Focus Universal Announces 1-for-10 Reverse Stock Split to Consolidate Shares

Focus Universal Inc., a provider of patented hardware and software design technologies for Internet of Things and 5G, announced that its Board of Directors has approved a 1-for-10 reverse stock split of the Company's common stock. The Board approved the reverse stock split proposal by unanimous written consent on January 27, 2026. This corporate action will become effective at 12:01 a.m. Eastern Standard Time on February 9, 2026, with trading on a split-adjusted basis commencing at the market open that day.

The reverse stock split will consolidate every 10 shares of the Company's issued and outstanding common stock into one share of common stock. As of January 27, 2026, there were 9,865,249 shares of common stock outstanding, which will be reduced to approximately 986,524 common stock shares following the split. The par value per share will remain unchanged, and the Company's common stock will continue to trade on Nasdaq under the symbol "FCUV" but with a new CUSIP Number, 34417J 500. No fractional shares will be issued in connection with the reverse stock split, with stockholders receiving cash payments in lieu of fractional shares instead.

Proportional adjustments will be made to the number of shares of common stock issuable upon the exercise of the Company's equity awards, securities and warrants, as well as the applicable exercise price, and the number of shares authorized and reserved for issuance pursuant to the Company's equity incentive plans. The Company's transfer agent, VStock Transfer, LLC, will serve as the exchange agent and paying agent for the reverse stock split. Registered stockholders holding pre-reverse stock split shares electronically in book-entry form are not required to take any action to receive post-reverse stock split shares.

Stockholders who hold their shares in brokerage accounts or in "street name" will have their positions automatically adjusted to reflect the reverse stock split, subject to each broker's particular processes, and will not be required to take any action in connection with the reverse stock split. Additional information about the reverse stock split is available in the Company's 8-K filed with the Securities and Exchange Commission on February 5, 2026, a copy of which can be found at https://www.sec.gov. This corporate action represents a strategic financial maneuver that typically aims to increase per-share trading prices to meet minimum listing requirements and potentially attract a broader range of investors.

Reverse stock splits are often implemented by companies seeking to maintain compliance with exchange listing standards, particularly minimum bid price requirements. For Focus Universal, this move could help ensure continued listing on the Nasdaq Capital Market, which requires companies to maintain a minimum bid price of $1.00 per share. By consolidating shares and increasing the stock price proportionally, the Company may improve its appeal to institutional investors who often have policies against investing in low-priced stocks. The timing of this announcement, coming as the Company continues to develop its patented technology platforms for IoT and 5G applications, suggests management is positioning the company for future growth opportunities while addressing immediate compliance considerations.