Focus Universal Inc. (FCUV) Bundle
A Brief History of Focus Universal Inc.
Company Overview
Focus Universal Inc., as of 2024, has undergone significant transformations and operational shifts. The company specializes in LED products and has been actively involved in the hydroponics market.
Financial Performance
For the nine months ended September 30, 2024, the company reported revenue of $264,954, an increase from $238,803 in the same period of 2023. The cost of revenue decreased to $127,686 from $174,090, resulting in a gross profit of $137,268, up from $64,713 in the previous year.
Quarterly Performance
In the third quarter of 2024, Focus Universal recorded revenue of $74,215, compared to $71,854 in Q3 2023. The gross profit for this quarter was $31,685, up from $27,468.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $74,215 | $71,854 | $264,954 | $238,803 |
| Cost of Revenue | $42,530 | $44,386 | $127,686 | $174,090 |
| Gross Profit | $31,685 | $27,468 | $137,268 | $64,713 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $4,329,474, compared to $3,510,392 in 2023. Notable components included:
- Compensation – officers and directors: $687,303 (2024) vs. $827,939 (2023)
- Research and development: $948,041 (2024) vs. $925,345 (2023)
- Professional fees: $985,368 (2024) vs. $506,878 (2023)
- General and administrative: $1,612,735 (2024) vs. $1,160,915 (2023)
Net Income and Losses
The net income for the three months ended September 30, 2024, was $1,441,927, a significant improvement from a loss of $(968,033) in Q3 2023. The nine-month net loss for 2024 was $(1,238,776), compared to $(3,100,442) for the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Focus Universal reported current assets of $5,971,500 and current liabilities of $(763,939), resulting in working capital of $5,207,561. This is a significant improvement from the working capital deficit of $(629,368) reported at the end of 2023.
| Liquidity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Current Assets | $5,971,500 | $1,028,278 |
| Current Liabilities | $(763,939) | $(1,657,646) |
| Working Capital | $5,207,561 | $(629,368) |
Recent Developments
In 2024, Focus Universal continued to streamline operations and focus on profitable product lines, notably increasing the sale of LED products. The company completed a significant sale of property, generating a gain of $3,181,706, which has positively impacted liquidity and capital resources.
Challenges and Future Outlook
Despite improvements, Focus Universal faces challenges including an accumulated deficit of $(23,820,946) as of September 30, 2024. The company is working on establishing a stabilized source of revenue to support ongoing operations and growth.
A Who Owns Focus Universal Inc. (FCUV)
Shareholder Composition
As of September 30, 2024, the ownership structure of Focus Universal Inc. (FCUV) is characterized by a diverse group of shareholders, including institutional investors, retail investors, and insiders.
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Insiders (including CEO Desheng Wang) | Approximately 27,000,000 | 37.0% |
| Institutional Investors | Approximately 10,000,000 | 13.7% |
| Retail Investors | Approximately 35,917,760 | 49.3% |
Recent Financial Performance
In the nine months ended September 30, 2024, Focus Universal reported revenues of $264,954, an increase from $238,803 in the same period of 2023. The cost of revenue decreased from $174,090 to $127,686, resulting in a gross profit increase from $64,713 to $137,268.
Stockholder Equity and Financial Position
The total stockholders' equity of Focus Universal as of September 30, 2024, is $5,445,657. The accumulated deficit stands at $23,820,946, reflecting ongoing operational challenges. The company has a total asset value of $6,230,440 and total liabilities of $784,783.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Current Assets | $5,971,500 | $1,028,278 |
| Current Liabilities | ($763,939) | ($1,657,646) |
| Working Capital | $5,207,561 | ($629,368) |
| Net Loss | ($1,238,776) | ($3,100,442) |
Related Party Transactions
Desheng Wang, the CEO, entered into a loan agreement with Focus Universal for $300,000 at an interest rate of 12%, with a due date of April 1, 2026. Additionally, Golden Sunrise Investment LLC, owned by two shareholders holding approximately 19% of the company's shares, provided a loan of $1,000,000 secured against company property.
Recent Stock Issuances
In 2024, Focus Universal issued approximately 8,050,000 shares for private placements, raising capital of approximately $2,376,000 to support its operations and growth initiatives.
Conclusion
The ownership structure of Focus Universal Inc. is a mix of institutional and retail investors, with significant insider ownership. The company continues to navigate financial challenges while seeking to enhance its capital position through various financing strategies.
Focus Universal Inc. (FCUV) Mission Statement
Focus Universal Inc. (FCUV) is dedicated to developing and commercializing innovative universal smart technologies and instruments aimed at addressing significant challenges within the Internet of Things (IoT) and 5G sectors. The company's mission is to deliver cutting-edge solutions that enhance efficiency, reduce costs, and improve the operational capabilities of its clients.
Financial Overview
As of September 30, 2024, Focus Universal Inc. reported a consolidated revenue of $264,954, an increase from $238,803 in the same period of the previous year. The cost of revenue decreased to $127,686 from $174,090, leading to a gross profit of $137,268 compared to $64,713 in the prior year.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $264,954 | $238,803 | $26,151 |
| Cost of Revenue | $127,686 | $174,090 | ($46,404) |
| Gross Profit | $137,268 | $64,713 | $72,555 |
Operating Expenses
For the three months ending September 30, 2024, total operating expenses were reported at $1,778,534, compared to $1,118,745 in the prior year. The major components of these expenses included:
| Expense Category | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Selling Expense | $30,936 | $25,193 | $5,743 |
| Compensation – Officers and Directors | $575,255 | $267,002 | $308,253 |
| Research and Development | $308,516 | $305,872 | $2,644 |
| Professional Fees | $278,336 | $132,914 | $145,422 |
| General and Administrative | $585,491 | $387,764 | $197,727 |
Net Income (Loss)
Focus Universal Inc. reported a net income of $1,441,927 for the three months ended September 30, 2024, compared to a net loss of $(968,033) for the same period in 2023. This reflects a significant turnaround in financial performance.
Current Assets and Liabilities
As of September 30, 2024, the company had total current assets of $5,971,500, up from $1,028,278 at the end of 2023. Current liabilities were reported at $763,939, which decreased from $1,657,646, resulting in a working capital of $5,207,561.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Current Assets | $5,971,500 | $1,028,278 |
| Current Liabilities | $763,939 | $1,657,646 |
| Working Capital | $5,207,561 | ($629,368) |
Cash Flow Analysis
For the nine months ending September 30, 2024, the company experienced net cash used in operating activities of $(477,195), a significant improvement from $(2,603,545) in the same period of 2023. Net cash provided by investing activities stood at $3,950,852.
| Cash Flow Metric | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(477,195) | $(2,603,545) |
| Net Cash Provided by Investing Activities | $3,950,852 | $54,472 |
| Net Change in Cash | $4,912,976 | $(2,934,739) |
Conclusion
The financial performance of Focus Universal Inc. reflects a robust growth trajectory and a commitment to its mission of pioneering innovative solutions in the IoT and 5G sectors. The company’s strategies are directed toward enhancing operational efficiencies and delivering value to its stakeholders.
How Focus Universal Inc. (FCUV) Works
Company Overview
Focus Universal Inc. (FCUV) operates primarily in the LED and hydroponics sectors. The company has shifted its focus towards enhancing its LED product line due to higher profit margins compared to hydroponic products.
Financial Performance
For the three months ended September 30, 2024, FCUV reported:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $74,215 | $71,854 | $2,361 |
| Cost of Revenue | $42,530 | $44,386 | ($1,856) |
| Gross Profit | $31,685 | $27,468 | $4,217 |
| Total Operating Expenses | $1,778,534 | $1,118,745 | $659,789 |
| Net Income (Loss) | $1,441,927 | ($968,033) | $2,409,960 |
Operating Expenses
The major components of operating expenses for Q3 2024 were:
| Expense Type | Amount (Q3 2024) | Amount (Q3 2023) | Change |
|---|---|---|---|
| Selling Expense | $30,936 | $25,193 | $5,743 |
| Compensation – Officers and Directors | $575,255 | $267,002 | $308,253 |
| Research and Development | $308,516 | $305,872 | $2,644 |
| Professional Fees | $278,336 | $132,914 | $145,422 |
| General and Administrative | $585,491 | $387,764 | $197,727 |
Cash Flow Analysis
For the nine months ended September 30, 2024, FCUV reported:
| Cash Flow Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Net Cash Used in Operating Activities | ($477,195) | ($2,603,545) |
| Net Cash Provided by Investing Activities | $3,950,852 | $54,472 |
| Net Cash Provided by (Used in) Financing Activities | $1,451,000 | ($385,686) |
| Net Change in Cash | $4,912,976 | ($2,934,739) |
Debt and Financing
As of September 30, 2024, FCUV had the following debt obligations:
| Debt Type | Amount | Interest Rate | Due Date |
|---|---|---|---|
| Loan from CEO | $801,000 | 12% | April 1, 2026 |
| Revolving Credit Facility | $300,000 | 3% | February 4, 2025 |
| Loan from Golden Sunrise Investment LLC | $1,300,000 | 12% | September 7, 2024 |
Working Capital Position
As of September 30, 2024, FCUV reported:
| Item | Amount |
|---|---|
| Current Assets | $5,971,500 |
| Current Liabilities | ($763,939) |
| Working Capital | $5,207,561 |
Discontinued Operations
Focus Universal discontinued operations for AT Tech Systems LLC in August 2024, resulting in:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $2,600 | $246,516 |
| Cost of Revenue | $29,079 | $157,008 |
| Net Income (Loss) | ($26,784) | $61,194 |
Stockholder Equity
The stockholders' equity as of September 30, 2024, was:
| Equity Component | Amount |
|---|---|
| Total Common Stock Issued | $72,917 |
| Additional Paid-In Capital | $29,583,499 |
| Accumulated Deficit | ($23,820,946) |
| Total Stockholders' Equity | $5,445,657 |
How Focus Universal Inc. (FCUV) Makes Money
Revenue Streams
Focus Universal Inc. generates revenue primarily through the sale of IoT products and services. The revenue figures for the nine months ended September 30, 2024, and 2023 are as follows:
| Period | Revenue | Cost of Revenue | Gross Profit |
|---|---|---|---|
| 2024 | $264,954 | $127,686 | $137,268 |
| 2023 | $238,803 | $174,090 | $64,713 |
| Increase/Decrease | $26,151 | ($46,404) | $72,555 |
Product Sales
The company recognizes revenue from product sales upon delivery and completion of performance obligations. The increase in revenue in 2024 is attributed to a higher volume of LED product sales, which yield better margins compared to hydroponic products.
Service Sales
Service revenue is recognized based on the delivery of services performed. Focus Universal’s service offerings are closely tied to its IoT products, enhancing customer engagement and retention.
Project Construction
Revenue from project construction is recognized using the percentage-of-completion method. This method involves estimating the stage of work completed, which allows the company to record receivables based on actual units produced.
Discontinued Operations
As of August 2024, the company discontinued operations of AT Tech Systems LLC, which previously contributed to revenue. The impact of this discontinuation is reflected in the financial results, with losses recorded from discontinued operations.
Operating Expenses
The operating expenses for the nine months ended September 30, 2024, compared to the previous year are detailed below:
| Expense Type | 2024 | 2023 | Increase/Decrease |
|---|---|---|---|
| Selling Expense | $96,027 | $89,315 | $6,712 |
| Compensation – Officers and Directors | $687,303 | $827,939 | ($140,636) |
| Research and Development | $948,041 | $925,345 | $22,696 |
| Professional Fees | $985,368 | $506,878 | $478,490 |
| General and Administrative | $1,612,735 | $1,160,915 | $451,820 |
| Total Operating Expenses | $4,329,474 | $3,510,392 | $819,082 |
Net Income and Loss
For the nine months ended September 30, 2024, the company reported a net loss of $1,238,776, an improvement compared to a loss of $3,100,442 in the same period of 2023. The breakdown of net income (loss) is as follows:
| Period | Net Income (Loss) |
|---|---|
| 2024 | ($1,238,776) |
| 2023 | ($3,100,442) |
Cash Flow Analysis
The cash flow from different activities for the nine months ended September 30, 2024, is as follows:
| Cash Flow Type | 2024 | 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | ($477,195) | ($2,603,545) |
| Net Cash Provided by Investing Activities | $3,950,852 | $54,472 |
| Net Cash Provided by (Used in) Financing Activities | $1,451,000 | ($385,686) |
| Net Change in Cash | $4,912,976 | ($2,934,739) |
Conclusion on Financial Health
As of September 30, 2024, Focus Universal's current assets stood at $5,971,500, with current liabilities of $763,939, resulting in a working capital of $5,207,561, highlighting an improvement from the previous year.
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Resources:
- Focus Universal Inc. (FCUV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Focus Universal Inc. (FCUV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Focus Universal Inc. (FCUV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.