Focus Universal Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable improvements in revenue and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, the company generated revenue of $74,215, a slight increase from $71,854 in the prior year. For the nine-month period, revenue rose to $264,954 from $238,803, reflecting a growth of $26,151.

Gross profit for the third quarter increased to $31,685, up from $27,468 in 2023, attributed to higher sales of LED products, which carry better profit margins than hydroponic products. For the nine months, gross profit surged to $137,268 from $64,713, again driven by the improved sales mix. However, the company reported a loss from operations of $(1,746,849) for the third quarter, worsening from $(1,091,277) in the same quarter of 2023. The nine-month loss from operations also increased to $(4,192,206) from $(3,445,679).

Net income for the third quarter of 2024 was $1,441,927, a significant turnaround from a net loss of $(968,033) in the prior year. For the nine months, the net loss narrowed to $(1,238,776) from $(3,100,442) in 2023. The basic net income per share for the third quarter was $0.02, compared to a loss of $(0.01) in the same period last year.

The company’s financial position improved markedly, with cash increasing to $5,341,230 as of September 30, 2024, compared to $428,254 at the end of 2023. Total current assets rose to $5,971,500 from $1,028,278, while total liabilities decreased significantly to $784,783 from $1,788,498. This resulted in total stockholders' equity growing to $5,445,657 from $3,545,626.

Strategically, Focus Universal has made significant changes, including the discontinuation of its AT Tech Systems LLC operations in August 2024, which incurred a termination cost of $22,000. The company also established a new subsidiary, Lusher Inc., aimed at developing automation software for financial reporting. Additionally, the company has been actively involved in financing activities, raising funds through stock placements and loans, including a recent private placement that raised approximately $1,290,000.

Focus Universal continues to focus on its core business of developing and commercializing universal smart technologies, with plans to phase out lower-margin products and enhance its product offerings in the IoT and 5G sectors.