Focus Universal(US:FCUV)2020-08-12 23:33Innovation 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].