Focus Universal Inc. (NASDAQ:FCUV), a company specializing in industrial instruments for measurement, display, and control, has officially increased its authorized common stock. The amendment to the Articles of Incorporation, which was approved by shareholders at the Annual Meeting on November 29, 2024, raises the number of authorized shares from 75 million to 150 million. The micro-cap company, currently valued at approximately $17.6 million, has seen its stock price decline by over 84% year-to-date, according to InvestingPro data.
The change took effect on December 13, 2024, following the filing of the Amended and Restated Articles of Incorporation with the Secretary of State of Nevada. The move to expand the number of shares was disclosed in a Form 8-K filed with the Securities and Exchange Commission (SEC) on Wednesday.
The company's decision to increase its share count is a strategic step that could potentially be used for various corporate purposes. These may include, but are not limited to, raising capital through equity financing, providing stock for acquisitions, establishing strategic partnerships, or incentivizing employees through stock-based compensation.
InvestingPro analysis reveals that while the company maintains a strong liquidity position with a current ratio of 7.82 and holds more cash than debt, it is currently experiencing rapid cash burn. Subscribers to InvestingPro can access 10 additional key insights about Focus Universal's financial health and market position.
The filing also included the company's financial statements and exhibits, with the Amended and Restated Articles of Incorporation attached as Exhibit 3.1. This document is now a part of the official company records and can be referenced for the detailed legal language of the amendments.
Focus Universal's headquarters are located in Ontario, California, and the company operates under the industrial classification of Industrial Instruments for Measurement, Display, and Control. This recent corporate action could prepare Focus Universal for future growth initiatives or other corporate activities.
The company has demonstrated strong revenue growth of nearly 248% over the last twelve months, though InvestingPro's Fair Value analysis suggests the stock may be currently undervalued despite its challenging market performance.
In other recent news, Focus Universal Inc. has seen significant developments. The company's shareholders approved an increase in authorized common stock from 75 million to 150 million during their annual meeting. This decision could potentially facilitate various corporate purposes, such as financing operations, expanding business opportunities, or strategic acquisitions.
Weinberg & Company, P.A. was also ratified as the independent registered public accounting firm for fiscal years ending December 31, 2023, and December 31, 2024. This move underlines Focus Universal's commitment to financial transparency and oversight.
Moreover, Focus Universal successfully regained compliance with Nasdaq's minimum market value requirement, which is a positive sign of the company's ability to maintain the financial standards required by the Nasdaq exchange.
The company also completed a private placement of equity, raising $1.29 million through the sale of 4.3 million shares. An additional $1.2 million was secured through a registered direct offering to a single institutional investor, selling 3,750,000 shares of common stock at $0.32 per share. These funds are expected to support the development and launch of a new software product platform by Lusher Inc., a subsidiary of Focus Universal.
In a significant property transaction, Focus Universal entered a sale-leaseback agreement for its Ontario, California warehouse, selling the property to Silver Music LLC for $7,460,000. Furthermore, the company decided to spin off Lusher Inc., which is developing AI-driven automation software for SEC financial reporting.
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