Revenue and Profitability - Total revenue for the three months ended March 31, 2019, was $242,738, an increase of 253% compared to $68,552 for the same period in 2018[13] - Gross profit for the same period was $120,610, up from $50,628 in 2018, reflecting a gross margin improvement[13] - Revenue for the three months ended March 31, 2019, was $838,293, compared to $402,570 for the same period in 2018, representing a 108% increase[94] - Gross profit for the three months ended March 31, 2019, was $577,880, up from $236,904 in the prior year, indicating a 144% increase[94] - The company reported a total revenue of $242,738 from its two segments, Focus and AVX, with Focus generating $114,193 and AVX contributing $128,545[99] - Consolidated gross revenue for the three months ended March 31, 2019, was $242,738, an increase of $174,186 compared to $68,552 for the same period in 2018[130] - The acquisition of AVX Design & Integration, Inc. contributed $128,545 to revenue for the three months ended March 31, 2019[130] Operating Expenses - Operating expenses increased significantly to $568,618 from $200,342, primarily due to higher research and development costs of $62,004 compared to $51,018 in 2018[13] - Operating expenses for the three months ended March 31, 2019, totaled $743,502, compared to $317,485 in the same period last year, marking a 133% increase[94] - Professional fees increased significantly from $50,161 in the three months ended March 31, 2018, to $355,274 in the same period of 2019, an increase of $305,113[132] Net Loss and Financial Position - The net loss for the three months ended March 31, 2019, was $447,283, compared to a net loss of $203,833 in the prior year[13] - The net loss for 2019 was $447,283, compared to a net loss of $203,833 in 2018, indicating a significant increase in losses[19] - The net loss for the three months ended March 31, 2019, was $165,738, compared to a net loss of $134,910 for the same period in 2018, reflecting a 23% increase in losses[94] - The company has an accumulated deficit of $4,450,741 as of March 31, 2019, raising concerns about its ability to continue as a going concern[101] - The company has an accumulated deficit of $4,450,741 as of March 31, 2019, raising concerns about its ability to continue as a going concern[141] Cash Flow and Liquidity - Cash and cash equivalents decreased to $3,554,975 as of March 31, 2019, down from $4,455,751 at the end of 2018[10] - Net cash flows used in operating activities amounted to $369,117 in 2019, up from $141,872 in 2018, reflecting a worsening cash flow situation[19] - Cash used in operating activities for the three months ended March 31, 2019, was $369,117, compared to $141,872 for the same period in 2018[136] - Cash outflow from investing activities was $529,638 for the three months ended March 31, 2019, due to the purchase and improvement of a warehouse[139] Assets and Liabilities - Total assets increased to $9,465,390 as of March 31, 2019, compared to $9,277,911 at the end of 2018[10] - Total liabilities rose to $520,022 from $211,976, indicating a significant increase in financial obligations[10] - Stockholders' equity decreased to $8,945,368 from $9,065,935, primarily due to the net loss incurred during the period[10] - Current assets as of March 31, 2019, were $4,222,851, with current liabilities of $367,209, resulting in working capital of $3,855,642[135] Research and Development - Research and development costs are expensed as incurred, focusing on refining existing product models and developing new product models[50] Acquisitions and Business Combinations - The company issued common stock for acquisition valued at $290,716 during the period[18] - The acquisition of Perfecular was treated as a business combination under common control, similar to a pooling of interest transaction[22] - The company recorded goodwill of $307,572 related to the acquisition of AVX Design & Integration, Inc., with no impairment noted as of March 31, 2019[43] - The acquisition of AVX Design & Integration, Inc. contributed $128,545 to revenue since its acquisition date[93] Customer and Vendor Relationships - One customer accounted for 28% of total accounts receivable as of March 31, 2019, up from 22% as of December 31, 2018, indicating increased reliance on a single customer[80] - One vendor accounted for 13% of total accounts payable as of March 31, 2019, a significant decrease from 95% as of December 31, 2018, suggesting improved vendor diversification[81] Regulatory and Compliance - The company adopted Topic 606 for revenue recognition, which did not change the revenue recognition process for product sales[44] - The Company adopted ASU 2016-02, "Leases (Topic 842)," effective January 1, 2019, resulting in right-of-use assets of $184,416 and lease liabilities of $195,642 as of March 31, 2019[86] - The Company did not identify any material uncertain tax positions as of March 31, 2019, indicating a stable tax position[60] - Certifications from the CEO and CFO were included pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[158] Product Development - The Ubiquitor device has completed an initial production run of 1,000 units, with plans for full-scale production pending[117] - The Ubiquitor device is designed to connect up to 256 different types of sensor heads, allowing real-time data collection and analysis via smartphones[123] Management and Governance - The report was signed by the CEO Desheng Wang and CFO Duncan Lee on May 15, 2019[163]

Financial Performance - Consolidated gross revenue for the year ended December 31, 2018 was $308,129, a decrease of 65.7% compared to $898,084 for 2017[246] - Gross profit for the year ended December 31, 2018 was $170,232, slightly down from $171,832 in 2017[246] - Net losses for the year ended December 31, 2018 were $2,024,664, compared to a loss of $626,361 in 2017[252] - For the year ended December 31, 2018, the company reported a net loss of $2,024,665 and negative cash flow from operating activities of $1,411,703[260] Operating Expenses - Operating expenses increased significantly to $1,753,953 in 2018 from $692,362 in 2017, primarily due to a rise in professional fees from $107,899 to $960,846[248][249] - Research and development expenses were $221,510 in 2018, up from $208,238 in 2017, reflecting ongoing investment in product development[248] Cash Flow and Liquidity - Current assets as of December 31, 2018 were $4,691,904, up from $476,985 in 2017, indicating improved liquidity[253] - Working capital increased to $4,479,928 in 2018 from a negative working capital of $(4,805) in 2017[253] - Net cash used in operating activities for the year ended December 31, 2018 was $(1,411,703), compared to $(445,673) in 2017[254] - Net cash outflows from operating activities were $445,673 for the year ended December 31, 2017, primarily due to a net loss of $626,361[255] - 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[256] Financing Activities - Net cash provided by financing activities was $10,072,848 in 2018, a significant increase from $500,000 in 2017[254] - The company had net cash inflows from financing activities of $10,072,848 for the year ended December 31, 2018, primarily from the sale of common stocks through private placement[259] Investment Activities - Cash outflow from investing activities amounted to $4,599,792 due to the purchase and improvement of a warehouse in September 2018[258] - The company did not incur any cash flow from investing activities for the year ended December 31, 2017[258] Product Development - The Ubiquitor device has completed an initial production run of 1,000 units, aimed at generating demand from large distributors and consumers[231][232] - The company has devoted substantial resources to research and development for the Ubiquitor and its mobile application[260] Concerns and Classifications - As of December 31, 2018, the company had an accumulated deficit of $4,003,458, raising concerns about its ability to continue as a going concern[260] - There were no off-balance-sheet arrangements as of December 31, 2018[261] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[262]