Focus Universal(US:FCUV)2021-03-22 16:00Technology Development - The company has developed four proprietary technologies aimed at solving fundamental issues in the IoT industry, including ultra-narrowband technology and power line communication (PLC) technology [331]. - The ultra-narrowband PLC technology allows data transmission over existing power lines, providing a cost-effective solution for IoT connectivity [360]. - The company plans to launch a proprietary PLC microchip by 2021, based on promising internal testing results [365]. - The company has filed multiple patents related to its Universal Smart Device and PLC technology, indicating a strong focus on intellectual property protection [371][374]. Product Development - The company has completed the design of various smart home products, including smart lighting control and air conditioning systems, with plans to launch these products by the end of 2021 [344]. - The Ubiquitor device is designed to connect potentially thousands of sensor nodes and can display data in real-time, achieving up to 100 Hz per second [353][354]. - The Ubiquitor's initial production run has been completed, and the company plans to move into full-scale production [351]. - The company aims to integrate the Ubiquitor device into a comprehensive gardening system, enhancing smart technology applications [368]. - The Ubiquitor device aims to reduce production costs and development efforts for new sensor products by utilizing existing smartphone technology [356][357]. Financial Performance - Consolidated gross revenue for the year ended December 31, 2020, was $1,678,967, an increase of $218,597 from $1,460,370 in 2019, primarily due to the acquisition of AVX [381]. - Gross profit for the year ended December 31, 2020, was $283,780 compared to $118,231 in 2019 [381]. - Total operating expenses decreased to $2,987,693 in 2020 from $3,448,671 in 2019, a reduction of $460,978 [382]. - Net losses for the year ended December 31, 2020, were $2,537,113, an improvement from $3,175,543 in 2019 [388]. - Current assets decreased to $1,007,630 as of December 31, 2020, from $2,440,112 in 2019, while current liabilities increased to $527,559 from $432,999 [389]. - Net cash used in operating activities for the year ended December 31, 2020, was $1,955,091, compared to $1,697,771 in 2019 [390]. - For the year ended December 31, 2020, the Company had a net loss of $2,537,113 and negative cash flow from operating activities of $1,955,091 [398]. - As of December 31, 2020, the Company had an accumulated deficit of $9,716,114, raising doubts about its ability to continue as a going concern [398]. - The Company paid off a promissory note resulting in cash outflows of $50,000 and obtained loans from the SBA amounting to $396,860 for the year ended December 31, 2020 [397]. Operational Strategy - The company anticipates hiring new employees to support the sales and marketing efforts for the Ubiquitor device [348]. - The company has devoted substantial resources to research and development for the Ubiquitor and its mobile application [398]. - The company sources various filtration products from manufacturers in China and sells them to a major U.S. distributor, Hydrofarm [334]. - The company expects cash flows from operating activities to fluctuate due to various factors, including revenue streams and accounts receivable collection [395]. - There were no off-balance-sheet arrangements as of December 31, 2020 [400]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [401].