XML 93 R15.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 9 – Segment Reporting

 

The Company currently has two operating segments. In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company considers operating segments to be components of the Company’s business for which separate financial information is available and evaluated regularly by Management in deciding how to allocate resources and to assess performance. Management reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has two operating and reportable segments. The Company consists of two types of operations. (1) AVX and Smart AVX (inclusive of the smart IoT Products sales under Smart AVX) cooperatively run our “LED and IoT Installation Services” segment, which handles our LED and IoT installation and management business specializing in high performance and easy to use LED and display systems, audio/video systems, home theaters, lighting control, automation, and integration. This includes the Focus and Focus Shenzhen collectively operate our “Corporate and R&D” segment focused on R&D development for the IoT, which involves the non-specific financing, executive expense, operations and investor relations of our public entity, and the general shared management and costs across the Company’s subsidiaries that spread across all functional categories and research and development of these IoT technology products and of our smart products into the commercial and home automation sectors. (2) Perfecular and Lusher jointly operate the SEC Financial Software segment, which involves the development, marketing, and production of our SEC Financial Reporting AI-Driven Automation Software package and also includes our universal smart instruments and devices in the hydroponic and controlled agriculture segments.

 

Asset information by operating segment is not presented as the Chief Executive Officer does not review this information by segment. The reporting segments follow the same accounting policies used in the preparation of the Company’s consolidated financial statements. The management team reviews financial information on a consolidated level and allocates resources based on net loss, which also serves as the key metric for evaluating financial performance.

 

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

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

 

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

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