Focus Universal Inc., a provider of patented hardware and software design technologies for Internet of Things and 5G, has announced its Board of Directors approved a 1-for-10 reverse stock split of the company's common stock. The unanimous written consent occurred on January 27, 2026, with the split becoming effective at 12:01 a.m. Eastern Standard Time on February 9, 2026.
The reverse stock split represents a significant corporate action for the Nasdaq-listed company, which will see every 10 shares of issued and outstanding common stock combined into one share. This consolidation will reduce the number of outstanding shares from approximately 9.9 million to about 986,524, subject to adjustment due to fractional share elimination. The company's common stock will continue trading on Nasdaq under the symbol "FCUV" but with a new CUSIP Number, 34417J 500.
This corporate action matters to investors and market observers because reverse stock splits often signal a company's effort to maintain compliance with exchange listing requirements or improve its stock's market perception. For Focus Universal, which develops disruptive technology platforms with 26 patents and patents pending across various phases, maintaining its Nasdaq Capital Market listing is crucial for continued access to capital markets and investor visibility. The company's technologies aim to reduce costs, product development timelines, and energy usage while increasing range, speed, efficiency, and security in hardware and software design.
The practical implications for shareholders include automatic adjustments to their holdings, with no action required for those holding shares electronically in book-entry form or through brokerage accounts. VStock Transfer, LLC will serve as the exchange agent and paying agent, handling cash payments for fractional shares rather than issuing partial shares. Proportional adjustments will also apply to equity awards, securities, warrants, and shares authorized under the company's equity incentive plans.
Additional information about the reverse stock split is available in the company's 8-K filing with the Securities and Exchange Commission, accessible at https://www.sec.gov. This regulatory filing provides official documentation of the corporate action and its specific terms, offering transparency to current and potential investors about the company's capital structure changes.
The timing of this announcement comes as Focus Universal continues developing its five patented technology platforms, with the reverse split potentially positioning the company for future growth initiatives or strategic partnerships in the competitive IoT and 5G sectors. While the company's forward-looking statements caution that actual results may differ from expectations due to market conditions and other factors, this corporate restructuring represents a deliberate step in the company's financial management strategy.
