Focus Universal(US:FCUV)2022-03-07 16:00Technology Development - The company has developed five proprietary platform technologies aimed at solving fundamental issues in the IoT industry, including enhanced chip integration and ultra-narrowband 5G technology [350]. - The proprietary ultra-narrowband PLC technology has achieved preliminary internal testing results of 4 megabits per second bandwidth efficiency, with a target launch date set for 2022 [373]. - The Ubiquitor device can connect up to thousands of sensor nodes and has been tested with up to 256 sensor instrument readouts, showcasing its scalability [362]. - The company intends to design a comprehensive gardening system integrating the Ubiquitor with various sensors, potentially replacing numerous standalone devices [368]. - Competitors in the wireless sensor node industry include Hanna Instruments and Monnit Corporation, but the company differentiates itself by integrating its Ubiquitor with smartphone applications [383]. Business Performance - For the years ended December 31, 2021, and 2020, the company generated significant revenue from agricultural sensors and measurement equipment, which remains its primary business [352]. - Consolidated gross revenue for the year ended December 31, 2021 was $1,434,446, a decrease of $244,521 from $1,678,967 in 2020 [388]. - Cost of revenue, excluding depreciation and amortization, decreased to $1,136,315 in 2021 from $1,395,187 in 2020, reflecting a decrease of $258,872 [394]. - Selling expenses increased to $39,821 in 2021 from $22,590 in 2020, an increase of $17,231 primarily due to higher advertising fees [390]. - Research and development costs decreased to $220,469 in 2021 from $256,636 in 2020, a decrease of $36,167 as the company completed the development stage of new products [391]. - Professional fees rose significantly to $1,030,159 in 2021 from $607,010 in 2020, an increase of $423,149 attributed to the uplisting in 2021 [392]. - Net losses for the year ended December 31, 2021 were $3,220,977, compared to $2,537,113 in 2020 [396]. Financial Position - Working capital improved to $8,642,898 as of December 31, 2021, compared to $480,071 in 2020 [397]. - Net cash used in operating activities was $2,228,405 for the year ended December 31, 2021, an increase from $1,955,091 in 2020 [398]. - Cash inflows from financing activities for 2021 totaled $10,346,778, primarily from share issuance [404]. - The company raised $10.3 million through an underwritten public offering in September 2021, alleviating concerns about its ability to continue as a going concern [405]. Manufacturing and R&D - Focus Universal (Shenzhen) Technology Co. LTD was established to enhance manufacturing procurement and R&D capabilities in China [377]. - The company has filed multiple patent applications, including one for its PLC technology, which is expected to provide strong global protections upon issuance [380]. - The Ubiquitor device aims to reduce production costs by leveraging widely used smartphone technology, enhancing functionality while minimizing manufacturing expenses [364].