Focus Universal(FCUV) - 2020 Q3 - Quarterly Report

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].