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 decision, made by unanimous written consent on January 27, 2026, aims to bring the Company into compliance with Nasdaq's minimum bid price requirement and improve the marketability of its shares.
The reverse stock split will become effective at 12:01 a.m. Eastern Standard Time on February 9, 2026, and will be reflected on the Nasdaq Capital Market at the open of business that day. Shares will continue trading under the symbol "FCUV" but with a new CUSIP number, 34417J 500. As a result, every 10 shares of issued and outstanding common stock will be combined into one share, reducing the total outstanding shares from 9,865,249 to approximately 986,524, subject to adjustments for fractional shares.
No fractional shares will be issued; instead, stockholders will receive a cash payment in lieu of fractional shares. Proportional adjustments will also be made to the number of shares issuable upon exercise of equity awards, securities, and warrants, as well as the applicable exercise prices and the number of shares authorized under the Company's equity incentive plans. The Company's transfer agent, VStock Transfer, LLC, will serve as exchange agent and paying agent for the reverse split.
Registered stockholders holding shares electronically in book-entry form do not need to take any action. Those holding shares in brokerage accounts or in "street name" will have their positions automatically adjusted, subject to each broker's processes. Additional details are available in the Company's 8-K filed with the Securities and Exchange Commission on February 5, 2026, a copy of which is accessible at www.sec.gov.
The reverse stock split is a strategic move to increase the per-share trading price, potentially attracting a broader range of institutional investors and improving the stock's liquidity. For a company with a market capitalization that may have fallen below Nasdaq's minimum standards, this action is critical to maintain its listing on the exchange. The reduction in outstanding shares also consolidates ownership, which can have implications for shareholder value and future financing activities.
Focus Universal has developed five patented technology platforms with 26 patents and patents pending, along with 8 trademarks pending, aimed at reducing costs, product development timelines, and energy usage while increasing range, speed, efficiency, and security in IoT and 5G applications. The reverse split does not change the fundamental value of the Company but adjusts the stock price to align with exchange requirements.
