Focus Universal(US:FCUV)2022-08-11 16:00Revenue and Financial Performance - Consolidated gross revenue for the three months ended June 30, 2022, was $64,642, a decrease of $197,038 from $261,680 in the same period of 2021 [186]. - Revenue for the six months ended June 30, 2022, was $221,809, down $403,334 from $625,143 in the same period of 2021 [196]. - Total other income decreased to $198,982 for the six months ended June 30, 2022, down from $220,067 in the same period of 2021, primarily due to SBA PPP loan forgiveness and debt cancellation [204]. - Net losses increased significantly to $2,930,227 for the six months ended June 30, 2022, compared to $1,162,661 for the same period in 2021 [205]. - The company incurred net losses of $1,061,297 for the three months ended June 30, 2022, compared to $480,145 in the same period of 2021 [195]. Costs and Expenses - Research and development costs increased to $167,361 for the three months ended June 30, 2022, compared to $47,222 in 2021, reflecting a rise in employee compensation and R&D costs in China [191]. - Total costs and operating expenses for the three months ended June 30, 2022, were $1,269,990, an increase of $344,775 from $925,215 in 2021 [187]. - General and administrative expenses for the six months ended June 30, 2022, were $1,720,216, up $855,096 from $865,120 in 2021 [197]. Cash Flow and Assets - Current assets decreased to $7,339,735 as of June 30, 2022, from $9,214,340 as of December 31, 2021, while working capital fell to $7,025,452 from $8,642,898 [206]. - Net cash used in operating activities was $1,749,492 for the six months ended June 30, 2022, compared to $964,297 for the same period in 2021 [208]. - Cash outflow from investing activities was $267,537 for the six months ended June 30, 2022, primarily due to purchases of property and equipment and marketable securities [212]. - The company reported a negative cash flow from operating activities of $1,749,492 and a net loss of $2,930,227 for the six months ended June 30, 2022, raising concerns about its ability to continue as a going concern [214]. - The company had a beginning cash amount of $8,678,665 on January 1, 2022, sufficient to cover its projected annual cash burn rate of $3,152,618 [214]. Product Development and Technology - The company has developed ultra-narrowband Power Line Communication (PLC) technology that can achieve data transfer speeds of 4 Mbps at a bandwidth of less than 1000 Hz, successfully tested under conditions with six industrial fans running simultaneously [167]. - The Ubiquitor device is designed to integrate multiple digital sensors and measurement tools into a single platform, aiming to reduce costs and increase functionality in smart home installations and agricultural environments [148][153]. - The Ubiquitor's sensor analytics system will provide a cohesive package for event-monitoring, storage, and analytics, allowing for real-time data collection up to 100 Hz per second [155][158]. - The company has completed the development of its 4 Mbps PLC modules and printed circuit board layout, which will be used for IoT systems involving over 1,000 sensors [167]. - The Ubiquitor aims to address the limitations of traditional instrumentation systems by providing a modular design that can connect thousands of different sensors or probes [149][157]. Strategic Plans and Market Position - The company plans to expand the assembly of the Ubiquitor prototypes in 2023 and hire new sales and marketing employees to support its market introduction [151][153]. - The company anticipates that the Ubiquitor will be particularly useful in commercial networks that require reliable data transmission through physical barriers [168]. - The company plans to leverage PLC technology to enhance the Ubiquitor, aiming to integrate it into smart home and gardening systems [172]. - The company is developing a full line of products for the gardening industry, integrating multiple sensors into a single Ubiquitor device [173]. - The company aims to establish five divisions to unify its technology, including AVX, IT, Universal Smart Instrumentation, PLC, and IoT [175]. Intellectual Property - The company has filed a total of 24 patents and patent applications with the US Patent and Trademark Office, indicating a strong focus on intellectual property protection [180].