Focus Universal(FCUV) - 2024 Q4 - Annual Report

Revenue and Profitability - Revenue for the year ended December 31, 2024, was $398,137, a decrease of $42,406 from $440,543 in 2023, primarily due to a decline in construction contracts [246]. - Gross profit for 2024 was $10,201, down from $59,659 in 2023, reflecting increased costs associated with inventory reserves [246]. - Net losses for the year ended December 31, 2024, were $3,200,138, compared to $4,718,142 in 2023, indicating an improvement in financial performance [254]. - The company reported a net loss of $3,200,138 for the year ended December 31, 2024, compared to a net loss of $4,718,142 for 2023, indicating an improvement in financial performance [263]. - As of December 31, 2024, the company had an accumulated deficit of $25,782,308, up from $22,582,170 in 2023 [263]. Expenses - Operating expenses increased to $6,210,452 in 2024 from $5,011,445 in 2023, with significant rises in professional fees and general administrative expenses [247]. - Research and development expenses rose to $1,381,937 in 2024, up from $1,324,438 in 2023, driven by an increase in headcount [249]. - Negative cash flow from operating activities was $4,656,754 for the year ended December 31, 2024, compared to $3,528,762 for 2023, highlighting ongoing operational challenges [263]. Assets and Liabilities - Current assets increased significantly to $3,846,363 in 2024 from $1,028,278 in 2023, while current liabilities decreased [256]. - The company had cash and cash equivalents, and short-term investments amounting to $3,613,978 as of December 31, 2024 [264]. Cash Flow - Cash inflow from investing activities for 2024 was $7,127,121, primarily due to proceeds from the sale of property [261]. - For the year ended December 31, 2024, cash inflows from financing activities totaled $706,094, primarily from a third-party loan of $350,000 and a related party loan of $1,101,000 [262]. Future Plans and Concerns - The company plans to commercialize its financial reporting software in Q1 2025, which aims to streamline the preparation of financial documents [239]. - The Ubiquitor device is set for full-scale production in 2025, following successful prototype runs and positive reception at trade shows [240]. - There are substantial doubts about the company's ability to continue as a going concern due to recurring losses and negative cash flow from operations [263]. Other Information - The company did not have any off-balance-sheet arrangements as of December 31, 2024 [265]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [266].