Financial Performance - Consolidated gross revenue for Q3 2021 was $634,777, an increase of $90,774 from $544,003 in Q3 2020[170] - Cost of revenue for Q3 2021 was $521,091, compared to $384,371 in Q3 2020, resulting in a gross profit of $113,686 for Q3 2021[170] - Consolidated gross revenue for the nine months ended September 30, 2021 was $1,259,920, a decrease of $29,240 compared to $1,289,160 for the same period in 2020[178] - Gross profit decreased to $237,983 for the nine months ended September 30, 2021, down from $253,560 in 2020[178] - Net losses for Q3 2021 were $1,337,754, compared to $438,360 in Q3 2020[177] - Net losses for the nine months ended September 30, 2021 were $2,500,415, compared to $1,988,333 in 2020[186] Operating Expenses - Total operating expenses for Q3 2021 were $871,240, an increase of $235,930 from $635,310 in Q3 2020[174] - Total operating expenses for the nine months ended September 30, 2021 were $2,378,265, an increase from $2,359,422 in 2020[182] - Research and development costs decreased to $55,525 in Q3 2021 from $62,039 in Q3 2020, attributed to completed product development[172] - Research and development costs decreased to $165,897 for the nine months ended September 30, 2021, from $194,232 in 2020[181] - Selling expenses increased significantly to $14,776 in Q3 2021 from $677 in Q3 2020, primarily due to higher advertising fees[171] - General and administrative expenses rose to $315,715 in Q3 2021, driven by increased insurance premiums following the company's uplist to NASDAQ[176] Cash Flow and Assets - Cash inflows from financing activities for the nine months ended September 30, 2021 were $10,455,528, primarily from IPO proceeds[194] - Current assets increased to $10,010,770 as of September 30, 2021, compared to $1,007,630 as of December 31, 2020[187] - The company had a working capital of $9,381,258 as of September 30, 2021, compared to $480,071 at the end of 2020[187] - The company expects to generate positive cash flow with the launch of new products in the second quarter of 2022[198] Product Development and Strategy - The company plans to introduce the Ubiquitor device in smart home installations to enhance functionality and reduce costs[152] - The acquisition of AVX is expected to enable the company to offer a complete smart home product line at lower market prices[147] - The company is optimistic about the patent for its power line communication technology, which could enhance its IoT infrastructure[167] - The company plans to launch ultra-narrowband power line communication products and a portable universal smart device in the fourth quarter of 2021[198]

Financial Performance - Consolidated gross revenue for Q2 2021 was $261,680, a decrease of 41.8% from $434,548 in Q2 2020, primarily due to shipping delays [164]. - Cost of revenue for Q2 2021 was $208,583, down from $313,157 in Q2 2020, resulting in a gross profit of $53,097 compared to $121,391 in the prior year [164]. - Total operating expenses for Q2 2021 were $716,632, a decrease of 8.3% from $781,294 in Q2 2020 [165]. - Net losses for Q2 2021 were $480,145, compared to $627,667 in Q2 2020, reflecting an improvement in financial performance [170]. - Consolidated gross revenue for the six months ended June 30, 2021, was $625,143, a decrease of $120,014 from $745,157 in the same period of 2020 [171]. - Gross profit increased to $124,297 for the six months ended June 30, 2021, compared to $93,928 for the same period in 2020 [171]. - Total operating expenses decreased to $1,507,025 for the six months ended June 30, 2021, from $1,724,112 in 2020, a reduction of $217,087 [172]. - Net losses for the six months ended June 30, 2021, were $1,162,661, down from $1,549,973 in the same period of 2020 [178]. - Cash inflows from financing activities for the six months ended June 30, 2021, were $1,762,407, compared to $355,860 in 2020 [186]. - The company plans to raise $10 million through an underwritten public offering in 2021 to support operations [187]. Research and Development - Research and development costs decreased to $47,222 in Q2 2021 from $61,797 in Q2 2020, attributed to reduced spending on supplies as new products entered the testing phase [166]. - The company has developed four proprietary technologies aimed at addressing key challenges in the IoT industry, including ultranarrowband technology and User Interface Machine auto generation [137]. - The company is testing 4 Mbps ultra-narrowband power line communication products, expected to launch in Q4 2021 [189]. - The company anticipates generating positive cash flow from new product launches starting Q2 2022 [189]. Product Development and Strategy - The company plans to enhance the Ubiquitor device using Power Line Communication (PLC) technology to facilitate smart home and gardening systems [157]. - The Ubiquitor device is designed to measure various physical phenomena and is expected to be introduced in smart home installations to improve functionality and reduce costs [146]. - The acquisition of AVX is expected to enable the company to offer a comprehensive smart home product line at competitive prices [141]. - The company has received multiple patents related to its Universal Smart Device and PLC technology, enhancing its intellectual property portfolio [158]. Assets and Working Capital - Current assets increased to $1,735,090 as of June 30, 2021, compared to $1,007,630 as of December 31, 2020 [179]. - Working capital increased to $1,163,122 as of June 30, 2021, from $480,071 as of December 31, 2020 [179].

Revenue and Business Focus - The company generated significant revenue from agricultural sensors and measurement equipment, which remains its primary business focus[138]. - The company has achieved a gross revenue of $363,463 for the three months ended March 31, 2021, compared to $310,609 for the same period in 2020, marking an increase of approximately 16.99%[186]. - The gross profit for the three months ended March 31, 2021, was $71,200, while the gross loss for the same period in 2020 was $27,463[186]. Technology Development - The company has developed four proprietary technologies aimed at solving key issues in the IoT industry, including ultra-narrowband PLC technology and user interface machine auto generation technology[137]. - The ultra-narrowband PLC technology allows data transmission over existing power lines, potentially offering a cost-effective solution for IoT connectivity[165]. - The company is developing proprietary ultra-narrow band PLC technology, achieving bandwidth of 4 megabits per second while effectively managing electrical noise and interference[169]. - The company has filed multiple patents related to its technology, including a patent for its PLC technology, which is expected to provide strong protections worldwide[180]. Product Launch and Integration - The Ubiquitor device, a universal sensor platform, is designed to connect thousands of sensors and is expected to enhance functionality while reducing production costs[150][160]. - The company plans to introduce the Ubiquitor in smart home installations and agricultural settings to optimize conditions for growth[153]. - The company plans to integrate the Ubiquitor device into smart home and gardening systems, aiming to control hundreds of devices in near real-time[173]. - A portable universal smart device is also in the final layout stage, with a planned launch in Q4 2021[204]. - The company is testing ultra-narrowband power line communication printed circuit boards, with product launches expected in Q4 2021[204]. Financial Performance and Cash Flow - The company incurred net losses of $682,516 for the three months ended March 31, 2021, compared to net losses of $922,306 for the same period in 2020, reflecting an improvement of approximately 26%[193]. - Current assets increased significantly from $1,007,630 on December 31, 2020, to $2,318,892 on March 31, 2021, resulting in a working capital increase from $480,071 to $1,556,388[194]. - The company reported net cash used in operating activities of $438,775 for the three months ended March 31, 2021, down from $649,587 in the same period of 2020, indicating improved cash flow management[195]. - Cash inflow from financing activities for the three months ended March 31, 2021, was $1,763,697, primarily from a bank loan of $1,500,000 and an SBA loan of $267,297[201]. - The Company experienced negative operating cash flow of approximately $1.96 million in 2020, primarily due to net loss[204]. - The Company has secured a $1,500,000 loan from a financial institution and a $1,500,000 loan commitment from a related party, ensuring sufficient cash flow to cover its projected annual cash burn rate of $1,967,074[203]. - The planned public offering of $10 million is expected to contribute to a projected cash balance of $11,000,000 by December 31, 2021[203]. - The loans and planned capital raising are expected to provide adequate cash for operations throughout 2021 and 2022, alleviating previous concerns about going concern status[206]. Operating Expenses - Total operating expenses decreased from $942,818 in Q1 2020 to $790,393 in Q1 2021, a reduction of approximately 16.14%[188]. Employment and Workforce - The company anticipates hiring new employees to support the sales and marketing efforts for the Ubiquitor device[153]. Company Classification and Risk Disclosures - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[208]. - As of March 31, 2021, the Company did not have any off-balance-sheet arrangements[207].

Technology Development - The company has developed four proprietary technologies aimed at solving fundamental issues in the IoT industry, including ultra-narrowband technology and power line communication (PLC) technology [331]. - The ultra-narrowband PLC technology allows data transmission over existing power lines, providing a cost-effective solution for IoT connectivity [360]. - The company plans to launch a proprietary PLC microchip by 2021, based on promising internal testing results [365]. - The company has filed multiple patents related to its Universal Smart Device and PLC technology, indicating a strong focus on intellectual property protection [371][374]. Product Development - The company has completed the design of various smart home products, including smart lighting control and air conditioning systems, with plans to launch these products by the end of 2021 [344]. - The Ubiquitor device is designed to connect potentially thousands of sensor nodes and can display data in real-time, achieving up to 100 Hz per second [353][354]. - The Ubiquitor's initial production run has been completed, and the company plans to move into full-scale production [351]. - The company aims to integrate the Ubiquitor device into a comprehensive gardening system, enhancing smart technology applications [368]. - The Ubiquitor device aims to reduce production costs and development efforts for new sensor products by utilizing existing smartphone technology [356][357]. Financial Performance - Consolidated gross revenue for the year ended December 31, 2020, was $1,678,967, an increase of $218,597 from $1,460,370 in 2019, primarily due to the acquisition of AVX [381]. - Gross profit for the year ended December 31, 2020, was $283,780 compared to $118,231 in 2019 [381]. - Total operating expenses decreased to $2,987,693 in 2020 from $3,448,671 in 2019, a reduction of $460,978 [382]. - Net losses for the year ended December 31, 2020, were $2,537,113, an improvement from $3,175,543 in 2019 [388]. - Current assets decreased to $1,007,630 as of December 31, 2020, from $2,440,112 in 2019, while current liabilities increased to $527,559 from $432,999 [389]. - Net cash used in operating activities for the year ended December 31, 2020, was $1,955,091, compared to $1,697,771 in 2019 [390]. - For the year ended December 31, 2020, the Company had a net loss of $2,537,113 and negative cash flow from operating activities of $1,955,091 [398]. - As of December 31, 2020, the Company had an accumulated deficit of $9,716,114, raising doubts about its ability to continue as a going concern [398]. - The Company paid off a promissory note resulting in cash outflows of $50,000 and obtained loans from the SBA amounting to $396,860 for the year ended December 31, 2020 [397]. Operational Strategy - The company anticipates hiring new employees to support the sales and marketing efforts for the Ubiquitor device [348]. - The company has devoted substantial resources to research and development for the Ubiquitor and its mobile application [398]. - The company sources various filtration products from manufacturers in China and sells them to a major U.S. distributor, Hydrofarm [334]. - The company expects cash flows from operating activities to fluctuate due to various factors, including revenue streams and accounts receivable collection [395]. - There were no off-balance-sheet arrangements as of December 31, 2020 [400]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [401].

Financial Performance - Consolidated gross revenue for Q3 2020 was $544,003, an increase of $104,715 from $439,288 in Q3 2019, primarily due to increased contracts from AVX[194]. - Gross profit for Q3 2020 was $159,632, compared to a gross loss of $120,187 in Q3 2019[194]. - For the nine months ended September 30, 2020, consolidated gross revenue was $1,289,160, an increase of $177,470 compared to $1,111,690 for the same period in 2019[202]. - Net losses for the three months ended September 30, 2020 were $438,360, a decrease from $950,099 in the same period of 2019[201]. - Total operating expenses for the nine months ended September 30, 2020 were $2,359,422, an increase of $398,118 from $1,961,304 in 2019[206]. Expenses - Selling expenses decreased from $12,267 in Q3 2019 to $677 in Q3 2020, attributed to a reduction in outside sales[195]. - Selling expenses decreased to $17,696 for the nine months ended September 30, 2020, down from $24,023 in 2019, reflecting a decrease in outside sales[203]. - Research and development costs were $62,039 in Q3 2020, down from $66,289 in Q3 2019, reflecting reduced supply needs in later quarters[196]. - Research and development costs increased slightly to $194,232 for the nine months ended September 30, 2020, compared to $193,009 in 2019[204]. - Professional fees decreased from $397,950 in Q3 2019 to $243,799 in Q3 2020, due to a temporary hold on NASDAQ application review and delays in fundraising[197]. - Professional fees rose to $1,071,369 for the nine months ended September 30, 2020, compared to $958,337 in the same period of 2019, primarily due to legal and consulting expenses[205]. - General and administrative expenses were $294,795 in Q3 2020, compared to $322,801 in Q3 2019, with salary expenses decreasing due to employee reductions from the acquired entity[198]. - General and administrative expenses increased to $974,125 for the nine months ended September 30, 2020, up from $675,935 in 2019, driven by higher salaries and insurance costs[208]. Cash Flow and Assets - Cash flows from operating activities showed a net outflow of $1,725,512 for the nine months ended September 30, 2020, compared to $1,126,531 in 2019[213]. - As of September 30, 2020, current assets were $1,397,624, down from $2,440,112 as of December 31, 2019, indicating a decrease in working capital[210]. - The company reported an accumulated deficit of $9,167,334 as of September 30, 2020, raising concerns about its ability to continue as a going concern[217]. Product Development - The Ubiquitor device can connect up to 2,500 sensor instruments and is designed to display data and analytics on digital screens via WiFi[179]. - The Ubiquitor's sensor analytics system integrates event monitoring, storage, and analytics software for a comprehensive view of sensor data[177]. - The company plans to expand its IoT installation business in residential and commercial spaces, starting in the greater Los Angeles area[164].

Innovation and Technology Development - Focus Universal Inc. is developing the Universal Smart Instrumentation Platform (USIP), which aims to replace thousands of traditional measurement instruments at a fraction of their current market prices[148]. - The Ubiquitor device can connect up to 2,500 sensor instruments and is designed to measure various electrical and physical phenomena, achieving real-time data collection at up to 100Hz per second[168][170]. - The company has filed three patents related to the Ubiquitor device and quantum PAR photo sensor, indicating a strong focus on innovation and technology advancement[150]. - Research and development efforts have shown preliminary internal testing results that suggest noise rejection and interference suppression five orders of magnitude better than traditional PLC technology, with potential communication speeds increased by a factor of 100[179]. - The USIP technology is anticipated to cover up to 90% of currently manufactured instruments, integrating various technologies into a single platform[162]. - The Ubiquitor's modular design allows for easy addition or removal of sensor modules, facilitating customization for industrial or educational applications[163]. - The company plans to integrate the Ubiquitor device into a full line of products for the gardening industry, enhancing smart home and gardening systems[182]. - The company has devoted substantial resources to research and development for the Ubiquitor and its mobile application, indicating a focus on new product development[217]. Market Strategy and Expansion - The Ubiquitor is expected to reduce IoT installation costs and enhance integration capabilities in both residential and commercial spaces, starting with the greater Los Angeles area[149]. - The company plans to introduce the Ubiquitor in smart home installations and agricultural warehouses to optimize conditions for growth by regulating light, humidity, and moisture[164]. - The company aims to eliminate the need for costly ethernet cable networks by utilizing existing power lines for data transmission in smart home installations[180]. - Focus Universal Inc. intends to hire new employees to support the sales and marketing efforts for the Ubiquitor, indicating plans for market expansion[164]. Financial Performance - Consolidated gross revenue for the three months ended June 30, 2020 was $434,548, a decrease of 16% from $518,519 in the same period of 2019[194]. - For the six months ended June 30, 2020, consolidated gross revenue increased to $745,157, up 10.8% from $672,402 in the same period of 2019[202]. - Net losses for the three months ended June 30, 2020 were $627,667, compared to $419,839 for the same period in 2019, reflecting a 49.5% increase in losses[200]. - Net losses for the six months ended June 30, 2020 were $1,549,973, an increase of 62.2% from $955,018 in the same period of 2019[209]. - Total operating expenses for the six months ended June 30, 2020 were $1,724,112, a 53.6% increase from $1,121,997 in the same period of 2019[206]. - Research and development costs for the six months ended June 30, 2020 were $132,193, an increase of 4% from $126,720 in the same period of 2019[204]. - Professional fees increased to $827,570 for the six months ended June 30, 2020, up 47.5% from $560,387 in the same period of 2019[205]. - Current assets as of June 30, 2020 were $1,742,525, down from $2,440,112 as of December 31, 2019[210]. - Working capital as of June 30, 2020 was $1,377,228, a decrease from $2,007,113 as of December 31, 2019[210]. - For the six months ended June 30, 2020, the company reported net cash outflows from operating activities of $1,183,486, primarily due to a net loss of $1,549,973 and changes in operating assets and liabilities[212]. - The company experienced an increase in accounts receivable of $123,035 and an increase in inventory of $10,117 for the same period[212]. - Cash flows from investing activities showed no inflow or outflow for the six months ended June 30, 2020, while the previous year had a cash outflow of $565,810 related to the acquisition of AVX[215]. - For the six months ended June 30, 2020, the company had cash outflows of $50,000 from paying off a promissory note and obtained loans from SBA amounting to $405,860[216]. - As of June 30, 2020, the company had an accumulated deficit of $8,728,974, raising concerns about its ability to continue as a going concern[217]. - Future cash flows from operating activities are expected to fluctuate due to various factors, including net revenues and collection of accounts receivable[214]. - The company had negative cash flow from operating activities of $450,906 for the six months ended June 30, 2019, indicating a worsening trend year-over-year[212]. - Non-cash expenses for the six months ended June 30, 2020, included $518,700 in stock option compensation and $81,125 in depreciation expense[212]. - The company did not have any off-balance-sheet arrangements as of June 30, 2020[218].

Financial Performance - Consolidated gross revenue for the three months ended March 31, 2020, was $310,609, an increase of $156,726 from $153,883 in the same period of 2019, primarily due to the acquisition of AVX Design & Integration, Inc.[168] - The consolidated cost of revenues for the three months ended March 31, 2020, was $338,072, resulting in a gross loss of $27,463, compared to a gross profit of $22,152 in the same period of 2019[168] - For the three months ended March 31, 2020, the company incurred a net loss of $922,306, compared to a net loss of $535,179 for the same period in 2019, representing an increase in losses of approximately 72%[175] - Total operating expenses for the three months ended March 31, 2020, were $942,818, a significant increase of 69% from $558,056 in the same period of 2019[176] - Research and development expenses rose to $70,396 for the three months ended March 31, 2020, up from $62,004 in 2019, indicating an increase of approximately 13%[176] Expenses - Professional fees increased from $350,399 in Q1 2019 to $433,539 in Q1 2020, an increase of $83,140, mainly due to legal, accounting, and consulting expenses related to the acquisition and SEC filings[171] - General and administrative expenses for Q1 2020 were $389,813, up from $110,653 in Q1 2019, driven by increased salaries, insurance, and depreciation expenses[172] - Net cash used in operating activities was $649,587 for the three months ended March 31, 2020, compared to $369,117 for the same period in 2019, representing an increase of approximately 76%[177] - Cash outflow from financing activities was $50,000 for the three months ended March 31, 2020, compared to $2,021 in the same period of 2019[182] Working Capital and Cash Flow - The company's working capital decreased to $1,394,232 as of March 31, 2020, down from $2,007,113 as of December 31, 2019, reflecting a decline of about 31%[176] - The company had no cash inflow or outflow from investing activities for the three months ended March 31, 2020, while it had a cash outflow of $529,638 in the same period of 2019 due to the acquisition of AVX[181] - The company expects fluctuations in cash flows from operating activities in future periods due to various factors, including net revenues and collection of accounts receivable[179] Product Development and Innovation - The Ubiquitor device can connect up to 2,500 sensor instruments and is designed to collect data in real-time at a rate of up to 100Hz per second[152] - The company has filed three patents related to the Ubiquitor device and quantum PAR photo sensor technology, enhancing its intellectual property portfolio[138][159][160] - The acquisition of AVX in March 2019 allowed the company to enter the residential and commercial automation installation service industry, generating $170,230 in revenue for the period[137][168] - The company aims to reduce IoT installation costs and enhance integration capabilities through the Ubiquitor device in both residential and commercial spaces[137] - The Ubiquitor device is expected to cut production costs by leveraging smartphone technology, improving functionality and performance[154] - The company is optimistic about the patent for its powerline communication technology, which is expected to provide strong protections worldwide[162] - The company has devoted substantial resources to research and development for the Ubiquitor and its mobile application, aiming for full production and distribution[183] Concerns and Future Outlook - As of March 31, 2020, the company had an accumulated deficit of $8,101,307, raising concerns about its ability to continue as a going concern[183]

Financial Performance - Consolidated gross revenue for the year ended December 31, 2019, was $1,460,370, an increase of $1,152,241 from $308,129 in 2018, primarily due to the acquisition of AVX Design & Integration, Inc. which generated $817,233 in revenue [332]. - Consolidated cost of revenues for 2019 was $1,342,139, resulting in a gross profit of $118,231, compared to a gross profit of $170,232 in 2018 [332]. - Total operating expenses for the year ended December 31, 2019, were $3,448,671, an increase of $1,694,718 from $1,753,953 in 2018 [334]. - Professional fees increased from $940,846 in 2018 to $1,376,995 in 2019, an increase of $436,149, mainly due to legal, accounting, and consulting expenses related to the acquisition and SEC filings [336]. - Net losses for the years ended December 31, 2019, and 2018 were $3,175,543 and $2,024,664, respectively [338]. - For the year ended December 31, 2019, the company reported a net loss of $3,175,543, compared to a net loss of $2,024,664 for the year ended December 31, 2018 [342]. Cash Flow and Financial Position - Net cash used in operating activities for the year ended December 31, 2019 was $1,697,771, an increase from $1,411,703 in 2018 [341]. - The company had negative cash flow from operating activities of $1,697,771 for the year ended December 31, 2019, and an accumulated deficit of $7,179,001 as of the same date [347]. - Cash outflows from investing activities were $565,110 for the year ended December 31, 2019, significantly lower than $4,599,792 in 2018 [344]. - The company did not have any cash inflows or outflows from financing activities for the year ended December 31, 2019, compared to net cash inflows of $10,072,848 in 2018 [346]. - The company’s working capital decreased to $2,007,113 as of December 31, 2019, down from $4,479,928 in 2018 [340]. - The company’s current assets were $2,440,112 and current liabilities were $432,999 as of December 31, 2019 [340]. Research and Development - The company is focusing on developing universal smart instrumentation technology, which aims to replace traditional wired measurement instruments at lower costs [302]. - Research and development efforts include three filed patents related to the Ubiquitor device and a quantum PAR photo sensor [304]. - The company is focusing on research and development for the Ubiquitor and its mobile application, which may impact future cash flows [347]. Product Development and Market Strategy - The Ubiquitor device is designed to connect up to 2,500 sensor instruments and can display data and analytics on a digital screen using a Wi-Fi connection [318]. - The company plans to integrate the Ubiquitor device into the IoT installation business, aiming to reduce costs and enhance integration capabilities in residential and commercial spaces [303]. - The company aims to play a role in academic laboratories, particularly with smaller labs sensitive to price, as wireless universal smart technology becomes critical for traditional instrument manufacturers [331]. Future Outlook - Future cash flows from operating activities may fluctuate due to various factors, including changes in net revenues and collection of accounts receivable [343]. - As of December 31, 2019, the company had no off-balance-sheet arrangements [348].

Financial Performance - Consolidated gross revenue for Q3 2019 was $332,170, up from $139,102 in Q3 2018, representing a 138% increase[156] - Consolidated cost of revenues for Q3 2019 was $348,371, compared to $81,330 in Q3 2018, leading to a gross profit of ($16,201) in Q3 2019 versus $57,772 in Q3 2018[156] - For the nine months ended September 30, 2019, the company reported a consolidated gross revenue of $995,245, a significant increase of 302% from $247,434 in the same period of 2018[165] - The net loss for the nine months ended September 30, 2019 was $1,820,002, compared to a net loss of $1,641,641 for the same period in 2018, reflecting an increase in losses[172] - Operating expenses for the nine months ended September 30, 2019 totaled $2,074,072, an increase of 55% from $1,338,357 in the same period of 2018[166] Operating Expenses - Total operating expenses for Q3 2019 were $874,702, an increase of $473,083 from $401,619 in Q3 2018[157] - Professional fees rose significantly from $157,013 in Q3 2018 to $399,650 in Q3 2019, an increase of $242,637[161] - Professional fees rose to $971,789 for the nine months ended September 30, 2019, up 35% from $720,910 in 2018, primarily due to legal and consulting expenses related to acquisitions[170] Research and Development - Research and development expenses increased to $66,282 in Q3 2019 from $58,930 in Q3 2018, primarily due to higher personnel salaries[160] Assets and Cash Flow - Current assets decreased to $3,080,972 as of September 30, 2019, down from $4,691,904 as of December 31, 2018, indicating a decline in liquidity[173] - The company’s working capital as of September 30, 2019 was $2,743,347, a decrease from $4,479,928 at the end of 2018[173] - The company incurred net cash used in operating activities of $1,077,666 for the nine months ended September 30, 2019, a slight improvement from $1,139,589 in 2018[175] - Cash outflows from investing activities were $770,793 for the nine months ended September 30, 2019, significantly lower than $4,524,944 in the same period of 2018, reflecting reduced investment activity[177] - The company expects fluctuations in cash flows from operating activities in future periods due to various factors, including revenue changes and accounts receivable collection[176] Intellectual Property and Technology - The company has filed three patents related to the Ubiquitor device and quantum PAR photo sensor technology, enhancing its intellectual property portfolio[127][148][149] - The acquisition of AVX Design and Integration in March 2019 allows the company to integrate the Ubiquitor device into IoT installations, aiming to reduce costs and enhance capabilities[126] - The company plans to focus on developing its universal smart instrumentation technology, which aims to replace traditional measurement instruments at lower costs[125] - The Ubiquitor device can connect up to 2,500 sensor instruments and is designed to collect data in real time at a rate of up to 100Hz per second[141] Business Focus - The company generated significant revenue from agricultural sensors and measurement equipment, which remains its primary business focus[128] - The company has an accumulated deficit of $5,823,460 as of September 30, 2019, raising concerns about its ability to continue as a going concern[179]

Financial Performance - Consolidated gross revenue for Q2 2019 was $420,337, a significant increase from $39,780 in Q2 2018, resulting in a gross profit of $138,385 compared to $30,019 in the prior year[140]. - The company incurred net losses of $490,044 in Q2 2019, down from $1,095,278 in Q2 2018, indicating improved financial performance[145]. - Consolidated gross revenue for the six months ended June 30, 2019, was $663,075, an increase of $554,743 compared to $108,332 for the same period in 2018, primarily due to the acquisition of AVX Design & Integration, Inc. which generated $451,237 in revenue[146]. - Net losses for the six months ended June 30, 2019, were $937,327, a decrease from $1,299,111 in the same period of 2018[151]. - Current assets as of June 30, 2019, were $3,846,077, down from $4,691,904 as of December 31, 2018, resulting in working capital of $3,377,291[152]. - Net cash used in operating activities for the six months ended June 30, 2019, was $(450,906), an improvement from $(528,660) in the same period of 2018[154]. - The company has an accumulated deficit of $4,940,785 as of June 30, 2019, raising concerns about its ability to continue as a going concern[159]. Operating Expenses - Operating expenses for Q2 2019 totaled $630,752, a decrease from $736,381 in Q2 2018, primarily due to a reduction in professional fees from $513,736 to $216,865[142]. - Total operating expenses for the six months ended June 30, 2019, were $1,199,370, an increase of $262,647 from $936,723 in the same period of 2018[148]. - General and administrative expenses rose to $349,170 for the six months ended June 30, 2019, primarily due to increased salaries and depreciation expenses[150]. - Research and development expenses increased to $64,716 in Q2 2019 from $56,771 in Q2 2018, reflecting ongoing product development efforts[143]. - Research and development expenses increased to $126,720 for the six months ended June 30, 2019, from $107,789 in the same period of 2018[149]. Product Development and Innovation - The Ubiquitor device has completed an initial production run of 1,000 units, aimed at demonstrating capabilities to large distributors and consumers[125][126]. - The Ubiquitor is designed to connect up to 2,500 sensor instruments and can operate over 256 different types of sensor heads simultaneously[128][130]. - Focus Universal Inc. is developing an anti-counterfeit authentication technology to address counterfeit production issues in consumer goods[111]. - The company has filed multiple patent applications, including a patent for a "Universal Smart Device" granted on March 20, 2018, enhancing its intellectual property portfolio[131][134]. Market Expansion and Strategy - The company plans to expand its market reach in home automation and installation services following the acquisition of AVX, which has over 20 years of experience in the industry[114]. - The company aims to diversify its marketing initiatives and increase the budget to attract new customers in the home automation sector[114].