Note 1 – Organization and Operations

Focus Universal Inc. (“Focus”) was incorporated under the laws of the State of Nevada on December 4, 2012 (“Inception”). Headquartered in the Los Angeles, California metropolitan area, Focus derives its revenue primarily from selling sensor devices and serving as a wholesaler of various air filters and digital, analog, and quantum light meter systems. Focus plans to shift the foundation of its future revenue base by becoming a universal smart instrument developer and manufacturer specializing in the development and commercialization of novel and proprietary universal smart technologies and instruments in the internet of things marketplace. Focus’s universal smart technology is an off-the-shelf technology utilizing an innovative hardware integrated platform that provides a unique and universal combined wired and wireless solution for embedded design, industrial control, functionality test, and parameter measurement instruments and functions. The Focus technology called the “Ubiquitor” utilizes a smartphone, computer, or a mobile device as an interface platform and display that communicates and works in tandem with a group of external sensors or probes, or both. The external sensors and probes may be manufactured by different vendors, but the Ubiquitor functions in a manner that does not require the user to have extensive knowledge of the unique characteristics of the function of each of the sensors and probes. The Ubiquitor consists of a reusable foundation component which includes a wireless gateway (which allows the instrument to connect to the smartphone via Bluetooth and WiFi technology), universal smart application software (“Application”) which is installed on the user’s smartphone or other mobile device and allows monitoring of the sensor readouts on the smartphone screen. The Ubiquitor also connects to a variety of individual scientific sensors that collect data, from moisture, light, airflow, voltage, and a wide variety of applications. The data then sent through a wired or wireless connection, or a combination thereof to the smartphone or other mobile device and the data is organized and displayed on the smartphone screen. The smartphone or other mobile device, foundation, and sensor readouts together perform the functions of many traditional scientific and engineering instruments and are intended to replace the traditional, wired stand-alone instruments at a fraction of their cost. Additionally, Focus is performing extensive research and development on an electric power line communication technology and has filed three patents with the U.S. Patent and Trademark Office (“USPTO”) related to the Ubiquitor device and the design of a quantum PAR photo sensor with the notion that power line communications technology can further enhance smart internet of things installations powered by the Ubiquitor.

Perfecular Inc. (“Perfecular”) was founded in September 2009 and 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 Design & Integration, Inc. (“AVX”) was incorporated on June 16, 2000 in the state of California. AVX is an internet of things (“IoT”) installation and management company specializing in high performance and easy to use Audio/Video, Home Theater, Lighting Control, Automation and Integration. Services provided by AVX include full integration of houses, apartment, commercial complex, office spaces with audio, visual and control systems to fully integrate devices in the low voltage field. AVX’s services also include partial equipment upgrade and installation. Focus hopes that the Ubiquitor device can be integrated into AVX installations to reduce the cost as well as enhance the IoT installations.