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Item 1. Business

2022-03-08 compared with 2021-03-23 · 1154 added, 905 removed, 129 unchanged (94% of the section changed)

Company Background.

Universal Inc.

(the “Company,”

“we,”

“us,”

or “our”) is a Nevada corporation.

have developed four fundamental disruptive proprietary technologies which solve the most fundamental problems plaguing the internet

of things (“IoT”) industry through:

(1) increasing overall chip integration by shifting it to the device level;

Focus Universal Inc.

(the “Company,”

“we,” “us,” or “our”) is a Nevada corporation.

We are based in the city of Ontario, California, and

were incorporated in Nevada in 2012.

In December of 2013, we filed an S-1 registration statement that went effective on March 14, 2014.

From March 14, 2014 through August 30, 2021, our securities traded on the OTCQB Market.

From August 31, 2021 through January 27, 2022,

our securities traded on the Nasdaq Capital Market.

From January 28, 2022, our securities have traded on the Nasdaq Global Market.

Our website is www.focusuniversal.com.

and the information contained therein or connected thereto are not intended to be incorporated into this report.

We have developed five proprietary platform technologies

that we believe solve the most fundamental problems plaguing the internet of things (“IoT”) industry by:

(1) increasing the

overall degree of chip integration capabilities by shifting integration from the component level directly to the device level;

a faster 5G cellular technology by using ultra-narrowband technology;

(3) leveraging ultra-narrowband power line communication (“PLC”)

(4) developing a natural integrated programming language (“NIPL”) applied to software development, which generates

a user interface through machine auto generation technology;

and (5) developing a universal smart instrumentation platform (“USIP”).

Index of Key Technical Abbreviated Terms

Fifth Generation Mobile Wireless Telecommunications Network

Gaussian Frequency Shift Keying

Home Area Networks

Integrated Chip

Internet of Things

Long-Term Evolution Networks

MOS Transistor

Metal-Oxide-Silicon Transistor

Power Line Communication

Ultra-narrowband

Universal Smart Instrumentation Operating System

Universal Smart Instrumentation Platform

Our goal is to increase the overall degree of chip integration capabilities by shifting integration from the component level directly to the device level.

We have developed an innovative and proprietary

“device on a chip” (“DoC”) technology, which combines the required electronic circuits of various integrated circuit

components onto a single, integrated chip (“IC”) and pushes beyond the limits of current integrated chip.

Our DoC technology

works as a single component but is capable of handling entire IoT device functions (excluding sensors and architecture-specific components).

Our DoC technology includes both the hardware and software, uses less power compared to traditional IoT devices, with better performance,

includes smaller overall devices, and offers greater reliability in spite of decreasing the number of interconnections between components.

We believe that incorporating our DoC technology into our product offering, will simplify the manufacturing process, lowering our costs

and allowing us to achieve a faster time-to-market, when compared to our competitors’ who only manufacture and sell multi-chip devices.

Our planned DoC technology allows devices to achieve interoperability with one another and are interchangeable, both features where traditional

IoT devices fall short.

Our research and development suggests that the

existing IC integration in IoT devices is mainly focused on hardware-to-hardware integration, not incorporating software solutions.

lack of incorporating software under a common operating system, application software, and extra interface into ICs, limits IC integration

to the component level.

Software is a critical component in electronics, and the more tightly integrated the software, the better the

power and performance.

Software also adds an element of flexibility and allows multiple discrete ICs, which in the past were unable to

be further integrated into a single IC.

Currently, ICs integration requires the development

and manufacture of customized hardware and software.

As a result, IC fabrication is too expensive to manufacture on a large scale.

is ideally designed for products that are intended for mass production to keep manufacturing costs low by producing uniform products using

repetitive and standardized processes.

Product standardization has become a major bottleneck in device-level IC fabrication because most

devices are custom-designed and manufactured.

The Universal Smart Instrumentation Platform (“USIP”)

we developed is a standardized, universal hardware and software integration platform that provides a universal common foundation for what

we anticipate will be thousands of IoT and standalone devices.

The electronic design and production starts from a 90% completed common

foundation, our USIP, instead of the individual components that necessitate the current method of building each standalone instrument

from scratch.

USIP allows ICs to be integrated from the component level up to the device level, which pushes the frontier of semiconductor

technology beyond Moore’s Law.

Our USIP also eliminates redundant hardware and software and results in significant cost savings

and production efficiency.

From USIP to device level

integrated circuits (“IC”).

Creating a faster 5G cellular technology by using ultra-narrowband technology.

(3) leveraging ultra-narrowband power line communication

(“PLC”) technology;

and (4) User Interface Machine auto generation technology.

A new IC frontier:

increasing IC integration directly at the device level

We push beyond the current integrated chip limits with our device on a chip technology –

which increases the overall degree of chip integration by shifting integration from the component level directly to the device level

have developed an innovative and proprietary “device on a chip”

(“DoC”) technology, which combines the

required electronic circuits of various integrated circuit components onto a single, integrated chip (“IC”).

technology works as a single component but is capable of handling entire IoT device functions.

Our DoC technology includes both

the hardware and software, uses less power, has better performance, includes smaller overall devices ,

and offers greater reliability in spite of decreasing the number of interconnections between components .

We believe that implementing our DoC technology will allow our products to have a faster time-to-market than our competitors,

lower the cost, and simplify production than our competitors’

multi-chip devices.

DoC technology allows devices to achieve interoperability with one another and interchangeability which traditional IoT devices

are unable to achieve.

Our research and

development identified that the current IC integration in IoT devices focuses on pure hardware-to-hardware integration.

of incorporating software such as a common operating system, application software and extra

interface into ICs limits IC integration only to the component level.

a critical component in electronics, and the more tightly integrated the software, the better the power and performance.

also adds an element of flexibility and allows multiple discrete ICs which in the past were unable to be further integrated into

Unfortunately,

only customized hardware and software are currently available, and customized hardware and software integration leads to a custom

IC fabrication which is too expensive to manufacture on a large scale.

IC is ideally designed

for products that are intended for mass production to keep manufacturing costs low by producing uniform products using repetitive

and standardized processes.

Product standardization has become a major bottleneck in device-level IC fabrication because most devices

are custom-designed and manufactured.

The Universal Smart Instrumentation Platform

(“USIP”) we developed is a standardized, universal hardware and software integration platform, that provides a universal

common foundation for what we anticipate will be thousands of IoT and standalone devices.

Electronic design and production starts

from a 90% completed USIP instead of the components.

USIP allows ICs to be integrated from the component level up to the device

level and pushes the frontier of semiconductor technology beyond Moore’s law allowing the principle of Moore’s Law

From USIP to device

level integrated circuits.

Our Ultra-narrowband (“UNB”) technology breaks through the Shannon Law’s critical limit which current 5G cellar communication is reaching

Fifth generation (“5G”) telecommunications

Fifth-generation (“5G”) telecommunications

networks will revolutionize the digital economy by enabling new applications that depend on ultra-fast communications on an industrial

5G promises to deliver an improved end-user experience by offering new applications and services through gigabit speeds,

and significantly improved performance and reliability.

5G will build on the successes of 2G, 3G and 4G mobile networks, which

have transformed society, supporting new services and new business models.

5G provides an opportunity for wireless operators to

move beyond providing connectivity services, to developing rich solutions and services for consumers and industry across a wide

range of sectors at an affordable cost.

5G is an opportunity to implement wired and wireless converged networks and offers in particular

opportunities in integrating network management systems.

The United States and China are in a race to deploy 5G, wireless networks,

and the country that gets there first will lead in standard-setting, patents, and the global supply chain.

A recent World Economic

Forum report concluded that 5G networks will contribute $13.2 trillion in economic value globally and generate 22.3 million jobs

from direct network investments and residual services.

1 5G networks and their related applications are expected to add

three million jobs and $1.2 trillion to the economy in the U.S.

2 Though 5G offers a significant increase in speed and

bandwidth, its more limited range will require further infrastructure.

Higher frequencies enable highly directional radio waves,

meaning they can be targeted or aimed.

The challenge is that 5G antennas, although able to handle more users and data, can only

beam out over shorter distances.

5G promises to deliver an improved end-user experience by offering new applications and services through gigabit speeds and significantly

improved performance and reliability.

5G will build on the successes of 2G, 3G, and 4G mobile networks, which have transformed society,

supporting new services and new business models.

5G provides an opportunity for wireless operators to move beyond providing connectivity

services to developing rich solutions and services for consumers and industries across a wide range of sectors at an affordable cost.

5G is an opportunity to implement wired and wireless converged networks and offers particular opportunities to integrate network management

The United States and China are in a race to deploy 5G wireless networks, and the country that gets there first will lead in

standard-setting, patents, and the global supply chain.

A World Economic Forum report stated that by 2035 5G networks would contribute

$13.2 trillion in economic value globally and generate 22.3 million jobs in the 5G global value chain from direct network investments

and residual services.

1 5G networks and their related applications are expected to add three million jobs and $1.2 trillion

to the economy in the U.S.

______________

Economic Forum, January 2020 “The Impact of 5G:

Creating New Value across Industries and Society,” available at:

http://www3.weforum.org/docs/WEF_The_Impact_of_5G_Report.pdf

(last accessed January 10, 2022).

2 https://www.marketsandmarkets.com/Market-Reports/power-line-communication-plc-market-912.html

(last accessed on January 10, 2022).

Though 5G offers a significant increase in speed

and bandwidth over previous generation telecommunication networks, its more limited range for high-speed internet will require further

infrastructure investments.

A 5G network requires spectrum across low, mid, and high spectrum bands to deliver widespread coverage and

support a wide range of use cases.

3 A low-band cell site can cover hundreds of square miles and deliver a downlink data rate

in the range of 30-250 Mbps.

4 Mid-band frequencies (2.5/3.5Ghz) can also travel fairly long distances but can carry a lot

more data than low-band cell sites.

5 Mid-band 5G base stations can transmit and receive high-capacity signals over fairly

They can represent an ideal mix of performance—including some networks providing download speeds around 100-900 Mbps—for

the bulk of 5G traffic in metropolitan areas.

6 High-band 5G uses millimeter-wave (mmWave) frequency bands.

Despite receiving

plenty of publicity, high-band is actually a very specialized part of the 5G offering.

7 Functioning over a shorter radius,

it’s particularly useful in urban areas and busy venues like stadiums and shopping malls.

8 With the potential to offer

data rates of up to 10 Gbps, high-band 5G is already being deployed in several major cities.

Download speeds for carriers’ high-band

5G can sometimes clock in around 450 Mbps, with peak speeds of nearly 1 Gbps, and upload speeds near 50 Mbps.

High-band, mmWave spectrum is used primarily

for urban and dense urban markets.

The characteristics of high-band, mmWave spectrum is that it is very wide and provides a significant

increase in capacity.

Because of the greater spectrum width, speed is increased, and transmission latency is reduced.

However, the drawback

is that high-band spectrum does not propagate over a large coverage area.

For example, a 28 GHz mmWave spectrum can only travel 500 feet.

Low-band frequencies can travel long distances

and penetrate buildings but can only carry a limited amount of data.

High-band frequencies can carry a substantial amount of data, but

due to their shorter wavelength, they travel shorter distances and are more susceptible to buildings and trees blocking the signal.

_______________

Jeremy (December 10, 2019).

“The definitive guide to 5G low, mid, and high band speeds.” VentureBeat online magazine (available

https://venturebeat.com/2019/12/10/the-definitive-guide-to-5g-low-mid-and-high-band-speeds/ (Last accessed January 10, 2022)).

“5G Rollout—Beyond the Hype.” Parsons Cyber Blog, June 16, 2020 (“As a result, 5G base stations must be positioned

as close as a third of a mile, whereas 4G base stations can provide coverage of 20 to 45 miles.

This limitation becomes especially acute

in more rural and/or remote areas, wherein 5G networks become impractical”) (available at:

https://www.parsons.com/2020/06/5g-rollout-beyond-the-hype/

(last accessed, April 15, 2021)).

9 https://www.t-mobile.com/business/resources/articles/benefits-of-the-5g-spectrum-for-businesses

(last accessed January 5, 2022).

10 https://dgtlinfra.com/american-tower-5g-deployed-in-layers-different-spectrum-bands/

(last accessed January 5, 2022).

11 https://www.md7.com/perspectives/infrastructure-challenges-of-5g-frequency/

(last accessed January 5, 2022).

Unlike 4G LTE, which operates on established

2 unchanged sentences

bands, as they build and roll out their respective 5G networks.

Adding the necessary hardware required for 5G networks can significantly

increase operating expenses.

Adding the hardware required for 5G networks can significantly increase

operating expenses.

Building 5G networks is expensive.

According to Heavy Reading’s Mobile Operator 5G Capex, total

global spending on 5G is set to reach $88 billion by 2023.

____________________________________

1 http://www3.weforum.org/docs/WEF_The_Impact_of_5G_Report.pdf

2 https://www.marketsandmarkets.com/Market-Reports/power-line-communication-plc-market-912.html

(last accessed on February 9, 2021)

3 Heavy Reading, Report, “Mobile

Operator 5G Capex Forecasts:

2018-2023”

According to Heavy Reading’s Mobile Operator 5G Capex, total global spending

on 5G is set to reach $88 billion by 2023.

Mobile Operator 5G Capex

A typical 5G base station consumes up to twice

or more the power of a 4G base station.

Energy costs can grow even more at higher frequencies due to a need for more antennas and a denser

layer of small cells.

Edge computing facilities needed to support local processing and new internet of things (IoT) services will also

add to overall network power usage.

Site Power requirements 2G,

2-4G, and 5G.

Select 5G base stations in China are being powered

off every day from 21:00 to 9:00 to reduce energy consumption and lower electricity bills.

5G base stations are substantial energy consumers

such that electricity bills have become one of the highest costs for 5G network operators.

Reading, Report, “Mobile Operator 5G Capex Forecasts:

2018-2023” available at:

1 unchanged sentence

(last accessed on January 5, 2022).

Operator 5G Capex Forecasts:

typical 5G base station consumes up to twice or more the power of a 4G base station.

Energy costs can grow even more at higher

frequencies, due to a need for more antennas and a denser layer of small cells.

Edge computing facilities needed to support local

processing and new internet of things (IoT) services will also add to overall network power usage.

Site Power requirements 2G, 2-4G and 5G.

5G base stations in China are being powered off every day from 21:00 to next day 9:00 to reduce energy consumption and lower electricity

5G base stations are truly large consumers of energy such that electricity bills have become one of the biggest costs for

5G network operators.

Ultra-narrowband

Modulation was conceived in 1985 as a method to be used with’

frequency modulation (FM) Sub-Carriers’

(as opposed to

‘FM Supplementary Carriers’, or ‘In Band On Channel’

In its original form, data rates as high

as 196 kb/s were obtained from a subcarrier at 98 kHz.

A pulse width modulation baseband encoding method called the “Slip

That method, which was basically a baseband method, was limited in data rate and required excessive filtering,

which precluded it from being a practical Ultra-narrowband method.

Bandwidth efficiencies as high as 15 bits/sec./Hz were being

achieved, Dr.

Walker is the ultra-narrowband pioneer.

Ultra-narrowband (“UNB”) technology

Our ultra-narrowband wireless communication 5G+

technology aims to achieve both low band 5G coverage and 1 Gbps high-band speed because we employ an ultra-narrow spectrum channel

(<1KHz) to establish an ultra-long-distance link between the 5G base station and the receiver.

The ultra-narrowband modulation was

initially conceived in 1985 by Dr.

Walker as a method to be used with ‘frequency modulation (FM) Sub-Carriers’ (as

opposed to “FM Supplementary Carriers” or “In Band On Channel” Carriers).

In its original form, data rates as

high as 196 kb/s were obtained from a subcarrier at 98 kHz, and bandwidth spectral efficiencies as high as 15 bits/sec/Hz were achieved.

A pulse width modulation baseband encoding method called the “Slip Code” was used.

That method, which was a baseband method,

was limited in data rate and required excessive filtering, which precluded it from being a practical ultra-narrowband method.

Ultra-narrowband (“UNB”) technology

employs an ultra-narrow spectrum channel (<1KHz) to establish an ultra-long-distance link between transmitter and receiver.

It allows the long-range coverage which makes it a most suitable low-power wide-area network technique for industrial IoT systems.

Additionally, its ultra-high power spectral density creates endurance against interference and jamming, which enables friendly

coexistence of UNB on shared frequency bands.

The narrower the bandwidth, the fewer noise and interference, in addition, the transmission

energy concentrates on ultra-narrowband width, and results in a very high concentration of power in a very narrow frequency band.

Comparison between

Ultra-narrowband and Broadband

Many traditional modulation approaches

require allowance for upper and lower sidebands throughout the carrier frequency.

UNB modulation is a modified approach for data

transmission without sidebands.

UNB is extremely robust in an environment with other signals,

including spread spectrum signals.

However, spread spectrum networks are affected by UNB signals.

modulation utilizes a coded baseband with abrupt edges.

Any bandpass filter used at the transmitter for ultra-narrowband modulation

must exhibit zero group delay to pass the instantaneous phase changes, though it may lack the bandwidth required to pass instantaneous

changes in frequency.

Conventional filters cannot be used with Ultra-Narrowband signals, which are absolutely dependent upon Negative

or Zero group delay filters.

There is one important characteristic which

is holding up widespread adoption of Ultra-Narrowband modulation, and that is the zero group delay filters which are complex and

must be hand tuned.

We developed an ultra-narrowband technology

which offers a potential alternative to broadband technology used in 5G and meets the challenging 5G demands.

A comparison with

4G and 5G is given:

for long-range coverage, making it an optimal low-power wide-area network technique for industrial IoT systems.

Additionally, its ultra-high

power spectral density creates endurance against interference and jamming, which enables the friendly coexistence of UNB on shared frequency

The narrower the bandwidth, the fewer occurrences of noise and interference entering the bandwidth.

In addition, UNB’s transmission

of energy concentrates on ultra-narrowband width, resulting in a very high concentration of power in a very narrow frequency band.

Comparison between Ultra-narrowband

and Broadband

Many traditional modulation approaches require

allowance for upper and lower sidebands throughout the carrier frequency.

UNB modulation is a modified approach for data transmission

without sidebands.

UNB is extremely robust in an environment with other signals, including spread spectrum signals.

However, spread spectrum

networks are affected by UNB signals.

UNB modulation utilizes a coded baseband with

abrupt edges.

Any bandpass filter used at the transmitter for ultra-narrowband modulation must exhibit zero group delay to pass the instantaneous

phase changes.

However, it may lack the bandwidth required to pass instantaneous changes in frequency.

Conventional filters cannot be

used with ultra-narrowband signals, which are absolutely dependent upon negative or zero group delay filters.

One important characteristic has restricted widespread

adoption of ultra-narrowband modulation, and that is the zero group delay filters, which are complex and must be hand-tuned.

zero group delay filters are responsible for restricting data rates to just 196 kb/s from a subcarrier at 98 kHz and bandwidth spectral

efficiency to 15 bits/sec/Hz.

We developed an ultra-narrowband technology that

offers a potential alternative and/or complementary solution to the broadband technology used in 5G networks and meets the challenging

A comparison of our ultra-narrowband technology with 4G and 5G is illustrated in the table below:

of subcarriers

2 unchanged sentences

UNB (in development)

UNB speed will increase proportionally

if it operates at higher frequency like 4G or 5G did, or adopts multiple subcarriers, which is equivalent to increasing bandwidth.

Utilizing the same bandwidth, UNB can saved energy up to 20,000 times for 4G and 100,000 times for 5G.

Keeping the same bandwidth

and energy consumption, the coverage can increase two orders of magnitude.

UNB Breaks through the Shannon Law’s critical

limit which current 5G cellar communication is reaching, overcomes the current 5G challenges and allowing cellar communication

development beyond 5G.

We believe our Ultra-narrowband Power Line Communication (“PLC”), will revolutionize the fundamental IoT communication

infrastructure

patented PLC is an innovative communication technology that enables sending data over existing power cables.

It does not require

substantial new investment for a dedicated wiring infrastructure.

Instead, PLC uses the existing power lines.

These power lines

form a distribution network that already penetrates into every residential, commercial and industrial premises.

the power grid is an established ubiquitous network, connectivity via PLC is potentially the most cost-effective, scalable interconnectivity

approach and the backbone communication infrastructure for the IoT.

devices plug into power outlets and establish a connection using the existing electrical wiring.

This allows instruments to share

data without the inconvenience of running dedicated network cables.

primary design goal of the power line network is electric power distribution.

It was not originally designed as a communication

Consequently, while PLC has been around for many years, the harsh electrical noise present on power lines and variations

in equipment and standards make communications over the power grid difficult and present a number of fundamental challenges for

data transfer.

Signals propagating along the power line are subjected to very large amounts of noise, attenuation, and distortion

that make them erratic, with several attributes varying over time.

PLC is susceptible to noise from devices linked to the power

supply infrastructure, for example, fluorescent tube lights, drills, hair dryers, microwave ovens, computers, switch mode power

supply, cellphone chargers, dimmers, refrigerators, televisions, washing machines, and vacuum cleaners.

result being that previous implementations of PLC technology appear to have ended in power companies and internet service providers

deciding that the technology is not viable as a means of delivering broadband internet access.

The technological challenges have

impeded, or even halted progress.

As shown in the table, our internal testing shows

that our finished ultra-narrowband technology can achieve speeds of 4 Mbps per second at a bandwidth of less than 1000 Hz.

efficiency of our finished technology has reached 4000 bits/sec/Hz.

Development work of our ultra-narrowband technology is underway for

speeds of 64 Mbps at a bandwidth of 64 MHz with spectral efficiency of over 4000 bits/sec/Hz.

UNB speeds will increase proportionally if it

operates at the higher frequencies used by 4G or 5G networks or adopts multiple subcarriers, equivalent to increasing bandwidth.

result, we believe that our ultra-narrowband technology can reach 5G speeds and has the potential for much higher speeds.

Utilizing the

same bandwidth, our internal results show that UNB can save energy of up to 20,000 times when compared to current 4G technology and 100,000

times when compared to current 5G technology.

Keeping the same bandwidth and energy consumption, our internal testing results suggest

the coverage provided by UNB can increase by two orders of magnitude.

UNB breaks through the Shannon Law’s critical limit that current

5G cellular communication is reaching, overcomes the current 5G challenges, and allows cellular communication development beyond 5G.

Despite the excitement surrounding 5G networks, several challenges

need to be address before global adoption of 5G technology can occur.

1) Spectrum availability.

5G networks operate on higher bandwidth frequencies reaching up to 300

GHz, which permit data rates capable of delivering ultra-fast speeds measuring as much as 20 times more than those provided by 4G LTE

However, the availability and cost of spectrum bands are still an issue for wireless operators.

Wireless operators need to bid

for these costly higher spectrum bands as they build and deploy their respective 5G networks.

On February 24, 2021, the Federal Communications

Commission announced the winning bids in Auction 107, the auction of 3.7 GHz service licenses.

The winning bids for all 5,684 available

licenses totaled over $81 billion and were concentrated among just 21 bidders.

13 Given that Focus Universal operates in the

ultra-narrowband spectrum where very limited spectrum is required and public access spectrum is also available, this is potentially less

of a concern than pursuing the traditional broadband capacity pathways.

Communications Commission.

(2021, February 24).

FCC Announces Winning Bidders in C-Band Auction [Press release].

https://www.fcc.gov/document/fcc-announces-winning-bidders-c-band-auction.

Despite 5G networks offering significantly

increased speeds, their more limited range will require increased infrastructure investments.

5G requires three to four times the number

of base stations to provide the same coverage area as 4G LTE because higher frequencies are more readily absorbed by solid objects than

lower frequencies.

For example, a signal at 700 MHz provides a coverage area three to four times that of a 2.6 GHz signal.

expect UNB coverage to potentially increase coverage over standard 5G broadband pathways.

Building a 5G network is expensive.

To do so is not just building a layer on top of an existing 4G network;

instead, it is laying the groundwork for something new altogether.

The cost of a current 5G base station is approximately three times that of a 4G base station.

4) Energy consumption.

Two factors relate directly to the increased

energy consumption of 5G networks.

First, 5G’s operating on higher frequency spectrums require greater energy input.

a typical 5G base station consumes up to twice the power consumed by a 4G base station.

Second, to provide the same coverage area as a

4G network, a 5G network requires three to four times the number of base stations.

Accordingly, the overall energy consumption of a typical

5G network will be at least six to eight times more than the energy consumption of a 4G network with equivalent coverage.

Similar to the

coverage applications, we also expect energy consumption to be potentially significantly less with UNB technologies over the conventional

broadband pathways.

We are currently developing 5G+, which we believe

is a promising alternative wireless technology that uses our innovative ultra-narrowband (UNB) wireless technology.

UNB technology employs

an ultra-narrow spectrum channel (<1 kHz) to establish an ultra-long-distance link between transmitter and receiver.

Our internal testing

suggests that a single 5G+ subcarrier wave has the potential to provide speeds of 64 to 256 Mbps.

Moreover, multiple UNB subcarriers may

be combined, which effectively increases bandwidth.

Given anticipated data rates of 64 Mbps, we believe only 4 to 16 5G+ subcarrier waves

would be needed to achieve the current 5G speeds, and just 40 to 160 5G+ subcarrier waves would be needed to achieve 6G speeds.

5G technology requires 3,276 subcarrier waves to achieve its current speeds.

Fewer subcarriers translate into cost savings because they

are more compact and consume less energy.

Our goal is to increase the speed of 5G networks while simultaneously reducing the number of

Our internal testing suggests that to achieve

speeds of 1 Gbps, our 5G+ technology would only require bandwidths of 4 to 16 kHz, which is narrow enough to be operated in lower frequency

This would mean that 5G+ providers would not need to purchase the higher frequency spectrums required by 5G technology.

a 5G+ provider would realize significant savings from not having to bid for costly higher spectrum band licenses.

Operating in relatively

lower frequency spectrum bands, when compared to 5G, also means that 5G+ would have a more extensive coverage area than that of 5G, in

many cases three to ten times larger.

It would also mean that we could reduce the number of subcarriers and reduce the overall costs of

the 5G networks infrastructure.

Further, the design of 5G+ infrastructure means

that cost savings could be realized as there is the potential of piggybacking the required 5G+ infrastructure on the current 4G infrastructure.

Finally, 5G+ only consumes 1/25,000 to 1/6,250 of the energy consumed by 5G.

As outlined above, 5G+ has the potential to overcome the

challenges presented by the use of higher broadband spectrums required for the implementation of the broadband technology used in 5G.

_____________

much does it cost to build a 5G base station?” Phate Zhang, April 7, 2020, CNTechPost (available at:

https://cntechpost.com/2020/04/07/how-much-does-it-cost-to-build-a-5g-base-station/

(last accessed on January 10, 2022)).

Leveraging ultra-narrowband power line communication (“PLC”) technology.

Our patented PLC is an innovative communication

technology that enables sending data over existing power cables in the electric grid.

Because PLC uses the existing power lines, it does

not require substantial new investment for a dedicated wiring infrastructure.

Existing power lines already form a distribution network

that penetrates every residential, commercial, and industrial property.

Given that the power grid is, for the most part, an established

ubiquitous network, PLC is potentially the most cost-effective, scalable interconnectivity approach for the backbone communication infrastructure

required for the IoT.

PLC allows IoT devices to be plugged into power outlets to establish a connection using the existing electrical

wiring, permitting data sharing without the substantial investment and inconvenience of running dedicated network cables.

Historically, the primary design goal of the power

line network was electric power distribution.

The power line network was not originally designed to function as a communication channel.

Consequently, while PLC has been around for many years, the harsh electrical noise present on power lines and variations in equipment

and standards make communications over the power grid difficult and present several challenges for data transfer.

Signals propagating

along the power line are subjected to substantial amounts of noise, attenuation, and distortion that make them erratic, with several attributes

varying over time.

PLC is susceptible to noise from devices linked to the power supply infrastructure, including, for example, fluorescent

tube lights, drills, hair dryers, microwave ovens, computers, switch-mode power supply, cellphone chargers, dimmers, refrigerators, televisions,

washing machines, and vacuum cleaners.

The result is that previous attempts at implementing PLC technology resulted in power companies

and internet service providers deciding that the technology is not a viable means of delivering data or broadband internet access.

technological challenges have impeded or even halted progress in PLC technology’s development.

We have successfully developed ultra-narrowband

PLC technology and achieved 4 Mbps at bandwidth less than 1000 Hz.

In our interference testing, six industrial blowers were used

and no significant interference was found.

By comparison, a simple air dryer will render our competitors’

legacy technology

completely useless.

Our 4Mbps PLC modules have been completed, and printed circuit layouts have been sent for production.

PLC technology that can transfer data through the power grid.

According to our internal testing, our ultra-narrowband PLC technology can

send and receive data without the customary interference that occurs in standard office and residential environments, achieving speeds

of 4 Mbps at a bandwidth of less than 1000 Hz.

To test noise interference and disturbance, we utilized six industrial blowers simultaneously

when testing, and no significant interference was found.

By comparison, a single hair dryer will render our competitors’ legacy

PLC technology completely useless.

We have completed the development of our 4Mbps PLC modules and the printed circuit board layout.

modules will be used for IoT systems involving over 1,000 sensors.

The higher communication speed PLC will be developed concurrently.

Ultra-narrowband

PLC is a considerably more effective tool than current in-home network systems.

Zigbee or Z-Wave will need new infrastructure to

be installed.

Moreover, penetrating physical barriers like walls within one floor, or reaching out to different floors is a challenge

for current wireless technology that current IoT systems are using.

Wireless networks often face performance issues, due to radio-frequency

interference caused by devices like microwave ovens, cordless telephones or even Bluetooth devices at home.

However, our PLC can

reach out to every node connected via the power lines.

Our technology converts virtually every standard wall socket into an access

point, in many ways incorporating the best of wired and wireless communication.

User Interface Machine auto generation technology - hardware defining software

have developed a proprietary and patented “user interface machine auto generation platform”

(“UIMAGP”),

this cross-platform or multiple-platform, cross-operating-system platform is designated to simply the software development of 20

billion IoT devices, ranging from hardware embedded coding to user interface design.

Our universal natural programming language

we developed is the programming language used to build the IoT user interface.

The programming language is similar to the language

humans use amongst one another so that it is easy to learn but understood by a machine.

Future software programming is

expected to be enormously simplified to the maximum extent, with hundreds of thousands of lines of code simplified into a micro

code which can be saved in the sensor module.

When the sensor modules are plugged into the USIP, the user interface code

saved at sensor modules are sent to the platform and a universal display such as a smartphone, a computer or display unit.

UIMAGP saved on the universal display automatically generates the user interface within milliseconds instead of requiring months

or years of software development work.

An embedded coding hardware engineer is able to design both sensor module hardware and provide

the user interface micro code.

Thus, the hardware defining software is achieved.

UIMAGP is similar

in spirit to low code or no code programming in reducing the amount of traditional hand coding, enabling accelerated delivery of

business applications.

However, low code and no code programming suffer from integration restriction, absence of customization

and security risks issues, making them not suitable for large-scale and mission-critical enterprise applications such as IoT applications.

UIMAGP overcome these challenges and still preserve a minimum amount of coding.

The UIMAGP and user interface micro codes

work collectively to perform the function of the tradition customized software, enabling UIMAGP to be shared by the entire 20 billion

Universal Smart Instrumentation Platform (“USIP”)

Instrumentation

is a huge industry which covers variety of fields including medical, healthcare, scientific, commercial, industrial, military and

Lack of the instrumentation interoperability, compatibility and universality result in every instrument design starting

from the scratch or components, each instrument is only able to carry out a determined measurement or control a specific operation.

I ntegration of existing instruments which lack interoperability and compatibility into a platform can be difficult and expensive.

This integration is impeded by the inability of instruments to easily communicate with devices and sensors for perception, mobility,

and manipulation.

As society enters the IoT era, it is not unreasonable to assume that millions of devices will need to be connected

in one square kilometer, if each IoT device requires unique hardware and software developed from scratch, implementation in dense

urban areas is simply not feasible.

USIP represents an advanced software and

hardware integrated instrumentation platform and a large-scale modular design approach.

USIP integrates a large number of technologies,

including cloud technology, wired and wireless communication technology, software programming, instrumentation technology, artificial

intelligence, PLC, sensor network and internet of things into a single platform and results in circuit designs that are orders

of magnitude cheaper and faster than those constructed of discrete integrated circuit components from scratch.

USIP not only has primary functionalities

but also an open architecture of incorporating variety of many individual instruments,

functions, sensors and probes from different industries and vendors to the greatest extent

possible into the same single unit as well.

Instruments, sensors or probes from a few to several hundreds or even thousands

in any combination from variety of industries and vendors share or reuse the same platform.

Adding, removing or changing, instruments

or sensors is all the platform requires to switch from one kind of device to another without revising the software and redesigning

the hardware.

Future instrument integration, design and manufacture are enormously simplified

to the maximum extent, only the sensor modules are required to be replaced, designed and manufactured.

to traditional stand-alone instruments, USIP exploits the processing power, productivity, display, and connectivity capabilities

of computers or mobile devices and provide a more powerful, flexible, and cost-effective measurement solution.

hardware-centered instrumentation systems are made up of multiple stand-alone instruments

that are interconnected to carry out a determined measurement or control an operation.

They have fixed vendor-defined functionality

and their components that comprise the instruments are also fixed and permanently associated with each other.

Our ultra-narrowband PLC technology is a considerably

more effective way to transfer data than current in-home and commercial network systems, such as Zigbee and Z-Wave.

While Zigbee and Z-Wave

will need new infrastructure to be installed, our PLC technology could operate by itself or complement existing wideband communication

tools like Wi-Fi, Zigbee, or Z-Wave.

Penetrating physical barriers like walls within a single floor or reaching out to different floors

in a single building is a challenge for the wireless technology that current IoT systems are using.

Moreover, wireless networks often

face performance issues due to radio-frequency interference caused by microwave ovens, cordless telephones, or even Bluetooth devices

However, our PLC technology can reach every node connected via the power lines.

Our technology converts virtually every standard

wall socket into an access point, in many ways incorporating the best of wired and wireless communication, making it a more consistent

and reliable system for crucial and sensitive operations.

Our ultra-narrowband PLC technology’s ability to reach long distances

via power lines becomes especially useful in commercial networks that require the ability to avoid physical barriers like walls, underground

structures, and hills, such as those networks used in industrial facilities, underground structures, golf course irrigation systems, and

Moreover, our technology can be an integral part of any smart city, community, or campus.

Developing a natural integrated programming language (“NIPL”) applied to software development, which generates a user interface through machine auto generation technology.

We have developed a proprietary and patented “user

interface machine auto generation platform” (“UIMAGP”) to replace the manual software designs that are currently used.

This platform is used to build the IoT user interface.

The natural integrated programming language we have developed is similar to the

language humans use to communicate with each other, which makes it is easy for humans to learn, while still being understood by a machine.

The UIMAGP simplifies the process of software programming by saving hundreds of lines of code into a micro code that can be saved to a

sensor module.

When that sensor module is plugged into a USIP, the user interface specification codes saved to the sensor module is sent

to the platform and a universal display, such as a smartphone, a computer, or a display unit.

The UIMAGP saved on the universal display

automatically generates the user interface within milliseconds instead of requiring months or years of software development work.

coding hardware engineer can design sensor module hardware and provide the user interface specification code.

Thus, the hardware-defining

software is achieved.

UIMAGP is similar to low code or no code programming

because it reduces the amount of traditional hand-coding, enabling accelerated delivery of business applications.

However, low code and

no code programming suffer from integration restrictions, absence of customization, and security risks issues, making them unsuitable

for large-scale and mission-critical enterprise applications such as IoT applications.

UIMAGP has overcome these challenges while requiring

only a minimum amount of coding.

The UIMAGP and user interface specification codes work collectively to perform the function of traditional

customized software, enabling UIMAGP to be shared by the estimated 20 billion IoT devices worldwide, 15 a feat that current

manual software designs could not achieve.

Developing a universal smart instrumentation platform (“USIP”)

Instrumentation is a vast industry that covers

a variety of fields, including medical, healthcare, scientific, commercial, industrial, military, and daily life.

Lack of instrumentation

universality results in every instrument design starting from scratch.

Moreover, each instrument can only carry out a determined measurement

or control a specific operation.

Integrating existing instruments that lack interoperability and compatibility into a platform can be

difficult and expensive.

This integration is impeded by the inability of instruments to easily communicate with devices and sensors for

perception, mobility, and manipulation.

As society enters the IoT era, it is not unreasonable to assume that millions of devices will

need to be connected in one square kilometer.

If each IoT device requires unique hardware and software developed from scratch, implementation

in dense urban areas is simply not feasible.

Wireless networks can be accessed by any device within the network’s signal range.

USIP is an advanced hardware and software integrated

instrumentation platform with a large-scale modular design approach.

USIP integrates a large number of technologies, including cloud technology,

wired and wireless communication technology, software programming, instrumentation technology, artificial intelligence, PLC, sensor networking,

and IoT technology into a single platform.

This results in circuit designs that we believe are vastly cheaper and faster than those constructed

of discrete integrated circuit components designed from scratch.

USIP has primary functionalities and an open architecture

capable of incorporating a variety of individual instruments, functions, sensors, and probes from different industries and vendors into

a single unit.

Instruments, sensors, or probes ranging from a few to several hundred or even thousands in any combination from various

industries and vendors can share or reuse the same platform.

Adding, removing, or changing instruments or sensors is all the platform

requires to switch from one type of device to another without revising the software and redesigning the hardware.

Compared to traditional stand-alone instruments,

USIP exploits a computer’s or mobile devices’ processing power, productivity, display, and connectivity capabilities to provide

a more powerful, flexible, and cost-effective measurement solution.

Traditional hardware-centered instrumentation systems are made up

of multiple stand-alone instruments interconnected to carry out a determined measurement or control an operation.

They have fixed vendor-defined

functionality, and the components that comprise the instruments are also fixed and permanently associated with each other.

Different instruments

2 unchanged sentences

meter to measure temperature or vice versa.

USIP is designated to be compatible with

all instruments, sensors or probes on the market and capable of monitoring and controlling any combination of instruments or sensors.

It has brought a revolution to the field of instrumentation, measurement, control and automation.

USIP is a versatile instrument, able to

do many different measurements and controls, substitutes for many other instruments and integrate existing instruments into it.

The promise of USIP is closely associated with the development and proliferation of computers

and mobile equipment which provide the fundamental foundation and major technical support to the universal smart instrument such

as attractive graphical user touch screen interface, data processing and analysis capabilities, video and audio, cameras, GPS,

ubiquitous wireless connectivity , AI, cloud based communications and almost

unlimited functions or software available to the users that do not contain in the traditional

These features embody the advantages of USIP which are lacking in the stand-alone instrument system.

As compared with

the traditional instrument, the best advantage of USIP is cost saving.

O ther distinctive

features include universality, interoperability, f lexibility,

compatibility, upgradeability, expandability, scalability, security, modularity, fast prototyping, reducing inventory, plug-and-play

operation, remote accessibility, simplification, standardization , cloud instrumentation.

USIP is designated to be compatible with all instruments, sensors, or probes on the market

and capable of monitoring and controlling any combination of instruments or sensors.

We believe our USIP will revolutionize the field

of instrumentation, measurement, control, and automation.

USIP is a versatile platform, able to perform

and combine different measurements and controls, to substitute some instruments for others, and to integrate existing instruments into

The development of USIP is closely associated with the development and proliferation of computers and mobile devices that provide

the foundation and technical support to the universal smart instrument such as an attractive graphical user touch screen interface, data

processing and analysis capabilities, video and audio, cameras, GPS, ubiquitous wireless connectivity, artificial intelligence, cloud-based

communications and a diverse number of functions and software available to users that are not contained in traditional instruments.

features embody the advantages of USIP, which are lacking stand-alone instrument systems.

When compared with traditional instrument systems,

USIP’s biggest advantage is cost savings.

Other distinctive features include universality, interoperability, flexibility, compatibility,

upgradeability, expandability, scalability, security, modularity, fast prototyping, reducing inventory, plug-and-play operation, remote

accessibility, simplification, standardization, and cloud instrumentation.

________________

4 Gartner Insights “Leading

the IoT,”

available at:

https://www.gartner.com/imagesrv/books/iot/iotEbook_digital.pdf (last accessed February 9, 2021).

Insights “Leading the IoT,” available at:

https://www.gartner.com/imagesrv/books/iot/iotEbook_digital.pdf (last accessed

January 10, 2022).

We have been dedicated to solving instrumentation

interoperability for over a decade.

We subdivide instruments into a reusable foundation

component to the maximum extent and architecture-specific components, the sensor modules,

which together perform the functions of traditional instruments at a fraction of its cost .

USIP which presents to up 90% of the instruments, consists of universal and reusable hardware and software, these reusable hardware

and software are the same for all the instruments.

USIP utilizes a computer or a mobile device

as a display and control, communicates and works with a group of sensors, instruments, probes or controllers manufactured by different

vendors in a manner that requires the user to have little or no knowledge of their unique characteristics.

portable version of USIP is illustrated below, when a blood pressure sensor is plugged into universal device, the user interface

specification code saved on the blood sensor module is sent the universal device and a computer or smartphone which will generate

the user interfaces in the corresponding devices based on the interface specification code.

A blood pressure sensor is connected to our Universal Device we call the Ubiquitor and changes our device into a blood pressure

measurement instrument.

if we remove the blood pressure sensor and change to a pH sensor and a CO2 sensor, the universal device changes to a two-sensor

device which is capable of measuring pH and CO2 concentration.

Each sensor has its own user interface which is auto generated based

on the user interface code saved in each sensor.

A pH sensor and a CO2 sensor are connected to our universal device and our device changes into a split-sensor device.

or smartphone can also be used for display.

7, A pH sensor, a CO2 sensor and a light sensor are connected to the universal device and change it to a 3-sensor device.

or smartphone can also be used for display.

8, any number of sensors in any combination are connected to the universal device and change it to a multiple sensor device.

computer or smartphone can also be used for the display.

universal platform we built as illustrated in Figure 8, can control 27 light sensors, 21 pH sensors, 23 temperature humidity sensors

which have 23 temperature sensors and 23 humidity sensors, representing one controller and a total of 72 devices and 95 sensors.

Our controller controls 2 lights, and it can turn the light on or off.

The controller also uses a light sensor to control the light,

and the user can input the desired light intensity, running period and light output intensity.

9, Our universal platform simultaneously monitors and controls 72 distinct devices.

illustrate, the entire horticulture industry only has a few hundred devices from different vendors for various measurement and

One of our universal smart devices and corresponding sensors or actuators are capable of replacing all of them at a fraction

Traditional horticulture measurement and control devices.

We subdivide instruments into a reusable foundation component to the maximum extent possible, architecture-specific

components, and sensor modules, which perform traditional instruments’ functions at a fraction of their cost.

For most instruments,

90% of the design, parts, and firmware are the same.

These parts can be replaced by USIP.

USIP utilizes a computer or a mobile device as

its display and control to communicate with a group of sensors, instruments, probes, or controllers manufactured by different vendors

in a manner that requires the user to have little or no knowledge of their unique characteristics.

The portable version of USIP is illustrated below.

When a blood pressure sensor is plugged into the universal device, the user interface specification code saved on the blood pressure sensor

is sent to the universal device, and a computer or smartphone will then generate the user interface for the blood pressure device based

on the interface specification code saved in the sensor.

A blood pressure sensor is

connected to our universal device, which we call the Ubiquitor, and changes our device into a blood pressure measurement instrument.

Similarly, if we remove the blood pressure sensor

and connect our universal device to both a pH sensor and a CO2 sensor, the universal device changes to a two-sensor device capable of

measuring pH and CO2 concentration.

Each sensor has its own user interface automatically generated based on the user interface specification

code saved in each sensor.

A pH sensor and a CO2 sensor are connected to our universal device,

and our device changes into a two-sensor device.

A computer or smartphone can also be used for display.

As illustrated below, when a light

sensor is also plugged into our universal device using a three-way splitter, the universal device becomes a three-sensor device.

A pH sensor, a CO2 sensor, and a light sensor are connected to the

universal device, and the device changes into a three-sensor device.

A computer or smartphone can also be used for display.

As illustrated in Figure 8, the universal

device can connect any number of sensors in any combination.

Any number of sensors in any

combination can be connected to the universal device and changed it into a multiple sensor device.

A computer or smartphone can also be

used for the display.

As an example of the capabilities of the Ubiquitor,

we implemented our universal device in the configuration pictured in Figure 9.

This configuration demonstrates that our universal device

simultaneously controls 27 light sensors, 21 pH sensors, and 23 temperature humidity sensors (which have 23 temperature sensors and 23

humidity sensors), representing one device controlling a total of 72 devices and 95 sensors.

Our universal device also controls two lights

in this configuration, which it can control by turning the lights on or off (including on a schedule) or by using a light sensor to control

the lights’ output intensity.

Our universal platform simultaneously

monitors and controls 72 different devices and 95 sensors.

To illustrate, the entire horticulture industry

has only a few hundred devices from different vendors for various measurement and control purposes.

One of our universal smart devices

and corresponding sensors or actuators can replace all at a fraction of the cost.

Leveraging the same technical principles discussed above,

we can simplify the smart control and monitoring in this and related industries (including agriculture and aquaculture) with a platform

that requires little design work for interoperability between sensors and control devices.

Traditional horticulture measurement

and control devices.

Universal Smart Device.

household measurement and control devices such as air conditioner control, swimming pool control, garage door control, sprinkler

control, lighting control, motorized curtain control, etc.

can be replaced by a single universal smart device and corresponding

unique accessories.

A single universal

smart device can replace all the household control devices.

Distributed Universal Internet of Things.

refers to the overarching network created by billions of internet-compatible devices and machines which share data and information

around the world.

According to a Gartner report, by the end of 2020, there were an estimated 20 billion IoT connected devices in

use around the world.

5 As the sophistication of both hardware and software in the consumer electronics industry skyrockets,

an increasing share of the electronic devices produced around the world are manufactured with internet connectivity.

suggest that by 2030 around 50 billion of these IoT devices will be in use around the world, creating a massive web of interconnected

devices spanning everything from smartphones to kitchen appliances.

6 The IoT will have a great impact on the economy

by transforming many enterprises into digital businesses and facilitating new business models, improving efficiency and increasing

employee and customer engagement.

It is foreseeable that the explosive IoT growth will rapidly deplete natural and human labor

We believe that IoT will soon reach the critical limit, we do not have enough human labor and natural resources to support

20 billion IoT devices are both challenges and resources.

We have overcome the current massive IoT production challenges

through our development of a shared distributed universal IoT.

Billions of internet-compatible devices and machines not only share

data and information around the world, but also share large section of hardware and software (up to 90%).

Billions of IoT devices are in use across

the country, each with different terminologies, technical specifications, and functional capabilities.

These differences make it

difficult to create one standard interoperability format for acquiring, harmonizing, storing,

accessing, analyzing and sharing data in near real-time .

In fact, not even those instruments built on the same platform

are necessarily interoperable because they are often highly customized to an organization’s unique workflow and preferences.

networks are far from perfect for IoT.

They are typically slower, expensive and extremely susceptible to interference from radio

signals and radiation.

They can be accessed by any device within range of the network's signal so information transmitted through

the network (including encrypted information) may be intercepted by unauthorized users.

Walls and floors can seriously limit the

range of the wireless network.

Our proprietary Ultra-Narrowband power line communication technology offers a promising alternative

to wireless networks.

Integrating USIP with PLC results in significant simplification and cost saving in implement of IoT as illustrated

in Figure 13.

Comparison between traditional machine to machine IoT (a) and shared distributed universal IoT (b).

USIP and sensors form a

local network through power line communication.

The platform communicates with the cloud and forms a remote cloud-based system.

All household measurement and control devices,

such as air conditioner controls, swimming pool controls, garage door controls, sprinkler controls, lighting controls, and motorized curtain

controls, can be replaced by a single universal device and corresponding unique accessories.

A single universal smart

device can replace all these household control devices.

Internet of Things Overview

IoT refers to the overarching network created

by billions of internet-compatible devices and machines that share data and information worldwide.

According to a Gartner report, by

the end of 2020, there were an estimated 20 billion IoT-connected devices in use around the world.

16 As the sophistication

of both hardware and software in the consumer electronics industry skyrockets, an increasing share of the electronic devices produced

around the world are manufactured with internet connectivity.

Forecasts suggest that by 2030, around 50 billion of these IoT devices

will be in use worldwide, creating a massive web of interconnected devices spanning everything from smartphones to kitchen appliances.

The IoT will significantly impact the economy by transforming many enterprises into digital businesses, facilitating new business

models, improving efficiency, and increasing employee and customer engagement.

It is foreseeable that the explosive growth in IoT will

rapidly deplete natural and human labor resources.

We believe that IoT will soon reach a critical limit;

we do not have enough human

labor and natural resources to support IoT growth.

Twenty billion IoT devices challenge existing resources.

We have overcome the current

massive IoT production challenges by developing a shared distributed universal IoT.

Billions of internet-compatible devices and machines

share data and information around the world and share a large section of hardware and software (up to 90%).

Billions of IoT devices are in use worldwide,

each with different terminologies, technical specifications, and functional capabilities.

These differences make it challenging to create

one standard interoperability format for acquiring, harmonizing, storing, accessing, analyzing, and sharing data in near real-time.

fact, not even those instruments built on the same platform are necessarily interoperable because they are often highly customized to

an organization’s unique workflow and preferences.

_____________

5 Gartner Report “Leading the IoT:

Insights on How.

To Lead in a Connected World”

available at:

Report “Leading the IoT:

Gartner Insights on How To Lead in a Connected World” available at:

https://www.gartner.com/imagesrv/books/iot/iotEbook_digital.pdf

(last accessed February 10, 2021).

(a) traditional wireless network and Focus Universal Inc’s PLC network.

we will implement our business plan

we are fully capitalized, we will establish four divisions within our company to develop and promote our four fundamental technologies

even further.

We believe that these four technologies not only can be used in standalone device design and production, but also

focus on massive scale IoT device design and production, aiming to solve the complexity and cost challenges.

a) Ultra-narrowband

power line communication division

Our ultra-narrowband PLC technology has

achieved data transfer speeds of 4 megabits per second (“Mbps”), with a bandwidth of less than 1000 hertz (Hz).

results are 15 times faster than the Zigbee short-range wireless technology mesh networks and 100-400 times faster than Z-wave

low-energy wave short-range wireless technology.

The current 4Mbps PLC modules will be used

for IoT applications involving thousands of sensors.

We are developing even higher communication speeds through our PLC.

The ultra-narrowband

PLC module will be integrated to IC.

This division will focus on ultra-narrowband PLC research and development, promote and market

ultra-narrowband PLC ICs and finished products.

Given that the power grid is an already

established ubiquitous network spanning back hundreds of years, connectivity via PLC technology is potentially the most cost-effective

and scalable interconnectivity approach and, thus, the ideal backbone communication infrastructure for the IoT industry.

the harsh electrical noise and interference present on power lines and variations in equipment and standards make data transfer

using PLC technology difficult and limits the technology’s applications.

Accordingly, the global market for PLC technology

is very limited.

Markets and Markets

Updated date –

market size is expected to reach $9.5 billion at the end of 2023.

7 This prediction is based on current PLC technology,

which provides speeds that are too slow (usually less than 9,600 bps), coverage that is too short (200-300 yards) and harsh electrical

noise and interference.

The major vendors of PLC technology include ABB, General Electric, Siemens, AMETEK, Texas Instruments,

Maxim Integrated, Devolo, Cypress Semiconductor, ST Microelectronics, Panasonic, Microchip, Qualcomm Atheros, TP-Link Technologies,

NETGEAR, NXP Semiconductor NV, Sigma Designs, Zyxel Communications and Renesas Electronics Corporation.

is our understanding that we are the only vendor currently working on ultra-narrowband PLC technology.

With the introduction of

our ultra-narrowband PLC technology, which is able to overcome the interference challenges presented by traditional PLC technology,

we believe that market size will increase significantly.

With the help of our ultra-narrowband technology, which is able

to overcome the noise challenge, we believe that the overall market size may increase significantly.

Utilizing ultra-narrowband

PLC, the global IoT communication infrastructure cost and operating cost can be saved.

b) Ultra-narrowband

wireless division

division will focus on developing ultra-narrowband wireless technology and overcoming the challenges faced by current 5G networks,

thereby allowing cellular communication development to go beyond the 5G networks.

developing our ultra-narrowband PLC technology, we gained a lot of insight that is being used to develop a single carrier wave

ultra-narrow band wireless technology, which aims to increase data transfer rates from 4 Mbps to 64 Mbps.

Ideally, our ultra-narrow

band wireless technology will be able to achieve data transfer rates of 256 Mbps, which is close 5G speeds, which require 3,276

subcarrier waves.

The speed can be further increased if multiple carrier waves or higher operating frequencies are used.

current research and development efforts only focus on an operating frequency of 64 megahertz (MHz), which is about 100 times lower

than 4G networks (6 gigahertz (GHz)) and 5,000 times lower than 5G networks (up to 300 GHz).

Our technology’s 1,000 Hz bandwidth

is approximately 20,000 times narrower than 4G networks and 100,000 times narrower than 5G networks.

The narrower the bandwidth,

the less energy consumption.

By maintaining the 1,000 Hz band width, our ultra-narrowband wireless technology can save electricity

usage by a factor of up to 100,000 times when compared with a 5G networks.

We believe that our ultra-narrowband wireless technology

has the potential to push the wireless frontier well beyond 5G.

We expect to finalize our ultra-narrowband technology with data

transfer speeds of 64-256 Mbps during the first of second quarters of 2021.

infrastructure market is projected by Markets and Markets to reach USD 47,775 million by 2027, at a CAGR of 67.1%.

The major players

in the 5G infrastructure market are Huawei (China), Ericsson (Sweden), Samsung (South Korea), Nokia Networks (Finland), ZTE (China),

NEC (Japan), CISCO (US), CommScope (US), Comba Telecom Systems (Hong Kong), Alpha Networks (Taiwan), Siklu Communication (Israel),

and Mavenir (US).

Huawei (China) is the leader in the 5G infrastructure market.

Limited coverage, high energy consumption and expensive

infrastructure installation are the major bottleneck in 5G.

All the 5G technologies are based on broadband technology, our research

suggests there are very few, if any company working on ultra-narrowband technology and have difficulty finding any literature after

We believe that adopting our ultra-narrowband wireless technology, the 5G higher spectrum bands cost, 5G network hardware

cost and 5G energy consumption costs could be saved significantly.

interface machine auto generation division

in 2009, our company’s software user interface machine auto generation technology division has developed 100 sensors in arbitrary

combinations, all of which have been tested for IOS system.

RS-485 is the communication standard defining the electrical characteristics

of drivers and receivers for use in serial communications systems.

The current RS-485 standard modules available on the market

do not support more than 100 sensors.

The first version of UIMAGP has been completed and is ready for marketing.

be used in IoT software design, but also can be applied to other industry sectors, this division is planning to expand to other

industry as well.

The software market size

www.grandviewresearch.com, the market reached $388.98 billion in 2020.

___________________________________

7 Market Research Report “Powerline

Communication Market by Offering (Hardware, Software, and Services), Frequency (Narrowband, and Broadband), Application (Energy

Management and Smart Grid, and Indoor Networking), Vertical, and Geography –

Global Forecast to 2023,”

Report “Number of internet of things (IoT) connected devices worldwide in 2018, 2025 and 2030” available at https://www.statista.com/statistics/802690/worldwide-connected-devices-by-access-technology/

(last accessed January 10, 2022).

Wireless networks are far from perfect for IoT.

They are typically slower, expensive, and highly susceptible to radio signals and radiation interference.

They can be accessed by any

device within range of the network’s signal, so unauthorized users may intercept information transmitted through the network (including

encrypted data).

Walls and floors can seriously limit the range of the wireless network.

Our proprietary ultra-narrowband PLC technology

offers a promising alternative to wireless networks.

Integrating USIP with our ultra-narrowband PLC technology results in significant

simplification and cost savings in implementing IoT, as illustrated in Figure 13.

Using these technologies, we have designed IoT products

for both residential and industrial usage and are now in the process of testing.

Comparison between (a) a traditional

machine to machine IoT and (b) a shared distributed universal IoT, which depicts a USIP and sensors forming a local network through PLC

The platform communicates with the cloud to form a remote cloud-based system.

Comparison between (a) a traditional

wireless network and (b) Focus Universal Inc.’s PLC network.

How we will implement our business plan

We currently operate in the scientific instruments

industry and the smart home installations industry and plan to apply several of our new technologies to the IoT marketplace.

Four divisions have been established within our

Company to develop and promote our technologies.

We believe that our technologies, as depicted above, can be used in standalone device

design and production and on large scale IoT device design and production, aiming to solve the attendant complexity and cost challenges.

a) Ultra-narrowband power line communication division.

Our ultra-narrowband PLC technology has achieved

data transfer speeds of 4 megabits per second (“Mbps”), with a bandwidth of less than 1000 hertz (Hz).

These results are 15

times faster than the Zigbee short-range wireless technology mesh networks and 100-400 times faster than Z-Wave’s low-energy wave

short-range wireless technology.

The current 4Mbps PLC modules will be used for IoT applications involving thousands of sensors.

developing even higher communication speeds through our PLC.

The ultra-narrowband PLC module will be integrated into ICs.

This division

will focus on ultra-narrowband PLC research and development, promoting and marketing ultra-narrowband PLC, ICs and finished products.

We also intend to promote and market ICs, licensing, and contract designing.

Given that the power grid is an already established,

ubiquitous network, connectivity via PLC technology may be the most cost-effective and scalable interconnectivity approach for the IoT.

Due to the harsh electrical noise and interference currently present on power lines and to the variations in equipment and standards,

that make data transfer using PLC technology limited and difficult, the global market for PLC technology is very limited.

Markets and Markets Updated

date – Oct 25

The market size for PLC is expected to reach

$9.5 billion at the end of 2023.

18 This prediction is based on current PLC technology, which provides speeds that are too

slow (usually less than 9,600 bps), coverage that is too short (200-300 yards), and harsh electrical noise and interference.

vendors of PLC technology include ABB, General Electric, Siemens, AMETEK, Schneider Electric, Texas Instruments, Maxim Integrated, Devolo,

Cypress Semiconductor, ST Microelectronics, Panasonic, Microchip, Qualcomm Atheros, TP-Link Technologies, NETGEAR, D-Link, NXP Semiconductor

NV, Landis+Gyr, Sigma Designs, Zyxel Communications, Nyx Hemera Technologies and Renesas Electronics Corporation.

It is our understanding that no other vendor has

developed a PLC technology application that is similar to our ultra-narrowband PLC technology.

We believe that market size will increase

significantly with the introduction of our ultra-narrowband PLC technology, which can overcome the interference and noise challenges presented

by traditional PLC technology.

We believe that by utilizing ultra-narrowband PLC, the global IoT communication infrastructure costs and

operating costs can be reduced.

b) Ultra-narrowband wireless division

This division will focus on developing ultra-narrowband

wireless technology and overcoming the challenges facing current 5G networks.

We intend to sell DoC for wireless communication, licensing,

and contract designing.

While developing our ultra-narrowband PLC technology,

we gained insight into the development of a single carrier wave ultra-narrowband wireless technology, which aims to increase data transfer

rates from 4 Mbps to 64 Mbps.

We expect our ultra-narrowband wireless technology to achieve data transfer rates of 256 Mbps using 4 subcarrier

waves, which is close to 5G speeds requiring more than three thousand subcarrier waves.

The projected speed can be further increased if

multiple carrier waves or higher operating frequencies are used.

Research Report “Powerline Communication Market by Offering (Hardware, Software, and Services), Frequency (Narrowband, and Broadband),

Application (Energy Management and Smart Grid, and Indoor Networking), Vertical, and Geography – Global Forecast to 2023,”

available at:

https://www.marketsandmarkets.com/Market-Reports/power-line-communication-plc-market-912.html (last accessed February 10,

Our current research and development efforts are

focused on an operating frequency of 64 megahertz (MHz), which is about 100 times lower than 4G networks (6 gigahertz (GHz)) and 5,000

times lower than 5G networks (up to 300 GHz).

Our technology’s 1,000 Hz bandwidth is approximately 20,000 times narrower than 4G

networks and 100,000 times narrower than 5G networks.

The narrower the bandwidth, the less energy consumption.

By maintaining the 1,000

Hz bandwidth, our ultra-narrowband wireless technology can save electricity usage by a factor of up to 100,000 times when compared with

a 5G network.

We believe that our ultra-narrowband wireless technology has the potential to push the wireless frontier well beyond 5G.

We expect to finalize our ultra-narrowband technology research with data transfer speeds of 64-256 Mbps by the fourth quarter of 2022.

MarketsandMarkets projects that the 5G infrastructure

market will reach USD 47,775 million by 2027, at a CAGR of 67.1%.

The major players in the 5G infrastructure market are Huawei (China),

Ericsson (Sweden), Samsung (South Korea), Nokia Networks (Finland), ZTE (China), NEC (Japan), CISCO (US), CommScope (US), Comba Telecom

Systems (Hong Kong), Alpha Networks (Taiwan), Siklu Communication (Israel), and Mavenir (US).

Huawei (China) is the leader in the 5G infrastructure

Limited coverage, high energy consumption, and expensive infrastructure installation are the major holdups for the successful

deployment of 5G technology.

Most 5G technologies are based on broadband technology;

our research suggests there are very few companies

working on ultra-narrowband technology.

We believe that adopting our ultra-narrowband wireless technology can provide significant cost

savings to 5G spectrum bands, 5G network hardware, and 5G energy consumption.

c) User interface machine auto generation division

Established in 2009, our Company’s software

user interface machine auto generation technology division has developed 100 sensors in arbitrary combinations, all of which have been

tested for the iOS system.

RS-485 is an industrial specification that defines the electrical interface and physical layer for point-to-point

communication of electrical devices.

RS-485 is widely adopted and used in the IoT industry.

Standard RS-485 modules available today usually

do not support more than 100 sensors.

The first version of UIMAGP has been completed and we believe should support more than 1,000 sensors.

We intend to sell and license the software to device manufacturers that use our DoC ICs and other industries where the software can be

UIMAGP can be used in IoT software design and

can be applied to other industry sectors.

This division is planning to expand to other industries as well.

The software market size is enormous.

According to www.grandviewresearch.com,

the market reached $388.98 billion in 2020.

Software market size.

of the biggest companies within the software industry today include Microsoft, IBM, Oracle, SAP and Salesforce, all boasting billion

dollar revenue figures.

None of them has developed a UIMAGP.

Any software which can be created by low code and no code programming

can also be created by using UIMAGP.

However, the software created by UIMAGP achieves what low code and no code programming cannot

because of the complexities of applying the code to different platforms and the accompanying required customization.

distinct features of UIMAGP is that the programming provides a starting point which includes foundational code that may be used

on any platform, operating system, etc.

This makes the final programming much more efficient, as it only needs relatively few lines

of code to program a complicated application.

Universal smart instrument division

division will focus on developing and marketing end user universal smart instruments and shared distributed universal IoT devices.

The development of universal smart instruments and IoT have a considerable amount of overlap, with the only difference being

the number of devices involved.

We take this overlap a step further, unify universal smart instruments and IoT into a single system,

eliminating any distinction between them.

Using USIP which is cost effective and fully production-ready hardware and software platform

have a huge advantage in shorting design, build, test and fix cycles.

The design cycle improved from a few years to a few weeks.

The smart home products including light control, air conditioner control, sprinkler control, garden light control, heating floor

control, motorized curtain control, pool filtration and algae control, smoke detector control, carbon monoxide measurement, motion

detector, doorbell have been designed and tested.

Industrial IoT devices design including industrial light control, temperature

control, humidity control, carbon dioxide control, digital lighting control, quantum PAR measurement and control, pH measurement

and control, TDS measurement and control, fan speed control has been completed.

We anticipate that this division will market and

distribute these products during the second quarter of 2021;

and start presale marketing during the first quarter of 2021.

The instrumentation industry is also very

large and difficult to estimate due to the high number of industry sectors.

However, the IoT industry sector is only a fraction

of the larger market.

MarketsandMarkets forecasts the global IoT market size is expected to reach $561 billion by 2022.

The key market players include Intel Corporation (US), SAP SE (Walldorf, Germany), Cisco Systems, Inc.

(US), Microsoft Corporation

(US), Oracle Corporation (US), International Business Machine (IBM) Corporation (US), PTC Inc.

Today, some of the biggest companies within the

software industry, including Microsoft, IBM, Oracle, SAP, and Salesforce, generate billions of dollars in annual revenue.

None of these

companies have developed a UIMAGP.

Any software that can be created by low code and no code programming can also be created by using UIMAGP.

However, the software created by UIMAGP achieves what low code and no code programming cannot because of the complexities of applying

the code to different platforms and the accompanying required customization.

One of the distinct features of UIMAGP is that the programming

provides a starting point that includes foundational code that may be used on any platform or operating system.

This makes the final programming

much more efficient, as it needs relatively few lines of code to program a complicated application.

d) Universal smart instrument

This division will focus on developing and marketing

end-user universal smart instruments and shared distributed universal IoT devices for the commercial and residential markets.

The development

of universal smart instruments and IoT have considerable overlap, with the only difference being the number of devices involved.

capitalize on this overlap by unifying universal smart instruments and IoT into a single system, eliminating any distinction between them.

USIP, a cost-effective and fully production-ready hardware and software platform, provides a considerable advantage in shorting design,

building, testing, and fixing cycles.

Smart home products, including light controls, air conditioner controls, sprinkler controls, garden

light controls, heating floor controls, motorized curtain controls, pool filtration and algae controls, smoke detector controls, carbon

monoxide measurement, motion detectors, and doorbells, have been designed and tested.

This division will also develop and market end-user

universal smart instruments and shared distributed universal IoT devices in the horticulture, agriculture, and aquaculture industries.

Leveraging the Company’s ultra-narrowband PLC technology and USIP, we intend to provide a more stable, secure, and faster network

for large industrial operations requiring data-specific sensing and control automation to ensure optimal outcomes.

According to MarketsandMarkets,

the agriculture IoT market is expected to grow from $12.7 billion in 2019 to $20.9 billion by 2024, at a CAGR of 10.4%.

A key factor driving the growth of this market is the rising demand for agricultural production due to increasing population and adoption

of IoT and AI technologies by farmers and growers.

Deere & Company (US), Trimble (US), Raven Industries (US), AGCO Corporation (AGCO)

(US), AgJunction Inc.

(AgJunction) (US), DeLaval (Sweden), GEA Farm Technology (Germany), Lely (Netherlands), Antelliq (France), AG Leader

Technology (AG Leader) (US), Tigercat (Canada), Ponsse (Finland), Komatsu Forest AB (Sweden), Caterpillar (US), Treemetrics (Ireland),

Topcon Positioning Systems (US), and DICKEY-john Corporation (US) are some of the major players in the agriculture IoT market.

completed the design of certain PLC industrial IoT devices, including industrial light controls, temperature controls, humidity controls,

carbon dioxide controls, digital lighting controls, quantum PAR measurement and controls, pH measurement and controls, TDS measurement

and controls, and fan speed controls.

The market size of the instrumentation industry

is vast and difficult to estimate.

However, the IoT industry sector is only a fraction of the larger market.

MarketsandMarkets forecasts

that the global IoT market size is expected to reach $561 billion by 2022.

20 The key market players include Intel Corporation

(US), SAP SE (Walldorf, Germany), Cisco Systems, Inc.

(US), Microsoft Corporation (US), Oracle Corporation (US), International Business

Machine (IBM) Corporation (US), PTC Inc.

(US), Google Inc.

(US), Hewlett-Packard

Enterprise (US), Amazon Web Services Inc.

(US), Bosch Software Innovation GmbH (Stuttgart, Germany) and General Electric (US).

All of these industry players’

IoT devices are of a traditional machine to machine type and have fundamental challenges

in terms of their cost and implementation.

Our shared distributed universal IoT devices are much more cost efficient.

This division will also focus on development

of device-on-a- chip ICs.

We will distinguish our DoC technology from the component ICs, these ICs are able to perform entire device

According to the “integrated Circuits Global Market Report 2020,”

global integrated circuits market was worth $412.3 billion in 2019.

The market is expected to grow at a CAGR of 5.09% and reach

a value of $502.94 billion by 2023.

Major players in the IC market are Intel Corporation, Texas Instruments, Analog Devices, STMicroelectronics,

NXP, ON Semiconductor, Micron, Toshiba, Broadcom and Qualcomm.

(US), Hewlett-Packard Enterprise (US), Amazon Web Services Inc.

Software Innovation GmbH (Stuttgart, Germany) and General Electric (US).

These industry players’ IoT devices are of a traditional

machine-to-machine type and face challenges in terms of cost and implementation.

Our shared distributed universal IoT devices are much

more cost-efficient.

This division will also focus on developing

device-on-a-chip (DoC) ICs, which we intend to sell to electronic device manufacturers for use in conjunction with the USIP.

distinguish our DoC technology from the component ICs;

these ICs can perform entire device functions.

According to the

“Integrated Circuits Global Market Report 2020,” the globally integrated circuits market was worth $412.3 billion in

21 The market is expected to grow at a CAGR of 5.09% and reach a value of $502.94 billion by 2023.

players in the IC market are Intel Corporation, Texas Instruments, Analog Devices, STMicroelectronics, NXP, ON Semiconductor,

Micron, Toshiba, Broadcom, and Qualcomm.

_____________

9 The Business Research Company, March 2020, “Integrated

Circuits Global Market Report 2020,”

available at:

19 MarketsandMarkets

Market research Report, October 2019:

“Agriculture IoT Market by Offering (Hardware, Software, & Services), Application

(Precision Farming, Precision Forestry, Livestock Monitoring, Fish Farm Monitoring and Smart Greenhouse), Application, and Geography

- Global Forecast to 2024,” available at:

https://www.marketsandmarkets.com/Market-Reports/iot-in-agriculture-market-199564903.html

(last accessed March 4, 2021).

Business Research Company, March 2020, “Integrated Circuits Global Market Report 2020,” available at:

https://www.thebusinessresearchcompany.com/report/integrated-circuits-global-market-report

(last accessed January 24, 2021).

This division will also install and design customer

solutions for residential and commercial IoT projects.

The Company currently specializes in high-performance, easy-to-use audio/video,

home theater, lighting control, automation, and home integration solutions for residential installation and custom solution services.

On the commercial side, we plan to add well-trained staff ready to handle all aspects of voice, data, fiber, paging, audio-video services,

CATV, and other low voltage premise cabling.

All of our service providers hold certifications for multiple product lines and specialty

The Company plans to use its current client base and expertise from these installation services to integrate products developed

on the USIP into the project proposals.

Products we are currently selling

We are also a wholesaler of various digital,

analog, and quantum light meters and filtration products, including fan speed adjusters, carbon filters and HEPA filtration systems.

We source these products from manufacturers in China and then sell them to a major U.S.

distributor, Hydrofarm, who resells our

products directly to consumers through retail distribution channels and in some cases, places its own branding on our products.

Specifically, we sell the following

In addition to the technologies which we have

developed and described above, we are a wholesaler of various digital, analog, and quantum light meters and filtration products, including

fan speed adjusters, carbon filters, and HEPA filtration systems.

We source these products from manufacturers in China and then sell them

to a major U.S.

distributor, Hydrofarm, who resells our products directly to consumers through retail distribution channels and, in some

cases, places its branding on our products.

Specifically, we sell the following products:

Fan speed adjuster device .

a fan speed adjuster device to our client Hydrofarm.

Designed specifically for centrifugal fans with brushless motors, our adjuster

device helps ensure longer life by preventing damage to fan motors by adjusting the speed of centrifugal fans without causing the

motor to hum.

These devices are rated for 350 watts max, have 120VAC voltage capacity and feature an internal, electronic auto-resetting

circuit breaker.

fan speed adjuster device to our client Hydrofarm.

Designed specifically for centrifugal fans with brushless motors, our adjuster device

helps ensure longer life by preventing damage to fan motors by adjusting the speed of centrifugal fans without causing the motor to hum.

These devices are rated for 350 watts max, have 120VAC voltage capacity, and feature an internal, electronic auto-resetting circuit breaker.

Our Fan Speed Adjuster Device

Carbon filter devices.

types of carbon filter devices to our client Hydrofarm.

These carbon filter devices are professional grade filters specifically

designed and used to filter air in greenhouses that might be polluted by fermenting organics.

One of these filters can be attached

to a centrifugal fan to scrub the air in a constant circle or can be attached to an exhaust line as a single pass filter, which

moves air out of the growing area and filters unwanted odors and removes pollens, dust, and other debris in the air.

filter is designed to be used with fans from 0-6000 C.F.M.

We sell two types

of carbon filter devices to our client Hydrofarm.

These carbon filter devices are professional-grade filters specifically designed and

used to filter the air in greenhouses that might be polluted by fermenting organics.

One of these filters can be attached to a centrifugal

fan to scrub the air in a constant circle or can be attached to an exhaust line as a single pass filter, which moves air out of the growing

area, filters unwanted odors, and removes pollen, dust, and other debris in the air.

The other filter is designed to be used with fans

from 0-6000 C.F.M.

Our Carbon Filter Device

HEPA filtration device.

a high-efficiency particulate arrestance (“HEPA”) filtration device at wholesale prices to our client Hydrofarm.

Manufactured,

tested, certified, and labeled in accordance with current HEPA filter standards, this device is targeted towards greenhouses and

grow rooms and designed to keep insects, bacteria, and mold out of grow rooms.

We provide a high-efficiency

particulate arrestance (“HEPA”) filtration device at wholesale prices to our client Hydrofarm.

Manufactured, tested, certified,

and labeled in accordance with current HEPA filter standards, this device is targeted towards greenhouses and grow rooms and designed

to keep insects, bacteria, and mold out of grow rooms.

We sell these devices in various sizes.

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Digital light meter.

a handheld digital light meter that is used to measure luminance in fc units, or foot-candles.

We provide a handheld

digital light meter to measure luminance in FC units or foot-candles.

Our Digital Light Meter Device

Quantum par meter .

handheld quantum par meter used to measure photosynthetically active radiation (“PAR”).

This fully portable handheld

PAR meter is designed to measure PAR flux in wavelengths ranging from 400 to 700 nm.

It is designed to measure up to 10,000 µmol.

We provide a handheld

quantum PAR meter to measure photosynthetically active radiation (“PAR”).

This fully portable handheld PAR meter measures

PAR flux in wavelengths ranging from 400 to 700 nm.

It is designed to measure up to 10,000 µmol.

Our Quantum Par Meter Device

Strategy behind the AVX Acquisition

On March 15, 2019, the Company completed

a transaction with Patrick Calderone to purchase 100% of the outstanding stock of AVX, an IoT installation and management company

based in southern California.

Through our acquisition of AVX, we are

planning to offer ordinary families an entire smart home product line at a fraction of the current market price.

We have finished

the design of smart lighting control, air conditioner, sprinkler, garden light control, garage door control and heating control.

We are developing a swimming pool control device, smoke detector and carbon monoxide monitor.

We believe these product lines could

be completed by the end of 2021.

is our intention to offer a complete line of smart home products, designed by Focus Universal, and marketed and installed by AVX,

in the $3,000 range.

Where a family would likely choose not to install a $300,000 system in a $150,000 home, even if they could

afford to do so, the same family would be more inclined to install a smart home product at the $3,000 price point.

We believe smart

home installation based on the Ubiquitor will include more functionalities than the current systems offered by our competitors.

Our smart home systems would be able to integrate, exchange data, interact and connect utilizing our PLC technology.

the installation process would be simplified, and its costs would be dramatically reduced.

successfully integrated, the Ubiquitor will be central to every smart home installation that AVX does.

The Ubiquitor’s connectivity

capabilities will allow for that system to be expanded and customized in the future.

intend to complete the design for the first hardware products, specifically, a surveillance camera and a doorbell, by the end of

2021 and believe we can begin to start installing these new shared distributed smart home products in the next few years.

to offer a zero down payment option for the installation of AVX’s smart home systems and charge a monthly subscription fee

Notwithstanding

the foregoing, should we be unable to successfully integrate the Ubiquitor into AVX’s smart home installations, the Ubiquitor

will continue to be a flagship product of our Company that can be applied to a variety of other purposes in the different industries

and fields mentioned above.

We currently operate in the scientific

instruments industry and the smart home installations industry and plan to apply several of our new technologies to the IoT marketplace.

of Key Technical Abbreviated Terms

Generation Mobile Wireless Telecommunications Network

Frequency Shift Keying

Area Networks

Evolution Networks

Metal-Oxide-Silicon

Line Communication

Ultra-narrowband

Smart Instrumentation Operating System

Smart Instrumentation Platform

Growth Strategy

Strategy behind AVX Acquisition

On March 15, 2019, the Company completed a transaction

with Patrick Calderone to purchase 100% of the outstanding stock of AVX Design and Integration, Inc.

(“AVX”), an IoT installation

and management company based in southern California.

Through our acquisition of AVX, we are planning

to offer residential customers an entire smart home product line in the $3,000 range We have finished designing smart devices for lighting

control, air conditioner control, sprinkler control, garden light control, garage door control, and heating control.

We are developing

a swimming pool control device, smoke detector, and carbon monoxide monitor.

We believe smart home installation based on the

USIP, and our Ubiquitor will include more functionalities than the current systems offered by our competitors.

Our smart home systems

would integrate, exchange data, interact and connect utilizing our PLC technology.

As a result, the installation process would be simplified,

and its costs would be reduced.

Once successfully integrated, the Ubiquitor will

be central to every smart home installation that AVX does.

The Ubiquitor’s connectivity capabilities will allow that system to be

expanded and customized in the future.

We also plan to offer zero down payment options for installation of AVX’s smart home

systems and charge a monthly subscription fee instead.

Notwithstanding the foregoing, should we be unable

to successfully integrate the Ubiquitor into AVX’s smart home installations, the Ubiquitor will continue to be a flagship product

of our Company that can be applied to various other purposes in the different industries and fields mentioned above.

Strategy and Marketing Plan

The Company plans to market the USIP to

the industrial sector first, including key growth industries such as indoor agriculture.

Once the technology is established there,

the core technologies of universality and interoperability through a readily available device, such as a mobile device or smartphone,

may be ported to products specifically intended for the consumer and residential markets.

While industrial markets are large, the

consumer and residential markets are even larger.

The Company plans to market the USIP to the industrial

sector first, including key growth industries such as indoor agriculture.

Once the technology is established there, the core technologies

of universality and interoperability through a readily available device, such as a mobile device or smartphone, may be ported to products

specifically intended for the consumer and residential markets.

While industrial markets are large, the consumer

and residential markets are even more significant.

This two-phase approach will allow for continuous and increasing revenue growth.

Moreover, during the industrial phase of development, the Company will be able to test and refine its products to ensure that they

are ready for the consumer and residential markets.

during the industrial phase of development, the Company will test and refine its products to ensure that they are ready for the consumer

and residential markets.

Once we have successfully entered the industrial

sector, we intend to roll out additional technologies that are currently under development.

These technologies will both advance

and support the core technologies marketed in phases one and two to the industrial and consumer markets.

We will continue to design, manufacture,

market and distribute our electronic measurement devices, such as temperature humidity meters, digital meters, quantum PAR meters,

pH meters, TDS meters, and CO2 monitors.

Over the years we have developed a broad and loyal customer base.

The universal smart

technology has been applied to our existing traditional devices and demonstrated significant functionality improvement and hardware

cost savings.

These technologies will advance and support

the core technologies marketed in phases one and two to the industrial and consumer markets.

We will continue to design, manufacture, market,

and distribute our electronic measurement devices, such as temperature humidity meters, digital meters, quantum PAR meters, pH meters,

TDS meters, and CO2 monitors.

Over the years, Hydrofarm has developed a broad and loyal customer base that buys our existing products

on a repeat basis.

The universal smart technology has been applied to our existing traditional devices and demonstrated significant functional

improvement and hardware cost savings.

We believe hardware cost reductions of up to 90% have been achieved.

However, promoting universal smart technology

and universal smart IoT devices to our customers, including traditional instrument manufacturers, will be the major focus of our

business in the future.

However, promoting universal

smart technology and universal smart IoT devices to our customers, including traditional instrument manufacturers, will be the central

focus of our business in the future.

Different markets require different strategies.

We divided our customers into a few segments to determine what specific marketing technique will reach each targeted group and

We divided our customers into a few segments to determine what specific marketing technique will reach each targeted group and its needs.

a) Our Existing Customer, Hydrofarm

To minimize the upfront cost of entering

a market, we must choose our entry point carefully so as to find one that offers the least possible resistance.

It costs more to

attract new customers than to retain and increase sales to our existing customer, Hydrofarm.

The design, development and manufacture

of our universal smart instruments is targeted to increase current sales to our existing customer.

Our current customer, Hydrofarm, is the

largest distributor in the horticulture industry with roughly 50% of the market share in the U.S.

To minimize the upfront cost of entering a market,

we must carefully choose our entry point to find one that offers the least possible resistance.

It costs more to attract new customers

than to retain and increase sales to our existing customer, Hydrofarm.

Our universal smart instruments’ design, development, and

manufacture are targeted to increase current sales to our existing customer.

Our current customer, Hydrofarm, is the largest

distributor in the horticulture industry, with roughly 50% of the market share in the U.S.

horticulture industry.

All our current universal smart devices,

including sensors and controllers, will be distributed to Hydrofarm.

Smartphones can be used for display and control of all the

sensors and controllers in the horticulture industry.

By the end of 2020, we completed the development all of the necessary sensors

used in the gardening industry, including a light control node, temperature sensor, humidity

sensor, digital light sensor, quantum PAR sensor, pH sensor, TDS sensor and carbon dioxide sensor;

and we finished all the circuit

layouts for the pilot IoT system for the gardening industry (consisting of approximately 1,000 sensor nodes and controllers).

All our current universal smart devices, including

sensors and controllers, will be distributed to Hydrofarm.

Smartphones can be used to display and control all the sensors and controllers

in the horticulture industry.

By the end of 2020, we completed the development of several sensors that are used in the gardening industry,

including a light control node, temperature sensor, humidity sensor, digital light sensor, quantum PAR sensor, pH sensor, TDS sensor and

carbon dioxide sensor;

and we finished the circuit layouts for the pilot IoT system for the gardening industry (consisting of approximately

1,000 sensor nodes and controllers).

We sent these circuit layouts to our manufacturer in China for production.

However, due to the coronavirus pandemic, the production

By the third quarter of 2021 , we intend to market

our Ubiquitor device to Hydrofarm, who in turn will resell and market the device to its customers in the horticulture industry.

However, due to the coronavirus

pandemic, the production was delayed.

In 2022, we intend to extend our product line to Hydrofarm, who in turn will resell and market our

systems and devices to its customers in the horticulture industry.

b) Online Customers

We intend to use traditional and specialized

e-commerce outlets to help with online brand awareness.

By analyzing Amazon’s data, we plan to determine which traditional

instruments have the highest selling volumes and at what price point.

Future research and development will focus on integrating

the sensors used in these instruments into the universal smart instruments to leverage on their existing markets.

We intend to use traditional and specialized e-commerce

outlets to help with online brand awareness.

By analyzing Amazon’s data, we plan to determine which traditional instruments have

the highest selling volumes and at what price point.

Future research and development will focus on integrating the sensors used in these

instruments into the universal smart instruments to leverage on their existing markets.

c) Traditional Controller and Remote-Control

Traditional controllers monitor and control

their sensors through bi-directional communication implemented by hardware.

The sensors or probes in controllers not only measure

the physical environment but also give feedback to the input actuators that can make necessary corrections.

They are expensive

and require a corresponding monitor in which unidirectional communication is needed.

For example, a traditional temperature meter

may cost approximately $15 and a temperature controller may cost approximately $100.

The wireless bi-directional communication

supported by a smartphone or mobile device offers cost reduction in controller design and manufacturing.

Traditional remote control

is accomplished through hardware, which can be replaced by a smartphone.

Universal smart technology will also play an important

role in traditional control applications.

Traditional controller users are one of highest profit margin customers of universal

smart technology.

Traditional controllers monitor and control their

sensors through bi-directional communication implemented by hardware.

The sensors or probes in controllers not only measure the physical

environment but also give feedback to the input actuators that can make necessary corrections.

They are expensive and require a corresponding

monitor in which unidirectional communication is needed.

For example, a traditional temperature meter may cost approximately $15 and a

temperature controller may cost approximately $100.

The wireless bi-directional communication supported by a smartphone or mobile device

offers cost reduction in controller design and manufacturing.

Traditional remote control is accomplished through hardware, which can be

replaced by a smartphone.

Universal smart technology will also play an important role in traditional control applications.

controller users are one of highest profit margin customers of universal smart technology.

d) Special Customers

For customers who consider an instrument’s

compatibility, interoperability, interchangeability, universality, upgradeability, expandability, scalability, and remote access

ability as crucial, universal smart technology has several fundamental advantages over traditional instruments in terms of hardware

cost and functionality.

End users will not only enjoy the remote access to their sensors wirelessly but also save the cost of the

hardware module which will be replaced by a smartphone.

For customers who consider an instrument’s

compatibility, interoperability, interchangeability, universality, upgradeability, expandability, scalability, and remote access ability

as crucial, universal smart technology has several fundamental advantages over traditional instruments in terms of hardware cost and functionality.

End users will not only enjoy the remote access to their sensors wirelessly but also save the cost of the hardware module which will be

replaced by a smartphone.

e) Traditional Instruments Manufacturers

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to instrument manufacturers and allowing them to distribute it through their established platforms.

We are putting together an internal sales

team in order to establish the marketing campaign for our sensor devices, including the Ubiquitor.

We are putting together an internal

sales team in order to establish the marketing campaign for our sensor devices, including the Ubiquitor.

We are also expanding the sales

team for AVX because we believe that the Ubiquitor device will be integral to smart home installations.

We believe that universal smart technology

will play a critical role for traditional industrial instrument manufacturers, because it is too expensive and difficult to develop

industrial instrument sensors for medium or smaller companies or individual homes.

The cost factor is the first consideration when

deciding whether a company wants to develop universal smart technologies and implement them in their products.

We believe that universal smart technology will

play a critical role for traditional industrial instrument manufacturers, because it is too expensive and difficult to develop industrial

instrument sensors for medium or smaller companies or individual homes.

The cost factor is the first consideration when deciding whether

a company wants to develop universal smart technologies and implement them in their products.

On December 23, 2021, Focus Universal (Shenzhen)

Technology Co.

LTD was founded as a mainland China office for manufacturing procurement expertise and support research and development

Focus Universal (Shenzhen) Technology Co.

LTD is 100% owned by Focus Universal Inc.

and designed to function as a branch office

accessing high level ability to source products and build relationships with manufacturers in the region and as a lower cost form of support

research and development as engineers are more plentiful in the region.

In the future, this office could also handle other online marketing

and marketing production activities, provided a cost and quality benefit exists at the time.

Our goals over the next three years include:

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Growth through Mergers and Acquisitions

Mergers and acquisitions (“M&A”)

represent a significant part of our growth strategy because M&A can fill business gaps or add key business operations without

requiring us to wait years for marketing and sales cycles to materialize.

We have used this growth strategy in our acquisition

of AVX, and in the future intend to continue to use M&A to find and secure opportunities that will either:

(i) achieve the

objective of growth in our market segments;

or (ii) provide an area of expansion that will add to the Company’s products

and/or service lines in markets that we are currently not serving but could serve if we had the appropriate expertise.

The resulting

combination of our existing products and services, new key personnel, and strategic partnerships through M&A will allow us

to operate in new markets and provide new offerings to our existing market.

Acquiring key competitors may allow the

addition of key personnel to our team.

These additions may include people with vast industry knowledge, which can act as a catalyst

to further our growth and lead to the development of new products and business lines.

We will seek to target synergistic acquisitions

in the same industry, targeting different geographic locations, which will allow us to actively compete on a regional or national

scale in the IoT segment.

If we target b usinesses in the same sector or location we hope

to combine resources to reduce costs, eliminate duplicate facilities or departments and increase revenue.

We believe this strategy

will allow for accelerated growth and maximize investor returns.

One of our key strategies to grow by acquisition

Mergers and acquisitions (“M&A”)

represent a significant part of our growth strategy because M&A can fill business gaps or add key business operations without requiring

us to wait years for marketing and sales cycles to materialize.

We have used this growth strategy in our acquisition of AVX, and in the

future intend to continue to use M&A to find and secure opportunities that will either:

(i) achieve the objective of growth in our

market segments;

or (ii) provide an area of expansion that will add to the Company’s products and/or service lines in markets that

we are currently not serving, but could serve if we had the appropriate expertise.

The resulting combination of our existing products

and services, new key personnel, and strategic partnerships through M&A will allow us to operate in new markets and provide new offerings

to our existing market.

Acquiring key competitors may allow the addition

of key personnel to our team.

These additions may include people with vast industry knowledge, which can act as a catalyst to further

our growth and lead to the development of new products and business lines.

We will seek to target synergistic acquisitions in the same

industry, targeting different geographic locations, which will allow us to actively compete on a regional or national scale in the IoT

If we target businesses in the same sector or location we hope to combine resources to reduce costs, eliminate duplicate facilities

or departments and increase revenue.

We believe this strategy will allow for accelerated growth and maximize investor returns.

One of our key strategies to grow through M&A

is to acquire smaller businesses that focus on IoT installation technology (industrial or residential) and in the USIP or PLC industries.

Equipment Manufacturer (“OEM”) Engineering Consulting and Design Services

smart technology is new to most electronic engineers and manufacturers.

One way to promote our universal smart technology is to

provide direct OEM engineering design consulting services to potential industrial customers.

Direct, on-site consulting will educate

our industrial consumers on the many ways our technology can be implemented in a variety of industrial applications.

that we are well positioned to perform product design and perform engineering consulting services for future OEM customers.

We believe we can operate as a seamless extension of our customers’

engineering organizations and add scale, flexibility

and speed to their design processes.

We will not be able to offer such engineering consulting and design consulting services until

the Ubiquitor is being produced and distributed.

We believe that once the Ubiquitor is being produced and distributed, we will

have hired and trained enough engineers to execute our consulting strategy.

Due to the timeline for the roll out of the Ubiquitor,

we believe that the earliest we would feasibly be able to implement such consulting services would be the fourth quarter of 2021.

Through our engineering consulting services strategy, we intend to become our customers’

engineering partner at all stages

of the design cycle so that we may effectively assist them in transforming ideas into production-ready products and accelerate

time to market for our universal smart technology product segment.

Original Equipment Manufacturer (“OEM”)

Engineering Consulting and Design Services

Universal smart technology is new to most electronic

engineers and manufacturers.

One way to promote our universal smart technology is to provide direct OEM engineering design consulting

services to potential industrial customers.

Direct, on-site consulting will educate our industrial consumers on the many ways our technology

can be implemented in a variety of industrial applications.

We believe that we are well positioned to perform product design and engineering

consulting services for future OEM customers.

We believe we can operate as a seamless extension of our customers’ engineering organizations

and add scale, flexibility and speed to their design processes.

We will not be able to offer such engineering consulting and design consulting

services until the Ubiquitor is being produced and distributed.

We believe that once the Ubiquitor is being produced and distributed,

we will have hired and trained enough engineers to execute our consulting strategy.

Through our engineering consulting services strategy,

we intend to become our customers’ engineering partner at all stages of the design cycle so that we may effectively assist them

in transforming ideas into production-ready products and accelerate time to market for our universal smart technology product segment.

Technology Licensing

may also consider entering into licensing arrangements with our customers for our technology.

We believe that once we educate our

industrial consumers, they may want to integrate our universal smart technology into their own technology through licensing agreements.

We believe licensing our intellectual property may provide a revenue stream with no additional overhead, all while allowing us

to retain proprietary ownership and creating long-term industrial consumers who rely on our products.

By creating incentives, such

as cost incentives, to license our IP rather than design their own technology, we believe potential customers could save on design

costs and create business development opportunities.

Licensing may also allow us to rely on the expertise, capacity and skill of

a licensee to commercialize our IP, which is especially valuable if we lack the infrastructure, financial resources and know-how

to bring a product to market independently.

We believe that licensing will not occur until the last quarter of 2021 due to the

fact that we will need to have a team of our consulting engineers in place once we complete the offering and working with industrial

consumers on product integration, as well as time to negotiate the terms of licensing agreements with potential customers.

We may also consider entering into licensing arrangements

with our customers for our technology.

We believe that once we educate our industrial consumers, they may want to integrate our universal

smart technology into their own technology through licensing agreements.

We believe licensing our intellectual property may provide a

revenue stream with no additional overhead, all while allowing us to retain proprietary ownership and create long-term industrial consumers

who rely on our products.

By creating incentives, such as cost incentives, to license our IP rather than design their own technology,

we believe potential customers could save on design costs and create business development opportunities.

Licensing may also allow us to

rely on the expertise, capacity and skill of a licensee to commercialize our IP, which is especially valuable if we lack the infrastructure,

financial resources and know-how to bring a product to market independently.

Although a licensing deal can occur at any time, we do believe

that licensing may not occur until the last quarter of 2022 due to the fact that we will need to have a team of our consulting engineers

in place, working with industrial consumers on product integration, as well as time to negotiate the terms of licensing agreements with

potential customers.

Distribution Method

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with standard U.S.

component manufacturers and similar electronics providers for the manufacturing of unassembled parts of the

Ubiquitor and its sensor nodes, to then ship such parts to our Ontario, California facility where we will assemble the Ubiquitor

devices and sensor nodes.

Afterwards, we would distribute our Ubiquitor devices to distributors and retailers directly and also

ship directly to traditional industrial instrument manufacturers.

We have a sales department operating out of our Ontario, California

office and eventually plan to open a second sales department in China dedicated to promoting our technologies to local instrument

manufacturers who can utilize our Ubiquitor devices in their manufacturing and other processes.

We intend to market the Ubiquitor

to industrial end-users through Hydrofarm, through direct business-to-business sales channels and also directly to consumers via

e-commerce internet platforms.

For our quantum light meters, and air filtration products, we rely solely on Hydrofarm to distribute

to end-users through its distribution channels.

component manufacturers and similar electronics providers for the manufacturing of unassembled parts of the Ubiquitor

and its sensor nodes, and to then ship such parts to our Ontario, California facility where we will assemble the Ubiquitor devices and

sensor nodes.

Afterwards, we would distribute our Ubiquitor devices to distributors and retailers directly and also ship directly to traditional

industrial instrument manufacturers.

We have a sales department operating out of our Ontario, California office and eventually plan to

open a second sales department in China dedicated to promoting our technologies to local instrument manufacturers who can utilize our

Ubiquitor devices in their manufacturing and other processes.

We intend to market the Ubiquitor to industrial end-users through Hydrofarm,

through direct business-to-business sales channels and also directly to consumers via e-commerce internet platforms.

For our quantum light

meters, and air filtration products, we rely solely on Hydrofarm to distribute to end-users through its distribution channels.

Raw Materials

The electronic components used in the Ubiquitor

are common and can be easily purchased through a variety of suppliers with little advance notice.

We predominantly use large-scale

manufacturers in the United States such as Texas Instruments and Intel for the major components.

Other key suppliers we could consider

include Analog Devices, Skyworks Solutions, Infineon, STMicroelectronics, NXP Semiconductors, Maxim Integrated, On Semiconductor,

and Microchip Technology.

Production and assembly lines are also available worldwide if we needed to outsource or increase our

capacity, though we intend to complete our assembly in our Ontario, California facility.

On October 1, 2018, we entered into an

agreement with Beijing Hengnar Technology Development Co., Ltd.

to develop certain infrared online gas analyzer products that detect

O2, CO, CO2, H2, Nox, SF6 and other gases for our digital light meter and filtration business segment.

are common and can be easily purchased through a variety of suppliers with little advanced notice.

We predominantly use large-scale manufacturers

in the United States such as Texas Instruments and Intel for the major components.

Other key suppliers we could consider include Analog

Devices, Skyworks Solutions, Infineon, STMicroelectronics, NXP Semiconductors, Maxim Integrated, On Semiconductor, and Microchip Technology.

Production and assembly lines are also available worldwide if we needed to outsource or increase our capacity, though we intend to complete

our assembly in our Ontario, California facility.

On October 1, 2018, we entered into an agreement with Beijing Hengnar Technology Development

to develop certain infrared online gas analyzer products that detect O2, CO, CO2, H2, Nox, SF6 and other gases for our digital

light meter and filtration business segment.

Manufacturing and Assembly

We have an assembly facility in Ontario,

California where we assemble the Ubiquitor from parts sourced predominantly in the United States.

Our quantum light meters and

handheld sensors are also manufactured in our Ontario, California facility.

Our air filtration products are manufactured and assembled

in China by a third-party contract manufacturer, Tianjin Guanglee.

We have an assembly facility in Ontario, California

where we assemble the Ubiquitor from parts sourced predominantly in the United States.

Our quantum light meters and handheld sensors are

also manufactured in our Ontario, California facility.

Our air filtration products are manufactured and assembled in China by a third-party

contract manufacturer, Tianjin Guanglee.

Our subsidiary unit in the Canton province of mainland China, Focus

Universal (Shenzhen) Technology Co.

LTD, was founded in December 2021 as an office for manufacturing procurement expertise and support

research and development activities.

Focus Universal (Shenzhen) Technology Co.

LTD is designed to function as a branch office accessing

high level ability to source products and build relationships with manufacturers in the region and as a lower cost form of support research

and development as engineers are more plentiful in the region.

In the future, this office could also handle other online marketing and

marketing production activities, provided a cost and quality benefit exists at the time.

This excludes any projects subject to approval

or that require a separate business license in accordance with the local laws.

China allows foreign entities to setup wholly owned limited

liability companies in China, also known as Wholly Foreign Owned Enterprises (WFOEs), in non “restricted” or “prohibited”

industries or business activities.

The subsidiary’s business operation has been approved by the local government in Shenzhen to

be qualified as a WFOE entity in China.

The entity is 100% owned by Focus Universal Inc.

Sensor Node Industry

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in the sensor node industry, including traditional instruments or devices manufacturers such as Hanna Instruments or Extech Instruments.

Hach developed and launched the SC1000

Multi-parameter Universal Controller, a probe module for connecting up to 32 digital sensors or analyzers.

However, their products

are not compatible with smart phones yet;

Hach developed and launched the SC1000 Multi-parameter

Universal Controller, a probe module for connecting up to 32 digital sensors or analyzers.

However, their products are not compatible

with smart phones yet;

and we believe their price point is still prohibitive to consumers.

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and remote sensors.

Many of Monnit’s products are web-based wireless sensors that usually are not portable because of their

power consumption.

Also, the sensors’

real-time updates are slow;

and we believe security of the web-based sensor data acquisition

may be a concern.

Many of Monnit’s products are web-based wireless sensors that usually are not portable because of their power

Also, the sensors’ real-time updates are slow;

and we believe security of the web-based sensor data acquisition may

be a concern.

In addition to purchasing the device, consumers usually have to pay a monthly fee for using web-based services.

IoT Installation Industry

There are several companies that compete

with AVX in smart home installations, including Vivint Smart Home, Crestron and

However, we believe we can distinguish ourselves from our competitors by offering a substantially lower price.

An installation

by Crestron ranges between $100,000 and $500,000 and by Control4 between $20,000 and $40,000.

The cheapest competitor we can identify

in this sector is Vivint Smart Home, which costs less than $5,000 to install;

however, we understand that the Vivint Smart Home

focuses on security systems only and that users have no other smart applications, which our smart home product line would include.

Air Filtration Systems and Meter

Products Industry

There are several companies that compete with

AVX in smart home installations, including Vivint Smart Home, Crestron and Control4.

However, we believe we can distinguish ourselves

from our competitors by offering a substantially lower price.

An installation by Crestron ranges between $20,000 and $100,000 and by Control4

between $20,000 and $40,000.

The cheapest competitor we can identify in this sector is Vivint Smart Home, which costs less than $5,000

however, we understand that the Vivint Smart Home focuses on security systems only and that users have no other smart applications,

which our smart home product line would include.

Air Filtration Systems and Meter Products

The air filtration system and meter products

industry is a niche industry.

The global industrial air filtration market was valued at $11.6 billion in 2018 and analysts expect

it to register a CAGR of 6.7% from 2019 to 2025 because of the industrial need to control air quality across a range of industries.

Air purification methods are an effective way to control contaminants and improve indoor air quality and as a result, many

national and local governments overseeing indoor air quality and other emissions are enacting stricter workforce health and safety

regulations in this area, which drives demand.

One of our competitors, Donaldson Company, Inc., an air filtration company, announced

in its SEC filings that on October 18, 2018 it acquired BOFA International LTD (“BOFA”), headquartered in the United

Kingdom, for $98.2 million less cash acquired of $2.2 million.

BOFA manufactures systems across a wide range of air filtration

applications.

The global industrial air filtration market was valued at $11.6 billion in 2018 and analysts expect it

to register a CAGR of 6.7% from 2019 to 2025 because of the industrial need to control air quality across a range of industries.

Air purification methods are an effective way to control contaminants and improve indoor air quality and as a result, many national

and local governments overseeing indoor air quality and other emissions are enacting stricter workforce health and safety regulations

in this area, which drives demand.

One of our competitors, Donaldson Company, Inc., an air filtration company, announced in its SEC filings

that on October 18, 2018 it acquired BOFA International LTD (“BOFA”), headquartered in the United Kingdom, for $98.2 million

less cash acquired of $2.2 million.

BOFA manufactures systems across a wide range of air filtration applications.

We are not trying to compete with traditional

instruments or device manufacturers because we plan to utilize our Ubiquitor device in conjunction with our smartphone application.

We believe the resulting product may compete in a much wider product category due to its many potential applications.

believe the resulting product may compete in a much wider product category due to its many potential applications.

View Research.

(2020, February).

Industrial Air Filtration Market Size, Share & Trends Analysis Report, by Product, by End Use (Cement,

Food, Metals, Power, Pharmaceutical, Agriculture, Paper & Pulp and Woodworking, Plastic), by Region and Segment Forecasts, 2020-2027.

Retrieved at:

https://www.grandviewresearch.com/industry-analysis/industrial-air-filtration-market.

Our Corporate History

The Company entered the residential and

commercial automation installation service industry through the acquisition of AVX Design and Integration, Inc.

(“AVX”)

in March of 2019.

AVX was established in 2000 with the goal of installing high-performance, easy-to-use Audio/Video, Home Theater,

Lighting Control, Automation and Integration systems for high-net-worth residential projects.

Additionally, we are performing research

and development on an electric power line communication technology and have filed three patents with the USPTO related to our Ubiquitor

device and the design of a quantum PAR photo sensor.

Eventually, we hope that PLC will further enhance smart IoT installations

performed by AVX and powered by the Ubiquitor.

We are based in the City of Ontario, California,

1 unchanged sentence

In December of 2013, we filed an S-1 registration statement that went effective on March 14,

Since then, our securities have been trading on the OTCQB Market.

From March 14, 2014 through August 30, 2021, our securities traded on the OTCQB Market.

From August 31, 2021, our securities traded

on the Nasdaq Capital Market.

From January 28, 2022, our securities traded on the Nasdaq Global Market.

Our website is www.focusuniversal.com.

Our website and the information contained therein or connected thereto are not intended to be incorporated into this prospectus.

and the information contained therein or connected thereto are not intended to be incorporated into this report.

The Company entered the residential and commercial

automation installation service industry through the acquisition of AVX Design and Integration, Inc.

(“AVX”) in March of 2019.

AVX was established in 2000 with the goal of installing high-performance, easy-to-use Audio/Video, Home Theater, Lighting Control, Automation

and Integration systems for high-net-worth residential projects.

Additionally, we are performing research and development

on an electric power line communication (“PLC”) technology and have filed three patents with the United States Patent and

Trademark Office (USPTO) related to our Ubiquitor device and the design of a quantum PAR photo sensor.

Eventually, we hope that PLC technology

will further enhance smart IoT installations performed by AVX and powered by the Ubiquitor.

On October 21, 2015, Dr.

Jennifer Gu and

Edward Lee were appointed as directors of the Company.

After such appointments, the Board of Directors consisted of Dr.

Jennifer Gu and Dr.

On April 2, 2018, Duncan Lee was appointed

as the Chief Financial Officer of the Company.

Lee were appointed as directors of the Company.

After such appointments, the Board of Directors consisted of Dr.

Desheng Wang, Dr.

On April 2, 2018, Duncan Lee was appointed as

the Chief Financial Officer of the Company.

On June 8, 2018, we announced the appointment

of four new board members of the Company, the majority of whom were independent:

Sheri Lofgren, Sean Warren, Michael Pope, and

Carine Clark.

Our Board of Directors formed our Audit, Compensation, and Nominating Committees.

_______________________________

10 Grand View Research.

(2020, February).

Air Filtration Market Size, Share & Trends Analysis Report, by Product, by End Use (Cement, Food, Metals, Power, Pharmaceutical,

Agriculture, Paper & Pulp and Woodworking, Plastic), by Regionk and Segment Forecasts, 2020-2027.

Retrieved at:

https://www.grandviewresearch.com/industry-analysis/industrial-air-filtration-market.

On July 26, 2018, our Board of Directors

approved our submission of an application in compliance with the NASDAQ rules and regulations to list and trade our Company’s

securities on the NASDAQ Capital Market.

As of the date of this prospectus, our application is pending NASDAQ’s approval

and our Company’s securities are not listed on the NASDAQ Capital Market.

On November 28, 2018, Sean Warren resigned

as a member of the Board of Directors;

Sheri Lofgren, Sean Warren, Michael Pope, and Carine

Our Board of Directors subsequently formed our Audit, Compensation, and Nominating Committees.

On July 26, 2018, our Board of Directors approved

our submission of an application in compliance with The Nasdaq Stock Market LLC (“NASDAQ”) rules and regulations to list and

trade our Company’s securities on the Nasdaq Capital Market.

On November 28, 2018, Sean Warren resigned as

a member of the Board of Directors;

and Greg Butterfield was appointed in his place.

On December 1, 2018, Mr.

Warren became

a part-time consultant to the Company.

In late 2018, we purchased a manufacturing

warehouse and office space addressed at 2311 E.

Locust Court, Ontario, CA, 91761.

The property consists of an industrial type,

two-story building, with a total building area of 30,740 square feet.

Warren became a part-time

consultant to the Company.

In late 2018, we purchased a manufacturing warehouse

and office space addressed at 2311 East Locust Court, Ontario, CA, 91761.

The property consists of an industrial type, two-story building,

with a total building area of 30,740 square feet.

Ten thousand square feet will be utilized for office space;

and 20,000 square feet will be utilized for warehouse space.

and 20,000 square feet will

be utilized for warehouse space.

The property includes 58 parking spaces.

The purchase price for the

property was approximately $4.62 million.

On March 15, 2019, the Company entered

into a stock purchase agreement with Patrick Calderone, the CEO and owner of AVX, whereby the Company purchased 100% of the outstanding

stock of AVX (the “AVX Acquisition”) for $890,716.

The purchase price for the property was approximately $4.62

On March 15, 2019, the Company entered into a

stock purchase agreement with Patrick Calderone, the CEO and owner of AVX, whereby the Company purchased 100% of the outstanding stock

of AVX (the “AVX Acquisition”) for $890,716.

The purchase price was structured as follows:

(1) $550,000 payable

in cash at closing;

(2) $290,716 payable in 39,286 shares of the Company’s common stock issued upon closing;

and (3) $50,000

payable in the form of a secured promissory note at 6% interest over 12 months secured by six shares of AVX common stock.

In connection

with the AVX Acquisition, Patrick Calderone also entered into a consulting agreement with the Company pursuant to which he would

offer consulting and training services during the 12-month period following the closing of the AVX Acquisition.

Since AVX is an

installer of smart home products, and since we anticipate that our Ubiquitor device is capable of enhancing smart home installations,

we believe that this acquisition will allow us to test new applications and the integration capabilities of our Ubiquitor device

in smart homes.

(1) $550,000 payable in cash at

(2) $290,716 payable in 39,286 shares of the Company’s common stock issued upon closing;

and (3) $50,000 payable in the

form of a secured promissory note at 6% interest over 12 months secured by six shares of AVX common stock.

In connection with the AVX

Acquisition, Patrick Calderone also entered into a consulting agreement with the Company pursuant to which he would offer consulting and

training services during the 12-month period following the closing of the AVX Acquisition.

Since AVX is an installer of smart home products,

and since we anticipate that our Ubiquitor device is capable of enhancing smart home installations, we believe that this acquisition will

allow us to test new applications and the integration capabilities of our Ubiquitor device in smart homes.

On November 15, 2019, Dr.

Edward Lee resigned

as President and was appointed to be the Chairman of the Board of Directors.

as President of the Company and was appointed to be the Chairman of the Board of Directors.

On August 31, 2021, the Company commenced trading

on the Nasdaq Capital Market under the symbol “FCUV.”

On September 2, 2021, the Company announced the

closing of an underwritten public offering of 2,300,000 newly issued shares of common stock at a price to the public of $5.00 per share.

The closing included the full exercise of the underwriters’ over-allotment option to purchase 300,000 shares of common stock at

the public offering price, for gross proceeds to the Company of $11.5 million, prior to deducting underwriting discounts and commissions

and offering expenses payable by us.

On November 10, 2021, the Company appointed Irving

Kau as Vice President of Finance and Head of Investor Relations.

On January 26, 2022, the Company announced approval

for the uplist of its stock onto the Nasdaq Global Market exchange under the symbol “FCUV.”

Patent, Trademark, License and Franchise

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On November 4, 2016, we filed a U.S.

application number 15/344,041 with the USPTO.

On March 5, 2018, we issued a press release announcing that the USPTO had issued

an Issue Notification for U.S.

patent application

number 15/344,041 with the USPTO.

On March 5, 2018, we issued a press release announcing that the USPTO had issued an Issue Notification

Patent Application No.

9924295 entitled “Universal Smart Device,”

which covers a patent

application regarding the Company’s Universal Smart Device.

9924295 entitled “Universal Smart Device,” which covers a patent application regarding the

Company’s Universal Smart Device.

The patent was granted on March 20, 2018.

Subsequent to our internal research and

development efforts, we filed with the USPTO on June 2, 2017 a patent application regarding a process for improving the spectral

response curve of a photo sensor.

The small and cost-effective multicolor sensor and its related software protected by the potential

patent we believe could achieve a spectral response that approximates an ideal photo response to measure optical measurement.

patent was issued on February 26, 2019.

In addition, we have been awarded a notice

of allowance for a patent from the USPTO for a patent application we filed on March 12, 2018 as application No.

patent title is a “Universal Smart Device,”

which is a universal smart instrument that unifies heterogeneous measurement

probes into a single device that can analyze, publish, and share the data analyzed.

The issue fee was paid on March 14, 2019.

Subsequent to our internal research and development

efforts, we filed with the USPTO on June 2, 2017, a patent application regarding a process for improving the spectral response curve of

a photo sensor.

The small and cost-effective multicolor sensor and its related software protected by the potential patent we believe could

achieve a spectral response that approximates an ideal photo response to measure optical measurement.

The patent was issued on February

On November 29, 2019, the Company filed an international

utility patent application filed through the patent cooperation treaty as application PCT/US2019/63880.

In April 2020, the Company was

notified that it received a favorable international search report from the International Searching Authority regarding this patent application,

which patents the Company’s PLC technology.

The World International Property Organization report cited only three category “A”

documents, indicating that the Company’s application met both the novelty and non-obviousness patentability requirements.

Consequently,

the Company is optimistic that the patent covering the claims for its PLC technology will be issued in due course and will allow the Company

to implement strong protections on the PLC technology worldwide.

On May 19, 2021, we filed thirteen provisional

patent applications with the USPTO that we had been researching and developing for years encompassing a broad spectrum of technology areas

including sensor technology, wired and wireless communications, power line communications, computer security, software solutions, interconnected

technological communications, smart home systems and methods for both home and hydroponic areas, dynamic password cipher, local file security,

payment card security, infrared sensor, and a method and apparatus for high data rate transmission.

In the fourth quarter of 2021, we hired the law

firm of Knobbe Martens, Olson & Bear, LLP to serve as outside intellectual property counsel for the Company.

The firm is working on

transferring the Company’s provisional patent applications to formal patent applications.

Research and Development Activities

As of December 31, 2020, we spent a total

of $256,636 on research and development activities.

For the year ended December 31, 2021, we spent

a total of $220,469 on research and development activities;

and for the year ended December 31, 2020, we spent a total of $256,636.

Focus Universal (Shenzhen) Technology Co.

was founded as a mainland China office for not only manufacturing procurement expertise but also non-confidential support research and

development activities.

This wholly owned subsidiary is registered to be engaged in IoT research and development and IoT sales and service

amongst other related activities.

Compliance with Environmental Laws

We are not aware of any environmental laws

that have been enacted, nor are we aware of any such laws being contemplated for the future, that impact issues specific to our

As of the date of this prospectus we have

twenty-one full-time employees and one part-time employee.

The Company’s Chief Executive Officer and Secretary is Dr.

Wang, and our Chief Financial Officer is Duncan Lee.

Our officers and directors are responsible for planning, developing and operational

duties, and will continue to be so throughout the early stages of our growth.

Three full-time employees are working in the warehouse

orchestrating the development and distribution of our sensor devices as well as our filters.

We are not aware of any environmental laws that

have been enacted, nor are we aware of any such laws being contemplated for the future, that impact issues specific to our business.

As of the date of this report we have 13 full-time

employees and 4 part-time employees.

The Company’s Chief Executive Officer and Secretary is Dr.

Desheng Wang, and our Chief Financial

Officer is Duncan Lee.

Irving Kau serves as Vice President of Finance and Head of Investor Relations.

We have a head of marketing whose

efforts are focused on the controlled agricultural market segment.

We also have a CEO of our China subsidiary who leads the component

and product procurement unit within Asia.

We have three full-time senior electrical and computer engineers working on research and development

of our products.

Two full-time employees are working in the warehouse assembling electronics for Hydrofarm, orchestrating the development

and distribution of our sensor devices and filters, contacting vendors when receiving orders for Hydrofarm, and performing warehouse

logistics, product assembly, and other administrative tasks.

We also have a full-time accounting manager/controller.

Three employees

perform audio/visual home installations for our subsidiary AVX, with one employee serving as the supervisor and operational head.

Legal Proceedings

On April 13, 2020, Ian Patterson resigned

from his position as Chief Operations Officer of AVX.

On April 13, 2020, Ian Patterson resigned from

his position as Chief Operations Officer of AVX.

On May 5, 2020, Mr.

Patterson filed an action in the Superior Court for the

County of Los Angeles, State of California, against the Company et al.

Patterson filed an action in the Superior Court for the County of

Los Angeles, State of California, against the Company et al.

We believe neither the Company nor Dr.

Wang has been served

properly and venue is improper.

The complaint alleges claims including wrongful termination, retaliation and various other provisions

of the California Labor Code, and various other claims under California state law.

The complaint seeks unspecified economic and

non-economic losses, as well as attorneys’

The Company is investigating and intends to vigorously defend itself in

the foregoing matter.

Wang has been served properly and

venue is improper.

The complaint alleges claims including wrongful termination, retaliation and various other provisions of the California

Labor Code, and various other claims under California state law.

The complaint seeks unspecified economic and non-economic losses, as

well as attorneys’ fees.

The Company is investigating and intends to vigorously defend itself in the foregoing matter.

We have completed

written discovery and non-expert discovery.

Trial is set for May 31, 2022.

AVX intends to vigorously contest this matter.

disputes that the other defendants are proper parties to the litigation.

However, litigation and investigations are inherently uncertain.

Accordingly, the Company cannot predict

the outcome of this matter.

Accordingly, the Company cannot predict the outcome of this matter.

On April 13, 2020, AVX terminated an employee

from her position as Sales and Marketing Director.

On May 13, 2020, she filed an action in the Superior Court for the County of

Los Angeles, State of California.

The Complaint alleges claims including wrongful termination, retaliation and various other provisions

of the California Labor Code, and various other claims under California state law.

The complaint seeks unspecified economic and

non-economic losses, as well as attorneys’

The Company is investigating and intends to vigorously defend itself in

the foregoing matters.

However, litigation and investigations are inherently uncertain, but the outcome could have a material impact

on the Company.

On May 13, 2020, she filed an action in the Superior Court for the County of Los Angeles,

State of California.

The Complaint alleges claims including wrongful termination, retaliation and various other provisions of the California

Labor Code, and various other claims under California state law.

The complaint seeks unspecified economic and non-economic losses, as

well as attorneys’ fees.

The Company is investigating and intends to vigorously defend itself in the foregoing matters.

to the Complaint, defendants filed a motion to compel arbitration asking the court to order Plaintiff to submit her claims to binding

individual arbitration based on an arbitration agreement signed by Plaintiff at the outset of her employment.

The motion was unfortunately

denied, and in response, defendants filed an appeal which is currently pending.

The appeal is anticipated to take the majority of 2022

before it is resolved.

AVX intends to vigorously contest this matter.

Further, AVX disputes that the other defendants are proper parties

to the litigation.

However, litigation and investigations are inherently uncertain, but the outcome could have a material impact on the

Reports to Securities Holders

We provide an annual report that includes

audited financial information to our shareholders.

We make our financial information equally available to any interested parties

or investors through compliance with the disclosure rules for a small business issuer under the Exchange Act.

We are subject to

disclosure filing requirements including filing Form 10-K annually and Form 10-Q quarterly.

In addition, we will file Form 8-K

and other proxy and information statements from time to time as required.

We do not intend to voluntarily file the above reports

in the event that our obligation to file such reports is suspended under the Exchange Act.

The public may read and copy any materials

that we file with the Securities and Exchange Commission at the SEC’s Public Reference Room at 100 F Street NE, Washington,

The public may obtain information on the

operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

The SEC maintains an Internet site (http://www.sec.gov)

that contains reports, proxy and information statements, and other information regarding issuers that file electronically with

We provide an annual report that includes audited

financial information to our shareholders.

We make our financial information equally available to any interested parties or investors

through compliance with the disclosure rules for a small business issuer under the Exchange Act.

We are subject to disclosure filing requirements

including filing Form 10-K annually and Form 10-Q quarterly.

In addition, we will file Form 8-K and other proxy and information statements

from time to time as required.

We do not intend to voluntarily file the above reports in the event that our obligation to file such reports

is suspended under the Exchange Act.

The public may read and copy any materials that we file with the Securities and Exchange Commission

at the SEC’s Public Reference Room at 100 F Street NE, Washington, DC 20549.

The public may obtain information on the operation

of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

The SEC maintains an Internet site (http://www.sec.gov) that contains

reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business