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 approved a 1-for-10 reverse stock split of its common stock. The decision, made by unanimous written consent on January 27, 2026, is set to take effect 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.
The reverse stock split will consolidate every 10 shares of the company's issued and outstanding common stock into one share, with the par value per share remaining unchanged. As of January 27, 2026, there were 9,865,249 shares of common stock outstanding. Post-split, the company expects approximately 986,524 shares outstanding, subject to adjustment for fractional shares. No fractional shares will be issued; instead, stockholders will receive a cash payment for any fractional interest. 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 and reserved for issuance under equity incentive plans.
The reverse stock split is a strategic move by Focus Universal to address Nasdaq's minimum bid price requirement and maintain its listing on the capital market. The company's common stock will continue to trade under the symbol "FCUV" but will have a new CUSIP number, 34417J 500. The company's transfer agent, VStock Transfer, LLC, will serve as the exchange agent and paying agent for the split. Registered stockholders holding shares electronically in book-entry form do not need to take any action, and those holding shares in brokerage accounts will have their positions automatically adjusted.
Focus Universal, based in Ontario, California, specializes in IoT and 5G technologies, with a portfolio of 26 patents and patents pending across five patented technology platforms. The company's technologies aim to reduce costs, product development timelines, and energy usage while increasing range, speed, efficiency, and security. Additional details about the reverse stock split are available in the company's 8-K filing with the Securities and Exchange Commission on February 5, 2026, a copy of which can be found at www.sec.gov.
This reverse stock split is a critical step for Focus Universal to preserve its Nasdaq listing, which is essential for attracting institutional investors and maintaining liquidity. The reduction in outstanding shares is expected to boost the stock price, potentially making it more attractive to investors and reducing the risk of delisting. However, reverse splits can sometimes signal financial distress, and the company's ability to execute its business strategy and achieve profitability will be key to long-term shareholder value.
