Focus Universal Secures $10 Million in Preferred Equity to Advance IoT and SEC Reporting Technologies

Focus Universal Inc. (NASDAQ: FCUV), a provider of patented hardware and software design technologies for the Internet of Things, 5G, and AI-driven SEC financial reporting automation software, has closed a $10 million preferred equity offering. The offering, completed on October 23, 2025, generated total gross proceeds of $10 million, with estimated net proceeds of approximately $9.44 million after deducting underwriting discounts, commissions, and offering-related expenses.

The company intends to use these net proceeds to continue ongoing commercialization of its Universal Smart IoT platform and AI-driven SEC financial reporting software. This funding round demonstrates significant investor confidence, with Dr. Edward Lee, Chairman of the Board of Focus Universal Inc., investing $2 million personally, alongside another previous FCUV shareholder who committed $1 million in the initial Series A round.

Dr. Desheng Wang, Chief Executive Officer of Focus Universal Inc., stated that the participation of board members and three investor groups demonstrates strong confidence in the advanced technologies and global potential of the company's products. This investment strengthens the company's balance sheet, provides financial flexibility to support growth strategy, and helps meet Nasdaq's minimum stockholders' equity requirement.

The timing of this funding is crucial as both of Focus Universal's flagship products approach full commercialization. The company's Universal Smart IoT applications are now available for download on the Apple App and Google Play Stores, while the AI-driven SEC financial reporting software is currently under contract for testing. To install the Universal Smart IoT App, users can search 'FCUV' in the Apple app store or Google Play's app store at https://apps.apple.com and https://play.google.com, though full access permissions require company approval after installation.

Focus Universal's technology approach represents a significant departure from traditional IoT development methods. Unlike conventional systems where engineers start from scratch for each new device, the company's platform provides a pre-built common foundation that allows different IoT devices to share approximately 90% of the same hardware and software. This unique methodology substantially reduces development costs and complexity while accelerating time-to-market and democratizing access to IoT solutions.

The company's second major product, AI-driven SEC financial reporting software, addresses a critical pain point in corporate compliance. SEC financial reporting is traditionally complex, costly, and time-consuming, often taking several weeks to complete. Delays in filing can result in SEC reviews, enforcement actions, and significant penalties. Focus Universal has developed a fully automated, end-to-end solution powered by both automation and Variegated AI technology.

This innovative software enables what the company describes as optimal computer-human collaboration, where the computer handles tasks for which it is designed while keeping humans in the decision loop for areas requiring human expertise. With a single click, the software can retrieve financial statements from accounting platforms, reformat data into spreadsheets for consolidated financial reporting, automatically generate consolidated financials, populate word-processed versions of SEC filings, convert documents to SEC-compliant versions via EDGARization, and embed accurate tags into HTML files with minimal manual input.

Spartan Capital Securities LLC acted as lead placement agent for the Series B portion of the offering, with RBW Capital Partners LLC, acting as sub-placement agent through Dawson James Securities, Inc. The successful completion of this funding round positions Focus Universal to advance both product lines toward market adoption, potentially transforming how businesses approach IoT development and financial compliance in increasingly regulated environments.