v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 9 – Segment Reporting

 

The Company currently has two operating and reportable segments. In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company considers operating segments to be components of the Company’s business for which separate financial information is available and evaluated regularly by Management in deciding how to allocate resources and to assess performance. Management reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has two operating and reportable segments. The Company consists of two types of operations. (1) AVX and Smart AVX (inclusive of the smart IoT Products sales under Smart AVX) cooperatively run our “LED and IoT Installation Services” segment, which handles our LED and IoT installation and management business specializing in high performance and easy to use LED and display systems, audio/video systems, home theaters, lighting control, automation, and integration. This includes the Focus and Focus Shenzhen collectively operate our “Corporate and R&D” segment focused on R&D development for the IoT, which involves the non-specific financing, executive expense, operations and investor relations of our public entity, and the general shared management and costs across the Company’s subsidiaries that spread across all functional categories and research and development of these IoT technology products and of our smart products into the commercial and home automation sectors. (2) Perfecular and Lusher jointly operate the SEC Financial Software segment, which involves the development, marketing, and production of our SEC Financial Reporting AI-Driven Automation Software package and also includes our universal smart instruments and devices in the hydroponic and controlled agriculture segments.

 

Asset information by operating segment is not presented as the Chief Executive Officer does not review this information by segment. The reporting segments follow the same accounting policies used in the preparation of the Company’s consolidated financial statements. The management team reviews financial information on a consolidated level and allocates resources based on net loss, which also serves as the key metric for evaluating financial performance.

 

The following tables summarize the financial information of each operating segment of the Company for the three months ended March 31, 2026:

            
   For the Three Months ended March 31, 2026 
   Perfecular & Lusher   Corporate & IoT   Total 
Revenue  $4,000   $43,973   $47,973 
Cost of revenue   3,988    28,741    32,729 
Gross profit   12    15,232    15,244 
                
Operating expenses               
Selling expense   –    32,848    32,848 
Compensation – officers and directors   –    117,551    117,551 
Research and development   64,800    199,997    264,797 
Professional fees   –    385,205    385,205 
General and administrative   46    486,508    486,554 
Total operating expense   64,846    1,222,109    1,286,955 
                
Loss from operations   (64,834)   (1,206,877)   (1,271,711)
                
Total other income   –    25,633    25,633 
                
Net loss  $(64,834)  $(1,181,244)  $(1,246,078)

 

The following tables summarize the financial information of each operating segment of the Company for the three months ended March 31, 2025:

             
   For the Three Months ended March 31, 2025 
   Perfecular & Lusher   Corporate & IoT   Total 
Revenue  $6,624   $183,631   $190,255 
Cost of revenue   5,373    154,338    159,711 
Gross profit   1,251    29,293    30,544 
                
Operating expenses               
Selling expense   1,165    47,815    48,980 
Compensation – officers and directors   –    125,387    125,387 
Research and development   115,890    256,368    372,258 
Professional fees   –    472,991    472,991 
General and administrative   469    281,986    282,455 
Total operating expense   117,524    1,184,547    1,302,071 
                
Loss from operations   (116,273)   (1,155,254)   (1,271,527)
                
Total other income   1    20,148    20,149 
                
Net loss  $(116,272)  $(1,135,106)  $(1,251,378)