FOCUS UNIVERSAL INC. Segments Disclosure
Note 10 – Segment reporting
The Company currently has operating 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 year ended December 31, 2025:
| For the Year ended December 31, 2025 | ||||||||||||
| Perfecular & Lusher | Corporate & IoT | Total | ||||||||||
| Revenue | $ | 26,019 | $ | 229,004 | $ | 255,023 | ||||||
| Cost of revenue | 34,398 | 255,877 | 290,275 | |||||||||
| Gross profit (loss) | (8,379 | ) | (26,873 | ) | (35,252 | ) | ||||||
| Operating expenses | ||||||||||||
| Selling expense | 1,165 | 59,124 | 60,289 | |||||||||
| Compensation – officers and directors | – | 499,852 | 499,852 | |||||||||
| Research and development | 30,508 | 889,457 | 919,965 | |||||||||
| Professional fees | – | 1,302,800 | 1,302,800 | |||||||||
| General and administrative | 2,566 | 2,072,541 | 2,075,107 | |||||||||
| Total operating expense | 34,239 | 4,823,774 | 4,858,013 | |||||||||
| Loss from operations | (42,618 | ) | (4,850,647 | ) | (4,893,265 | ) | ||||||
| Total other income | 1 | 105,495 | 105,496 | |||||||||
| Loss from discontinued operations, net of tax | – | – | – | |||||||||
| Net loss | $ | (42,617 | ) | $ | (4,745,152 | ) | $ | (4,787,769 | ) | |||
The following tables summarize the financial information of each operating segment of the Company for the year ended December 31, 2024:
| For the Year ended December 31, 2024 | ||||||||||||
| Perfecular & Lusher | Corporate & IoT | Total | ||||||||||
| Revenue | $ | 26,052 | $ | 372,085 | $ | 398,137 | ||||||
| Cost of revenue | 39,772 | 348,164 | 387,936 | |||||||||
| Gross profit | (13,720 | ) | 23,921 | 10,201 | ||||||||
| Operating expenses | ||||||||||||
| Selling expense | 24,866 | 75,323 | 100,189 | |||||||||
| Compensation – officers and directors | – | 951,845 | 951,845 | |||||||||
| Research and development | 213,487 | 1,168,450 | 1,381,937 | |||||||||
| Professional fees | – | 1,660,590 | 1,660,590 | |||||||||
| General and administrative | 19,866 | 2,096,025 | 2,115,891 | |||||||||
| Total operating expense | 258,219 | 5,952,233 | 6,210,452 | |||||||||
| Loss from operations | (271,939 | ) | (5,928,312 | ) | (6,200,251 | ) | ||||||
| Total other income | 1,329 | 3,277,047 | 3,278,376 | |||||||||
| Loss from discontinued operations, net of tax | – | (278,263 | ) | (278,263 | ) | |||||||
| Net loss | $ | (270,610 | ) | $ | (2,929,528 | ) | $ | (3,200,138 | ) | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 23, 2021 | |
| 2019 | Mar 30, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.