What changed in this filing

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Item 1. Business

2024-04-01 compared with 2023-03-31 · 202 added, 276 removed, 937 unchanged (34% of the section changed)

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Our company websites are www.focusuniversal.com,

www.avxdesign.com, and www.attechsystems.com.

Our website and the information contained therein or connected thereto are not intended

to be incorporated into this report.

www.avxdesign.com, www.smart-avx.com, and www.attechsystems.com.

Our website and the information contained therein or connected thereto

are not intended to be incorporated into this report.

We have developed five proprietary platform technologies

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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.

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

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IoT devices fall short.

Our research and development suggest that the existing IC integration

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

This lack of incorporating

software under a common operating system, application software, and extra interface into ICs, limits IC integration to the component

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.

Our research and development suggest 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

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

New Value across Industries and Society,” available at:

http://www3.weforum.org/docs/WEF_The_Impact_of_5G_Report.pdf (last accessed

March 6, 2023).

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

(last accessed on March 6, 2023).

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

http://www3.weforum.org/docs/WEF_The_Impact_of_5G_Report.pdf (last accessed March 6, 2023).

https://www.marketsandmarkets.com/Market-Reports/power-line-communication-plc-market-912.html (last accessed on March 6, 2023).

Though 5G offers a significant increase in speed

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Horwitz, Jeremy (December 10, 2019).

“The definitive guide

to 5G low, mid, and high band speeds.” VentureBeat online magazine (available at:

https://venturebeat.com/2019/12/10/the-definitive-guide-to-5g-low-mid-and-high-band-speeds/

(Last accessed March 7, 2023)).

[7] See “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:

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

https://venturebeat.com/2019/12/10/the-definitive-guide-to-5g-low-mid-and-high-band-speeds/ (Last accessed March 7, 2023)).

See “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, March 7, 2023)).

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

(last accessed March 7, 2023).

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

(last accessed March 7, 2023).

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

(last accessed March 7, 2023).

https://www.t-mobile.com/business/resources/articles/benefits-of-the-5g-spectrum-for-businesses (last accessed March 7, 2023).

https://dgtlinfra.com/american-tower-5g-deployed-in-layers-different-spectrum-bands/ (last accessed March 7, 2023).

https://www.md7.com/perspectives/infrastructure-challenges-of-5g-frequency/ (last accessed March 7, 2023).

Unlike 4G LTE, which operates on established frequency

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add to overall network power usage.

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

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.

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

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THALES, Dec 29,2022, A 5G PROGRESS REPORT:

LAUNCHES, SUBSCRIBERS, DEVICES & MORE,

https://www.thalesgroup.com/en/worldwide/digital-identity-and-security/magazine/5g-progress-report-launches-subscribers-devices,

(last accessed March 7, 2023)

LAUNCHES, SUBSCRIBERS, DEVICES & MORE, https://www.thalesgroup.com/en/worldwide/digital-identity-and-security/magazine/5g-progress-report-launches-subscribers-devices, (last accessed March 7, 2023)

UNB modulation utilizes a coded baseband with

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UNB (in development)

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.

As shown by the above 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.

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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.

available, this is potentially less of a concern than pursuing the traditional broadband capacity pathways F-24.

____________________

[13] Federal Communications Commissions (February 17, 2021), https://www.fcc.gov/document/fcc-announces-winning-bidders-37-ghz-service-auction,

(last accessed March 7, 2023)

Federal Communications Commissions (February 17, 2021), https://www.fcc.gov/document/fcc-announces-winning-bidders-37-ghz-service-auction, (last accessed March 7, 2023)

Despite 5G networks offering significantly

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the 5G networks infrastructure.

____________________

“How 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 March 7, 2023)).

Environmental Health Trust, https://ehtrust.org/science/reports-on-power-consumption-and-increasing-energy-use-of-wireless-systems-and-digital-ecosystem/,

(last accessed March 7, 2023)

Further, the design of 5G+ infrastructure means

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

____________________

“How 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 March 7, 2023)).

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

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of instrumentation, measurement, control, and automation.

____________________

Environmental Health Trust, https://ehtrust.org/science/reports-on-power-consumption-and-increasing-energy-use-of-wireless-systems-and-digital-ecosystem/, (last accessed March 7, 2023)

Gartner Insights “Leading the IoT,” available at:

https://www.gartner.com/imagesrv/books/iot/iotEbook_digital.pdf (last accessed March 7, 2023).

USIP is a versatile platform, able to perform

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

____________________

Gartner Insights “Leading the IoT,” available at:

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

March 7, 2023).

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.

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

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creating a massive web of interconnected devices spanning everything from smartphones to kitchen appliances.

[17]17 The IoT

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

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an organization’s unique workflow and preferences.

____________________

Statista 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 March 7, 2023).

Wireless networks are far from perfect for IoT.

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

____________________

Comparison between (a) a traditional

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

____________________

GlobalNewswire, December 19, 2022, https://www.globenewswire.com/en/news-release/2022/12/19/2576452/0/en/Global-Programmable-Logic-Controller-PLC-Market-to-Reach-17-6-Billion-by-

2028-Presence-of-Over-1-500-Manufacturers-Makes-it-Highly-Fragmented.html, (March 7, 2023)

It is our understanding that no other vendor has

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multiple carrier waves or higher operating frequencies are used.

____________________

GlobalNewswire, December 19, 2022, https://www.globenewswire.com/en/news-release/2022/12/19/2576452/0/en/Global-Programmable-Logic-Controller-PLC-Market-to-Reach-17-6-Billion-by-

2028-Presence-of-Over-1-500-Manufacturers-Makes-it-Highly-Fragmented.html,

(March 7, 2023)

Our current research and development efforts are

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and controls, and fan speed controls.

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;

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.

We will distinguish our DoC

technology from the component ICs;

these ICs can perform entire device functions.

According to the Cision the

globally integrated circuits market will be worth $1,248.6 billion in 2030.

[20] Major players in the IC market are Intel

Corporation, Texas Instruments, Analog Devices, STMicroelectronics, NXP, ON Semiconductor, Micron, Toshiba, Broadcom, and

According to the Cision the globally integrated circuits

market will be worth $1,248.6 billion in 2030.

[20] Major players in the IC market are Intel Corporation, Texas Instruments,

Analog Devices, STMicroelectronics, NXP, ON Semiconductor, Micron, Toshiba, Broadcom, and Qualcomm.

This division will also install and design customer

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____________________

Market and Markets, May 2021, Agriculture IoT Market worth $18.1 billion by 2026, https://www.marketsandmarkets.com/PressReleases/iot-in-agriculture.asp,

(last accessed March 7, 2023)

Cision, January 25, 2023, Integrated Circuits Market to Reach USD 1,248.6 Billion by 2030, https://www.prnewswire.com/news-releases/integrated-circuits-market-to-reach-usd-1-248-6-billion-by-2030--301730536.html,

(last accessed March 7, 2023)

Market and Markets, May 2021, Agriculture IoT Market worth $18.1 billion by 2026, https://www.marketsandmarkets.com/PressReleases/iot-in-agriculture.asp, (last accessed March 7, 2023)

Products we are currently selling

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 .

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.

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.

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.

Our HEPA Filtration Device

Digital light meter.

We provide a handheld

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

Our Digital Light Meter Device

Quantum par meter .

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

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.

these products from various 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.

In an effort to continually develop our product

lines, we plan to phase out the traditional, lower-margin products and are preparing to launch a new line of products that have been in

development for several years.

These newer technology products will be released in phases, and we intend that increasing amounts of technology

will be layered upon these products.

Additionally, we plan to continue to increase our efforts in protecting more intellectual property

We have developed products in both the controlled agriculture industry and home automation industries, taking advantage of our

existing relationships in both sectors.

We are building a U.S.

sales team to market our

product lines.

We have already begun marketing our current Smart AVX-branded large format multimedia touch screens, surveillance camera

system (cameras and network video recorders (NVRs)), indoor and outdoor LED screens, and Focus Universal-branded VOIP phone service systems,

both via our sales staff and the Internet.

Universal Smart Device (Ubiquitor)

The initial, simplified version of universal smart

IoT technology is our universal smart device (Ubiquitor).

Theoretically, a single Ubiquitor can connect many sensors, including a vast

number of independent sensors.

When a moderate number of sensors are connected, the cost of the universal Ubiquitor, averaged over the

number of sensors, becomes negligible.

The Ubiquitor’s efficient and cost-effective approach to the cost of connected sensors is

illustrated by the fact that development under Focus’ platform system is a fraction of traditional device development cost.

one-of-a-kind Ubiquitor was first showcased at the Consumer Technology Association’s CES 2024 trade show, which attracted significant

interest from potential customers.

Smart Home Installation

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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.

garden light control, garage door control, and heating control and are in the process of developing a swimming pool control device, smoke

detector, and carbon monoxide monitor.

We believe smart installation based on the USIP,

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process would be simplified, and its costs would be reduced.

Once successfully integrated, the Ubiquitor will be

central to every smart installation with our IoT Installation Services segment.

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 our smart

systems and charge a monthly subscription fee instead.

Once successfully integrated, the Ubiquitor will

be central to every smart installation with our IoT Installation Services segment.

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 our

smart systems and charge a monthly subscription fee instead.

Notwithstanding the foregoing, should we be unable

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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.

Once the technology is established in that industry, 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

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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 its needs.

a) Our Existing Customer, Hydrofarm

Our universal smart instruments’ design,

development, and manufacture are targeted to increase current sales to Hydrofarm, 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 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).

These circuit layouts are in the possession of our manufacturer in China for production.

now received the circuit boards and are trying to launch the pilot production.

We are designing the injection molding tooling so that

we can create the casing.

We believe we will be able to launch the pilot production once the casing tooling is fixed.

In 2023, 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

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.

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.

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.

e) Traditional Instruments Manufacturers

We may consider selling the Ubiquitor directly

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 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.

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.

focus of our future business.

Our goals over the next three years include:

Raise capital to move into full manufacturing and production for our Ubiquitor device;

Raise capital to move into full sales and marketing team for our Ubiquitor device and growing product lines;

Partner with manufacturers and promote the adoption of our Ubiquitor device in a USIP;

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Continue performing research and development on PLC technology;

Focus on building our smart home offerings so that we can reduce the cost of smart home implementation to focus on expanding smart home installation and implementation beyond luxury homes;

Focus on building our smart home offerings so that we can reduce the cost of smart home implementation to expand smart home installation and implementation beyond luxury homes;

File additional patents to expand our intellectual property portfolio related to the many uses of our Ubiquitor device;

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financial resources, and know-how to bring a product to market independently.

Diversification of the Revenue Streams

We will continue to diversify our revenue stream

through various expansion opportunities and in several other markets and industries.

As our platforms can be applied to several sectors

effectively to eliminate redundancy and increase effectiveness, we will seek to expand our operations into additional markets and adjacent

sectors which we believe to have the potential to be effective long term.

While this diversification may initially contain the risk during

transition and adaption of moving to an adjacent market or sector, we believe the long term benefit of diversification to be net positive

as previously, we had been subject to the risk of having one large client within one single sector, which we believe bears greater risk

than the initial risk of transition.

Distribution Method

We intend to engage in relationships

predominantly with standard U.S.

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, while we still continue to

anticipate orders from Hydrofarm in 2023, we have begun to diversify away from one single dominant distributor into more diversified

distribution channels, such as direct wholesale into retail outlets and direct distribution to end-users.

We also intend to

implement a direct sales method via Amazon.com and other online retailers.

We intend to engage in relationships predominantly

with standard U.S.

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 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, while we still continue to anticipate orders from Hydrofarm in 2024, we have begun to diversify away from one

single dominant distributor into more diversified distribution channels, such as direct wholesale into retail outlets and direct distribution

to end-users.

We also intend to implement a direct sales method via Amazon.com and other online retailers.

Raw Materials

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The entity is 100% owned by Focus Universal Inc.

Key Competitive Advantages and Opportunities

and Strengths

Across the world, everyday connected devices are

getting incorporated in tandem collectively, including thermostats, water meters, home alarms, kitchen gadgets, medical equipment, factory

machinery and even vehicles.

Collectively, this ecosystem represents the next frontier in the digital revolution, also known as the Internet

of Things or IoT.

And unlike the simple automation of machinery, IoT is also mobile and virtual, and features a continuous Internet connection.

The Internet of Things (IoT) is the next frontier in the digital revolution.

It can help companies increase productivity, cut costs, offer

new products and services, and deploy new business models.

However, the costs of producing a single input or output device have become

cost prohibitive to the point where a vast majority of the projects in this innovative field are considered failures.

Despite this forward technological momentum, a

sector-wide study conducted by Cisco showed that 60 percent of IoT initiatives stalled at the very-early Proof of Concept (PoC) stage

and only 26 percent of companies have had an IoT initiative that they considered a complete success.

Furthermore, a third of all

completed projects were not considered a failure.

Herein lies both the key advantage of the platforms of the company and the opportunities

and strengths.

Our combined platforms are able to consolidate the eliminate the redundant work in the early stage development production

costs within the IoT sector, whereby the project developers need not begin from scratch each time in the development of a new IoT product,

eliminating upwards of 90% of the redundant, cost-prohibitive workload.

Sensor Node Industry

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and Integration systems for high-net-worth residential projects.

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Fortune, The global air filters market is projected to grow from $14.68 billion in 2022 to $23.83 billion by 2029, exhibiting a CAGR of 7.2% in forecast period, 2022-2029, https://www.fortunebusinessinsights.com/industry-reports/air-filters-market-101676, (last accessed March 7, 2023)

Additionally, we are performing research and development

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on the Nasdaq Capital Market under the symbol “FCUV.”

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Fortune, The global air filters market is projected to grow from $14.68 billion in 2022 to $23.83 billion by 2029, exhibiting a CAGR

of 7.2% in forecast period, 2022-2029, https://www.fortunebusinessinsights.com/industry-reports/air-filters-market-101676, (last accessed

March 7, 2023)

On September 2, 2021, the Company announced the

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for the uplist of its stock onto the Nasdaq Global Market exchange under the symbol “FCUV.”

On June 20, 2023, the Company received an industry

award during InfoComm 2023 for its flexible transparent film display receiving Best of Show designation, winning in the AV Technology

Category for LED Technology.

Patent, Trademark, License and Franchise

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we filed with the USPTO on June 2, 2017, a patent application regarding a process for improving the spectral response curve of a photo

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.

We believe that the small and cost-effective multicolor sensor and its related software protected by the potential patent 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,

utility patent application 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.

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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.

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.

We continue to ultilize the services of the law

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We filed 18 domestic patents in 2022 (plus two international patents in 2022),

and so far have filed 3 patents in 2023.

and filed 3 patents in 2023.

In addition, the Company’s patent number

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Protocol Connectable Device.

On April 3, 2023, the United States Patent and

Trademark Office ("USPTO") issued an Issue Notification for U.S.

11580558 entitled "Dynamic Anti-Counterfeit

System and Method." The USPTO also issued an Issue Notification for U.S.

Patent Application No.

11546017 entitled "System and

Method of Power Line Communication." Both patents cover patent applications regarding the Company's PLC business.

Research and Development Activities

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Patterson filed an action in the Superior Court for the

County of Los Angeles, State of California, against the Company, et al.

County of Los Angeles, State of California, against the Company, et.

The complaint alleges claims including discrimination, wrongful

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The appeal was also denied.

Trial for this matter is not set, nor has discovery been conducted.

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 Company.

Trial for this matter is set for October 30, 2024.

Discovery is ongoing.

to vigorously contest this matter and disputes that the other defendants are proper parties to the litigation.

However, since litigation

and investigations are inherently uncertain, the outcome of this litigation could have a material impact on the Company.

On or about April 14, 2020, Devesa Sarria, the

Sales and Marketing Director, was terminated.

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 discrimination, 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.

We have completed written discovery and most of the non-expert discovery.

Trial is set for October

Sales and Marketing Director of the Company, was terminated.

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 discrimination, 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 parties have completed written discovery and most of the non-expert discovery.

Trial is set for May 8, 2024.

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 Company.

On January 19, 2023, the company filed an action in

the Superior Court of California, County of San Bernardino against Jacqueline Li.

AVX Design and Integration pre-paid for equipment toward

a joint project with her father Jeffrey Li.

Payment was made to Jaqueline’s father’s company Sing Young Music, while no goods

or services were ever received.

Upon death, Jacqueline Li distributed assets from the business Sing Young Music without consideration

toward the business entity or any formation of an estate for Jeffrey Li.

We attended the trial on March 17, 2023 to represent our side

of the case and are awaiting judgement from the court.

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 Company.

Reports to Securities Holders

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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