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Item 1. Business

2025-02-28 compared with 2024-04-01 · 327 added, 781 removed, 358 unchanged (76% of the section changed)

Company Background.

Company History and Background.

Focus Universal Inc.

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our securities traded on the Nasdaq Capital Market.

From January 28, 2022, to the present, our securities have traded on the Nasdaq Global

Our company websites are www.focusuniversal.com,

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

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 chips.

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 despite 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.

From January 28, 2022, to September 22, 2024, our securities traded on the Nasdaq

Global Market.

On September 23, 2024, our securities were transferred for trading to the Nasdaq Capital Market.

We hold 28 patents and

patents pending in various phases of the patent process.

We operate through multiple subsidiaries, including

Perfecular Inc.

(“Perfecular”), AVX Design and Integration, Inc.

also doing business as Smart AVX, Focus Universal (Shenzhen) Technology Company LTD (“Focus Shenzhen”), and Lusher, Inc.

Perfecular Inc.

was founded in September 2009,

is headquartered in Ontario, California, and is engaged in designing certain digital sensor products, and sells a broad selection of horticultural

sensors and filters in North America and Europe.

AVX, incorporated on June 16, 2000, in the state

of California, is an IoT installation and management company specializing in high performance and easy to use audio/video systems, home

theaters, lighting control, automation and integration systems for houses, apartments, commercial complexes, and office spaces.

markets and sells our internet of things (IoT) products, such as high-end LED, and live wall panel products and cameras, under the Smart

On December 23, 2021, we founded Focus Shenzhen

in China for manufacturing procurement expertise and to support research and development activities.

Focus Shenzhen is designed to function

as a branch office accessing high level research and development support, and the ability to source products and build relationships with

Chinese manufacturers.

On April 30, 2024, we founded Lusher Inc.

market, and commercialize an automation financial reporting software called One Touch Financial.

In August of 2024, we decided to discontinue the

operations of one of our subsidiaries AT Tech Systems LLC (“AT Tech”).

AT Tech specialized in commercial and industrial smart

IoT installation projects in areas throughout Southern California.

On November 29, 2024, we held our 2024 annual

shareholders meeting, and the shareholders approved of an amendment to the Company’s Articles of Incorporation to increase the number

of authorized shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), from 75,000,000

to 150,000,000.

On January 31, 2025, we effected a 10 for 1 reverse

stock split of the Company’s authorized stock and issued and outstanding shares of Common Stock by filing a Certificate of Change

pursuant to pursuant to Nevada Revised Statutes (“NRS”) Section 78.209.

As a result of the reverse split, the Company is authorized

to issue 15,000,000 common shares (the Company’s authorized common shares were reduced in the same ratio (10-for-1) as its outstanding

Common Stock shares were reduced).

Our principal executive offices are located at

2311 East Locust Court, Ontario, CA 91761.

Our telephone number is (626) 272-3883, and our website is www.focusuniversal.com.

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

Our current focus is on commercializing our universal

smart technology and financial reporting software.

We plan to utilize our universal smart technology for smart meters and automation systems,

which will be incorporated into IoT devices.

To generate revenues, we will focus on product development, technological upgrades, technical

service and customer data collection.

We believe this technology has applications in several industries and have completed the development

of a system for horticulture applications.

Our financial reporting software is an artificial intelligence (AI) enabled software designed

to aid accounting professional with the preparation of reports based on financial statements, such reports on Form 10-Q and Form 10-K.

We intend to commercialize this product under a software as a service (SaaS) model.

Other than our financial reporting software, the

technologies, products and services that we have developed, and are currently developing have significant applications on the IoT.

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

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.

We believe that IoT will soon reach a critical limit;

we do not have enough human labor and natural resources to

support its growth.

Fifty billion IoT devices will challenge existing resources.

To address these challenges, we have segmented our operations

and developed the technologies and products described below.

In addition to our universal smart technology

and financial reporting software, we are current researching and developing the following:

Device on a Chip

We have developed an innovative “device

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

onto a single, integrated chip (“IC”).

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,

and decreases 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 fast time-to-market.

Our planned DoC technology

allows devices to achieve interoperability with one another and to be interchangeable, both features where traditional IoT devices fall

Our research and development suggest that the

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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 used by thousands of IoT and standalone devices.

The electronic design and production start 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.

Software also adds an element of flexibility and allows multiple discrete ICs to be integrated into a single IC.

From USIP to device level

integrated circuits (“IC”).

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

5G Ultra-narrowband Technology

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 industries across a wide range of sectors at an affordable cost.

5G is an opportunity to implement wired and wireless converged networks and offers opportunities to integrate 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 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.

networks are expected to revolutionize the digital economy by enabling new applications that depend on ultra-fast communications on an

industrial scale.

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

and significantly improved performance and reliability.

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.

____________________

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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 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 large areas.

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 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

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Adding the hardware required for 5G networks can significantly increase operating expenses.

Building 5G networks is expensive.

According to THALES, total global spending on 5G is set to reach $620 billion by 2025.

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.

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.

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.

or more power than a 4G base station.

Energy costs increase at higher frequencies due to a need for more antennas and a denser layer of

Edge computing facilities needed to support local processing and new IoT services will also add to overall network power

Our ultra-narrowband (UNB) 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.

UNB allows for long-range coverage, making it

an optimal low-power wide-area network solution 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 bands.

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.

____________________

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)

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 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

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UNB (in development)

____________________

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)

As shown by the above table, our internal testing

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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.

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 networks.

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.

24, 2021, the Federal Communications Commission announced the winning bids in Auction 107, the auction of 3.7 GHz service licenses.

winning bids for all 5,684 available licenses totaled over $81 billion and were concentrated among just 21 bidders.

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 F-24.

____________________

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

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.

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.

For example, 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.

Like 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 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.

By contrast, 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 subcarriers.

Our internal testing suggests that to achieve

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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 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.

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.

Ultra-narrowband Power Line Communication (“PLC”) Technology

Our patented PLC is 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.

This makes PLC the most cost-effective, scalable interconnectivity approach for

the backbone communication infrastructure required for 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.

The power line network was not originally designed

to function as a communication channel.

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.

This is why 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.

We have successfully developed ultra-narrowband

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

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 like 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.

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

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.

____________________

“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)).

Natural Integrated Programming Language (“NIPL”)

We have developed a patented “user interface

machine auto generation platform” (“UIMAGP”) to replace manual software design.

This platform is used to build IoT user

The natural integrated programming language we have developed is like 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

universal smart instrumentations platform (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.

An embedded coding

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

Thus, the hardware-defining software

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}[16] 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.

generates the user interface within milliseconds.

An embedded coding hardware engineer can design sensor module hardware and provide the

user interface specification code achieving the hardware-defining software.

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][16] a feat that to our knowledge, current manual software designs have not been able not achieve.

Universal Smart Instrumentation Hardware and Software Platform (USIP)

USIP is an advanced hardware and software integrated

instrumentation platform with a large-scale modular design approach.

USIP integrates many technologies, including cloud technology, wired

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

USIP integrates 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.

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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.

With USIP, 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 the processing power of a computer or a mobile device.

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

provided by different vendors cannot be interoperated and interchanged.

For example, we simply cannot use a traditional blood pressure

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.

We believe our USIP will revolutionize the field

of instrumentation, measurement, control, and automation.

We believe our USIP

will revolutionize the field of instrumentation, measurement, control, and automation.

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.

These features embody the advantages of USIP, which

are lacking in stand-alone instrument systems.

When compared with traditional instrument systems, USIP’s biggest advantage is cost

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.

____________________

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

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.

We have been dedicated to solving instrumentation

interoperability for over a decade.

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.

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

USIP utilizes a computer or a mobile device as

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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.

The portable version of USIP, is a universal device

called Ubiquitor, is illustrated below.

When a blood pressure sensor is plugged into the Ubiquitor, the user interface specification code

saved on the blood pressure sensor is sent to the Ubiquitor, 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.

Similarly, if we remove the blood pressure sensor

and connect our Ubiquitor to both a pH sensor and a CO2 sensor, the Ubiquitor 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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A computer or smartphone can also be used for

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.

As illustrated below, when a light sensor is also

plugged into our Ubiquitor using a three-way splitter, the Ubiquitor 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.

and a light sensor are connected to the Ubiquitor , 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 Ubiquitor 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

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

A computer or smartphone can also be used

for the display.

The Ubiquitor is a handheld, fully modular system

with a universal sensor node and gateway system that uses a smartphone as the output display module that displays the readings of various

probe modules.

We implemented our Ubiquitor in the configuration pictured in Figure 9.

This configuration demonstrates that the Ubiquitor

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

Our Ubiquitor 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.

Our USIP 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.

One Ubiquitor and corresponding sensors

or actuators can replace them 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.

Ubiquitor, Universal Smart

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.

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.

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.

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.

controls, can be replaced by a single Ubiquitor and accessories.

A single Ubiquitor can replace

all these household control devices.

Comparison between (a) a traditional

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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 $17.4

billion at the end of 2028.

[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.

The major 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.

____________________

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

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 finalized our ultra-narrowband technology research with data transfer speeds of 64-256 Mbps in the fourth quarter of 2022.

to build testing equipment.

This requires us to design and build a digital device that can perform the digital speed testing.

designed the devices and we should receive the finished circuit boards in the next few weeks and hope that such device will be completed

by the end of 2023.

Markets and Markets 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 applied.

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.

Software market size.

Today, some of the biggest companies within the

software industry, including Microsoft, IBM, Oracle, SAP, and Salesforce, have still not 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 Markets

and Markets, the agriculture IoT market is expected to grow from $11.4 billion in 2021 to $18.1 billion by 2026, at a CAGR of 9.8%.

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.

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 Qualcomm.

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.

____________________

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)

Products we are currently selling

We are a wholesaler of various digital, analog,

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both via our sales staff and the Internet.

Universal Smart Device (Ubiquitor)

Ubiquitor - Universal Smart Device

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.

IoT technology is our universal smart device, the Ubiquitor.

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

connected sensors is illustrated above.

The Ubiquitor was first showcased at the Consumer Technology Association’s CES 2024 trade

show, which attracted significant interest from potential customers.

Smart Home Installation

Through AVX Design and Integration, Inc.

an IoT installation and management company based in southern California, and a subsidiary of the Company, we offer residential customers

an entire smart home product line.

We have finished designing smart devices for lighting control, air conditioner control, sprinkler control,

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.

Our Ubiquitor device will be used to offer residential

customers an entire smart home product line.

We have finished designing smart devices for lighting control, air conditioner control, sprinkler

control, 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.

The Ubiquitor will be central to our smart installation

The Ubiquitor’s connectivity capabilities will allow our systems to be expanded and customized in the future.

Notwithstanding the foregoing, should we be unable

to successfully integrate the Ubiquitor into our smart 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.

that can be applied to various other industrial and commercial purposes.

In addition to the development of the universal

smart IoT platform, Focus Universal has showcased the production model of Ubiqutors and scientific sensors developed by their team.

sensors include quantum photosynthetic active radiation sensors, TDS sensors, pH sensors, total dissolved oxygen sensors, pressure sensors,

ORP sensors, temperature sensors, humidity sensors, carbon dioxide sensors, water level sensors, chlorine sensors, and turbidity sensors.

These sensors are designed for use in agriculture, aquaculture, and the beverage industry.

They are ready for marketing and have garnered

significant interest at CES 2025 in Las Vegas.

These sensors can be sold individually with Ubiquitors or bundled together to form an integrated

IoT solution.

SEC Financial Reporting Software

Our subsidiary Lusher Inc.

is developing and designing

a software to streamline SEC financial reporting for financial reporting and tax firms.

Currently, we have completed the SEC financial

reporting software in a Microsoft Word format.

Our team is focused on streamlining the entire SEC financial reporting process for SEC

attorneys, PCAOB accounting firms, and other financial reporting professionals.

Our goal is that with a single click, our software automatically

retrieves financial data from external accounting systems and generates consolidated financial statements and SEC reports in WORD, PDF,

HTML, and XBRL formats—all within just a few minutes.

Our developers are trying to completely eliminate human involvement when it

comes to manually updating the numbers.

This automation is designed to create an error-free, seamless process.

Focus Universal expect

to showcase the software to public in 2024.

Strategy and Marketing Plan

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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 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,

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

Commercialize our financial reporting software under a SaaS model;

File patents to protect our PLC technology.

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

In addition to providing potential adjacent technologies and other useful resources, these businesses also possess important distribution

channels which would allow for distribution of our main products including the Ubiquitor.

The company would also consider targets which

would solely allow for distribution channels for our platforms or adjacent products.

Original Equipment Manufacturer (“OEM”)

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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.

Through our engineering consulting services strategy, we intend to become

our customers’ engineering partner at all stages of their system 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 products.

Technology Licensing

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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

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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

and its sensor nodes, and to then ship such parts to our Ontario, California facility where we assemble the Ubiquitor devices and sensor

Afterwards, we intend to distribute our Ubiquitor devices to distributors and retailers directly and ship directly to traditional

industrial instrument manufacturers.

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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.

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, we intend to implement a direct sales method via Amazon.com and other online retailers.

Raw Materials

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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.

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

Across the world, everyday internet connected

devices are getting incorporated in tandem, 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.

Collectively, this ecosystem represents the next frontier in the digital revolution.

Unlike the simple automation

of machinery, IoT is mobile and virtual, and features continuous Internet connectivity.

IoT can help companies increase productivity,

cut costs, offer new products and services, and deploy new business models.

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.

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

Herein lies both the key advantage of the

platforms of the Company and the opportunities and strengths.

Our combined platforms are able to eliminate redundant work and production

costs in the early stage development in the IoT sector, whereby project developers do not need to begin from scratch each time they develop

a new IoT product, eliminating a significant part of their workload.

Sensor Node Industry

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which our smart home product line would include.

Air Filtration Systems and Meter Products

Air Filtration Systems and Meter Products Industry

The air filtration system and meter products industry

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a CAGR of 7.2% because of the industrial need to control air quality across a range of industries.

[21] 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.

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.

We are not trying to compete with traditional

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believe the resulting product may compete in a much wider product category due to its many potential applications.

Our Corporate History

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,

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.

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.

____________________

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

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.

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.

The property includes 58 parking spaces.

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

(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 can enhance 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 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 January 26, 2022, the Company announced approval

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

Restrictions and Contractual Obligations and Concessions

Patent, Trademark, License and Franchise Restrictions

and Contractual Obligations and Concessions

On November 4, 2016, we filed a U.S.

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9924295 entitled “Universal Smart Device,” which covers a patent application regarding the

Company’s Universal Smart Device.

Company’s Ubiquitor.

The patent was granted on March 20, 2018.

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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

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.

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

a spectral response that approximates an ideal photo response to measure optical measurement.

The patent was issued on February 26, 2019.

On November 29, 2019, the Company filed an international

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.

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.

utility patent application through the patent cooperation treaty as application PCT/US2019/63880, titled “System and Method of Power

Line Communication.” 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.

The Company has since obtained two patents based on this patent application—U.S.

11546017 and 11984942, issued January 3, 2023 and May 14, 2024, respectively.

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

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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

firm of Knobbe Martens, Olson & Bear, LLP based in Orange County, CA 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 in addition to filing

new provisional patents.

In 2021, we filed 14 patents.

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

and filed 3 patents in 2023.

In addition, the Company’s patent number

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

In 2024, we retained the law firm of Dority &

Manning, P.A.

to serve as outside intellectual property counsel for the Company.

With the help of Dority & Manning, we are maintaining

existing patent rights and have improved the sustainability of our patent portfolio by filing omnibus continuation-in-part applications

to maintain intellectual property rights where possible.

We filed 3 patents in 2023, and 4 patents

in 2024, which would all be classified as omni-bus patents encompassing more patents consolidating the patent portfolio into a

more manageable size in order to reduce budget.

Research and Development Activities

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and for the year ended December 31, 2023, we spent a total of $1,324,438.

Focus Universal (Shenzhen) Technology Co.

was founded as a mainland China office for manufacturing procurement expertise and non-confidential support research and development activities.

This wholly owned subsidiary is registered to be engaged in IoT research and development, IoT sales and service, and other related activities.

A significant portion of our research and development activities are conducted in China by Focus Shenzhen.

Compliance with Environmental Laws

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As of the date of this report we have a total

of 46 employees, with 43 full-time employees and 3 part-time employees.

of 46 employees, with 46 full-time employees.

The Company’s Chief Executive Officer and Secretary is Dr.

Desheng Wang, and our Chief Financial Officer is Irving Kau.

We have a head of marketing whose efforts are focused on the controlled agricultural

market segment.

We have eleven full-time senior electrical and computer engineers working on the research and development of our products.

We have one full-time sales employee and three full-time employees are working on administrative tasks.

We also have a full-time accounting

manager/controller.

Four employees perform audio/visual home installations for our subsidiary AVX, with one employee serving as the supervisor

and operational head.

Legal Proceedings

On or about April 13, 2020, Ian Patterson, the

Chief Operations Officer of AVX resigned from his position.

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.

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.

In response to the Complaint, defendants

filed a motion to compel arbitration asking the court to order Plaintiff to submit his claims to binding individual arbitration based

on an arbitration agreement signed by Plaintiff at the outset of his employment.

The motion was unfortunately denied, and in response,

defendants filed an appeal.

The appeal was also denied.

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 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.

Desheng Wang, and our Chief

Financial Officer is Irving Kau.

We have 34 full-time electrical and computer engineers working on the research and development of our

We have six full-time marketing employees and three full-time employees are working on administrative tasks.

We also have a

full-time accounting manager/controller.

We are looking to onboard a Chief Operations Officer in the near future.

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