Focus Universal Inc., a provider of patented hardware and software design technologies for Internet of Things and 5G, announced 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 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 at the open of business that day. Following the effective date, the common stock shares will begin trading on a split-adjusted basis. The company's common stock will continue to trade on Nasdaq under the symbol "FCUV" but will trade under a new CUSIP Number, 34417J 500.
This corporate action matters because reverse stock splits are typically implemented to increase a company's per-share trading price, which can help maintain compliance with stock exchange listing requirements. For Focus Universal, which currently trades on the Nasdaq Capital Markets, maintaining a minimum bid price is crucial for continued listing. The move signals management's commitment to preserving the company's public market status, which provides liquidity for shareholders and access to capital markets for future growth initiatives.
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. Following 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. The implications of this announcement extend beyond mere share consolidation; it represents a strategic financial maneuver that could affect the company's market perception, potentially making the stock more attractive to institutional investors who often have minimum price requirements for investments. For individual investors, the reverse split reduces the number of shares held but increases the price per share proportionally, maintaining the total value of their investment while potentially improving the stock's marketability and liquidity.
