SCHEDULE: Energy Focus CEO Boosts Stake to 31.9%

Energy Focus, Inc.'s CEO, Chiao Chieh Huang, and an affiliated entity have increased their beneficial ownership to 31.9% of the company's common stock through recent private placements and prior purchases.

Summary

• Chiao Chieh Huang and Sander Electronic Co., Ltd. (controlled by Mr. Huang) collectively beneficially own 1,998,599 shares of Energy Focus, Inc. common stock.
• This represents 31.9% of the 6,268,433 shares outstanding as of the filing date.
• Mr. Huang personally holds 1,421,219 shares, acquired for a total purchase price of $3.2 million using personal funds.
• Sander Electronic Co., Ltd. holds 577,380 shares, acquired for a total purchase price of $1.0 million using affiliate funds.
• Recent private placements include 264,550 shares purchased by Mr. Huang on August 15, 2025, for $500,000 ($1.89 per share).
• Another 524,018 shares were purchased on November 26, 2025, by Mr. Huang and MAN-BO HOTEL CO. LTD (an affiliate) for $1,200,000 ($2.29 per share).
• The shares purchased by Mr. Huang were adjusted for a 1-for-7 reverse stock split, which was effective on June 15, 2023.

Sentiment

Score: 7

Explanation: The significant increase in beneficial ownership by the CEO and an affiliated entity, including recent private placements, indicates strong insider confidence and a positive outlook from management. This is generally viewed favorably by investors.

Positives

• Significant insider buying by the CEO and an affiliated entity demonstrates strong confidence in the company's future prospects.
• The CEO's increased stake aligns his financial interests more closely with those of other shareholders, potentially fostering better governance and performance.
• Recent private placements provided additional capital to the company, which can support operations or strategic initiatives.

Negatives

• No explicit negatives are detailed in this filing, which primarily focuses on beneficial ownership changes.

Risks

• The reporting persons intend to review their investment periodically and may consider increasing or decreasing their stake, which could introduce volatility to the stock price.
• Future investment decisions by the reporting persons are subject to prevailing market conditions, evaluations of the company's business and prospects, regulatory requirements, and other investment opportunities.

Future Outlook

The reporting persons intend to periodically review their investment in Energy Focus, Inc. and may consider various actions, including increasing or decreasing their stake, based on prevailing conditions, company prospects, regulatory requirements, and general stock market and economic conditions.

Management Comments

• Mr. Huang is the Chief Executive Officer and a member of the Board of Directors of the Issuer.
• The Reporting Persons intend to review from time to time his investment in the Issuer and, depending on such review, may consider from time to time various alternative courses of action.

Industry Context

This filing primarily details a significant change in beneficial ownership by an insider and an affiliated entity. The increased stake by the CEO could signal internal confidence in the company's position within its market, which involves the manufacture and sale of electronic products, but the filing does not provide broader industry trends or competitive analysis.

Related Party Transactions

• The private placements involved the company's Chief Executive Officer, Chiao Chieh Huang, and an affiliated entity, MAN-BO HOTEL CO. LTD.

Stakeholder Impact

• Shareholders: Increased insider ownership may signal confidence, potentially positively influencing investor sentiment and aligning management's interests with long-term shareholder value.
• Company: The private placements provided capital, which can be used to fund operations or strategic growth initiatives.

Next Steps

• Reporting Persons will continue to review their investment in Energy Focus, Inc.
• Reporting Persons may consider increasing or decreasing their investment in the future through open-market purchases, privately negotiated transactions, or other means.

Key Dates

Recommendation

The substantial increase in beneficial ownership by the CEO and an affiliated entity, reaching 31.9%, signals strong insider confidence and a positive long-term outlook. This insider buying, particularly through private placements, provides capital to the company and aligns management's interests with shareholders. While this is a positive indicator, a 'hold' recommendation is appropriate as a Schedule 13D primarily reports ownership changes and does not provide comprehensive operational or financial results that would warrant a 'buy' without further analysis of the company's fundamentals and market position. The potential for future changes in the reporting persons' investment strategy also introduces a degree of uncertainty.

Keywords

Energy Focus Inc, EFOI, Schedule 13D, Insider Ownership, CEO Stake, Private Placement, Common Stock, Beneficial Ownership, Chiao Chieh Huang, Sander Electronic Co Ltd