Focus Universal Inc.

Climate Impact & Sustainability Data (2021, 2024-03, 2024-06-30)

Short-term Goals:

Raise capital to move into full manufacturing and production for our Ubiquitor device
Partner with manufacturers and promote the adoption of our Ubiquitor device in a USIP
Acquire a stable market share of the sensor device market
Continue performing research and development on PLC technology
Focus on building our smart home offerings so that we can reduce the cost of smart home implementation to focus on expanding smart home installation and implementation beyond luxury homes
File additional patents to expand our intellectual property portfolio related to the many uses of our Ubiquitor device
File patents to protect our PLC technology

The coronavirus pandemic has adversely affected economies throughout the world. AVX encountered delays in certain projects due to government-imposed restrictions affecting access to job sites and clients contracting the coronavirus. Employees also contracted the virus, negatively impacting research and development. In 2021, there were delays in receiving inventory necessary to fulfill sales orders due to a shortage of shipping containers caused by the pandemic, resulting in delays in completing sales cycles.
Outsourcing product manufacturing increases quality and reliability risks and limits the ability to quickly increase or decrease production rates.
Outsourcing the manufacture of key elements of quantum light meters and air filters to a single manufacturing partner without a formal contractual relationship creates risk.
Potential inability to adequately protect intellectual property during outsourced manufacturing in China.

The company raised $10.3 million through an underwritten public offering in September 2021 to alleviate cash flow concerns.
The company is working to remediate deficiencies and material weaknesses in internal control over financial reporting.
The company is working to establish formal agreements with its manufacturing partners.

Recurring loss from operations
Negative cash flow from operating activities
Accumulated deficit
Inability to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time

Entered into a letter of intent with a secondary buyer to sell its land and buildings to provide additional working capital
Seeking additional capital through equity and debt financings

Recurring loss from operations
Negative cash flow from operating activities
Accumulated deficit
Inability to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time
Inadequate staffing and technical expertise in key positions resulting in over-reliance on outside consultants for financial statement adjustments.