Focus Universal Inc. (Nasdaq: FCUV), a provider of patented hardware and software design technologies for Internet of Things (IoT) 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 proposal by unanimous written consent on January 27, 2026.
The reverse stock split will become effective at 12:01 a.m. Eastern Standard Time on February 9, 2026, and will be reflected with the Nasdaq Capital Market and in the marketplace at the open of business on that date. Following the split, the Company's common stock shares will continue to trade on Nasdaq under the symbol "FCUV" but will trade under a new CUSIP Number, 34417J 500.
As of the effective date, every 10 shares of the Company's issued and outstanding common stock will be combined into one share of common stock. The par value per share will remain unchanged. As of January 27, 2026, there were 9,865,249 shares of common stock outstanding. After the reverse split, there will be approximately 986,524 common stock shares outstanding, subject to adjustment due to the effect of not issuing any fractional shares.
No fractional shares will be issued in connection with the reverse split. Instead, each stockholder will be entitled to receive a cash payment in lieu of such fractional share. 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 split. Registered stockholders holding pre-reverse stock split shares of common stock electronically in book-entry form are not required to take any action to receive post-reverse stock split shares. Those stockholders who hold their shares in brokerage accounts or in "street name" will have their positions automatically adjusted to reflect the reverse split, subject to each broker's particular processes, and will not be required to take any action in connection with the reverse split.
Additional information about the reverse stock split will be found in the Company's 8-K filed with the Securities and Exchange Commission on February 5, 2026, a copy of which will be available at https://www.sec.gov.
This corporate action represents a strategic financial maneuver that could have significant implications for both the company and its investors. Reverse stock splits are often implemented to increase the per-share trading price of a company's stock, which can help maintain compliance with Nasdaq's minimum bid price requirements and potentially attract institutional investors who may have policies against investing in lower-priced stocks.
For Focus Universal, which has developed five disruptive patented technology platforms with 26 patents and patents pending in various phases and 8 trademarks pending in various phases, this move could enhance the market perception of its stock while the company continues to advance its IoT and 5G technologies. These technologies have the potential to reduce costs, product development timelines and energy usage while increasing range, speed, efficiency, and security within the hardware and software design industry.
The reduction in outstanding shares from approximately 9.9 million to approximately 986,524 shares represents a significant consolidation that could potentially increase earnings per share metrics and improve the stock's liquidity profile. However, investors should note that the reverse split does not fundamentally change the company's market capitalization or the proportional ownership of existing shareholders, except for the elimination of fractional shares through cash payments.
Market observers will be watching how this corporate action affects trading dynamics and whether it supports Focus Universal's strategic objectives as it continues to develop and commercialize its patented technologies in the competitive IoT and 5G sectors. The company's ability to maintain its Nasdaq listing and potentially attract broader investor interest could be important factors in its ongoing development and market positioning.
