Focus Universal(FCUV) - 2021 Q3 - Quarterly Report

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]