Focus Universal Inc. Announces Board Approval for Spin-Off of Lusher Inc.

ONTARIO,  CALIFORNIA and LOS ANGELES, CALIFORNIA / ACCESSWIRE / May 10, 2024 / Focus Universal Inc. (NASDAQ:FCUV) (“Focus” or the “Company”), a provider of patented hardware and software design technologies for Internet of Things (IoT) and 5G, today announced the Board of Directors has approved the spin-off Lusher Inc (“Lusher).  The spinoff can potentially increase shareholder value by allowing management of Lusher Inc. to better prioritize the development of its SEC Financial Reporting Automation Software while also allowing the management of Focus Universal Inc. to better prioritize its core business.

Chief Executive Officer Desheng Wang stated, “We are excited that our management team received authorization from our Board of Directors to start the spin-off process for Lusher Inc. Lusher Inc. which will focus on Automation Software development and commercialization, which enables Focus Universal to concentrate more on the core of universal smart IoT. This will also allow the general market to access Lusher Inc. separately from Focus Universal, which may lead to an increase in shareholder value and unlock the intrinsic value of Lusher Inc. We believe reducing the SEC financial reporting preparation time from weeks to minutes is a compelling example to demonstrate this potential.”

Focus Universal plans to distribute Lusher’s stock to all of Focus Universal’s shareholders in the form of a dividend distribution. The shares of Lusher will be registered with the Securities and Exchange Commission via a Form 10-12b Registration Statement.

We believe that Lusher’s Automation Software is the first application of this type of automated software technology within the financial reporting sector. The Company believes there is market opportunity for the software because humans are slower than in data entry while also more prone to error. Aside from SEC financial data reporting, there is also significant potential for the use of underlying technology worldwide across multiple sectors for an SEC reporting company such as accounting, logistics, insurance processing, and possibly tax preparation solutions which would eliminate the need for labor-intensive, manual data-entry.

Management estimates that the SEC financial Reporting Software Market size was valued at US $14 Billion in 2022 and is projected to reach US $36.5 Billion by 2030, growing at a CAGR of 12.81% from 2024 to 2030. The complexity and volume of financial data, the limiting capabilities of current spreadsheet solutions, the rising cost of compliance, and the expanding demand for such software are the main reasons propelling the growth of the financial reporting software sector. Superior financial reporting software has become an urgent necessity in order to lower accounting costs and boost efficiency.

About Focus Universal:

Focus Universal Inc. is a provider of patented hardware and software design technologies for Internet of Things (IoT) and 5G. The Company has developed five patented technology platforms with 28 patents and patents pending in various phases and 8 trademarks pending in various phases to solve the major problems facing hardware and software design and production. These technologies have the potential to reduce costs, product development timelines and energy usage while increasing range, speed, efficiency, and security. Focus Universal Inc. currently trades on the Nasdaq Global Markets.

About Lusher Inc.:

Distinguished from current manual approach to drafting quarterly and annual reports, the Company’s subsidiary, Lusher Inc., developed automated solutions that aim to minimize the time spent by SEC reporting companies and their financial professionals on data entry tasks while also reducing instances of human error. With the software, users may upload financial statements, and the software would update the financial reports and prepare a file ready to send to a filing agent or directly with the SEC’s Electronic Data Gathering, Analysis, and Retrieval system more commonly known by the acronym “EDGAR.”

Forward-Looking Statements:

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the preliminary prospectus filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof and Focus Universal specifically disclaims any obligation to update any forward-looking statement, whether because of new information, future events or otherwise.

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