Focus Universal Inc. has completed a $10 million preferred equity offering, with the company intending to use the net proceeds of approximately $9.44 million to advance commercialization of its Universal Smart IoT platform and AI-driven SEC financial reporting software. The offering, which closed on October 23, 2025, represents a significant milestone for the technology company as it moves both flagship products toward full market deployment. The financing round demonstrated notable insider confidence, with Dr. Edward Lee, Chairman of the Board, investing $2 million alongside another previous shareholder who committed $1 million.
Dr. Desheng Wang, Chief Executive Officer of Focus Universal, emphasized that this participation from major shareholders and three investor groups reflects strong belief in the company's advanced technologies and global market potential. The investment also strengthens the company's balance sheet and helps meet Nasdaq's minimum stockholders' equity requirement. Focus Universal's Universal Smart IoT applications are now available for download through the Apple App and Google Play Stores at https://apps.apple.com and https://play.google.com respectively.
The company's approach to IoT development differs fundamentally from traditional methods by providing a pre-built common foundation that allows different IoT devices to share approximately 90% of the same hardware and software. This methodology substantially reduces development costs and complexity while accelerating time-to-market for new IoT solutions. Simultaneously, Focus Universal's AI-driven SEC financial reporting software is currently under contract for testing with industry leaders in the SEC filing and compliance sector.
The technology addresses what has traditionally been a complex, costly, and time-consuming process that can take several weeks to complete. The company's automated solution can retrieve financial statements from accounting platforms, reformat data into spreadsheets, generate consolidated financials, populate SEC filing documents, convert documents to SEC-compliant versions via EDGARization, and embed accurate tags into HTML files with minimal manual input. Spartan Capital Securities LLC served 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 financing round positions Focus Universal to continue its trajectory toward profitability while advancing technologies that could significantly impact both the IoT industry and financial compliance sectors. The funding enables the company to accelerate deployment of its innovative solutions that address fundamental challenges in both technology domains, potentially transforming how businesses approach IoT implementation and regulatory compliance.
