Focus Universal Secures $10 Million in Preferred Equity to Advance IoT and SEC Reporting Technologies

Focus Universal Inc. has announced the closing of a $10 million preferred equity offering, with the company intending to use the estimated net proceeds of approximately $9.44 million to continue ongoing commercialization of its Universal Smart IoT platform and AI-driven SEC financial reporting software. The offering closed on October 23, 2025, subject to the satisfaction of customary closing conditions, with significant participation from existing shareholders including Dr. Edward Lee, Chairman of the Board, who invested $2 million alongside another previous shareholder who committed $1 million.

Dr. Desheng Wang, Chief Executive Officer of Focus Universal Inc., emphasized that the investment demonstrates strong confidence in the company's advanced technologies and global potential. The funding strengthens the company's balance sheet, provides financial flexibility to support growth strategy, and helps meet Nasdaq's minimum stockholders' equity requirement. With both flagship products in the final stages of commercialization, Focus believes the proceeds will be sufficient to support the company's path to profitability.

The Universal Smart IoT applications are now available for download on the Apple App and Google Play Stores, while the AI-driven SEC financial reporting software is currently under contract for testing. Unlike traditional IoT systems where engineers start from scratch for each new device, Focus Universal's platform provides a pre-built common foundation that enables different IoT devices to share approximately 90% of the same hardware and software, substantially reducing development costs and complexity while accelerating time-to-market.

Focus Universal's AI-driven SEC financial reporting software addresses the traditionally complex, costly, and time-consuming process of SEC financial reporting, which can take several weeks to complete. The company has developed a fully automated, end-to-end solution powered by both automation and Variegated AI that enables the computer to conduct activities for which it is designed while keeping humans in the decision loop. With a single click, the software can retrieve financial statements from accounting platforms, reformat data into spreadsheets for consolidated financial reporting, automatically generate consolidated financials, populate word-processed versions of SEC filings, convert documents to SEC-compliant versions via EDGARization, and embed accurate tags into HTML files with minimal manual input.

Spartan Capital Securities LLC acted as lead placement agent for the Series B portion of the offering, with RBW Capital Partners LLC acting as sub-placement agent through Dawson James Securities, Inc. The successful funding round comes at a critical time as Focus Universal positions its technologies to address significant market needs in both IoT development and financial compliance sectors, potentially transforming how businesses approach these complex technological challenges.