Focus Universal Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Contingencies

Contingencies	9 Months Ended
Sep. 30, 2026
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 12 – Contingencies In the normal course of business or otherwise, the Company may become involved in legal proceedings. The Company will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. The accrual for a litigation loss contingency might include, for example, estimates of potential damages, outside legal fees and other directly related costs expected to be incurred. As described in Part II, Item 1 of this report, a former engineer filed a claim against Focus Shenzhen in July 2025 alleging wrongful termination. Approximately $24,412 (RMB 165,802) in Focus Shenzhen’s bank account has been frozen pending resolution. On June 18, 2026, the appellate court issued its final judgment dismissing the appeal and affirming the original judgment. The Company accrued RMB 160,095.84 (approximately $23,880) for the salary shortfall, termination damages, unused annual leave, legal fees and the Company’s share of the preservation fee. These amounts remained unpaid.

Contingencies

9 Months Ended

Sep. 30, 2026

Commitments and Contingencies Disclosure [Abstract]

Note 12 – Contingencies

In the normal course of business or otherwise, the Company may become involved in legal proceedings. The Company will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. The accrual for a litigation loss contingency might include, for example, estimates of potential damages, outside legal fees and other directly related costs expected to be incurred. As described in Part II, Item 1 of this report, a former engineer filed a claim against Focus Shenzhen in July 2025 alleging wrongful termination. Approximately $24,412 (RMB 165,802) in Focus Shenzhen’s bank account has been frozen pending resolution. On June 18, 2026, the appellate court issued its final judgment dismissing the appeal and affirming the original judgment. The Company accrued RMB 160,095.84 (approximately $23,880) for the salary shortfall, termination damages, unused annual leave, legal fees and the Company’s share of the preservation fee. These amounts remained unpaid.