free interest rate 0.77 0.82 Expected term 5 5 Expected volatility 194.37 204.27 Expected dividend yield 0 0 Fair value of units (using Black-Scholes) $ 6.47 $ 14.45 |
Schedule of option activity | Schedule of option activity June 30, 2022 June 30, 2021 Risk-free interest rate 0.93 1.52 0.93 Expected life of the options 10 10 Expected volatility 122.93 148.18 122.93 Expected dividend yield 0 0 |
Schedule of options by exercise price | Schedule of options by exercise price Options Shares Weighted average exercise price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2021 420,000 $ 5.82 8.56 – Granted – $ – – – Exercised – $ – – – Forfeited or expired – $ – – – Outstanding at June 30, 2022 420,000 $ 5.82 8.56 2,354,100 Vested as of June 30, 2022 367,787 $ 5.38 8.35 2,220,435 Exercisable at June 30, 2022 367,787 $ 5.38 8.35 2,220,435 |
Segment reporting (Tables)
Segment reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Six Months Ended June 30, 2022 Corporate Perfecular AVX Total Revenue $ – $ 47,650 $ 140,339 $ 187,989 Revenue - related party – 31,542 2,278 33,820 Total revenue – 79,192 142,617 221,809 Cost and Operating Expenses Cost of Revenue, excluding depreciation & amortization – 60,702 139,861 200,563 Selling expense – 48,085 7,802 55,887 Compensation - officers and directors 110,040 – – 110,040 Research and development 729,105 – – 729,105 Professional fees 522,546 – 12,661 535,207 General and administrative 446,576 1,141,522 132,118 1,720,216 Total Cost and Operating Expenses 1,808,267 1,250,309 292,442 3,351,018 Loss from Operations (1,808,267 ) (1,171,117 ) (149,825 ) (3,129,209 ) Other Income (Expense): Interest income (expense), net 490 (288 ) 48 250 Unrealized loss on marketable equity securities (74,626 ) – – (74,626 ) Realized gain on marketable equity securities 10,281 – – 10,281 Other income (expense), net 105,560 160,117 (3,600 ) 263,077 Total other income (expense) 42,705 159,829 (3,552 ) 198,982 Loss before income taxes (1,765,562 ) (1,011,288 ) (153,377 ) (2,930,227 ) Tax expense – – – – Net Loss $ (1,765,562 ) $ (1,011,288 ) $ (153,377 ) $ (2,930,227 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details - Estimated useful lives) | 6 Months Ended |
Jun. 30, 2022 | |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property | 5 years |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property | 5 years |
Manufacturing Facility [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property | 39 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details-Fair value recurring basis) | Jun. 30, 2022 USD ($) |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Fair value assets and liabilities | $ 163,490 |
Fair Value, Inputs, Level 1 [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Fair value assets and liabilities | 163,490 |
Fair Value, Inputs, Level 2 [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Fair value assets and liabilities | 0 |
Fair Value, Inputs, Level 3 [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Fair value assets and liabilities | 0 |
Marketable Securities Stock [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Fair value assets and liabilities | 163,490 |
Marketable Securities Stock [Member] | Fair Value, Inputs, Level 1 [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Fair value assets and liabilities | 163,490 |
Marketable Securities Stock [Member] | Fair Value, Inputs, Level 2 [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Fair value assets and liabilities | 0 |
Marketable Securities Stock [Member] | Fair Value, Inputs, Level 3 [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Fair value assets and liabilities | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details - Antidilutive shares) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 367,787 | 262,500 |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 367,787 | 262,500 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details-Foreign CurrencyTranslation) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 ¥ / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2021 ¥ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2021 ¥ / shares | |
Accounting Policies [Abstract] | ||||||
Average exchange rate | 1 | 6.4749 | 1 | 6.4721 | ||
Exchange rate | 1 | 6.6964 | 1 | 6.3641 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||||
Net Income (Loss) Attributable to Parent | $ 1,061,297 | $ 480,145 | $ 2,930,227 | $ 1,162,661 | |
Net Cash Provided by (Used in) Operating Activities | 1,749,492 | $ 964,297 | |||
Projected annual burn rate | 3,152,618 | ||||
Cash, Uninsured Amount | 5,719,087 | 5,719,087 | $ 7,464,846 | ||
Allowance for doutful accounts | 143,782 | 143,782 | 86,635 | ||
Inventory reserve | 43,323 | 43,323 | 68,940 | ||
Impairment of long-lived assets | 0 | 0 | |||
Uncertain tax positions | $ 0 | $ 0 | $ 0 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Parts | $ 21,480 | $ 12,470 |
Finished goods | 34,778 | 10,419 |
Inventory | $ 56,258 | $ 22,889 |
Deposits (Details Narrative)
Deposits (Details Narrative) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Deposits | $ 36,235 | $ 33,933 |
Lease Agreement Deposit [Member] | ||
Deposits | $ 42,203 | $ 39,901 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,899,751 | $ 4,860,948 |
Less accumulated depreciation | (589,626) | (507,608) |
Property and equipment, net | 4,310,125 | 4,353,340 |
Manufacturing Facility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,789,773 | 3,789,773 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 731,515 | 731,515 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 240,256 | 238,666 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 38,103 | 27,631 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 98,109 | 71,368 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,995 | $ 1,995 |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 82,063 | $ 80,872 | |
Security deposit from tenant | $ 12,335 | $ 12,335 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Account receivable, Related Parties | $ 88,270 | $ 88,270 | $ 15,176 | ||
Compensation for services | 174,341 | $ 186,765 | 535,207 | $ 457,475 | |
Director [Member] | |||||
Related Party Transaction [Line Items] | |||||
Account receivable, Related Parties | 2,278 | 2,278 | 0 | ||
Compensation for services | 2,278 | 0 | |||
Vitashower [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 31,542 | 15,141 | |||
Account receivable, Related Parties | 85,992 | 85,992 | 15,176 | ||
Purchases from related party | 0 | 0 | |||
Accounts payable - related party | $ 0 | 0 | $ 0 | ||
President and CEO [Member] | |||||
Related Party Transaction [Line Items] | |||||
Compensation for services | $ 60,000 | $ 60,000 |
Business Concentration and Ri_2
Business Concentration and Risks (Details Narrative) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounts Receivable [Member] | Three Customer [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 34% | ||
Accounts Receivable [Member] | One Customer [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 48% | ||
Revenue Benchmark [Member] | One Customer [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 54% | 78% | |
Accounts Payable [Member] | One Vendor [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 0% | 0% | |
Purchases [Member] | One Vendor [Member] | Product Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 24% | 77% |
Lease (Details)
Lease (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Lease | ||
Operating lease right-of-use assets | $ 215,750 | $ 420,137 |
Lease liabilities, current portion | 114,119 | 121,568 |
Lease liabilities, less current portion | $ 231,271 | $ 302,387 |
Lease (Details - Lease term and
Lease (Details - Lease term and discount) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Minimum [Member] | ||
Operating lease | 2 months 1 day | 8 months 1 day |
Operating lease | 10% | 10% |
Maximum [Member] | ||
Operating lease | 2 years 8 months 1 day | 3 years 2 months 1 day |
Operating lease | 15% | 15% |
Lease (Details - Lease maturity
Lease (Details - Lease maturity) | Jun. 30, 2022 USD ($) |
Lease | |
Year ending December 31, 2022 | $ 73,964 |
Year ending December 31, 2023 | 140,008 |
Year ending December 31, 2024 | 155,709 |
Year ending December 31, 2025 | 26,170 |
Total minimum lease payment | 395,851 |
Less: imputed interest | (50,463) |
Present value of future minimum lease payments | $ 345,389 |
Lease (Details Narrative)
Lease (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Lease | ||
Operating lease, expenses | $ 237,045 | $ 32,590 |
Loans (Details - Economic Injur
Loans (Details - Economic Injury Disaster Loan) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
SBA Loan | $ 0 | $ 158,547 |
Less: current portion | 0 | (132,618) |
Long term portion | $ 0 | $ 25,929 |
Loans (Details Narrative)
Loans (Details Narrative) - USD ($) | 6 Months Ended | |||
Apr. 04, 2022 | Mar. 02, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Line of Credit Facility [Line Items] | ||||
Interest expense incurred from loans amount | $ 288 | $ 22,827 | ||
AVX Design and Integration [Member] | PPP Loan [Member] | JP Morgan Chase Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Proceeds from Loans | $ 158,547 | |||
Debt Instrument, Interest Rate During Period | 1% | |||
AVX Design and Integration [Member] | PPP Loan [Member] | JP Morgan Chase Bank [Member] | Principal [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Other Income | $ 158,547 | |||
AVX Design and Integration [Member] | PPP Loan [Member] | JP Morgan Chase Bank [Member] | Interest [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Other Income | $ 1,570 |
Stockholders' Equity (Details -
Stockholders' Equity (Details - Options by exercise price (Details - Assumptions) - Warrants [Member] - $ / shares | 1 Months Ended | |
Sep. 07, 2021 | Aug. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Risk-free interest rate | 0.82% | 0.77% |
Expected life | 5 years | 5 years |
Expected volatility | 204.27% | 194.37% |
Expected dividend yield | 0% | 0% |
Fair value of units (using Black-Scholes) | $ 14.45 | $ 6.47 |
Stockholders' Equity (Details_2
Stockholders' Equity (Details - Black Scholes Option) - Equity Option [Member] | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Risk-free interest rate | 0.93% | |
Expected life | 10 years | 10 years |
Expected volatility | 122.93% | |
Expected dividend yield | 0% | 0% |
Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Risk-free interest rate | 0.93% | |
Expected volatility | 122.93% | |
Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.52% | |
Expected volatility | 148.18% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Equity Option [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Options Outstanding, Beginning | 420,000 | |
Weighted Average Exercise Price Outstanding, Beginning | $ 5.82 | |
Options Outstanding Beginning | 8 years 6 months 21 days | |
Aggregate intrinsic value options outstanding | $ 2,354,100 | |
Number of Options Granted | 0 | |
Weighted Average Exercise Price Granted | $ 0 | |
Number of Options Exercised | 0 | |
Weighted Average Exercise Price Exercised | $ 0 | |
Number of Options Forfeited | 0 | |
Weighted Average Exercise Price Forfeited | $ 0 | |
Number of Options Outstanding, Ending | 420,000 | 420,000 |
Weighted Average Exercise Price Outstanding, Ending | $ 5.82 | $ 5.82 |
Options Outstanding, Ending | 8 years 6 months 21 days | |
Number of Options Vested | 367,787 | 315,288 |
Weighted Average Exercise Price Vested | $ 5.38 | |
Options Vested | 8 years 4 months 6 days | |
Aggregate intrinsic value options vested | $ 2,220,435 | |
Number of Options Exercisable, Ending | 367,787 | |
Weighted Average Exercise Price Exercisable, Ending | $ 5.38 | |
Options Exercisable | 8 years 4 months 6 days | |
Aggregate intrinsic value options exercisable | $ 2,220,435 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
May 02, 2022 | Apr. 04, 2022 | Feb. 11, 2022 | Sep. 07, 2021 | Sep. 02, 2021 | Aug. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Jan. 04, 2021 | Aug. 06, 2019 | |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Common stock, shares authorized | 75,000,000 | 75,000,000 | 75,000,000 | ||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||
Shares of common stock | 153,776 | ||||||||||||
Number of shares issued | 121,149 | ||||||||||||
Warrant exercised | $ 6.25 | ||||||||||||
Cashless exercise option of warrants | $ 1,776,044 | ||||||||||||
Number of services shares issued | 32,627 | ||||||||||||
Number of services value issued | $ 154,709 | $ 12,000 | $ 24,000 | ||||||||||
Sale of stock | 2,000,000 | ||||||||||||
Common stock at purchase price | $ 5 | ||||||||||||
Common stock, issued | 43,413,517 | 43,413,517 | 43,259,741 | ||||||||||
Common stock, outstanding | 43,413,517 | 43,413,517 | 43,259,741 | ||||||||||
Professional and Contract Services Expense | $ 174,341 | $ 186,765 | $ 535,207 | 457,475 | |||||||||
Fair Value Adjustment of Warrants | $ 2,326,450 | $ 1,041,670 | |||||||||||
Value shares to be issued | $ 1,284,780 | 1,284,780 | |||||||||||
Employee compensation | 684,920 | 0 | |||||||||||
Stock compensation expense | 0 | 24,000 | |||||||||||
Investor [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Employee compensation | $ 75,340 | ||||||||||||
Restricted Stock [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued for employees | 290,000 | ||||||||||||
Number of shares grant | 58,000 | ||||||||||||
Fair value of employee compensation | $ 609,580 | ||||||||||||
Equity Option [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Share price | $ 8.86 | $ 3 | $ 5.70 | ||||||||||
Options granted | 420,000 | ||||||||||||
Options vested | 367,787 | 315,288 | |||||||||||
Options nonvested | 104,713 | ||||||||||||
Options outstanding | 420,000 | 420,000 | 420,000 | ||||||||||
Stock compensation expense | $ 456,750 | $ 213,675 | |||||||||||
Equity Option [Member] | Board of Directors Chairman [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Options granted | 15,000 | 15,000 | 30,000 | ||||||||||
Consultants [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Professional and Contract Services Expense | $ 8,000 | ||||||||||||
Consulting services incurred but not yet paid in shares | $ 154,709 | ||||||||||||
Initial Public Offering [Member] | Underwriters [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Share price | $ 5 | ||||||||||||
IPO [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Sale of stock | 300,000 | ||||||||||||
Net proceeds | $ 10,300,000 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 64,642 | $ 261,680 | $ 221,809 | $ 625,143 |
Cost and Operating Expenses | ||||
Selling expense | 17,548 | 446 | 55,887 | 958 |
Compensation - officers and directors | 34,000 | 34,000 | 110,040 | 73,100 |
Research and development | 167,361 | 47,222 | 729,105 | 110,372 |
Professional fees | 174,341 | 186,765 | 535,207 | 457,475 |
General and administrative | 819,268 | 448,199 | 1,720,216 | 865,120 |
Total Cost and Operating Expenses | 1,269,990 | 925,215 | 3,351,018 | 2,007,871 |
Loss from Operations | (1,205,348) | (663,535) | (3,129,209) | (1,382,728) |
Other Income (Expense): | ||||
Interest income (expense), net | 256 | (15,223) | 250 | (22,756) |
Unrealized loss on marketable equity securities | (74,626) | 0 | (74,626) | 0 |
Realized gain on marketable equity securities | 0 | 0 | 10,281 | 0 |
Other income (expense), net | 218,421 | 198,613 | 263,077 | 242,823 |
Total other income (expense) | 144,051 | 183,390 | 198,982 | 220,067 |
Loss before income taxes | (1,061,297) | (480,145) | (2,930,227) | (1,162,661) |
Tax expense | 0 | 0 | 0 | 0 |
Net Loss | $ (1,061,297) | $ (480,145) | (2,930,227) | $ (1,162,661) |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 187,989 | |||
Revenue - related party | 33,820 | |||
Total revenue | 221,809 | |||
Cost and Operating Expenses | ||||
Cost of Revenue, excluding depreciation & amortization | 200,563 | |||
Selling expense | 55,887 | |||
Compensation - officers and directors | 110,040 | |||
Research and development | 729,105 | |||
Professional fees | 535,207 | |||
General and administrative | 1,720,216 | |||
Total Cost and Operating Expenses | 3,351,018 | |||
Loss from Operations | (3,129,209) | |||
Other Income (Expense): | ||||
Interest income (expense), net | 250 | |||
Unrealized loss on marketable equity securities | (74,626) | |||
Realized gain on marketable equity securities | 10,281 | |||
Other income (expense), net | 263,077 | |||
Total other income (expense) | 198,982 | |||
Loss before income taxes | (2,930,227) | |||
Tax expense | 0 | |||
Net Loss | (2,930,227) | |||
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | |||
Revenue - related party | 0 | |||
Total revenue | 0 | |||
Cost and Operating Expenses | ||||
Cost of Revenue, excluding depreciation & amortization | 0 | |||
Selling expense | 0 | |||
Compensation - officers and directors | 110,040 | |||
Research and development | 729,105 | |||
Professional fees | 522,546 | |||
General and administrative | 446,576 | |||
Total Cost and Operating Expenses | 1,808,267 | |||
Loss from Operations | (1,808,267) | |||
Other Income (Expense): | ||||
Interest income (expense), net | 490 | |||
Unrealized loss on marketable equity securities | (74,626) | |||
Realized gain on marketable equity securities | 10,281 | |||
Other income (expense), net | 105,560 | |||
Total other income (expense) | 42,705 | |||
Loss before income taxes | (1,765,562) | |||
Tax expense | 0 | |||
Net Loss | (1,765,562) | |||
Perfecular [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 47,650 | |||
Revenue - related party | 31,542 | |||
Total revenue | 79,192 | |||
Cost and Operating Expenses | ||||
Cost of Revenue, excluding depreciation & amortization | 60,702 | |||
Selling expense | 48,085 | |||
Compensation - officers and directors | 0 | |||
Research and development | 0 | |||
Professional fees | 0 | |||
General and administrative | 1,141,522 | |||
Total Cost and Operating Expenses | 1,250,309 | |||
Loss from Operations | (1,171,117) | |||
Other Income (Expense): | ||||
Interest income (expense), net | (288) | |||
Unrealized loss on marketable equity securities | 0 | |||
Realized gain on marketable equity securities | ||||
Other income (expense), net | 160,117 | |||
Total other income (expense) | 159,829 | |||
Loss before income taxes | (1,011,288) | |||
Tax expense | 0 | |||
Net Loss | (1,011,288) | |||
A V X [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 140,339 | |||
Revenue - related party | 2,278 | |||
Total revenue | 142,617 | |||
Cost and Operating Expenses | ||||
Cost of Revenue, excluding depreciation & amortization | 139,861 | |||
Selling expense | 7,802 | |||
Compensation - officers and directors | 0 | |||
Research and development | 0 | |||
Professional fees | 12,661 | |||
General and administrative | 132,118 | |||
Total Cost and Operating Expenses | 292,442 | |||
Loss from Operations | (149,825) | |||
Other Income (Expense): | ||||
Interest income (expense), net | 48 | |||
Unrealized loss on marketable equity securities | 0 | |||
Realized gain on marketable equity securities | ||||
Other income (expense), net | (3,600) | |||
Total other income (expense) | (3,552) | |||
Loss before income taxes | (153,377) | |||
Tax expense | 0 | |||
Net Loss | $ (153,377) |