Focus Universal Inc.

What they do

Focus Universal operates through subsidiaries including Perfecular (horticultural sensors and filters), AVX/Smart AVX (IoT installation, audio/video integration, LED and camera products), Focus Shenzhen (R&D and manufacturer sourcing in China), and Lusher (One Touch Financial SEC reporting software). The company holds 28 patents and patents pending and has developed five platform technologies: device on a chip, universal smart instrumentation platform, 5G ultra-narrowband, ultra-narrowband power line communication, and financial reporting software. In April 2026 it acquired a Class A office and commercial building at 901 Corporate Center Drive in Monterey Park, California, which became its primary revenue source.

Revenue drivers

• Rental income from the Monterey Park property — Since the April 17, 2026 acquisition, rental income is the primary revenue source; the company generated $651,950 from the Property in the six months ended June 30, 2026, with leases covering 91,366 square feet through December 31, 2026 from 12 tenants.
• Sensor and instrument products (Perfecular, Ubiquitor) — Digital sensor products and a broad selection of horticultural sensors and filters sold in North America and Europe; historical annual revenue has been small, averaging roughly $255,000 to $440,000 in recent years.
• Smart AVX IoT installation and products (AVX) — IoT installation and management for audio/video, home theater, lighting control and automation, plus sales of Smart AVX LED, live wall panel and camera products.
• One Touch Financial software (Lusher) — Automation software for SEC financial reporting aimed at SEC attorneys, PCAOB accounting firms and financial reporting professionals; management states the software is ready to commercialize, with customer testing beginning July 2025.

Recent performance

Recent quarterly revenue has been highly uneven: $28,689 for the quarter ended September 30, 2025, $749 for December 31, 2025, $47,973 for March 31, 2026, and $675,170 for June 30, 2026, the last reflecting the start of rental income from the April 2026 property acquisition. Annual revenue declined from $440,543 in 2023 to $398,137 in 2024 and $255,023 in 2025. Net losses were $3,200,138 in 2024 and $4,787,769 in 2025, with negative operating cash flow of $5,102,771 in 2025. As of December 31, 2025, accumulated deficit was $31,023,411, and the company disclosed substantial doubt about its ability to continue as a going concern. At June 30, 2026, total assets were $20.0 million, total liabilities $11.8 million, shareholder equity $8.2 million, cash $1.6 million, and long-term debt $18.0 million.

Strategy

Management plans to phase out lower-margin traditional products such as the first-generation digital light meter and launch newer technology products in phases. The company is building a U.S. sales team for Smart AVX-branded products including large format touch screens, surveillance systems with NVRs, indoor and outdoor LED screens, and VOIP phone service. It intends to move the Ubiquitor sensor into full-scale production and has integrated it into a gardening system with light, temperature, humidity, PAR, pH, TDS and carbon dioxide sensors. Lusher is focused on commercializing One Touch Financial, with a cloud-based version under development. The April 2026 property acquisition was funded with a $17.7 million purchase price and has shifted the company's revenue base toward rental income.

Risks

• Going concern and accumulated deficit — The company had an accumulated deficit of $31,023,411 at December 31, 2025, a net loss of $4,787,769 for 2025, and disclosed substantial doubt about its ability to continue as a going concern.
• Dependence on external funding for Ubiquitor — Management states it may require up to $20 million to fund development, manufacturing and marketing of the Ubiquitor, and there is no guarantee funding can be obtained on favorable terms.
• Revenue concentrated in new rental property — Following the April 2026 acquisition, the company's primary revenue source is rental income from a single Monterey Park property, exposing results to tenant defaults or lease terminations; management's $1,464,523 full-year 2026 rental projection assumes no current leases are terminated.
• Key personnel concentration — Future success depends on continued service of CEO Desheng Wang and CFO Irving Kau, and the company says limited financial resources and operating history would make replacing them difficult.

Outlook

Management expects the Monterey Park property to generate $1,464,523 of rental revenue through December 31, 2026, assuming no current leases are terminated, with 12 tenants leasing 91,366 square feet. It describes the One Touch Financial SEC reporting software as ready to commercialize and the Ubiquitor as moving toward full-scale production, with sensors for TDS, carbon dioxide, quantum PAR and dissolved oxygen designed. The company continues to develop its five platform technologies and build a U.S. sales team for Smart AVX products.