Crappy companies tend to file their financials at the latest possible time, and FCUV is no exception. The company filed their 10K late Friday and didn’t even manage to put out a press release to announce their fourth quarter or year-end results. Just the 10K. Here are a few highlights (or lowlights) to their year.
Revenues declined from $1.43M in 2021 to $353K in 2022.
OPEX meanwhile increased from $3.3M to $5.2M.
Which may be due to the increase in headcount from 13 full-time and 4 part-time employees at the end of 2021 to 25 full-time and 7 part-time at the end of 2022.
Cash balances therefore were cut in half, declining from $8.7M to $4.3M.
The culprit? Hydrofarm was their biggest customer in 2021, accounting for 77% of overall revenues, or about $1.1M. In 2022? They chose not to disclose, though they likely should have. Their top 4 in 2022 were 49% of total revenue, so there should have been at least one 10% customer in there somewhere.
A bright side? The CEO’s wife’s Vitashower related-party revenues were up from $29k to $41.5K, so at least the wife is making a little bit of progress in her business.
On a side note, since they only classify revenues in 2 product lines, IoT Products and IoT Installation Services, where do you think the wife’s shower filters are placed?
A couple more comments
The company announced back in February that they hired ShareIntel to investigate “naked short selling” taking place in their shares. Short interest has risen to something over 2M shares of late on pretty minimal share volume. Would seem a focus on their actual business might be a better use of their limited resources.
The company also announced a stock dividend of 1 share for every 2 a shareholder owns, so essential a 3 for 2 stock split. To “reward” shareholders, of course. Curious if people still believe that?
Their $25M ATM financing was lowered to $1M. Lower stock prices tend to do that.
Hydrofarm is their only customer for their hydroponics-related products, like filters and light controllers, and was supposed to be the way they would get their “revolutionary” Ubiquitor product into the market. The significant decline in those revenues is not a good sign that they will be able to market any new products through that distribution channel.
Their AVX subsidiary which installs home automation solutions was supposed to be the other way for their Ubiquitor product to make its debut, though revenues there have declined quite a bit over the years. They appear to be embroiled in a couple of lawsuits with former AVX employees, which may be a reason.
At their current run rate, FCUV has about a year’s worth of cash left for operations, at which point a very dilutive financing will have to take place. Post-split, this thing should have around 66M shares outstanding for a market cap of maybe $150M. Though it’s down over 75% from my original spiel, there don’t seem to be many positives for the company to report.