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 and in the marketplace at the open of business that day. Following the split, the common stock shares will begin trading on a split-adjusted basis. 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.
For business and technology leaders, this corporate action represents a significant financial restructuring for a company operating in the competitive IoT and 5G technology space. Reverse stock splits are typically implemented to increase a company's per-share trading price, which can help maintain compliance with Nasdaq's minimum bid price requirements and potentially make the stock more attractive to institutional investors who may have policies against investing in low-priced stocks.
The timing of this announcement, coming from a company that has developed five disruptive patented technology platforms with 26 patents and patents pending, suggests management is taking proactive steps to strengthen its market position. While the reverse split itself doesn't change the company's fundamental value, it often signals a strategic effort to improve market perception and trading liquidity. For investors and industry observers, this move warrants attention as it could precede other strategic initiatives from Focus Universal as it continues developing technologies aimed at reducing costs, product development timelines and energy usage while increasing range, speed, efficiency, and security in hardware and software design.
