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Focus Universal Inc. Announces Board Approval for Spin-Off of Lusher Inc.

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Focus Universal Inc. announced the board approval for the spin-off of Lusher Inc., a move aimed at developing SEC Financial Reporting AI-Driven Automation Software for a potential IPO and Nasdaq listing. The spin-off will allow Focus Universal to focus on IoT technologies while Lusher Inc. focuses on AI software development. Shareholders will receive Lusher Inc. stock as a tax-free dividend, enhancing shareholder value. The market size for SEC financial reporting software is projected to grow significantly, highlighting the potential for automation technology in various sectors.

Focus Universal Inc. ha annunciato l'approvazione del consiglio per lo spin-off di Lusher Inc., una mossa finalizzata allo sviluppo di software di automazione per la rendicontazione finanziaria della SEC, guidato dall'AI, in vista di un possibile IPO e quotazione al Nasdaq. Lo spin-off permetterà a Focus Universal di concentrarsi sulle tecnologie IoT mentre Lusher Inc. si focalizzerà sullo sviluppo di software AI. Gli azionisti riceveranno azioni di Lusher Inc. come dividendo esente da tasse, incrementando così il valore per gli azionisti. Si prevede che il mercato del software di rendicontazione finanziaria della SEC crescerà significativamente, evidenziando il potenziale delle tecnologie di automazione in vari settori.
Focus Universal Inc. anunció la aprobación del consejo para la escisión de Lusher Inc., una movida dirigida al desarrollo de Software de Automatización de Reportes Financieros de la SEC impulsado por IA para una posible salida a bolsa y cotización en Nasdaq. La escisión permitirá a Focus Universal concentrarse en tecnologías IoT mientras que Lusher Inc. se centrará en el desarrollo de software de IA. Los accionistas recibirán acciones de Lusher Inc. como un dividendo libre de impuestos, aumentando así el valor para los accionistas. Se proyecta un crecimiento significativo en el tamaño del mercado para el software de reportes financieros de la SEC, destacando el potencial de la tecnología de automatización en diversos sectores.
Focus Universal Inc.는 Lusher Inc.의 분사에 대한 이사회 승인을 발표했습니다. 이 움직임은 AI 주도의 SEC 재무보고 자동화 소프트웨어 개발을 통해 잠재적인 IPO 및 나스닥 상장을 목표로 하고 있습니다. 분사는 Focus Universal이 IoT 기술에 집중할 수 있게 하고, Lusher Inc.은 AI 소프트웨어 개발에 집중할 것입니다. 주주들은 세금이 면제된 배당으로 Lusher Inc.의 주식을 받게 되며, 이는 주주 가치를 증대시킬 것입니다. SEC 재무보고 소프트웨어 시장 규모는 상당히 성장할 것으로 예상되며, 다양한 부문에서 자동화 기술의 잠재력을 강조합니다.
Focus Universal Inc. a annoncé l'approbation du conseil pour la scission de Lusher Inc., une démarche visant au développement d'un logiciel d'automatisation de la publication financière de la SEC piloté par l'IA, en prévision d'une éventuelle introduction en bourse et cotation au Nasdaq. Cette scission permettra à Focus Universal de se concentrer sur les technologies IoT tandis que Lusher Inc. se concentrera sur le développement de logiciels IA. Les actionnaires recevront des actions de Lusher Inc. sous forme de dividendes exempts d'impôts, améliorant ainsi la valeur pour les actionnaires. La taille du marché des logiciels de rapport financier de la SEC devrait croître de manière significative, mettant en évidence le potentiel de la technologie de l'automatisation dans divers secteurs.
Focus Universal Inc. gab die Vorstandszustimmung für die Abspaltung von Lusher Inc. bekannt, ein Schritt, der auf die Entwicklung von KI-gesteuerter Automatisierungssoftware für SEC-Finanzberichterstattung abzielt, im Hinblick auf einen möglichen Börsengang und eine Notierung an der Nasdaq. Die Abspaltung wird es Focus Universal ermöglichen, sich auf IoT-Technologien zu konzentrieren, während Lusher Inc. sich auf die Entwicklung von KI-Software konzentriert. Die Aktionäre werden Aktien von Lusher Inc. als steuerfreie Dividende erhalten, was den Aktionärswert erhöht. Die Marktgröße für SEC-Finanzberichtssoftware wird voraussichtlich deutlich wachsen und das Potenzial für Automatisierungstechnologie in verschiedenen Sektoren hervorheben.
Positive
  • The spin-off of Lusher Inc. aims to develop SEC Financial Reporting AI-Driven Automation Software.
  • Focus Universal will concentrate on IoT technologies while Lusher Inc. focuses on AI software development.
  • Shareholders will receive Lusher Inc. stock as a tax-free dividend, potentially increasing shareholder value.
  • The market size for SEC financial reporting software is projected to grow substantially, indicating significant potential for automation technology across various sectors.
Negative
  • None.

Insights

Focus Universal's decision to spin off Lusher Inc. resonates with a seasoned strategy employed by conglomerates to enhance shareholder value. By distilling operations, the market can more accurately appraise the distinct entities, often resulting in the 'unlocking' of latent value. This is particularly pertinent considering Lusher Inc. intends to pioneer in the AI-driven financial reporting domain, a sector witnessing brisk expansion with a 12.81% CAGR forecasted through 2030.

The tax-free dividend distribution strategy offers a twofold benefit. Firstly, it avoids immediate tax liabilities for shareholders, a savvy financial maneuver. Secondly, it incentivizes investor loyalty, securing a stake in the nascent entity without additional financial outlay. These moves are calibrated to bolster investor sentiment and potentially enhance stock liquidity upon the Nasdaq listing of Lusher Inc.

Focus Universal's strategic pivot toward their core IoT operations while seeding Lusher Inc. with their AI-driven technology signals an astute market play. The technological leap from manual financial reporting to AI-driven automation represents not just an iterative enhancement but a disruptive shift. The automation software propounded by Lusher Inc. could redefine the financial reporting landscape by drastically slashing preparation time and error margins.

Given the increasing complexity of financial data and regulatory demands, this software caters to a pressing market need. However, investors should heed the intrinsic risks of tech adoption cycles and the competitive pressures from incumbents. The prospective listing on Nasdaq will subject Lusher Inc. to market scrutiny, which will test the viability of this tool across the intended multiple sectors.

The potential market size for SEC financial reporting software, projected to reach $36.5 Billion by 2030, offers a compelling narrative for Lusher's growth trajectory. However, one should consider market saturation and the adaptability of AI-driven solutions across diverse regulatory environments. It's important to gauge the pace of adoption and the potential barriers erected by entrenched manual-reporting preferences or regulatory inertia.

Investors should be mindful of this sector's nascency and the need for ongoing innovation to maintain a competitive edge. The adoption of AI-driven platforms hinges on not just technological prowess but also on the trust and compliance with stringent regulatory frameworks across global markets.

ONTARIO, CA and LOS ANGELES, CA / ACCESSWIRE / April 26, 2024 / Focus Universal Inc. (NASDAQ:FCUV) ("Focus" or the "Company"), a provider of patented hardware and software design technologies for Internet of Things (IoT) and 5G, today announced the Board of Directors has approved the spin-off Lusher Inc. to develop the SEC Financial Reporting AI-Driven Automation Software for a future initial public offering and a potential Nasdaq listing.

Chief Executive Officer Desheng Wang stated, "We are excited that our management team received authorization from our Board of Directors to start the spin-off process for Lusher Inc. Lusher Inc. which will focus on AI-Driven Automation Software development and commercialization, which enables Focus Universal to concentrate more on the core of universal smart IoT. This will also allow the general market to access Lusher Inc. separately from Focus Universal, which may lead to an increase in shareholder value and unlock the intrinsic value of Lusher Inc. We believe reducing the SEC financial reporting preparation time from weeks to minutes is a compelling example to demonstrate this potential."

Focus Universal plans to distribute Lusher Inc's stock to all Focus Universal's shareholders in the form of a tax-free dividend distribution to shareholders, which will be free of charge, and free to trade when Lusher Inc. is listed upon Nasdaq. Distinguished from current providers' manual approach solutions, Focus Universal Inc. developed automated AI-driven solutions to disentangle the problem. When utilized, users may upload financial statements, and the software would update the SEC financial report and reduce preparation time significantly.

Focus Universal's AI-Driven Automation Software is the first application of this software technology within the financial reporting sector. The company also believes there exists significant potential for the use of AI-driven automated technology worldwide across multiple sectors such as accounting, logistics, insurance processing, and tax preparation solutions which would eliminate the need for labor-intensive, manual data-entry. Humans, as a whole, are slow in data entry and far less accurate than automation software. Investors who are interested in investing in Lusher, please contact ir@focusuniversal.com, as investment deck is available on request.

SEC financial Reporting Software Market size was valued at US $14 Billion in 2022 and is projected to reach US $36.5 Billion by 2030, growing at a CAGR of 12.81 % from 2024 to 2030. The complexity and volume of financial data, the limiting capabilities of current spreadsheet solutions, the rising cost of compliance, and the expanding demand for such software are the main reasons propelling the growth of the financial reporting software sector. Superior financial reporting software has become an urgent necessity in order to lower accounting costs and boost efficiency.

About Focus Universal:
Focus Universal Inc. is a provider of patented hardware and software design technologies for Internet of Things (IoT) and 5G. The company has developed five disruptive patented technology platforms with 28 patents and patents pending in various phases and 8 trademarks pending in various phases to solve the major problems facing hardware and software design and production within the industry today. These technologies combined to have the potential to reduce costs, product development timelines and energy usage while increasing range, speed, efficiency, and security. Focus currently trades on the Nasdaq Global Markets.

Forward-Looking Statements:
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the preliminary prospectus filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof and Focus Universal specifically disclaims any obligation to update any forward-looking statement, whether because of new information, future events or otherwise.

For investor and media inquiries, please contact:
Skyline Corporate Communications Group, LLC
Lisa Gray
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
lisa@skylineccg.com

For company inquiries, please contact:
Investor Relations
626-272-3883
ir@focusuniversal.com

SOURCE: Focus Universal Inc.



View the original press release on accesswire.com

FAQ

What did Focus Universal Inc. announce regarding Lusher Inc.?

Focus Universal Inc. announced the board approval for the spin-off of Lusher Inc. to develop SEC Financial Reporting AI-Driven Automation Software.

What will Focus Universal focus on after the spin-off of Lusher Inc.?

Focus Universal will concentrate on IoT technologies while Lusher Inc. focuses on AI software development.

How will shareholders benefit from the spin-off of Lusher Inc.?

Shareholders will receive Lusher Inc. stock as a tax-free dividend, potentially increasing shareholder value.

What is the projected growth of the market size for SEC financial reporting software?

The market size for SEC financial reporting software is projected to reach US $36.5 Billion by 2030, growing at a CAGR of 12.81% from 2024 to 2030.

Focus Universal Inc.

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