ONTARIO, CA - Focus Universal Inc. (NASDAQ:FCUV), a technology firm specializing in Internet of Things (IoT) and 5G hardware and software, has announced its plan to spin off Lusher Inc. The newly formed entity will concentrate on developing AI-driven automation software for SEC financial reporting, to pursue an initial public offering (IPO) and a potential Nasdaq listing.
The decision, authorized by Focus Universal's Board of Directors, will enable the company to dedicate more resources to its core smart IoT technology. The spin-off is expected to benefit shareholders by increasing shareholder value and unlocking Lusher Inc.'s intrinsic value. According to CEO Desheng Wang, the automation software could significantly reduce the time required for SEC financial reporting preparation from weeks to mere minutes.
Focus Universal will distribute the stocks of Lusher Inc. as a tax-free dividend to its shareholders, who will be able to trade the shares once Lusher is listed on Nasdaq. The company's AI-driven automation software claims to be the first of its kind in the financial reporting sector and is poised to transform traditional manual data-entry processes across various industries, including accounting and insurance.
The SEC Financial Reporting Software Market, valued at $14 billion in 2022, is expected to grow to $36.5 billion by 2030, with a CAGR of 12.81% from 2024 to 2030. The growth is attributed to the increasing complexity of financial data, limitations of current spreadsheet solutions, rising compliance costs, and growing demand for advanced financial reporting software.
Focus Universal, which is currently traded on the Nasdaq Global Markets, holds several patents and pending patents in IoT and 5G technologies. These innovations aim to reduce costs and development timelines while improving efficiency, range, speed, and security.
This news is based on a press release statement from Focus Universal Inc.
InvestingPro Insights
As Focus Universal Inc. (NASDAQ:FCUV) embarks on its strategic move to spin off Lusher Inc., investors are closely monitoring the company's financial health and market performance. With a market capitalization of $22.11 million, Focus Universal is a relatively small player in the technology sector. The company's aggressive share buyback strategy, as noted in an InvestingPro Tip, suggests a confident management outlook on the company's value. However, this needs to be weighed against the company's quick cash burn and weak gross profit margins, which stand at just 8.91% for the last twelve months as of Q1 2023.
Another InvestingPro Tip indicates that Focus Universal's stock has experienced significant price volatility and has generally moved in the opposite direction of the market, a trend that could be concerning for investors looking for stability. Moreover, the stock has seen a substantial decline over the last year, with a 1-year price total return of -82.74%. These metrics underline the importance of thorough due diligence, especially in light of the company's upcoming spin-off and potential IPO for Lusher Inc.
Investors considering Focus Universal may also take note of the company's revenue growth, which has surged by 197.55% over the last twelve months as of Q1 2023. This impressive growth could be indicative of the company's potential in its core IoT and 5G technology markets. For those interested in a deeper analysis, InvestingPro offers additional insights and metrics, with 14 more InvestingPro Tips available for Focus Universal. To access these tips and enhance your investment strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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