FOCUS UNIVERSAL INC.
For the period ended Sep 30, 2026. Filed Nov 10, 2026.
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Sep 30, 2026 · Filed Nov 10, 2026
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Item 1. Legal Proceedings
On July 16, 2025, a former engineer filed a claim against Focus Shenzhen, a wholly owned subsidiary of the Company, alleging wrongful termination and other violations of the China Labor Code. 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) related to the judgment, which remained unpaid as of September 30, 2026. Approximately RMB 165,802 (approximately $23,880) in Focus Shenzhen’s bank account remained frozen. See Note 12—Contingencies to the condensed consolidated financial statements.
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