FOCUS UNIVERSAL INC.

The Company has been considering multiple business strategies including, but not limited to, further developing and commercializing the Ubiquitor device, acquiring a commercial office building, and implementing a digital asset treasury strategy. Among these strategies, the Company has been observing and reviewing the evolution of the digital asset markets and meeting with a range of various investors and advisors over the past six months.

We believe that digital asset treasury strategies that support operating businesses create value for stockholders. Our Board has authorized our management to use its discretion to consider the adoption of one or more digital asset treasury strategies in order to strengthen the Company’s balance sheet and to advance a potential tokenization strategy of the Company’s own real-world assets to drive business growth. In connection with this digital asset treasury strategy, we intend to seek to raise capital through the Future Offerings in order to fund the Company’s purchases of digital assets, including cryptocurrency, and to further our digital asset treasury strategy while keeping adequate working capital for the Company’s existing operating business segments. In addition, our management may decide that the Future Offerings might not be connected to the digital asset treasury strategy but to simply raise capital for the furtherance of our existing business plan. We expect the Future Offerings to result in an issuance of our securities that exceeds 20% of the currently issued and outstanding securities.