VIEW SYSTEMS INC

Under Topic 606, revenue is measured based on consideration specified in the contract with a customer. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Topic 606. Revenue from all customers is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Amounts billed to customers for shipping and handling are included in revenue.

To date, View Systems, Inc. has developed, produced and marketed computer software and hardware systems for security and surveillance applications. We expanded our product line in 2002 to include a concealed weapons detection system we call ViewScan. In 2003 we added a hazardous material first response wireless video transmitting system to our product line we refer to as Visual First Responder. Unfortunately, the rising costs of manufacturing equipment and the large quantities required to become cost competitive has forced us to quit manufacturing our own products.

Our strategy going forward in 2021 is 1: to patent an enhanced and more complex Weapons Detection Portal. 2: Create a subsidiary that contains all security related technologies, patents, and expertise to further capitalize in the security market with superior products 3: utilize the current View Systems public structure to initially manage and promote Medicinal Cannabis related products as a supplier of the raw materials.

The company will divide its operations into manufacturing and promoting security devices in one company and become an importer of raw materials and finished product used in the Cannabis market space for medical purposes in the current View Systems operation.

Our net income for the three-month period ended September 30, 2020 for continuing operations was $942,980 compared to a net loss of ($109,370) during the three-month period ended September 30, 2019 (an increase of $1,052,350 from net loss of ($109,370)of continuing operations). We generated ($0) net revenues during the three-month period ended September 30, 2020 similar to the three month period ended September 30, 2019. Revenue is considered earned when service is provided and in addition when the product is shipped to the customer.

The Board has decided to separate the operation into one focusing on further security products development and one to acquire a cannabis growing and manufacturing of the medical marijuana products business. We plan to separate the two product lines into two separate companies to better focus on them individually.