Focus Universal Secures $10 Million Funding to Accelerate IoT Platform and SEC Reporting Software Commercialization

Focus Universal Inc. (NASDAQ: FCUV), a provider of patented hardware and software design technologies for the Internet of Things (IoT), 5G, and AI-driven SEC financial reporting automation software, announced the closing of a $10 million preferred equity offering. The offering, closed 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 funds to continue ongoing commercialization of its Universal Smart IoT platform and AI-driven SEC financial reporting software.

The funding round demonstrated significant insider confidence, with Dr. Edward Lee, Chairman of the Board of Focus Universal Inc., investing $2 million 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., emphasized that this participation from major shareholders and three investor groups reflects strong confidence in the company's advanced technologies and global potential. The investment strengthens the company's balance sheet, provides financial flexibility to support growth strategy, and helps meet Nasdaq's minimum stockholders' equity requirement.

Both of Focus Universal's flagship products are reaching critical commercialization milestones. The 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. The company believes the proceeds from this offering will be sufficient to support its path to profitability. To install the Universal Smart IoT App, users can search 'FCUV' in either app store, though full access permissions require company approval after installation.

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

The company's AI-driven SEC financial reporting software addresses another critical industry challenge. Traditional SEC financial reporting is typically 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. The technology enables computers to handle tasks for which they are optimally designed while keeping humans in the decision-making loop for tasks requiring human expertise.

With a single click, the company's 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. This comprehensive automation represents a potential paradigm shift in financial compliance processes.

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. Securities Legal served as counsel to the Company, while Lucosky Brookman acted as counsel to Spartan Capital Securities, LLC. The successful funding round positions Focus Universal to accelerate the market deployment of its dual-technology platforms during a period of increasing demand for both IoT solutions and automated financial compliance tools.