What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-05-15 compared with 2023-11-17 · 258 added, 538 removed, 375 unchanged (68% of the section changed)

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However, readers should carefully review the risk factors set forth herein and in other reports and documents that we file from time to

time with the Securities and Exchange Commission, particularly the Reports on Form 10-K and Form 10-Q and any Current Reports on Form

time with the Securities and Exchange Commission, particularly the Report on Form 10-K, Form 10-Q and any Current Reports on Form 8-K.

Narrative Description of the Business

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results in significant cost savings and production efficiency.

We believe we have developed software machine auto generation technology

to replace the manual software designs which are currently in use and cannot satisfy the exponential growth of future IoT industry demand.

Internal testing suggests that our ultra-narrowband PLC technology enables users to send data over existing electrical power cables, establishing

a ubiquitous data network without substantial investment for a new dedicated wiring infrastructure.

We believe our ultra-narrowband technology

is capable of overcoming the noise problems communicating through power lines that have hindered our competitors for over a century.

our view, our wireless communication technology allows for longer-range coverage, is more energy efficient and has much faster data sending

speeds than the current 5G technology speeds being used.

We also provide sensor devices and are a wholesaler of various air filters and

digital, analog, and quantum light meter systems.

For the nine months ended September 30, 2023 and

2022, we generated a significant amount of our revenue from sales of a broad selection of agricultural sensors and measurement equipment

which is our primary business.

Our Current Products

We also provide sensor devices and are a wholesaler of various air filters

and digital, analog, and quantum light meter systems.

The company holds 28 patents and patents pending in various phases of the patent

Our Current Products Include:

We are a wholesaler of various digital, analog,

and quantum light meters and filtration products, including fan speed adjusters, carbon filters and HEPA filtration systems.

these products from various manufacturers in China and then sell them to a major U.S.

distributor, Hydrofarm, who resells our products

directly to consumers through retail distribution channels and, in some cases, places its own branding on our products.

In an effort to continually develop our product

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We are building a U.S.

sales team to market

our product lines.

The team has already begun marketing our current Smart AVX-branded large format multimedia touch screens,

surveillance camera system (cameras and network video recorders (NVRs)), indoor and outdoor LED screens, and Focus Universal-branded

VOIP phone service systems.

In our hydroponics segment, our honeycomb activated

carbon filter product was issued a patent in October 2022;

this product in several different forms is in inventory at our warehouse in

Ontario, CA ready for nationwide marketing.

sales team to market our

product lines.

The team has already begun marketing our current Smart AVX-branded large format multimedia touch screens, surveillance

camera system (cameras and network video recorders (NVRs)), indoor and outdoor LED screens, and Focus Universal-branded VOIP phone service

Our products on the home automation front are

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However, we believe that our sensors are much more cost effective.

The progress in our USIP for the IoT has been

smooth, and we have confidence that the first version of our USIP for the IoT is now ready for public demonstration.

The Company has announced

that it will reveal its Ubiquitor products at the 12th Annual MJBizCon being held from November 28 through December 1, 2023 at the Las

Vegas Convention Center and at the 2024 Annual Conference & California School Business Expo being held from April 7 through April

10, 2024 at the Palm Springs Convention Center in California.

The Focus software machine auto design team has

also made significant progress.

With mathematical and graphical environments having been created, our team is focusing on developing the

3D user interface machine auto design.

Our public reporting automation software is completed

and currently undergoing extensive testing.

Reports on Forms 10-Q and 10-K are time-consuming, complex processes that require each company’s

financial team to gather and translate large amounts of data from multiple sources.

The time and expertise required to complete the process

is a substantial burden.

Meanwhile, SEC reporting deadlines are firm and inflexible.

This reality can interfere with other reporting timelines

and leave a time-strapped team scrambling for the resources needed to meet all its reporting requirements.

We have developed a Microsoft®-based

add-on software that aims to streamline and automate the SEC reporting preparation process.

We believe the software will significantly

simplify the Form 10-Q and Form 10-K preparation processes and make creating, editing and managing documents both simple and accurate.

Focus is planning to commercialize this software either in the fourth quarter of 2023 or the first quarter of 2024.

A cloud-based version

of this software is also under the development.

In 2023, Focus Universal Inc., through its Smart

AVX subsidiary, received a Best of Show industry award for its Flexible Transparent Film Display during InfoComm 2023.

InfoComm is North

America's largest technology exhibition and conference focused on the professional audiovisual industry.

The exhibition is produced by

the Audiovisual and Integrated Experience Association (AVIXA) and currently ranks as a top 30 largest trade show in the United States

by Trade Show Executive.

Furthermore, our devices and sensors with applications

within hydroponics, including a (1) pH meter, (2) CO2 meter, (3) dissolved oxygen meter, (4) digital light meter, (5) new (and vastly

improved) quantum par meter are under intensive testing;

and we expect to receive new versions into our U.S.

headquarters for management

In summary, our entire smart home and hydroponic

IoT lines are expected to be completed by the end of 2023.

Our software machine auto design team has also

made significant progress.

With mathematical and graphical environments having been created, our team is focusing on developing the 3D

user interface machine auto design.

Our public reporting automation software is completed and currently undergoing extensive testing.

Reports on Forms 10-Q and 10-K are time-consuming, complex processes that require each company’s financial team to gather and translate

large amounts of data from multiple sources.

The time and expertise required to complete the process is a substantial burden.

SEC reporting deadlines are firm and inflexible.

This reality can interfere with other reporting timelines and leave a time-strapped team

scrambling for the resources needed to meet all its reporting requirements.

We have developed a Microsoft®-based add-on software that

aims to streamline and automate the SEC reporting preparation process.

We believe the software will significantly simplify the Form 10-Q

and Form 10-K preparation processes and make creating, editing and managing documents both simple and accurate.

We are planning to commercialize

this software in the fourth quarter of 2024 or the first quarter of 2025.

A cloud-based version of this software is also under the development.

Beyond IoT products, as a developer of a Natural

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of this product.

While we will continue to sell the following products

through Hydrofarm, we expect to have upgraded versions of certain of these products to introduce in the event the older versions are discontinued:

Fan speed adjuster device .

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the ability to connect potentially thousands of different sensors or probes, addressing major limitations present in traditional instrumentation

The USIP, which is compatible with a significant

percentage of the instruments currently manufactured, consists of universal and reusable hardware and software.

The universal hardware

in the USIP is (i) a smartphone, computer, or any mobile device capable of running our software that includes a display and either hardware

controls or software control surfaces, and (ii) our Ubiquitor, which is designed to be the universal data logger that acts as a bridge

between the computer or mobile device and the sensor nodes.

We call our flagship USIP device the “Ubiquitor” due to its ability

to measure and test a variety of electrical and physical phenomena such as voltage, current, temperature, pressure, sound, light, and

humidity—both wired and wirelessly.

We have created and assembled prototype models

of the Ubiquitor in limited quantities and plan to expand our assembly in 2023.

Our prototype Ubiquitor is compatible with standard desktop

computers running either Windows OS or MacOS and Android- or iOS-based mobile devices and acts as a conduit that communicates with a group

of sensors or probes manufactured by different vendors in a manner that requires the user to have little to no knowledge of their unique

specifications.

The data readout is displayed on the computer or mobile device display in application software we have created for use

with a Windows PC and are creating for use with a Mac.

We are designing the application software (the “App”) to have a graphical

representation of control and indicator elements common in traditional tangible instruments, such as knobs, buttons, dials, and graphs,

Utilizing the Ubiquitor and the App, users and instrument manufacturers will be free to add, remove or change a sensor module for

their special industrial or educational application without needing to create their own application software and design their own hardware.

Our developers are designing and implementing a soft control touch screen interface that supports real-time data monitoring and facilitates

instrument control and operation.

Recently, we have devoted a substantial number

of resources to research and development in both the U.S.

and China to bring the Ubiquitor and its App to full production and distribution.

We anticipate that the sales and marketing involved with bringing the Ubiquitor to market will require us to hire a number of new sales

and marketing employees in order to gain traction in the market.

We expect this to be a continual process.

We intend to introduce

the Ubiquitor in smart home installations to reduce costs and increase functionality, as well as implement the Ubiquitor device in greenhouses

and other agricultural warehouses that require regulation of light, humidity, temperature, and other measurable scientific units required

to create optimal growing conditions.

Our universal smart development protocol focuses

not only on the design of the hardware and software modules but also on the design of the overall universal smart instruments system,

guided by the principles of structure, universality, and modularity.

As mentioned, we believe we address the core and fundamental issues

facing the IoT marketplace.

Our Ubiquitor device is a fully modular system

with a universal sensor node and gateway system that uses a computer or mobile device as the output display module responsible for displaying

the readings of various sensor nodes.

We have completed an initial production run of prototype Ubiquitor devices and intend to proceed

into full-scale production.

We intend to design the Ubiquitor’s sensor analytics system to integrate event-monitoring, storage and

analytics software in a cohesive package that provides a holistic view of the sensor data it is reading.

The physical hardware of the Ubiquitor will consist

The sensor nodes, which come in hundreds of different varieties of sensor instruments in the form of a USB stick, with both male and female ports;

The Ubiquitor instrument as the main hardware gateway, which is a small cell phone-sized device with integrated circuits.

We believe the Ubiquitor device can connect up

to thousands of potential sensor nodes and integrate data using embedded software to display the data and all analytics onto a digital

screen (desktop, smartphone or mobile device displays) using a Wi-Fi connection.

As disclosed in our patent application, we have already

tested up to 256 sensor instrument readouts.

Most types of nodes and probes can connect to the hardware.

If the sensor size is bigger

than the standard probe size, it is possible to simply use a USB cable to connect the probe and the hub.

All data and analytics are displayed

on a single screen, with tools that record and keep track of all measurements and sort and display analytic information in easy-to-read

The Ubiquitor will be a general platform that

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It is anticipated that the Ubiquitor could dispense with some of the hassle of connecting cables, since the Ubiquitor allows wireless transmission of sensor data and may allow wireless access to networks, such as a PLC network.

We have not yet started research and development

of a second generation Ubiquitor device, but once we demonstrate the market for this product, we intend to begin such research and development.

Accordingly, our current research and development is focused on concepts we can implement in the current first generation Ubiquitor device.

Additional Focus Universal Inc.

Products under Smart AVX.

under Smart AVX.

Focus Universal Inc.

is integrating its own Smart AVX- branded IoT equipment to connect devices across

platform systems and to facilitate unified collaboration across audiovisual technologies, digital media technologies, security and

surveillance technologies and communication technologies.

This approach allows the Company to service its customers for ease of use,

design and integration, and installation and maintenance by utilizing technology that integrates our five core technologies.

is integrating its own Smart AVX- branded IoT equipment to connect devices across platform systems

and to facilitate unified collaboration across audiovisual technologies, digital media technologies, security and surveillance technologies

and communication technologies.

This approach allows the Company to service its customers for ease of use, design and integration, and

installation and maintenance by utilizing technology that integrates our five core technologies.

We have integrated our branded products across

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LED Audio-visual Panel Products.

LED panel digital displays have become an integral and modern-day solution that address the

communication and display demands of the residential and commercial customer base.

the flexible configuration of the LED panels, the modular design that enables the ability

to incorporate a design into any size space, the flexibility of the standard size panels

to accommodate curvature in the design space, the ability to address transparency in the

panel displays and create new areas for delivering media to the public, our LED panel digital

displays allow us to easily adapt our display design to spaces of any size and shape, making

any customer space a customizable output and connected piece within a system.

to create full size screens in any space, while addressing any environmental demands, allows

us to use state-of-the-art media resulting in immersive, three-dimensional, captivating content

delivery within any system.

LED panel digital displays have become an integral and modern-day solution that address the communication and display demands of the residential and commercial customer base.

Due to the flexible configuration of the LED panels, the modular design that enables the ability to incorporate a design into any size space, the flexibility of the standard size panels to accommodate curvature in the design space, the ability to address transparency in the panel displays and create new areas for delivering media to the public, our LED panel digital displays allow us to easily adapt our display design to spaces of any size and shape, making any customer space a customizable output and connected piece within a system.

The option to create full size screens in any space, while addressing any environmental demands, allows us to use state-of-the-art media resulting in immersive, three-dimensional, captivating content delivery within any system.

Large Format Smart Multimedia Touch Screens.

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for a wide variety of industries and applications, including education, healthcare, commercial, residential and government applications.

While interacting with a touch display is commonplace in public-consumer spaces, Focus Universal Inc.

integrates large format Smart touch

screens in small business, commercial applications such as dental offices and other business scenarios.

These market applications continue

to be underserved with touch-enabled devices, and our install engineers and design staff can customize solutions for unique business commercial

While interacting with a touch display is commonplace in public-consumer spaces, we integrate large format Smart touch screens in small

business, commercial applications such as dental offices and other business scenarios.

These market applications continue to be underserved

with touch-enabled devices, and our installation engineers and design staff can customize solutions for unique business and commercial

application projects.

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within the touch screen format.

Pan Tilt Zoom (PTZ) Dome Cameras and

Network Video Recorders (NVRs).

Pan Tilt Zoom (PTZ) Dome Cameras and Network Video Recorders

Dome security cameras are easily recognizable for their circular, dome encasing.

AVX-branded dome surveillance cameras are highly versatile and can be used in both indoor

and outdoor environments, providing wide coverage for nearly any use condition.

Pan Tilt Zoom (PTZ)

Dome Cameras and Network Video Recorders (NVRs).

Pan Tilt Zoom (PTZ) Dome Cameras and Network Video Recorders (NVRs).

Dome security

cameras are easily recognizable for their circular, dome encasing.

Smart AVX-branded dome surveillance cameras are highly

versatile and can be used in both indoor and outdoor environments, providing wide coverage for nearly any use condition.

Smart AVX-branded

dome security cameras have a vandal-proof dome casing, an infrared camera for night vision

capabilities, and a sturdy metal base to protect against damage or tampering, making the

cameras an integrated solution for reliable surveillance in many use conditions.

The cameras are

PTZ, meaning that they are built with mechanical parts that allow for swiveling left to right,

tilting up and down, and zooming in and out of a scene.

They’re typically used to monitor

wide open areas requiring a 180- or 360-degree view and are often deployed in guard stations

where personnel can operate them through a remote controller.

dome security cameras have a vandal-proof dome casing, an infrared camera for night vision capabilities, and a sturdy metal base

to protect against damage or tampering, making the cameras an integrated solution for reliable surveillance in many use conditions.

The cameras are PTZ, meaning that they are built with mechanical parts that allow for swiveling left to right, tilting up and

down, and zooming in and out of a scene.

They’re typically used to monitor wide open areas requiring a 180- or 360-degree view

and are often deployed in guard stations where personnel can operate them through a remote controller.

Depending on the camera or

software, they can also be set to automatically follow motion-triggered activity to a pre-set

PTZ cameras are generally implemented in tandem with a large surveillance system,

in which the PTZ tracks movement while a fixed camera takes detailed shots.

software, they can also be set to automatically follow motion-triggered activity to a pre-set schedule.

PTZ cameras are generally

implemented in tandem with a large surveillance system, in which the PTZ tracks movement while a fixed camera takes detailed shots.

VOIP Phone Services.

Internet Protocol (VoIP), also called IP telephony, is a method and group of technologies

for voice calls for the delivery of voice communication sessions over Internet

Protocol (IP) networks, such as the Internet.

Voice over Internet Protocol (VoIP), also called IP telephony, is a method and group of technologies for voice calls for the delivery of voice communication sessions over Internet Protocol (IP) networks, such as the Internet.

Focus Universal Inc.

plans to provide

daily use VOIP services in an integrated fashion to the existing commercial customer base,

allowing for extensive usage in small business, commercial applications such as dental offices

and other business scenarios.

plans to provide daily use VOIP services in an integrated fashion to the existing commercial customer base, allowing for extensive usage in small business, commercial applications such as dental offices and other business scenarios.

Focus Universal Corporate Services

Financial reporting is the process by

which an organization communicates its financial performance to management, investors, creditors, and regulators.

Companies routinely

file financial reports, such as an annual report on Form 10-K and the financial statements included therein, to give a comprehensive view

of the financial health of the organization to regulators and company stakeholders.

These financial reports also keep investors aware

of a company’s financial condition, allowing them to have the information they need before making an investment decision.

An annual report on Form 10-K is a

comprehensive report filed annually by a publicly traded company detailing its financial performance.

The annual report on Form 10-K

contains more detail than the company’s annual report sent to its shareholders.

Some of the information a company is required

to document in the report on Form 10-K includes its history, organizational structure, financial statements, earnings per share,

subsidiaries, executive compensation, and other relevant data.

which a company keeps investors aware of a company’s financial condition, allowing them to have the information they need before

making an investment decision.

An annual report on Form 10-K is a comprehensive

report filed annually by a publicly traded company information such as its history, organizational structure, financial statements, earnings

per share, subsidiaries, executive compensation, and other relevant data.

The quarterly report on Form 10-Q is

a comprehensive report of a company’s quarterly performance that must be submitted by all public companies to the SEC.

The quarterly

report on Form 10-Q is generally submitted with unaudited financial statements.

In the quarterly report, companies are required to disclose

additional relevant information regarding their financial position.

These requirements generally include providing condensed financial

statements, a management discussion and analysis on the financial condition of the company, and disclosures regarding market risk and

internal controls.

It is critical that companies and their

accountants and auditors understand all aspects and requirements of these periodic reports on Forms 10-K and 10-Q, including an understanding

of how specific regulations like Sarbanes-Oxley and others are embedded within these reports and the attached financial statements.

a comprehensive report of a company’s quarterly performance that must be submitted by all public companies to the SEC on a quarterly

The quarterly report on Form 10-Q is generally submitted with unaudited financial statements including condensed financial statements,

a management discussion and analysis on the financial condition of the company, and disclosures regarding market risk and internal controls.

In the quarterly reports, companies are required to disclose additional relevant quarterly financial information regarding their financial

Because of the depth and nature of the

information they contain, reports on Forms 10-K and 10-Q can become long and complicated.

Preparation of these reports can become time-consuming,

especially given the complex processes that require a company’s finance team to gather and translate large amounts of data from

multiple sources.

The time and expertise required to complete the process is a substantial burden.

However, SEC reporting deadlines are

firm and inflexible.

These reporting requirements can interfere with other reporting timelines and leave a time-strapped team scrambling

for the resources needed to meet all of their mandated reporting requirements.

information they contain, reports on Forms 10-K and 10-Q can become time-consuming, especially given the complex processes that require

a company’s finance team to gather large amounts of data from multiple sources.

The time and expertise required to complete the

process is a substantial burden.

SEC reporting deadlines are firm and inflexible.

These reporting requirements can interfere with other

reporting timelines and leave a time-strapped team scrambling for the resources needed to meet all of their mandated reporting requirements.

Delays and mistakes in SEC financial

reporting can have far-reaching consequences for companies and even for their shareholders.

The consequences may include SEC review, enforcement

actions, and penalties.

reporting can have far-reaching consequences for companies and their shareholders including.

SEC review, enforcement actions, and penalties.

Late filings can often lead to a drop in the company’s stock price and a decrease in investor confidence.

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programs are destroyed when they are transferred a word processing file.

Creating a formatted table using word processing is time-consuming

and tedious work.

Human data entry of hundreds or thousands

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frequent requirement to update or revise these hundreds or thousands of numbers during the reviewing and auditing processes before submission.

Automation in financial reporting is,

therefore, becoming increasingly important, given the complexity and volume of data involved.

Companies are looking for solutions that

not only save cost, and reduce the time and effort required to report in a timely manner but also improve accuracy and compliance.

Universal Inc.

has developed an automated software solutions to address these challenges effectively and efficiently in the following

Given the complexity and volume of data

Companies are looking for solutions that not only save cost, and reduce the time and effort required to report in a timely manner

but also improve accuracy and compliance.

We have has developed an automated software solution to address these challenges effectively

and efficiently in the following ways:

Data Entry Automation:

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Our software generates these tables accurately and

AI-Driven Analytics:

AI-driven analytics

helps in identifying potential mistakes or areas for improvement in the reports.

Our software provides insights and suggestions for enhancing

the quality and accuracy of financial reporting.

Integration with existing

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ensure data security and compliance with reporting requirements.

It is worth noting that there are established

companies like Insightsoftware, Workvia, and Toppan Merrill already providing SEC reporting automation solutions.

These companies bring

experience and expertise to the field.

However, Insightsoftware concentrates on SEC reporting process design and offers a full-service

solution for XBRL (eXtensible Business Reporting Language) submission.

Workvia specializes in streamlining processes, connecting data

and teams, and ensuring consistency in a secure, audit-ready, cloud platform.

Toppan Merrill offers Bridge, a single, secure, integrated

SaaS platform that connects a company’s team, data, and documents.

Their focus is on providing a unified platform for handling various

aspects of financial reporting, making it easier for teams to collaborate and maintain compliance.

Focus Universal Inc.

is targeting to

commercialize its financial reporting automation software by the end of 2023.

Potential users can subscribe to our service and pay a monthly

fee for access and use.

IoT Installation Services under AVX (Residential)

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Smart Home IoT Installations.

Beyond standard doorbells and thermostats, Focus Universal Inc., through its AVX subsidiary,

provides customized and high-end IoT Smart home solutions to upgrade the standard home to

an integrated home platform.

AVX utilizes its existing tech-savvy installation staff to integrate

the Smart AVX line of IoT products for a customized home solution with designed smart home

AVX meets client safety concerns and meshes modern convenience for a complete solution

for homeowners to easily control their homes’ digital input and output points with

wired, integrated systems throughout the build.

PTZ dome cameras give wide view home

security through the network providing the views of four cameras with in the install space

of a single camera.

LED digital displays and large format multimedia touch screens provide

state-of-the art output displays for eye catching and high-end centerpieces for homeowners.

With the suite of Smart AVX home devices and the AVX professional install team, design and

customized creation within a high-end home system can be standard for the customer base.

These installations include integration of home VOIP phone systems, network and computer

system integration, multimedia display systems, door access control systems, voice and data

cabling, security alarm systems, PC upgrade and software installations, home audio-visual

control center design and installation and systems integration, home security data backup

systems, home network design and installation, HDTV signal and reception boost, and multi-room

audio and ambient music phone systems.

Commercial and Industrial Installations.

Focus Universal Inc.

through the acquired AT

Tech Systems company brand also designs and builds IoT technologies to fit unique business

requirements.

Beyond standard doorbells and thermostats, we, through our AVX subsidiary, provide customized and high-end IoT

Smart home solutions to upgrade the standard home to an integrated home platform.

AVX utilizes its existing tech-savvy installation staff

to integrate the Smart AVX line of IoT products for a customized home solution with designed smart home services.

AVX meets client safety

concerns and meshes modern convenience for a complete solution for homeowners to easily control their homes’ digital input and output

points with wired, integrated systems throughout the installation.

PTZ dome cameras give wide view home security through the network

providing the views of four cameras with in the installation space of a single camera.

LED digital displays and large format multimedia

touch screens provide state-of-the art output displays for eye catching and high-end centerpieces for homeowners.

With the suite of Smart

AVX home devices and the AVX professional installation team, design and customized creation within a high-end home system can be standard

for the customer base.

These installations include integration of home VOIP phone systems, network and computer system integration, multimedia

display systems, door access control systems, voice and data cabling, security alarm systems, PC upgrade and software installations, home

audio-visual control center design and installation and systems integration, home security data backup systems, home network design and

installation, HDTV signal and reception boost, and multi-room audio and ambient music phone systems.

Smart Commercial and Industrial Installations.

We through the acquired AT Tech Systems company brand also design and

build IoT technologies to fit unique business requirements.

Utilizing the aforementioned IoT product solutions within the designed platform

for a business system, AT Tech Systems provides IoT installations and integrations for industries

including security and surveillance, smart commercial and industrial, healthcare, broadcast

media and entertainment, manufacturing, food retail, and industrial warehousing.

Systems design and install experts have decades of hands-on experience in integrated systems

of smart sensor devices, IoT data management platforms, client applications and analytics

for complete end-to-end IoT commercial solutions.

AT Tech Systems excels in the area of IoT

interoperability within the future Focus Universal Inc.

platform, again utilizing the Smart

AVX-branded products such as the LED digital displays, large format multimedia Smart touch

screens, PTZ dome Cameras, and VOIP phone systems.

These installations include integration

of the commercial grade phone fax and extension VOIP systems, networking and computer system

integration for commercial application, multimedia and conferencing display systems, industrial

office and commercial access control systems, voice and data cabling, security and surveillance

perimeter alarm systems, PC upgrade and software installations, office and commercial control

center design and installation systems, automatic data backup systems, server design and

installation, HDTV signal and reception boost, ambient client music systems, and multi-room

and facility audio phone systems.

for a business system, AT Tech Systems provides IoT installations and integrations for industries including security and surveillance,

smart commercial and industrial, healthcare, broadcast media and entertainment, manufacturing, food retail, and industrial warehousing.

AT Tech Systems design and installation experts have decades of hands-on experience in integrated systems of smart sensor devices, IoT

data management platforms, client applications and analytics for complete end-to-end IoT commercial solutions.

AT Tech Systems excels

in the area of IoT interoperability, utilizing the Smart AVX-branded products such as the LED digital displays, large format multimedia

Smart touch screens, PTZ dome Cameras, and VOIP phone systems.

These installations include integration of the commercial grade phone fax

and extension VOIP systems, networking and computer system integration for commercial application, multimedia and conferencing display

systems, industrial office and commercial access control systems, voice and data cabling, security and surveillance perimeter alarm systems,

PC upgrade and software installations, office and commercial control center design and installation systems, automatic data backup systems,

server design and installation, HDTV signal and reception boost, ambient client music systems, and multi-room and facility audio phone

Research and Development Efforts of Power Line

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of PLC technology.

We continue to build upon our existing research

and development with the intention of inventing an ultra-narrowband PLC technology that attempts to tackle two challenges:

(1) overcoming

interference caused by electronic noise on the power line system;

and (2) bandwidth.

Preliminary internal testing suggests that we have

achieved significant noise rejection and interference suppression.

In our preliminary internal testing, we have been able to increase

bandwidth to 4 megabits per second with the potential for more, while simultaneously effectively dealing with electrical noise and interference.

Based on the promising results of our internal testing, we have begun designing a proprietary PLC microchip.

We believe that because residential and commercial

structures already include multiple power outlets, the power line infrastructure represents an excellent network to share data among intelligent

devices, particularly in the smart home installations that we are currently performing through AVX.

We plan to leverage the communications technology

of PLC to enhance the Ubiquitor and make the Ubiquitor a central component of the smart home and gardening systems we are currently developing.

The goal would be that our Ubiquitor would be used to send or receive control signals from a smart device and control hundreds of devices

in near real time.

We intend to apply the same concept to commercial and industrial applications.

Research and Development Efforts of 5G Cellular

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“Creating a faster 5G cellular technology by using ultra-narrowband

technology” in our Annual Report on Form 10-K filed with the SEC on March 31, 2023.

technology” in our Annual Report on Form 10-K filed with the SEC on April 1, 2024.

Intellectual Property Protection

On November 4, 2016, we filed a U.S.

On November 4, 2016, we filed U.S.

patent application

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Patent and Trademark Office (USPTO).

On March 5, 2018, we issued a press release announcing that the USPTO

published an Issue Notification for U.S.

Patent Application No.

9924295 entitled “Universal Smart Device,” which covers a

patent application regarding the Company’s Universal Smart Device.

The patent was issued on March 20, 2018.

Subsequent to our internal research and

development efforts, we filed with the USPTO on June 2, 2017 a patent application regarding a process for improving a spectral

response curve of a photo sensor.

The small and cost-effective multicolor sensor and its related software protected by the patent we

believe could achieve a spectral response that approximates an ideal photo response to take optical measurement.

We filed with the USPTO on June 2, 2017 a patent

application regarding a process for improving a spectral response curve of a photo sensor.

The resulting U.S.

10,251,037 was issued on February 26, 2019.

In addition, we have been notified that the

USPTO published a notice of allowance for a patent application we filed on March 19, 2018, U.S.

Patent Application No.

The patent title is a “Universal Smart Device,” which is a universal smart instrument that unifies

heterogeneous measurement probes into a single device that can analyze, publish, and share the data analyzed.

10,251,037 was

issued on February 26, 2019.

On March 19, 2018, we filed U.S.

Patent Application

The patent title is a “Universal Smart Device,” which is a universal smart instrument that unifies heterogeneous

measurement probes into a single device that can analyze, publish, and share the data analyzed.

The resulting U.S.

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PCT/US2019/63880.

On September 6, 2022, the International Searching Authority (ISA) issued a favorable International Preliminary Report of Patentability

(IPRP) regarding this patent application, which describes the Company’s PLC technology.

The IPRP cited only three category “A”

documents, indicating that the Company’s application met both the novelty and non-obviousness patentability requirements.

Consequently,

the Company is optimistic that a patent including claims directed to its PLC technology will be issued in due course and will allow the

Company to protect its PLC technology.

6, 2022, the International Searching Authority (ISA) issued a favorable International Preliminary Report of Patentability (IPRP) regarding

this patent application, which describes the Company’s PLC technology.

The IPRP cited only three category “A” documents,

indicating that the Company’s application met both the novelty and non-obviousness patentability requirements.

Consequently, the

Company is optimistic that a patent including claims directed to its PLC technology will be issued in due course and will allow the Company

to protect its PLC technology.

In the fourth quarter of 2021, we hired the law

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expand the existing services where the new services proved to be more effective and efficient.

We also expect our recent growth within our IoT

Installation Services segment and acquisition of AT Tech Systems coupled with the new management within AVX to bolster and complement

both companies, and all other related installation businesses of these IoT products.

The number of new contracts we have signed thus far

in a limited amount of time through the nine months ended September 30, 2023 is 22 with an average value of $42,125 and a total collection

value of $796,850 in signed contracts.

Additionally, thus far, we have an aggregate $1,818,668 in contracts agreed in principle, of which

we expect to be signed and deposits paid.

This is compared to our highest AVX revenue for a calendar year of $817,233 in 2019, followed

by $705,877 in 2020, $252,958 in 2021, and $260,871 in 2022.

Our sales target for the year are 31 service contracts, of which we have

already signed 22.

We have targeted 16 LED contracts for 2023, of which we have signed 9 thus far.

We have also target distribution and

partnerships agreements and phone line contracts, all of which have already begun in the third quarter of 2023.

While statistics regarding

the IoT installation sectors are difficult to aggregate given that the work is often are pieced off into various contractor service categories,

the residential custom installation market ranges from $5.7 billion to $12.1 billion, 5 and we would expect the commercial

and industrial installation markets to be larger than the residential for IoT devices.

Results of Operations

For the three months ended September 30, 2023 compared to the

three months ended September 30, 2022

Revenue, cost of revenue and gross profit

For the three months ended September 30, 2023

For the three months ended September 30, 2022

Revenue – related party

Total Revenue

Cost of revenue

Our consolidated gross revenue for the three months

ended September 30, 2023 and 2022 was $318,370 and $60,654, respectively, which included revenue from related parties of $0 and $5,968,

respectively.

Revenue for the three months ended September 30, 2023 increased $257,716 due to a sales increase from our acquisition of

AT Tech Systems and sales increase in AVX sales due to ramping up marketing efforts.

This increase of revenue was mainly a result of the

increase of IoT Installation Services being bolstered by additional resources such as increased headcount.

________________________

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reliable-communication-to-iot-devices-is-expected-to-boost-overall-market-growth-301432173.html

5 How Big Is the Custom Installation Market?, February 5,

2018 (updated July 17, 2023), https://www.cepro.com/news/how_big_is_custom_installation_market/.

Cost of revenue for the three months ended September

30, 2023 was $201,394, compared to $42,441 for the three months ended September 30, 2022.

While the overall cost of revenue increased,

as a percent of revenue, costs went down as a result of higher margin contracts for IoT Installation Services being signed.

to the increase in revenue, gross profit increased to $116,976 for the three months ended September 30, 2023, compared to $18,213 for

the three months ended September 30, 2022.

Operating Expenses

The major components of our operating expenses

for the three months ended September 30, 2023 and 2022 are outlined in the table below:

For the three months ended September 30, 2023

For the three months ended September 30, 2022

Selling expense

Compensation – officers and directors

Research and development

Professional fees

General and administrative

Total operating expenses

Selling expense for the three months ended September

30, 2023 was $33,636, compared to $76,984 for the three months ended September 30, 2022.

Selling expense incurred was mainly from third

party advertising fees and marketing related fees.

The decrease of selling expense was due to a decrease in advertising fees and trade

show expenses.

Compensation – officers and directors was

$267,002 and $265,449 for the three months ended September 30, 2023 and 2022, respectively.

The increase was due to an increase in the

compensation amount received by the board of directors.

Research and development costs were $305,872 and

$133,109 for the three months ended September 30, 2023 and 2022, respectively.

The increase was due to an increase in the number of research

and development employee headcount in the Ontario, California headquarters and the Shenzhen, China subsidiary.

Professional fees were $132,914 during the three

months ended September 30, 2023, compared to $150,943 during the three months ended September 30, 2022.

The decrease in these professional

fees compared to the prior period was due to a decrease in new transaction-based legal paperwork for the Company (as much of this paperwork

was completed earlier) and a decrease in employment litigation legal fees.

General and administrative expenses for the

three months ended September 30, 2023 was $407,851, compared to $365,694 for the three months ended September 30, 2022.

reason for the increase was due to an increase in overall payroll tax in 2023.

Other Income (expense)

Other income for the three months ended September

30, 2023 was $62,266, compared to $31,946 for the three months ended September 30, 2022.

The increase was due to $30,000 consulting advisory

service income provided to an independent third party.

During the three months ended September 30, 2023

and 2022, we incurred net losses of $968,033 and $942,020, respectively, due to the factors discussed above.

For the nine months ended September 30, 2023 compared to the

nine months ended September 30, 2022

Results of Operations

For the three months ended March 31, 2024 compared to the three

months ended March 31, 2023

Revenue, cost of revenue and gross profit

For the nine months ended September 30, 2023

For the nine months ended September 30, 2022

Revenue – related party

Total Revenue

Revenue in operating segments is primarily generated

from IoT product and IoT project construction and installation services.

The following tables summarize revenue from each segment.

For the Three Months Ended March 31, 2024

IoT Installation Services

Cost of revenue

Our consolidated gross revenue for the nine months

ended September 30, 2023 and 2022 was $769,856 and $282,463 respectively, which included revenue from related parties of $0 and $39,788,

respectively.

Revenue for the nine months ended September 30, 2023 increased $487,393 due to a sales increase from our acquisition of

AT Tech Systems and sales increase in AVX sales due to ramping up marketing efforts.

This increase of revenue was mainly a result of the

increase of IoT Installation Services being bolstered by additional resources such as increased headcount.

Cost of revenue for the nine months ended September

30, 2023 was $531,397, compared to $243,004 for the nine months ended September 30, 2022.

While the overall cost of revenue increased,

as a percent of revenue, costs went down as a result of higher margin contracts for IoT Installation Services being signed.

to the increase in revenue, gross profit increased to $238,459 for the nine months ended September 30, 2023, compared to $39,459 for the

nine months ended September 30, 2022.

Operating Expenses

The major components of our operating

expenses for the nine months ended September 30, 2023 and 2022 are outlined in the table below:

For the nine months ended September 30, 2023

For the nine months ended September 30, 2022

Gross Profit (Loss)

For the Three Months Ended March 31, 2023

IoT Installation Services

Cost of revenue

For the three

March 31, 2024

For the three

March 31, 2023

Cost of revenue

Gross Profit (Loss)

Our consolidated gross revenue for the three months

ended March 31, 2024 and 2023 was $219,158 and $236,095, respectively.

Revenue for the three months ended March 31, 2024 decreased $16,937

due to a sales decrease from our IoT installation service due to a reduction in the number of projects in 2024.

Cost of revenue for the three months ended March

31, 2024 was $219,357, compared to $180,744 for the three months ended March 31, 2023.

In addition to the decrease in revenue, gross profit

decreased to $199 compared to $55,351 three months ended March 31, 2024 and 2023, respectively.

The major components of our cost and operating

expenses for the three months ended March 31, 2024 and 2023 are outlined in the table below:

For the three

March 31, 2024

For the three

March 31, 2023

Selling expense

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Total operating expenses

Selling expense for the nine months ended September

30, 2023 was $108,570, compared to $132,871 for the nine months ended September 30, 2022.

Selling expense incurred was mainly from third

party advertising fees and marketing related fees.

The decrease of selling expense was due to a decrease in advertising fees and trade

show expenses.

Compensation – officers and directors was

$827,939 and $874,739 for the nine months ended September 30, 2023 and 2022, respectively.

The decrease was due to a decrease in the number

of members of the board of directors in 2023.

Selling expenses for the three months ended March

31, 2024 was $39,285, compared to $11,859 for the three months ended March 31, 2023.

Selling expense incurred was mainly from third party

advertising fees and marketing related fee.

The increase of selling expense was due to an increase in advertising fees.

Compensation – officers and directors were

$56,793 and $307,534 for the three months ended March 31, 2024 and 2023, respectively.

Research and development costs were $343,277 and

$862,214 for the nine months ended September 30, 2023 and 2022, respectively.

The increase was due to an increase in total number of research

and development employee headcount in the Ontario, California headquarters and the Shenzhen, China subsidiary.

Professional fees were $506,878 during the nine

months ended September 30, 2023, compared to $686,150 during the nine months ended September 30, 2022.

The decrease in these professional

fees compared to the prior period was due to a decrease in new transaction-based legal paperwork for the Company (as much of this paperwork

was completed earlier) and a decrease in employment litigation legal fees.

General and administrative expenses for the nine months ended September

30, 2023 was $1,212,486, compared to $1,586,660 for the nine months ended September 30, 2022.

The primary reason for the decrease was

due to decreases in general and administrative salaries from $579,958 to $223,957 in 2023, lease expense from $280,311 to $104,156 in

2023, and insurance expense from $330,768 to $240,078 in 2023.

The relating decrease was due to the following reasons:

a) Decreased number of general and administrative employees in our

headquarters due to outsourcing of work to third parties;

b) Relocated Focus Shenzhen office to lower lease expense;

c) Obtained better insurance deal from another insurance company.

$276,481 for the three months ended March 31, 2024 and 2023, respectively.

The increase was due to an increase in the number of research

and development patent fees.

Professional fees were $352,611 during the three

months ended March 31, 2024, compared to $257,399 during the three months ended March 31, 2023.

The increase in these professional fees

compared to the prior period was due to an increase in professional legal fees for prior employment litigation.

General and administrative expenses for the three

months ended March 31, 2024 was $527,645 compared to $443,052 during the three months ended March 31, 2023.

The increase of general and

administrative expenses was primarily due to an increase in the number of office employees in 2024.

Other Income (expense)

Other income for the nine months ended September

30, 2023 was $242,317 compared to $230,928 for the nine months ended September 30, 2022.

The increase was due to $61,747 gain on bargain

purchase and $30,000 consulting advisory services income provided to an independent third party.

During the nine months ended September 30, 2023

and 2022, we incurred net losses of $3,100,442 and $3,872,247, respectively, due to the factors discussed above.

Other income for the three months ended March

31, 2024 was $4,213, compared to $126,731 for the three months ended March 31, 2023.

The decrease was due to decreased other income and

unrealized gain on marketable equity securities.

During the three months ended March 31, 2024 and

2023, we incurred net losses of $1,315,597 and $1,114,243 respectively, due to the factors discussed above.

Liquidity and Capital Resources

Working Capital

September 30,

Current Assets

1 unchanged sentence

Working Capital

$ (1,832,595 )

The table below, for the periods indicated, provides

selected cash flow information:

For the nine months ended September 30, 2023

For the nine months ended September 30, 2022

For the three months ended March 31, 2024

For the three months ended March 31, 2023

Net cash used in operating activities

$ (2,603,545 )

$ (2,435,157 )

Net cash provided by (used in) investing activities

Net cash used in financing activities

Net cash provided by (used in) financing activities

Effect of exchange rate

1 unchanged sentence

$ (1,772,951 )

$ (2,616,247 )

Cash Flows from Operating Activities

Our net cash outflows from operating activities

of $2,603,545 for the nine months ended September 30, 2023 was primarily the result of our net loss of $3,100,442 and changes in our operating

of $892,089 for the three months ended March 31, 2024 was primarily the result of our net loss of $1,315,597 and changes in our operating

assets and liabilities offset by the add-back of non-cash expenses.

The change in operating assets and liabilities includes an increase

in accounts receivable of $101,461, a decrease in accounts receivable – related party of $34,507, an increase in inventories of

$196,201, an increase in other receivables of $10,000, a decrease in prepaid expense of $31,811 a decrease in deposit of $8,388, a decrease

in operating lease right-of-use asset of $25,585, an increase in accounts payable and accrued liabilities of $53,709, an increase in other

current liabilities of $33,759, and a decrease in lease liabilities of $58,987.

Non-cash expense included add-backs of $6,871 in bad debt

expense, $127,171 in depreciation expense, $28,741 in amortization of intangible assets, $2,002 in realized loss on marketable securities,

$183,004 in stock-based compensation - shares, and $400,208 in stock option compensation, reductions of $10,463 in unrealized gain on

marketable equity securities, and $61,747 in gain on bargain purchase.

Our net cash outflows from operating

activities of $2,435,157 for the nine months ended September 30, 2022 was primarily the result of our net loss of $3,872,247 and

changes in our operating assets and liabilities offset by the add-back of non-cash expenses.

The change in operating assets and

liabilities includes an increase in accounts receivable of $32,257, an increase in accounts receivable – related party of

$45,413, an increase in inventories of $5,087, a decrease in prepaid expense of $116,648, an decrease in deposit of $1,998, a

decrease in operating lease right-of-use asset of $226,468, an decrease in accounts payable and accrued liabilities of $120,121, a

decrease in other current liabilities of $17,135, an decrease in customer deposit of $271, a decrease in lease liabilities of

$94,542, and an increase in other liabilities of $12,335.

Non-cash expense included add-backs of $72,108 in bad debt expense,

$21,133 in reduction of inventory fair value adjustments, $123,908 in depreciation expense, $32,525 in unrealized loss on marketable

equity securities, $21,205 in realized loss on marketable securities, $158,547 in gain on forgiveness of debt, $671,901 in

stock-based compensation - shares, and $652,500 in stock option compensation.

The change in operating assets and liabilities includes a decrease

in accounts receivable of $72,605, an increase in inventory of $125,286, a decrease in other receivable of $20,435, an increase in prepaid

expense of $14,041, a decrease in operating lease right-of-use asset of $21,039, an increase in accounts payable and accrued liabilities

of $268,420, an increase in other current liabilities of $68,957, and an increase in lease liabilities of $64,960.

Non-cash expense included

add-backs of $7,629 in bad debt expense, $35,330 in depreciation expense, $1,475 in unrealized loss on marketable securities, $94,910

in stock-based compensation - shares, and $36,995 in stock option compensation.

Our net cash outflows from operating activities

of $838,535 for the three months ended March 31, 2023 was primarily the result of our net loss of $1,114,243 and changes in our operating

assets and liabilities offset by the add-back of non-cash expenses.

The change in operating assets and liabilities includes a decrease

in accounts receivable of $8,832, a decrease in accounts receivable – related party of $34,507, a decrease in inventories of $13,109,

an increase in prepaid expense of $80,511, a decrease in deposit of $8,617, an increase in operating lease right-of-use asset of $16,075,

a decrease in accounts payable and accrued liabilities of $20,011, an increase in other current liabilities of $98,838, and a decrease

in lease liabilities of $50,885.

Non-cash expense included add-backs of $5,114 in bad debt expense, $42,041 in depreciation expense, $28,741

in amortization of intangible assets, $14,901 in realized loss on marketable securities, $149,404 in stock-based compensation - shares,

and $133,403 in stock option compensation, reduces of $32,570 in unrealized gain on marketable equity securities and $61,747 in gain on

bargain purchase.

We expect that cash flows from operating activities

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Cash Flows from Investing Activities

For the nine months ended September 30, 2023,

For the three months ended March 31, 2024 we had

cash outflow from investing activities of $5,044 from the purchase of property and equipment.

For the three months ended March 31, 2023,

we had cash inflow from investing activities of $61,824.

That inflow was primarily the result from the purchase of property and equipment

of $20,294, purchase of marketable securities of $144,907, and proceeds from sales of marketable securities of $219,673.

months ended September 30, 2022, we had cash outflow from investing activities of $177,738.

That outflow was primarily the result of

the purchase of property and equipment of $39,193, purchase of marketable securities of $768,949, and proceeds from sales of marketable

securities of $630,404.

That was primarily the result from the purchase of property and equipment of

$9,920, purchase of marketable securities of $17,690, and proceeds from sales of marketable securities of $89,434.

Cash Flows from Financing Activities

For the nine months ended September 30, 2023,

we had cash outflows of $385,686 due to purchase of treasury stock of $1,385,686 and proceeds from related party loan of $1,000,000.

were no financing activities for the nine months ended September 30, 2022.

For the three months ended March 31, 2024, we

had cash inflows of $550,000 due to proceeds from third party and related party loan amount of $600,000 and repayment on third party loan

amount of $50,000.

For the three months ended March 31, 2023, we had cash outflows of $1,000,000 due to purchase of treasury stock.

Going Concern

The Company has assessed its ability to continue as a

going concern for a period of one year from the date of the issuance of these unconsolidated financial statements.

Substantial doubt about

the Company’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate

that it is probable that the Company will be unable to meet its obligations as they become due within one year from the financial statement

issuance date.

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S.

which contemplate continuation of the Company as a going concern.

The Company currently suffered recurring loss from operations, generated

negative cash flow from operating activities, has an accumulated deficit and has not completed its efforts to establish a stabilized source

of revenues sufficient to cover operating costs over an extended period of time.

These conditions raise substantial doubt as to its ability

to continue as a going concern.

These unaudited condensed consolidated financial statements do not include adjustments relating to the

recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should

the Company be unable to continue as a going concern.

The Company has a net loss of $3,100,442 and

$3,872,247 for the nine months ended September 30, 2023 and 2022, respectively.

In addition, the Company had an accumulated deficit

of $20,964,470 and $17,864,028 as of September 30, 2023 and December 31, 2022, respectively, and negative cash flow from operating

activities of $2,603,545 and $2,435,157 for the nine months ended September 30, 2023 and 2022, respectively.

As noted above, the

Company’s ability to continue as a going concern is dependent on its ability to raise additional capital.

The Company has assessed its ability to continue

as a going concern for a period of one year from the date of the issuance of these condensed consolidated financial statements.

has a net loss of $1,315,597 and $1,114,243 for the three months ended March 31, 2024 and 2023, respectively.

In addition, the Company

had an accumulated deficit of $23,897,767 and $22,582,170 as of March 31, 2024 and December 31, 2023, respectively, and negative cash

flow from operating activities of $892,089 and $838,535 for the three months ended March 31, 2024 and 2023, respectively.

doubt about the Company’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate,

indicate that it is probable that the Company will be unable to meet its obligations as they become due within one year from the financial

statement issuance date.

The accompanying consolidated financial statements have been prepared in conformity with U.S.

GAAP, which contemplate

continuation of the Company as a going concern.

The Company currently suffered recurring loss from operations, generated negative cash

flow from operating activities, has an accumulated deficit and has not completed its efforts to establish a stabilized source of revenues

sufficient to cover operating costs over an extended period of time.

These conditions raise substantial doubt as to its ability to continue

as a going concern.

These unaudited condensed consolidated financial statements do not include adjustments relating to the recoverability

and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should the Company

be unable to continue as a going concern.

At March 31, 2024, the Company had cash and cash

equivalents, and short-term investments, in the amount of $114,096.

The ability to continue as a going concern is dependent on the Company

attaining and maintaining profitable operations in the future and raising additional capital to meet its obligations and repay its liabilities

arising from normal business operations when they come due.

Since inception, the Company has funded its operations primarily through equity

and debt financings, and it expects to continue to rely on these sources of capital in the future.

In addition, subsequent to year end,

the Company has entered into a letter of intent with a secondary buyer to sell its land and buildings which upon completion, will provide

additional working capital to the Company.

No assurance can be given that the sale of the land and building will occur, or any future

financing will be available or, if available, that it will be on terms that are satisfactory to the Company.

Even if the Company is able

to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial

dilution for our stockholders, in case of equity financing, or grant unfavorable terms in future licensing agreements.

The Company’s

consolidated financial statements do not include any adjustments relating to the recoverability and classification of reported asset

amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going

independent registered public accounting firm, in its report on the Company’s consolidated financial statements for the year ended

December 31, 2023, has also expressed substantial doubt about the Company’s ability to continue as a going concern.

Off-Balance Sheet Arrangements

As of September 30, 2023, we did not have any off-balance-sheet arrangements,

As of March 31, 2024, we did not have any off-balance-sheet arrangements,

as defined in Item 303(a)(4)(ii) of Regulation SK.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis