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Price Movements and Company Developments - Smart Digital Group Limited (NASDAQ:SDM) has seen a dramatic price drop of approximately 86.93%, falling to $1.77 from a year high of $29.4, with plans to create a diversified cryptocurrency asset pool focusing on major cryptocurrencies like Bitcoin and Ethereum [2] - Pop Culture Group Co., Ltd (CPOP) experienced a price decrease of 54.15%, moving down to $0.93, with increased trading volume suggesting growing investor interest or concern, despite no recent updates explaining the decline [3] - EUDA Health Holdings Limited (EUDAW) faced a 37.16% price fall to $0.08, with notably low trading volume indicating a lack of significant investor engagement and possible uncertainty [4] - Kuke Music Holding Limited (NYSE:KUKE) saw a 34.74% decrease in stock price to $0.77, despite acquiring a controlling interest in Naxos Music Group, with increased trading activity possibly linked to market sentiment [5] - Universal Safety Products, Inc. (NYSE American:UUU) experienced a 32.86% drop in stock price to $4.25, while declaring a one-time special cash dividend of $1.00 per share, with higher trading volume indicating a shift in investor sentiment [6] Market Dynamics and Investor Sentiment - The significant price movements among these companies appear to be influenced by a combination of market dynamics, investor sentiment, and possibly undisclosed internal developments [7]

Core Viewpoint - Universal Safety Products, Inc. has declared a one-time special cash dividend of $1.00 per share, marking a significant return of value to shareholders following the successful sale of assets to Feit Electric Company earlier this year [1][2]. Dividend Announcement - The record date for the special dividend is September 18, 2025, with the payment date set for September 25, 2025 [1]. - The special dividend represents more than 20% of the stock price, leading to the stock trading with "due bills" from the record date through the payment date [2]. Shareholder Information - Shareholders selling their stock during the Dividend Right Period (September 18, 2025, to September 25, 2025) will forfeit their right to the special dividend [3]. - Due bills will be settled between brokers, and the company has no obligation regarding the due bill amount or processing [4]. Company Background - Universal Safety Products, Inc. is a distributor of safety and security devices, with over 56 years of experience in developing innovative products [5].

PART I - FINANCIAL INFORMATION This section presents unaudited condensed consolidated financial statements and management's analysis for Universal Safety Products, Inc [ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents unaudited consolidated financial statements, covering balance sheets, operations, equity, cash flows, and accounting notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects decreased total assets and current liabilities, with increased shareholders' equity due to net income | Metric | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | **Assets** | | | | Total Current Assets | $7,580,226 | $9,816,279 | | Total Assets | $7,580,226 | $9,816,279 | | **Liabilities & Equity** | | | | Total Current Liabilities | $606,194 | $4,652,568 | | Total Shareholders' Equity | $6,974,032 | $5,163,711 | | Total Liabilities & Shareholders' Equity | $7,580,226 | $9,816,279 | - Cash increased from **$348,074** to **$482,166**, and cash – investment increased from **$0** to **$3,338,228**[10](index=10&type=chunk) - Accounts receivable (trade, net) increased from **$580,574** to **$1,836,427**, while amount due from factor decreased significantly from **$3,666,790** to **$831,216**[10](index=10&type=chunk) - Inventories – finished goods decreased from **$3,024,114** to **$1,012,259**, and Assets – Held for Sale became **$0** from **$1,681,937**[10](index=10&type=chunk) - Line of credit - factor decreased from **$2,100,458** to **$0**[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported **$1,810,321** net income for Q1 2025, reversing a prior year net loss, primarily from an asset sale gain | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net sales | $3,824,247 | $4,598,516 | | Cost of goods sold | $3,130,112 | $3,510,812 | | GROSS PROFIT | $694,135 | $1,087,704 | | Selling, general and administrative expense | $1,113,303 | $1,397,421 | | Engineering and product development expense | $112,007 | $87,601 | | Operating loss | $(531,175) | $(397,318) | | Gain on sale of assets | $2,820,668 | — | | Interest income (expense) | $3,828 | $(44,888) | | Net income (loss) before taxes | $2,293,321 | $(442,206) | | Provision for income taxes | $483,000 | — | | NET INCOME (LOSS) | $1,810,321 | $(442,206) | | Basic and diluted EPS | $0.78 | $(0.19) | - Net sales decreased by **16.8%** YoY, from **$4,598,516** to **$3,824,247**[12](index=12&type=chunk) - Gross profit decreased from **$1,087,704** to **$694,135**, and gross profit margin was **18.2%** in 2025 compared to **23.7%** in 2024[12](index=12&type=chunk) [Condensed Consolidated Statement of Shareholders' Equity (2025)](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Shareholders'%20Equity%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025) Shareholders' equity increased to **$6,974,032** by June 30, 2025, from **$5,163,711**, driven by **$1,810,321** net income | Metric | April 1, 2025 | June 30, 2025 | | :-------------------- | :------------ | :------------ | | Total Shareholders' Equity | $5,163,711 | $6,974,032 | | Net Income | | $1,810,321 | | Accumulated Deficit | $(7,745,259) | $(5,934,938) | [Condensed Consolidated Statement of Shareholders' Equity (2024)](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Shareholders'%20Equity%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202024) Shareholders' equity decreased from **$4,963,027** to **$4,520,821** in Q1 2024, due to a **$442,206** net loss | Metric | April 1, 2024 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Total Shareholders' Equity | $4,963,027 | $4,520,821 | | Net Loss | | $(442,206) | | Accumulated Deficit | $(7,945,943) | $(8,388,149) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated significant cash from operating and investing activities in Q1 2025, primarily from an asset sale, increasing cash | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net Cash Provided by (Used in) Operating Activities | $2,752,110 | $(1,198,108) | | Net Cash Provided by Investing Activities | $2,820,668 | — | | Net Cash (Used in) Provided by Financing Activities | $(2,100,458) | $1,454,566 | | Net Increase in Cash | $3,472,320 | $256,458 | | Cash at End of Period | $3,820,394 | $321,539 | - Operating activities provided **$2,752,110** in cash in Q1 2025, a significant improvement from using **$1,198,108** in Q1 2024[18](index=18&type=chunk) - Investing activities provided **$2,820,668** in cash in Q1 2025, primarily from the sale of assets[18](index=18&type=chunk) - Financing activities used **$2,100,458** in Q1 2025 due to net repayment of the line of credit, compared to providing **$1,454,566** in Q1 2024 from net borrowings[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential context to the financial statements, detailing the company's business, asset sale, accounting policies, and key disclosures [Statement of Management (Business Overview & Asset Sale)](index=8&type=section&id=Statement%20of%20Management) Universal Safety Products, Inc. sold its smoke and carbon monoxide alarm business on May 22, 2025, and is now exploring new product lines and business opportunities - Company designs and markets safety products, primarily smoke and carbon monoxide alarms, sold through retail and electrical distribution[20](index=20&type=chunk) - On May 22, 2025, the Company closed the asset sale of its smoke and carbon monoxide alarm business and non-tangible assets to Feit Electric Company, Inc. after shareholder approval on April 15, 2025[21](index=21&type=chunk) - The Company intends to continue importing and marketing product lines other than smoke and carbon monoxide alarms and is exploring other business opportunities[21](index=21&type=chunk) [Line of Credit – Factor](index=8&type=section&id=Line%20of%20Credit%20%E2%80%93%20Factor) The company's factoring agreement saw available borrowing decrease to **$45,000**, with the outstanding balance reduced to **$0** by June 30, 2025 - Agreement with Merchant Financial Group for factoring trade accounts receivable, allowing borrowing of **80%** of eligible receivables, secured by all assets[23](index=23&type=chunk) | Metric | June 30, 2025 | March 31, 2025 | | :-------------------------------- | :------------ | :------------- | | Amount available to borrow | ~$45,000 | ~$348,000 | | Borrowed and outstanding | $0 | $2,100,458 | | Effective interest rate | 9.5% | 9.5% | | Cash on deposit with Factor | $1,837,828 | $0 | [Use of Estimates](index=10&type=section&id=Use%20of%20Estimates) Financial statement preparation requires management estimates and assumptions, which can affect reported amounts, and actual results may differ - Financial statements require management estimates and assumptions affecting reported amounts of assets, liabilities, and disclosures[24](index=24&type=chunk) - Actual results could differ materially from these estimates[24](index=24&type=chunk) [Revenue Recognition](index=10&type=section&id=Revenue%20Recognition) Revenue from safety and security product sales is recognized upon customer control, net of variable consideration, for short-term contracts - Primary revenue source is sale of safety and security products, recognized when customer obtains control (shipment/delivery)[25](index=25&type=chunk) - Revenue is recorded at transaction price net of variable consideration (trade discounts, allowances, returns, warranties) using the expected value method[26](index=26&type=chunk) - Most contracts are short-term (one year or less), utilizing the practical expedient for remaining performance obligations disclosure[25](index=25&type=chunk) [Disaggregation of Revenue](index=10&type=section&id=Disaggregation%20of%20Revenue) Revenue disaggregation shows Eyston product sales decreased by **8.4%** YoY and GFCI/ventilation fan sales decreased by **66.6%** YoY in Q1 2025 | Product Category | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Sales of products acquired from Eyston | $3,602,393 | $3,934,490 | | Sales of GFCI's and ventilation fans | $221,854 | $664,026 | | Total Revenue | $3,824,247 | $4,598,516 | - Sales of products acquired from Eyston decreased by **$332,097** (**8.4%**) YoY[27](index=27&type=chunk) - Sales of GFCI's and ventilation fans decreased by **$442,172** (**66.6%**) YoY[27](index=27&type=chunk) [Concentrations](index=10&type=section&id=Concentrations) The company relies on Eyston for all smoke and carbon monoxide alarms, with significant customer concentration, indicating supplier and customer risk - All smoke alarm and carbon monoxide alarm safety products are acquired from Eyston Company, Ltd[28](index=28&type=chunk) - Four customers represented **16.5%**, **15.4%**, **12.8%**, and **10.1%** of net sales for the three months ended June 30, 2025[28](index=28&type=chunk) - Two customers represented **19.1%** and **12.5%** of total trade accounts receivable at June 30, 2025[28](index=28&type=chunk) [Related Party Transactions](index=12&type=section&id=Related%20Party%20Transactions) Inventory purchases and expenses charged to the CEO's credit card totaled **$83,000** in Q1 2025, down from **$560,000** in Q1 2024, and were fully reimbursed | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Inventory purchases & other expenses charged to CEO's credit card | ~$83,000 | ~$560,000 | | Maximum amount outstanding to CEO | $13,298 | $285,333 | - All charges to related party credit cards were subsequently reimbursed in full by the Company[30](index=30&type=chunk) [Receivables](index=12&type=section&id=Receivables) Receivables are recorded upon unconditional right to consideration, with credit loss provisions and credit risk assessed by management - Receivables are recorded when the Company has an unconditional right to consideration[31](index=31&type=chunk) - A provision for credit losses is established based on historical experience and current/future economic conditions[31](index=31&type=chunk) - Management assesses credit risk of trade and financing receivables based on specific identification, considering customer creditworthiness, transaction history, industry trends, and payment terms[38](index=38&type=chunk)[39](index=39&type=chunk) [Income Taxes](index=12&type=section&id=Income%20Taxes) Interim tax provisions are calculated using an estimated annual effective tax rate, with a valuation allowance offsetting deferred tax assets due to prior losses - Interim tax provision is calculated using an estimated annual effective tax rate[32](index=32&type=chunk) - A valuation allowance fully offsets remaining deferred tax assets due to prior losses and uncertainty of future taxable income[34](index=34&type=chunk) - The Company expects to use approximately **$1,950,000** of its net operating loss carry-forwards for the fiscal year ended March 31, 2026[34](index=34&type=chunk) [Accounts Receivable, Amount Due From Factor, and Allowance for Credit Losses](index=12&type=section&id=Accounts%20Receivable%2C%20Amount%20Due%20From%20Factor%2C%20and%20Allowance%20for%20Credit%20Losses) Most trade receivables are assigned non-recourse to Merchant Factors, transferring credit risk, with a **$470,000** credit loss provision for trade accounts receivable - Majority of trade receivables are assigned on a pre-approved non-recourse basis to Merchant Factors Corporation, transferring credit risk to the factor[36](index=36&type=chunk) - A provision for credit losses of **$470,000** was provided for uncollectible trade accounts receivable at June 30, 2025, and March 31, 2025[40](index=40&type=chunk) - No provision for credit losses related to Amounts Due from Factor has been provided due to the nature of the factoring agreement and prior experience[40](index=40&type=chunk) [Earnings per Common Share](index=14&type=section&id=Earnings%20per%20Common%20Share) Basic and diluted EPS are computed based on weighted average common shares outstanding, identical at **2,312,887** for Q1 2025 and 2024 - Basic and diluted EPS are computed based on weighted average common shares outstanding[41](index=41&type=chunk) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Weighted average basic and diluted shares outstanding | 2,312,887 | 2,312,887 | - No potentially dilutive common stock equivalents were outstanding during the periods, making basic and diluted shares identical[41](index=41&type=chunk) [Contingencies](index=14&type=section&id=Contingencies) Management believes various claims and routine litigation will not materially adversely affect the company's financial position or results - Company is involved in various claims and routine litigation matters[42](index=42&type=chunk) - Management believes these matters will not have a material adverse effect on the Company's financial position, results of operations, or cash flows[42](index=42&type=chunk) [Leases](index=14&type=section&id=Leases) The company leases office and warehouse space, with an operating lease extended to October 2025 and another expired June 30, 2025 - Operating lease for Baltimore County office/warehouse extended to October 2025, with monthly rent approximating **$15,000**[44](index=44&type=chunk) - Naperville, Illinois office lease expired and was not renewed on June 30, 2025, with prior monthly rent of approximately **$4,900**[45](index=45&type=chunk) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Rent expense (including common area maintenance) | ~$43,000 | ~$39,000 | - As of March 31, 2025, the Company had lease liabilities of **$13,330** and a weighted-average remaining lease term of **one month**[47](index=47&type=chunk) [Recent Accounting Pronouncements Not Yet Adopted](index=15&type=section&id=Recent%20Accounting%20Pronouncements%20Not%20Yet%20Adopted) FASB issued ASU 2023-09, 'Improvements to Income Tax Disclosures,' effective after December 15, 2024, with impact under evaluation - FASB issued ASU 2023-09, 'Improvements to Income Tax Disclosures,' effective for annual periods beginning after December 15, 2024[48](index=48&type=chunk) - The Company is evaluating the effect of this ASU on its consolidated financial statements and footnote disclosures[48](index=48&type=chunk) [Subsequent Events](index=15&type=section&id=Subsequent%20Events) On August 13, 2025, the company agreed to sell convertible promissory notes up to **$2,750,000**, with conversion exceeding **19.99%** common stock subject to approval - On August 13, 2025, the Company entered into a Securities Purchase Agreement with SJC Lending LLC to sell convertible promissory notes up to **$2,750,000** for a purchase price of up to **$2.5 million**[49](index=49&type=chunk) - Conversion of Convertible Notes exceeding **19.99%** of common stock is subject to regulatory and Stockholder Approval[49](index=49&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial condition and operational results, discussing the asset sale's impact and key financial changes [Forward-Looking Statements](index=16&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements about future operations and financial condition, which are estimates involving risks and uncertainties - The report contains forward-looking statements about operations, performance, and financial condition, identifiable by words like 'may', 'will', 'believes', 'expects'[53](index=53&type=chunk) - These statements are estimates based on management's judgment and involve risks and uncertainties, and actual results may differ materially[53](index=53&type=chunk) [Overview (Business Context & Asset Sale)](index=16&type=section&id=Overview) Universal Safety Products, Inc. sold its smoke and carbon monoxide alarm business on May 22, 2025, and now explores new product lines, facing tariff uncertainties - The Company is in the business of marketing and distributing safety and security products[54](index=54&type=chunk) - On May 22, 2025, the Company completed the sale of its smoke and carbon monoxide alarm business and non-tangible assets to Feit Electric Company, Inc[55](index=55&type=chunk) - The Company imports all its products, primarily from China, and is subject to tariffs (some at **55%**), which create uncertainty regarding competitive pricing and sales[56](index=56&type=chunk) [Results of Operations (Three Months Ended June 30, 2025 and 2024)](index=16&type=section&id=Results%20of%20Operations) Q1 2025 financial performance was significantly impacted by the asset sale, leading to net income despite declining sales and gross profit [Sales](index=16&type=section&id=Sales) Net sales for Q1 2025 decreased by **$774,269** (**16.8%**) to **$3,824,247**, primarily due to the product line sale | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | | Net sales | $3,824,247 | $4,598,516 | - Net sales decreased by **$774,269** (**16.8%**) YoY[57](index=57&type=chunk) - The decrease is attributed to the sale of a significant portion of the product line on May 22, 2025[57](index=57&type=chunk) [Gross Profit Margin](index=16&type=section&id=Gross%20Profit%20Margin) Gross profit margin decreased to **18.2%** in Q1 2025 from **23.7%** in Q1 2024, due to tariffs, product mix changes, and higher freight costs | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | | Gross Profit Margin | 18.2% | 23.7% | - Gross margins were negatively impacted by tariffs, product mix changes due to the business sale, and higher ocean freight costs[59](index=59&type=chunk) [Expenses (Selling, General and Administrative)](index=18&type=section&id=Expenses) Selling, general and administrative expenses decreased to **$1,113,303** in Q1 2025, from **$1,397,421**, and as a percentage of net sales, decreased from **30.4%** to **29.1%** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Selling, general and administrative expenses | $1,113,303 | $1,397,421 | | As a percentage of net sales | 29.1% | 30.4% | [Engineering and Product Development](index=18&type=section&id=Engineering%20and%20Product%20Development) Engineering and product development expenses increased slightly to **$112,007** for Q1 2025, compared to **$87,601** in the prior year | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Engineering and product development expenses | $112,007 | $87,601 | [Interest Expense](index=18&type=section&id=Interest%20Expense) The company reported **$3,827** interest income for Q1 2025, a positive shift from **$44,888** interest expense in Q1 2024 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | | Interest income (expense) | $3,827 | $(44,888) | - Interest expense is dependent on total amounts borrowed from the Factor and interest rates[62](index=62&type=chunk) [Gain on Sale of Assets](index=18&type=section&id=Gain%20on%20Sale%20of%20Assets) The company recognized a gain of **$2,820,668** from the asset sale, with a **$4,955,000** purchase price reduced by basis and costs | Metric | Amount | | :-------------------------------- | :------------- | | Gain on sale of assets | $2,820,668 | | Purchase price | ~$4,955,000 | | Basis of assets held for sale | ~$1,682,000 | | Customary costs associated with sale | ~$834,000 | [Provision for Income Taxes](index=18&type=section&id=Provision%20for%20Income%20Taxes) Current and deferred income tax provisions of **$122,000** and **$361,000** were recorded in Q1 2025, reflecting tax liability from the asset sale gain | Metric | Three Months Ended June 30, 2025 | | :-------------------- | :------------------------------- | | Current income tax provision | $122,000 | | Deferred income tax provision | $361,000 | | Total Provision | $483,000 | - The provisions were primarily due to the expected tax liability associated with net earnings from the gain on asset sale[64](index=64&type=chunk) [Net Income (Loss)](index=18&type=section&id=Net%20Income%20(Loss)) The company reported **$1,810,321** net income for Q1 2025, a significant increase from a **$442,206** net loss in Q1 2024, driven by an asset sale gain | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | | Net Income (Loss) | $1,810,321 | $(442,206) | - The increase in net income of **$2,252,527** was primarily due to the **$2,820,668** gain on the sale of a portion of the business[65](index=65&type=chunk) [Cash Flow from Operating Activities](index=18&type=section&id=Cash%20Flow%20from%20Operating%20Activities) Operating activities provided **$2,752,110** cash in Q1 2025, a significant improvement from using **$1,198,108** in Q1 2024 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net Cash Provided by (Used in) Operating Activities | $2,752,110 | $(1,198,108) | - Key drivers for Q1 2025 cash provided: decrease in accounts receivable and amount due from factor (**$1,579,321**), decrease in inventories and prepaid expenses (**$3,768,052**), and net income (**$1,810,321**)[66](index=66&type=chunk) - Key drivers for Q1 2024 cash used: increase in inventories, prepaid expenses (**$260,271**), decrease in accounts payable and accrued liabilities (**$852,240**), and net loss (**$442,206**)[67](index=67&type=chunk) [Cash Flow from Investing Activities](index=18&type=section&id=Cash%20Flow%20from%20Investing%20Activities) Investing activities provided **$2,820,668** cash in Q1 2025, primarily from asset sale proceeds | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net Cash Provided by Investing Activities | $2,820,668 | — | - Cash provided by investing activities in Q1 2025 was from the sale of assets, net of related liabilities[68](index=68&type=chunk) [Cash Flow from Financing Activities](index=18&type=section&id=Cash%20Flow%20from%20Financing%20Activities) Financing activities used **$2,100,458** cash in Q1 2025 due to line of credit repayments, contrasting with **$1,454,566** provided in Q1 2024 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net Cash (Used in) Provided by Financing Activities | $(2,100,458) | $1,454,566 | - Q1 2025 cash used was comprised of net repayment of the line of credit - Factor[68](index=68&type=chunk) - Q1 2024 cash provided was comprised of borrowings net of advances from the factor[68](index=68&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The company believes current cash, factoring funds, and operating cash will meet requirements for the next twelve months, with no material changes - The Company believes its cash, factoring agreement funds, and operating cash will satisfy cash requirements for the next twelve months and beyond[69](index=69&type=chunk) - Contractual cash requirements have not materially changed since the Form 10-K filing for the fiscal year ended March 31, 2025[69](index=69&type=chunk) [Critical Accounting Policies](index=19&type=section&id=Critical%20Accounting%20Policies) No material changes occurred to critical accounting policies since the Form 10-K filing, and financial statements conform to US GAAP - No material changes to critical accounting policies since the filing of the Form 10-K[70](index=70&type=chunk) - Unaudited condensed consolidated financial statements conform to US GAAP[70](index=70&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective as of June 30, 2025, due to un-remediated material weaknesses, with no material changes in internal control [Evaluation of Disclosure Controls and Procedures](index=19&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective as of June 30, 2025, due to un-remediated material weaknesses, with remediation plans underway - Disclosure controls and procedures were not effective as of June 30, 2025, due to un-remediated material weaknesses[71](index=71&type=chunk) - Material weaknesses include lack of segregation of duties due to limited accounting staff, deficiencies in management review controls over financial statement classification and disclosure, and inadequate documentation for general ledger entries[72](index=72&type=chunk)[73](index=73&type=chunk)[75](index=75&type=chunk) - Remediation plans include adding accounting personnel, changing reporting for proper classification and disclosures, engaging an independent expert for tax provisions, and implementing procedures to improve review and documentation of general ledger entries[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Changes in Internal Control over Financial Reporting](index=19&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025 - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[76](index=76&type=chunk) PART II - OTHER INFORMATION This section covers legal proceedings, other information, and exhibits filed with the Form 10-Q [ITEM 1. LEGAL PROCEEDINGS](index=20&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits and legal matters, which management believes will not materially adversely affect its financial statements - The Company is involved in various lawsuits and legal matters from time to time[78](index=78&type=chunk) - Management believes these matters will not have a material adverse effect on the Company's financial statements[78](index=78&type=chunk) [ITEM 5. OTHER INFORMATION](index=20&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors and officers during Q1 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors and officers during Q1 2025[79](index=79&type=chunk) [ITEM 6. EXHIBITS](index=20&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including organizational documents, CEO/CFO certifications, a press release, and XBRL data files - Exhibits include Articles of Incorporation, Bylaws, CEO/CFO Certifications (Rule 13a-14(a)/15d-14(a) and Section 1350), a Press Release dated August 19, 2025, and Interactive Data Files (XBRL)[81](index=81&type=chunk) SIGNATURES The report is signed by Harvey B. Grossblatt, President and CEO, and James B. Huff, VP and CFO, on August 19, 2025 - The report was signed by Harvey B. Grossblatt, President, Chief Executive Officer, and James B. Huff, Vice President, Chief Financial Officer, on August 19, 2025[85](index=85&type=chunk)

Financial Performance - The company reported sales of $3,824,247 for the quarter ending June 30, 2025, a decrease from $4,598,516 in the same period last year, representing a decline of approximately 16.8% [2][5] - Net income for the quarter was $1,810,321, or $0.78 per basic and diluted share, compared to a net loss of $(442,206), or $(0.19) per basic and diluted share, for the same period last year [2][5] - The results included a gain of $2,820,668 from the sale of the smoke and carbon monoxide alarm segment [2] Operational Insights - The decrease in sales was attributed to the sale of the smoke alarm segment in May 2025 and the impact of increased import tariffs on all products [3] - The company plans to continue operations in the wiring device and bath fan segments and is seeking other opportunities to enhance shareholder value [3] Balance Sheet Overview - As of June 30, 2025, total current assets were $7,580,226, down from $8,515,532 a year earlier [7][8] - Cash increased significantly to $3,820,394 from $321,539 in the previous year [7] - Total liabilities decreased to $606,194 from $4,144,636, indicating improved financial stability [8]

PART I - BUSINESS OVERVIEW AND RISK FACTORS [Item 1. Business](index=4&type=section&id=Item%201.%20Business) The company designs and markets safety products, recently sold its core alarm business, and saw a 20.7% sales increase in FY2025, returning to profitability - Company designs and markets popularly priced safety products, primarily smoke and carbon monoxide alarms, for retail and electrical distribution[15](index=15&type=chunk) - On May 22, 2025, the company completed the sale of its smoke and carbon monoxide alarm business and non-tangible assets (including trade names) to Feit Electric Company, Inc[16](index=16&type=chunk) - The company intends to continue importing and marketing product lines other than smoke and carbon monoxide alarms and is exploring other business opportunities[16](index=16&type=chunk) Financial Performance (FY2025 vs FY2024) | Metric | FY2025 | FY2024 | Change | | :---------------- | :----------- | :----------- | :----------- | | Sales | $23,563,554 | $19,517,673 | +20.7% | | Net Income (Loss) | $500,684 | $(695,790) | +$1,196,474 | [General Business Overview](index=4&type=section&id=General%20Business%20Overview) The company designs and markets safety products and recently sold its core smoke and carbon monoxide alarm business - Universal Safety Products, Inc (formerly Universal Security Instruments, Inc) designs and markets popularly priced safety products, primarily smoke alarms, carbon monoxide alarms, and related products[15](index=15&type=chunk) - On May 22, 2025, the company closed on the asset sale of its smoke and carbon monoxide alarm business and non-tangible assets to Feit Electric Company, Inc[16](index=16&type=chunk) - The company intends to continue importing and marketing its product lines other than smoke and carbon monoxide alarms and is exploring other business opportunities[16](index=16&type=chunk) [Safety Products](index=4&type=section&id=Safety%20Products) The company's product lines included various battery and wired smoke/CO alarms, door chimes, and ventilation products - The company marketed residential smoke and carbon monoxide alarms under 'UNIVERSAL' and 'USI Electric' trade names, manufactured by Eyston Company Limited in China[19](index=19&type=chunk) - Product lines included replaceable battery, ten-year sealed battery, or 120-volt units with battery backup, as well as door chimes, ventilation products, and ground fault circuit interrupters (GFCI's)[20](index=20&type=chunk) [Import Matters](index=6&type=section&id=Import%20Matters) The company imports all products from China and faces uncertainty from significant tariff increases - The company imports all its products, with substantially all safety products sourced from the People's Republic of China[22](index=22&type=chunk) - Tariffs on certain products **increased from 25% to 55%** subsequent to March 31, 2025, raising uncertainty about competitive pricing and import sustainability[22](index=22&type=chunk) [Sales and Marketing; Customers](index=6&type=section&id=Sales%20and%20Marketing%3B%20Customers) Products are sold through retail and electrical distribution channels, with a significant decrease in order backlog in FY2025 - Products are sold to retailers (including wholesale distributors, chain, discount, television retailers, home center stores, catalog/mail order companies) and the electrical distribution trade (electrical/lighting distributors and manufactured housing companies)[24](index=24&type=chunk) - Sales are primarily made through approximately 40 independent sales organizations, representing about 100 sales representatives[25](index=25&type=chunk) - The decrease in backlog is primarily due to pending orders to a large retailer in the prior fiscal year that were delayed due to a backlog in critical components and shipping delays[27](index=27&type=chunk) Order Backlog (March 31) | Year | Backlog Amount | | :--- | :------------- | | 2025 | $2,142,000 | | 2024 | $5,314,000 | [Suppliers](index=6&type=section&id=Suppliers) The company is heavily reliant on its principal supplier, Eyston Company Limited, based in China - Eyston Company Limited in the People's Republic of China is the principal supplier, accounting for approximately **96.3% of purchases in FY2025** and 84.3% in FY2024[28](index=28&type=chunk) [Competition](index=8&type=section&id=Competition) The company competes with major players like First Alert and Walter Kidde based on product features and pricing - In the smoke and carbon monoxide alarm market, the company competes with First Alert and Walter Kidde Portable Equipment, Inc, primarily on styling, features, and pricing[29](index=29&type=chunk) - Success depends on the ability to improve and update products in a timely manner and adapt to new technological advances[30](index=30&type=chunk) [Employees](index=8&type=section&id=Employees) As of March 31, 2025, the company employed a small team of eleven individuals - As of March 31, 2025, the company had **eleven employees**: seven in administration and sales, and four in product development[31](index=31&type=chunk) [Future Business](index=8&type=section&id=Future%20Business) Following its asset sale, the company will continue marketing other product lines while exploring new business opportunities - Following the May 22, 2025, asset sale to Feit, the company intends to continue importing and marketing product lines other than smoke alarms and carbon monoxide alarms[32](index=32&type=chunk) - The company is exploring other business opportunities to drive long-term value for shareholders[32](index=32&type=chunk) [Item 1A. Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, a detailed discussion of risk factors is not required - This section is not applicable because the registrant is a smaller reporting company[33](index=33&type=chunk) [Item 1B. Unresolved Staff Comments](index=8&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This item is not applicable to the company - Not applicable[34](index=34&type=chunk) [Item 1C. Cybersecurity](index=8&type=section&id=Item%201C.%20Cybersecurity) The company employs a comprehensive cybersecurity strategy and has reported no material incidents [Risk Management and Strategy](index=8&type=section&id=Risk%20Management%20and%20Strategy) The cybersecurity program utilizes industry best practices and third-party assessments to protect information systems - The cybersecurity program is designed to detect threats, protect information systems, and ensure confidentiality, integrity, and availability of systems and information[36](index=36&type=chunk) - The program includes adopting information security protocols, standards, guidelines consistent with industry best practices, and engaging third-party service providers for security assessments[36](index=36&type=chunk) - The company has **not experienced any cybersecurity incidents** that have materially affected its business strategy, results of operations, or financial condition[39](index=39&type=chunk) [Governance](index=10&type=section&id=Governance) The Board of Directors oversees cybersecurity risk management, with executive officers handling day-to-day responsibilities - The Board of Directors provides informed oversight of the company's risk management process, including cybersecurity threats, with executive officers managing day-to-day risks[40](index=40&type=chunk) [Item 2. Properties](index=10&type=section&id=Item%202.%20Properties) The company maintains a leased office and warehouse in Maryland, believing its current facilities are adequate - Operating lease for a 15,000 sq ft office and warehouse in Baltimore County, Maryland, extended to expire in October 2025 (monthly rental ~$15,000)[41](index=41&type=chunk) - Operating lease for 3,400 sq ft office space in Naperville, Illinois, expired on June 30, 2025, and was not renewed (monthly rental ~$4,900)[42](index=42&type=chunk) - The company believes its current facilities are suitable and adequate[43](index=43&type=chunk) [Item 3. Legal Proceedings](index=10&type=section&id=Item%203.%20Legal%20Proceedings) Routine litigation matters are not expected to have a material adverse effect on the company's financial condition - The company is involved in various claims and routine litigation matters from time to time[44](index=44&type=chunk) - Management believes the outcomes of such matters are **not anticipated to have a material adverse effect** on the company's consolidated financial position, results of operations, or cash flows[44](index=44&type=chunk) [Item 4. Mine Safety Disclosures](index=10&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[45](index=45&type=chunk) PART II - FINANCIAL INFORMATION [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=11&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock (UUU) trades on the NYSE American, with 121 record holders as of July 2025, and no cash dividends have been paid - The company's common stock (UUU) trades on the NYSE American LLC exchange[47](index=47&type=chunk) - As of July 18, 2025, there were **121 record holders** of common stock, with a closing price of $3.29[47](index=47&type=chunk) - The company has **not paid any cash dividends** and intends to retain all cash flow for future operations[47](index=47&type=chunk) - No recent sales of unregistered securities or purchases of equity securities by the issuer or affiliated purchasers[49](index=49&type=chunk)[50](index=50&type=chunk) [Item 6. [Reserved]](index=11&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information - This item is reserved[51](index=51&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=11&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Sales and net income increased in FY2025, though operations face tariff impacts and identified material weaknesses in internal controls [General Overview](index=11&type=section&id=General%20Overview) The company's business depends on the US housing market and is impacted by tariffs on Chinese imports - The company's business involves marketing and distributing safety and security products, primarily manufactured in the People's Republic of China[52](index=52&type=chunk) - Overall sales are primarily dependent upon the strength of the U.S housing market[53](index=53&type=chunk) - Tariffs on certain imported products **increased to 55%** after March 31, 2025, raising uncertainty about competitive pricing and sales sustainability[54](index=54&type=chunk) - Following the asset sale to Feit, the company is exploring strategic alternatives and business opportunities, including an investment MOU with Ault & Company, Inc (A&C), which led to the appointment of new directors[55](index=55&type=chunk) [Comparison of Results of Operations for the Years Ended March 31, 2025 and 2024](index=13&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20Years%20Ended%20March%2031%2C%202025%20and%202024) Net sales grew 20.7% in FY2025, driving a return to profitability with a net income of $500,684 - The increase in net income for FY2025 is primarily attributed to an **increase in sales to retail customers** and an income tax benefit from the asset sale[56](index=56&type=chunk)[63](index=63&type=chunk) - Selling, general and administrative expenses increased in dollar amount due to increased freight costs, insurance, and professional fees, but decreased as a percentage of net sales[58](index=58&type=chunk) Key Financial Results (FY2025 vs FY2024) | Metric | FY2025 | FY2024 | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | | Net Sales | $23,563,554 | $19,517,673 | +20.7% | | Gross Profit Percentage | 29.0% | 28.7% | +0.3 pp | | Selling, General and Administrative Expense | $6,004,507 | $5,735,584 | +$268,923 | | SG&A as % of Net Sales | 25.5% | 29.4% | -3.9 pp | | Engineering and Product Development Expense | $424,849 | $427,234 | -$2,385 | | Interest Expense | $262,365 | $155,731 | +$106,634 | | Net Income (Loss) | $500,684 | $(695,790) | +$1,196,474 | [Financial Condition, Liquidity and Capital Resources](index=15&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Working capital increased, while cash from operations decreased, with liquidity supported by a factoring agreement - Short-term borrowings are financed through a Factoring Agreement with Merchant Factors Corporation, secured by all company assets[71](index=71&type=chunk) - Unused availability of the factoring facility was approximately **$348,000 on March 31, 2025**, down from $610,000 on March 31, 2024[71](index=71&type=chunk) Working Capital (March 31) | Year | Amount | | :--- | :----------- | | 2025 | $5,163,711 | | 2024 | $4,485,400 | Cash Flow Summary | Activity | FY2025 | FY2024 | | :-------------------------- | :----------- | :----------- | | Operating Activities | Used $1,048,612 | Provided $604,076 | | Investing Activities | $0 | $0 | | Financing Activities | Provided $1,331,605 | Used $690,497 | | Overall Cash Change | Increased $282,993 | Decreased $86,421 | [Related Party Transactions](index=17&type=section&id=Related%20Party%20Transactions%20(MD%26A%20context)) Company expenses were charged to the CEO's credit cards and subsequently reimbursed in full - Inventory purchases and other company expenses of approximately **$1,097,000 (FY2025)** and **$1,699,000 (FY2024)** were charged to credit card accounts of the CEO, Harvey B Grossblatt, and his immediate family members[73](index=73&type=chunk) - These charges were subsequently **reimbursed in full**, with no amounts outstanding at March 31, 2025, or 2024[73](index=73&type=chunk) [Critical Accounting Policies](index=17&type=section&id=Critical%20Accounting%20Policies) Key accounting policies involve significant judgments related to credit losses, inventories, income taxes, and revenue recognition - Management's discussion of critical accounting policies involves significant judgments and estimates related to credit losses, inventories, income taxes, and contingencies[74](index=74&type=chunk) - Assets held for sale are valued at the **lower of their carrying value or fair value less selling cost**[75](index=75&type=chunk) - Income taxes involve recognizing deferred tax consequences and providing a valuation allowance when realization of deferred tax assets is not likely[76](index=76&type=chunk) - Revenue is recognized at the point in time when the customer obtains control over the product, net of estimates for variable consideration like trade discounts and returns[80](index=80&type=chunk)[81](index=81&type=chunk) [Concentrations](index=20&type=section&id=Concentrations) The company has significant customer and supplier concentration, with two customers comprising 36.6% of net sales - Eyston Company, Ltd was the primary supplier, accounting for approximately **96.3% of purchases in FY2025** and 84.3% in FY2024[85](index=85&type=chunk) - Amounts due from or to Eyston were settled in full subsequent to March 31, 2025, in connection with the asset sale[85](index=85&type=chunk) Customer Concentration (FY2025) | Customer | % of Net Sales | % of Accounts Receivable | | :------- | :------------- | :----------------------- | | Customer 1 | 21.7% | 17.3% | | Customer 2 | 14.9% | 13.8% | [New Accounting Standards](index=20&type=section&id=New%20Accounting%20Standards) Recently adopted accounting standards for credit losses and segment reporting did not have a material impact - The company adopted ASU 2016-02 (credit losses) effective April 1, 2023, and ASU 2023-07 (segment reporting) for FY2025, **neither having a material impact**[86](index=86&type=chunk)[221](index=221&type=chunk) - The company is currently evaluating ASU 2023-09 (income tax disclosures), effective for annual periods beginning after December 15, 2024[86](index=86&type=chunk)[222](index=222&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, this section is not applicable - This section is not applicable because the registrant is a smaller reporting company[87](index=87&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=20&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This item refers to the financial statements and data included elsewhere in the Annual Report - The financial statements and supplementary data required by this Item 8 are included in the Company's Consolidated Financial Statements and set forth in the pages indicated in Item 15(a)[88](index=88&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=20&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable to the company - Not applicable[89](index=89&type=chunk) [Item 9A. Controls and Procedures](index=20&type=section&id=Item%209A.%20Controls%20and%20Procedures) Disclosure controls and internal control over financial reporting were deemed not effective due to material weaknesses [Evaluation of Disclosure Controls and Procedures](index=20&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) The company's disclosure controls and procedures were concluded to be not effective as of March 31, 2025 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **not effective** as of March 31, 2025[90](index=90&type=chunk) [Management's Annual Report on Internal Control over Financial Reporting](index=21&type=section&id=Management's%20Annual%20Report%20on%20Internal%20Control%20over%20Financial%20Reporting) Management identified material weaknesses in internal controls, including a lack of segregation of duties - Management concluded that the company's internal control over financial reporting was **not effective** as of March 31, 2025, due to material weaknesses[92](index=92&type=chunk) - Material weaknesses include a **lack of segregation of duties** due to limited accounting staff, and continued weaknesses in management review controls over financial statement classification, disclosure, income tax accounting, and general ledger documentation[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Remediation plans include adding accounting personnel, clarifying classifications, engaging an independent expert for tax provisions, and improving documentation procedures[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) [Changes in Internal Control over Financial Reporting](index=21&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) No material changes to internal controls occurred during the last fiscal quarter, aside from the newly noted weakness - Except for the additional material weakness noted, there were no other material changes in internal control over financial reporting during the fiscal quarter ended March 31, 2025[97](index=97&type=chunk) [Item 9B. Other Information](index=21&type=section&id=Item%209B.%20Other%20Information) No directors or Section 16 officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or Section 16 officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended March 31, 2025[98](index=98&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=21&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[99](index=99&type=chunk) PART III - CORPORATE GOVERNANCE AND EXECUTIVE COMPENSATION [Item 10. Directors, Executive Officers and Corporate Governance](index=23&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The Board expanded to six directors in May 2025 and maintains independent Audit and Compensation Committees [Directors and Executive Officers](index=23&type=section&id=Directors%20and%20Executive%20Officers) The Board of Directors increased from four to six members with the appointment of two new independent directors - As of March 31, 2025, the Board consisted of four directors; effective May 22, 2025, two additional directors, Milton C Ault, III and Henry C W Nisser, were appointed, **increasing the total to six**[103](index=103&type=chunk)[104](index=104&type=chunk) - Key executive officers include Harvey B Grossblatt (President and CEO) and James B Huff (Secretary/Treasurer/CFO)[108](index=108&type=chunk)[111](index=111&type=chunk) - Milton C Ault, III and Henry C W Nisser were appointed as independent directors in May 2025[105](index=105&type=chunk)[106](index=106&type=chunk)[109](index=109&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) The company has independent audit and compensation committees but lacks formal stock ownership or hedging policies - The Board of Directors convened three times during the fiscal year ended March 31, 2025[112](index=112&type=chunk) - The Audit Committee, composed of independent directors (Mr Bormel, Dr Seff, Mr Luskin), met four times in FY2025, with Mr Bormel designated as the audit committee financial expert[113](index=113&type=chunk) - The Compensation Committee, also composed of independent directors (Mr Luskin, Dr Seff, Mr Bormel), met once in FY2025[115](index=115&type=chunk) - The company has adopted a Code of Business Conduct and Ethics but **does not have formal stock ownership guidelines**, a distinct insider trading policy (relying on the Code of Ethics), or hedging policies[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [Item 11. Executive Compensation](index=29&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation primarily consists of base salary and discretionary bonuses, with no equity-based awards [Summary Compensation Table](index=29&type=section&id=Summary%20Compensation%20Table) This table details the compensation for named executive officers for fiscal years 2025 and 2024 Named Executive Officer Compensation (FY2025 vs FY2024) | Name and Principal Position | Year | Base Salary ($) | Bonus ($) | All Other Compensation ($) | Total ($) | | :-------------------------- | :--- | :-------------- | :-------- | :------------------------- | :-------- | | Harvey B. Grossblatt, President and CEO | 2025 | 352,286 | 0 | 80,994 | 433,280 | | | 2024 | 352,286 | 0 | 71,162 | 423,448 | | James B. Huff, Secretary/Treasurer/CFO | 2025 | 198,153 | 0 | 18,399 | 216,552 | | | 2024 | 198,957 | 0 | 18,430 | 217,387 | | Glenda Anderson, Sales Manager | 2025 | 156,030 | 0 | 17,391 | 173,421 | | | 2024 | 156,030 | 5,000 | 17,391 | 178,421 | | Phillip Haigh, Sales Manager | 2025 | 150,000 | 0 | 24,460 | 179,460 | | | 2024 | 150,000 | 5,000 | 24,475 | 179,475 | [Compensation Program Elements](index=31&type=section&id=Compensation%20Program%20Elements) The compensation program is based on base salary and discretionary bonuses, with no equity component - The compensation program includes base salary (contractual for PEO, reviewed annually for others) and discretionary bonuses (contractual for PEO, based on individual and company performance)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) - The company **does not provide for equity-based compensation**[130](index=130&type=chunk) [401(k) Plan](index=31&type=section&id=401(k)%20Plan) The company offers a 401(k) plan with an employer match of up to 4% - The company has a 401(k) plan with a matching contribution of **up to 4%** of employee contributions, and participants are immediately vested[131](index=131&type=chunk) - Employer contributions to the plan were **$47,097 in fiscal 2025** and $47,262 in fiscal 2024[252](index=252&type=chunk) [Stock Incentive Plan](index=31&type=section&id=Stock%20Incentive%20Plan) The company does not have a stock incentive plan - The company does not have a stock incentive plan[132](index=132&type=chunk) [Executive Employment Agreements](index=31&type=section&id=Executive%20Employment%20Agreements) The CEO's employment agreement includes a base salary of $352,000 and performance-based bonus criteria - The CEO's (Harvey B Grossblatt) employment agreement, effective April 1, 2002, as amended, expires on July 31, 2025[133](index=133&type=chunk) - The agreement provides for a base annual salary of **$352,000** and bonus compensation based on pre-tax net income exceeding 4% of shareholders' equity[133](index=133&type=chunk) - Benefits include life, health, and disability insurance, medical reimbursement, automobile allowance, and company-paid retirement plan contributions[133](index=133&type=chunk) [Potential Payments upon Termination or Change in Control](index=33&type=section&id=Potential%20Payments%20upon%20Termination%20or%20Change%20in%20Control) The CEO is entitled to specific severance payments upon termination or a change in control event - Payments upon termination or change in control for the CEO are subject to specific contractual terms, including limitations for change of control based on average annual taxable compensation[139](index=139&type=chunk)[140](index=140&type=chunk) Estimated Incremental Value Transfer to Harvey B. Grossblatt upon Termination (as of March 31, 2025) | Scenario | Severance ($) | Health Benefits ($) | 401(k) Contribution ($) | Tax Gross Up ($) | | :-------------------------- | :------------ | :------------------ | :---------------------- | :--------------- | | Non Renewal | 352,286 | 85,000 | 72,000 | — | | Resignation for Good Reason | 352,286 | 85,000 | 72,000 | 144,000 | | Following Change in Control | 1,053,000 | 85,000 | 72,000 | 430,000 | | Death | 353,000 (minus benefits) | 85,000 | 72,000 | — | | Disability | 353,000 (minus benefits) | 85,000 | 72,000 | — | [Policies and Practices Related to the Grant of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information](index=35&type=section&id=Policies%20and%20Practices%20Related%20to%20the%20Grant%20of%20Certain%20Equity%20Awards%20Close%20in%20Time%20to%20the%20Release%20of%20Material%20Nonpublic%20Information) The company has no formal policy on the timing of equity grants and made no such grants in FY2025 - The company **does not have a formal policy** regarding the timing of equity-based compensation grants relative to the release of material nonpublic information[142](index=142&type=chunk) - **No equity grants** were made to executive officers during any period beginning four business days before and ending one business day after the filing of a periodic or current report in FY2025[143](index=143&type=chunk) [Advisory Vote on Executive Compensation](index=35&type=section&id=Advisory%20Vote%20on%20Executive%20Compensation) Stockholders approved the executive compensation plan at the 2024 annual meeting - Stockholders **approved the executive compensation** on an advisory basis at the annual meeting held on November 7, 2024[144](index=144&type=chunk) - An advisory vote on executive compensation is held every year[144](index=144&type=chunk) [Director Compensation](index=35&type=section&id=Director%20Compensation) Outside directors receive a $10,000 annual fee for their service - Each outside director received a **$10,000 annual fee** for service in FY2025, payable in cash or common stock[145](index=145&type=chunk) - The CEO received no additional compensation for serving as a director[145](index=145&type=chunk) Director Compensation (FY2025) | Name | Fees Earned or Paid in Cash ($) | Option Awards ($) | Total ($) | | :------------------- | :------------------------------ | :---------------- | :-------- | | Cary Luskin | 10,000 | 0 | 10,000 | | Ronald A. Seff, M.D. | 10,000 | 0 | 10,000 | | Ira F. Bormel, CPA | 10,000 | 0 | 10,000 | [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=36&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Ault & Company, Inc is the largest beneficial owner with 10.3% of common stock [Beneficial Ownership of 5% or More](index=36&type=section&id=Beneficial%20Ownership%20of%205%25%20or%20More) Three entities hold beneficial ownership of 5% or more of the company's stock - Ault & Company, Inc (A&C) holds significant voting and disposition authority over shares through a coordination agreement[149](index=149&type=chunk) Beneficial Owners of 5% or More (as of July 18, 2025) | Name and Address | Shares Beneficially Owned | Percent of Class | | :------------------------------------------------ | :------------------------ | :--------------- | | JLA Realty Associates, LLC | 227,400 | 9.8% | | Ault & Company, Inc. | 239,245 | 10.3% | | Poplar Point Capital Management LLC | 122,564 | 5.3% | [Beneficial Ownership by Directors and Executive Officers](index=37&type=section&id=Beneficial%20Ownership%20by%20Directors%20and%20Executive%20Officers) Directors and executive officers as a group beneficially own 21.0% of the company's common stock Beneficial Ownership by Directors and Executive Officers (as of July 18, 2025) | Name of Beneficial Owner | Shares Beneficially Owned | Percent of Class | | :-------------------------------- | :------------------------ | :--------------- | | Harvey B. Grossblatt | 110,402 | 4.77% | | Cary Luskin | 59,423 | 2.57% | | Ronald A. Seff, M.D. | 77,469 | 3.35% | | James B. Huff | 510 | 0.02% | | Ira F. Bormel, CPA | — | — | | Milton C. Ault, III | 239,245 | 10.3% | | Henry Nisser | — | — | | All directors and executive officers as a group (7 persons) | 487,049 | 21.0% | [Equity Compensation Information](index=37&type=section&id=Equity%20Compensation%20Information) The company has no equity compensation plans or outstanding awards - As of March 31, 2025, the company had **no outstanding options, warrants, or rights**, and no securities remaining available for future issuance under equity compensation plans[153](index=153&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=37&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The Audit Committee reviews all related party transactions, including reimbursed expenses charged to the CEO's credit cards - The Audit Committee reviews and approves all transactions with related persons[154](index=154&type=chunk) - Inventory purchases and other company expenses of approximately **$1,097,000 (FY2025)** and **$1,699,000 (FY2024)** were charged to credit card accounts of CEO Harvey B Grossblatt and his immediate family members, and were fully reimbursed[154](index=154&type=chunk) - Information regarding director independence is incorporated by reference to Item 10[155](index=155&type=chunk) [Item 14. Principal Accountant Fees and Services](index=38&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Audit fees were $293,000 in FY2025, with no fees for other services, and all fees are pre-approved by the Audit Committee - The Audit Committee reviews and pre-approves all audit and non-audit services provided by the independent auditors and their fees[158](index=158&type=chunk) Auditor Fees (FY2025 vs FY2024) | Fee Type | FY2025 ($) | FY2024 ($) | | :--------------- | :--------- | :--------- | | Audit Fees | 293,000 | 258,000 | | Audit Related Fees | 0 | 0 | | Tax Fees | 0 | 0 | | All Other Fees | 0 | 0 | PART IV - EXHIBITS, FINANCIAL STATEMENTS & SIGNATURES [Item 15. Exhibits and Financial Statement Schedules](index=39&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all filed financial statements, schedules, and material agreements, including interactive data files [Financial Statements](index=39&type=section&id=Financial%20Statements) The listed financial statements include the independent auditor's report, balance sheets, and statements of operations, equity, and cash flows - The financial statements include the Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets, Statements of Operations, Shareholders' Equity, Cash Flows, and Notes to Consolidated Financial Statements[161](index=161&type=chunk) [Exhibits Required by Item 601 of Regulation S-K](index=39&type=section&id=Exhibits%20Required%20by%20Item%20601%20of%20Regulation%20S-K) Filed exhibits include corporate organizational documents, key material agreements, and interactive data files - Exhibits include corporate organizational documents (Articles of Incorporation, Bylaws), key agreements (Discount Factoring Agreement, Lease, Amended and Restated Employment Agreement for CEO), and interactive data files in XBRL format[162](index=162&type=chunk)[163](index=163&type=chunk) [Item 16. Form 10-K Summary](index=41&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K Summary is provided - No Form 10-K Summary is provided[164](index=164&type=chunk) [Signatures](index=42&type=section&id=Signatures) The report was signed by executive officers and all directors on July 28, 2025 - The report is signed by the President and Chief Executive Officer, Chief Financial Officer, and all directors[169](index=169&type=chunk)[170](index=170&type=chunk) - The report was signed on July 28, 2025[169](index=169&type=chunk) [Report of Independent Registered Public Accounting Firm (for 2025)](index=43&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20(for%202025)) CBIZ CPAs P.C issued an unqualified opinion on the FY2025 financial statements with no critical audit matters - CBIZ CPAs P.C issued an **unqualified opinion** on the consolidated financial statements for the year ended March 31, 2025[172](index=172&type=chunk) - The financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in conformity with US GAAP[172](index=172&type=chunk) - **No critical audit matters** were determined for the current period audit[176](index=176&type=chunk) [Report of Independent Registered Public Accounting Firm (for 2024)](index=45&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20(for%202024)) Marcum LLP issued an unqualified opinion on the FY2024 financial statements - Marcum LLP issued an **unqualified opinion** on the consolidated financial statements for the year ended March 31, 2024[179](index=179&type=chunk) - The financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in conformity with US GAAP[179](index=179&type=chunk) [Consolidated Financial Statements](index=46&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's audited consolidated financial statements for fiscal years 2025 and 2024 [Consolidated Balance Sheets](index=46&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased by 17.8% and total shareholders' equity grew by 10.7% in FY2025 - Assets Held for Sale amounted to **$1,681,937** as of March 31, 2025[185](index=185&type=chunk) Consolidated Balance Sheet Highlights (March 31) | Metric | 2025 ($) | 2024 ($) | Change (YoY) | | :------------------------------------ | :--------- | :--------- | :----------- | | Cash | 348,074 | 65,081 | +434.8% | | Total Current Assets | 9,816,279 | 8,143,793 | +20.5% | | Total Assets | 9,816,279 | 8,334,750 | +17.8% | | Line of Credit – Factor | 2,100,458 | 768,853 | +173.2% | | Total Current Liabilities | 4,652,568 | 3,658,393 | +27.2% | | Total Shareholders' Equity | 5,163,711 | 4,663,027 | +10.7% | [Consolidated Statements of Operations](index=47&type=section&id=Consolidated%20Statements%20of%20Operations) The company returned to profitability in FY2025 with a net income of $500,684, driven by a 20.7% increase in net sales - A provision for income tax benefit of **$361,000** was recorded in FY2025, compared to none in FY2024[187](index=187&type=chunk) Consolidated Statements of Operations Highlights (Year Ended March 31) | Metric | 2025 ($) | 2024 ($) | Change (YoY) | | :------------------------------------ | :----------- | :----------- | :----------- | | Net Sales | 23,563,554 | 19,517,673 | +20.7% | | Cost of goods sold | 16,732,149 | 13,919,660 | +20.2% | | GROSS PROFIT | 6,831,405 | 5,598,013 | +22.0% | | Operating income (loss) | 402,049 | (564,805) | +$966,854 | | Net income (loss) | 500,684 | (695,790) | +$1,196,474 | | Basic and diluted loss per share | 0.22 | (0.30) | +$0.52 | [Consolidated Statements of Shareholders' Equity](index=48&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Net income in FY2025 increased total shareholders' equity and reduced the accumulated deficit - Net income of **$500,684 in FY2025** contributed to the increase in total shareholders' equity and a reduction in the accumulated deficit[189](index=189&type=chunk) Consolidated Statements of Shareholders' Equity (March 31) | Metric | 2025 ($) | 2024 ($) | | :-------------------- | :--------- | :--------- | | Common Stock (Shares) | 2,312,887 | 2,312,887 | | Common Stock (Amount) | 23,129 | 23,129 | | Additional Paid-In Capital | 12,885,841 | 12,885,841 | | Accumulated Deficit | (7,745,259) | (8,245,943) | | Total Shareholders' Equity | 5,163,711 | 4,663,027 | [Consolidated Statements of Cash Flows](index=49&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations was negative in FY2025, offset by cash provided by financing activities - Operating activities used cash in FY2025, primarily due to increases in accounts receivable and inventory, and decreases in accounts payable and accrued expenses, partially offset by net income[65](index=65&type=chunk)[192](index=192&type=chunk) - Financing activities provided cash in FY2025 due to increased net borrowing from the factor[67](index=67&type=chunk)[192](index=192&type=chunk) Consolidated Statements of Cash Flows (Year Ended March 31) | Activity | 2025 ($) | 2024 ($) | | :------------------------------------ | :----------- | :----------- | | Net Cash (Used in) Provided by Operating Activities | (1,048,612) | 604,076 | | Net Cash Provided by (Used in) Financing Activities | 1,331,605 | (690,497) | | Increase (Decrease) in Cash | 282,993 | (86,421) | | Cash at End of Year | 348,074 | 65,081 | [Notes to Consolidated Financial Statements](index=50&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed information on accounting policies, subsequent events, and financial statement components [NOTE A – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=50&type=section&id=NOTE%20A%20%E2%80%93%20NATURE%20OF%20BUSINESS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The company's accounting policies cover revenue recognition, assets held for sale, and the impact of tariffs on its imported products - The company's primary business is the sale of safety products, all imported from foreign manufacturers, primarily China, and subject to tariffs[195](index=195&type=chunk) - Assets held for sale related to the Feit Electric Company, Inc transaction are valued at the **lower of carrying value or fair value less selling cost**[196](index=196&type=chunk) - Non-material errors in FY2024 financial statements (underestimated insurance expense, reclassification, underestimated credit losses) were identified and revised[197](index=197&type=chunk)[201](index=201&type=chunk) - The company adopted ASU 2016-02 and ASU 2023-07 with no material impact and is evaluating ASU 2023-09 (income tax disclosures)[221](index=221&type=chunk)[222](index=222&type=chunk) Disaggregation of Revenue (Year Ended March 31) | Product Category | 2025 ($) | 2024 ($) | | :-------------------------- | :----------- | :----------- | | Sales of safety alarms | 21,140,157 | 16,854,535 | | Sales of GFCI's and ventilation fans | 2,423,397 | 2,663,138 | | **Total Net Sales** | **23,563,554** | **19,517,673** | [NOTE B – SUBSEQUENT EVENTS](index=57&type=section&id=NOTE%20B%20%E2%80%93%20SUBSEQUENT%20EVENTS) Subsequent to year-end, the company completed its asset sale to Feit Electric and faces increased import tariffs - On May 22, 2025, the company completed the asset sale to Feit Electric Company, Inc, including **$1,655,000 of finished goods inventory** and intangible assets, and changed its name to Universal Safety Products, Inc[223](index=223&type=chunk) - The company will continue importing and marketing product lines other than smoke and carbon monoxide alarms and is seeking strategic business combinations[223](index=223&type=chunk) - Tariffs on certain imported products **increased to 55%** after March 31, 2025, increasing uncertainty regarding competitive pricing[224](index=224&type=chunk) [NOTE C – SHORT-TERM BORROWINGS AND CREDIT ARRANGEMENTS](index=59&type=section&id=NOTE%20C%20%E2%80%93%20SHORT-TERM%20BORROWINGS%20AND%20CREDIT%20ARRANGEMENTS) The company utilizes a factoring agreement for short-term borrowing, secured by all company assets - The company has a factoring agreement with Merchant Financial Group, allowing borrowing of **80% of eligible receivables**, secured by all assets, with interest at prime plus 2%[227](index=227&type=chunk) - Outstanding borrowings under the factoring agreement were **$2,100,458** on March 31, 2025, compared to $768,853 on March 31, 2024[227](index=227&type=chunk) - Unused availability under the factoring facility was approximately **$348,000** on March 31, 2025, down from $610,000 on March 31, 2024[227](index=227&type=chunk) - Merchant approved additional funding via an overadvance of up to $1,600,000 secured by inventory in June 2024[228](index=228&type=chunk) [NOTE D – PROPERTY AND EQUIPMENT AND RIGHT OF USE ASSET - NET](index=59&type=section&id=NOTE%20D%20%E2%80%93%20PROPERTY%20AND%20EQUIPMENT%20AND%20RIGHT%20OF%20USE%20ASSET%20-%20NET) Property and equipment are depreciated using the straight-line method over their estimated useful lives - Property and equipment are recorded at cost and depreciated using the straight-line method over estimated useful lives[230](index=230&type=chunk) - Depreciation and amortization totaled **$159,656 for FY2025** and $163,457 for FY2024[232](index=232&type=chunk) Net Property and Equipment and Right-of-Use Asset (March 31) | Year | Amount ($) | | :--- | :--------- | | 2025 | 0 | | 2024 | 159,656 | [NOTE E – LEASES](index=60&type=section&id=NOTE%20E%20%E2%80%93%20LEASES) The company leases office space, with future minimum lease payments of $13,381 for fiscal year 2026 - The company leases office space, recognizing right-of-use (ROU) assets and lease liabilities based on the present value of lease payments[233](index=233&type=chunk)[237](index=237&type=chunk) - Rent expense, including common area maintenance, totaled approximately **$296,000 for FY2025** and $293,000 for FY2024[236](index=236&type=chunk) - Future minimum operating lease payments for fiscal year 2026 are **$13,381**[240](index=240&type=chunk) Lease Information (March 31, 2025) | Metric | Amount | | :------------------------------------ | :----- | | Right-of-use assets | $0 | | Lease liabilities | $13,330 | | Weighted-average remaining lease term | 1 month | | Weighted-average discount rate | 5.5% | [NOTE F – INCOME TAXES](index=62&type=section&id=NOTE%20F%20%E2%80%93%20INCOME%20TAXES) The company recognized a deferred tax asset by reversing a portion of its valuation allowance due to an expected gain on an asset sale - As of March 31, 2025, the company had total federal net operating loss carry-forwards of approximately **$3,683,000** with no fixed expiration date, and research and development tax credit carry-forwards of approximately $35,000[242](index=242&type=chunk) - A **$361,000 deferred tax asset** was recognized in FY2025 by reversing a portion of the valuation allowance, anticipating the use of $1,765,000 of NOLs against the expected gain on asset sale[242](index=242&type=chunk) - A valuation allowance fully offsets the remaining deferred tax assets due to prior losses and uncertainty of future taxable income[243](index=243&type=chunk) Reconciliation of Federal Income Tax Provision (Year Ended March 31) | Item | 2025 ($) | 2024 ($) | | :------------------------------------------------ | :--------- | :--------- | | Federal tax (benefit) at statutory rate (20.0%) | 100,137 | (83,116) | | Permanent and other differences | (169,522) | 65,581 | | State income tax benefit – net of federal effect | (19,764) | (18,761) | | Change in deferred tax asset valuation allowance | (271,851) | 36,296 | | **Current income tax benefit** | **(361,000)** | **—** | [NOTE G – COMMITMENTS AND CONTINGENCIES](index=64&type=section&id=NOTE%20G%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) The company has no material claims outside the normal course of business but has post-employment payment obligations to the CEO - Management believes there are **no outstanding material claims** outside the normal course of business[247](index=247&type=chunk) - The CEO's employment agreement requires post-employment payments ranging from approximately **$74,000 to $1,640,000** depending on the termination event[248](index=248&type=chunk) [NOTE H - CONCENTRATIONS](index=64&type=section&id=NOTE%20H%20-%20CONCENTRATIONS) The company exhibits significant customer and supplier concentration, with one supplier accounting for 96.3% of purchases - Eyston Company, Ltd accounted for approximately **96.3% of purchases in FY2025** and 84.3% in FY2024[251](index=251&type=chunk) - Amounts due from or to Eyston were settled in full subsequent to March 31, 2025, in connection with the asset sale[251](index=251&type=chunk) Customer Concentration (FY2025) | Customer | % of Net Sales | % of Accounts Receivable | | :------- | :------------- | :----------------------- | | Customer 1 | 21.7% | 17.3% | | Customer 2 | 14.9% | 13.5% | [NOTE I – RETIREMENT PLAN](index=64&type=section&id=NOTE%20I%20%E2%80%93%20RETIREMENT%20PLAN) The company offers a 401(k) plan with employer matching contributions - The company offers a 401(k) retirement savings plan with employer matching contributions **up to 4%** of employee contributions[252](index=252&type=chunk) - Employer contributions were **$47,097 in FY2025** and $47,262 in FY2024[252](index=252&type=chunk) [NOTE J – RELATED PARTY TRANSACTIONS](index=65&type=section&id=NOTE%20J%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) Company expenses were charged to the CEO's credit cards and subsequently reimbursed in full - Inventory purchases and other company expenses of approximately **$1,097,000 (FY2025)** and **$1,699,000 (FY2024)** were charged to credit card accounts of CEO Harvey B Grossblatt and his immediate family members[253](index=253&type=chunk) - These charges were **fully reimbursed**, with no amounts outstanding at March 31, 2025, or 2024[253](index=253&type=chunk) [NOTE K – INTANGIBLE ASSET - NET](index=65&type=section&id=NOTE%20K%20%E2%80%93%20INTANGIBLE%20ASSET%20-%20NET) Intangible assets, consisting of capitalized legal fees for patents, were reduced to zero due to the asset sale - Intangible assets consist of capitalized legal expenses for patents, amortized on a straight-line basis over twenty years[254](index=254&type=chunk) - Net intangible assets were **$0 as of March 31, 2025**, compared to $31,301 as of March 31, 2024, due to the asset sale[185](index=185&type=chunk) - Amortization expense was **$4,470 for FY2025** and $4,474 for FY2024[254](index=254&type=chunk)

Core Viewpoint - Universal Safety Products, Inc. reported significant financial improvements for the fourth quarter and fiscal year ended March 31, 2025, following the sale of its smoke alarm and carbon monoxide alarm business, while exploring new business opportunities to enhance shareholder value [1][2]. Financial Performance - For the fourth quarter, sales increased by $1,780,152 (40.0%) to $6,226,621 compared to $4,446,469 in the same period last year, with net income of $1,302,551 or $0.56 per share, reversing a net loss of $776,671 or $0.34 per share from the previous year [5][6]. - For the fiscal year, sales rose by $4,045,881 (20.7%) to $23,563,554 from $19,517,673, with net income of $500,684 or $0.22 per share, compared to a net loss of $695,790 or $0.30 per share for the prior year [5][6]. Business Developments - The company completed the sale of its smoke alarm and carbon monoxide alarm business to Feit Electric Company on May 22, 2025, and plans to continue marketing other product lines [1]. - The company has filed its Annual Report on Form 10-K with the SEC, addressing previous non-compliance issues with NYSE American LLC listing standards [3]. Assets and Liabilities - As of March 31, 2025, total assets amounted to $9,816,279, an increase from $8,344,750 in the previous year, with cash increasing to $348,074 from $65,081 [8][9]. - Total current liabilities rose to $4,652,568 from $3,658,393, primarily due to an increase in the line of credit [9].

Core Points - Universal Safety Products, Inc. received a letter from NYSE Regulation indicating non-compliance with listing standards due to failure to timely file its Annual Report on Form 10-K for the year ended March 31, 2025 [1] - The company has a six-month period from the due date of July 15, 2025, to regain compliance by filing the Form 10-K with the SEC, with a possible extension of up to six additional months depending on circumstances [2] - The company expects to file the Form 10-K within the granted six-month period, but there is no assurance that it will be filed on time [3] Company Overview - Universal Safety Products, Inc. is a U.S.-based importer and distributor of home safety devices, including ventilation fans and ground fault circuit interrupters [3]

Core Points - Vanguard Mining Corp. is applying to list 12,690,001 common share purchase Warrants on the Canadian Securities Exchange (CSE) [1][2] - Each Warrant allows the holder to acquire one common share at an exercise price of $0.10 per share before February 6, 2028 [2] - The Warrants are expected to trade under the symbol UUU.WT and will be governed by a warrant indenture with Endeavor Trust Corporation [2][3] Company Overview - Vanguard Mining Corp. is a Canadian mineral exploration company focused on discovering and developing high-value strategic minerals [4] - The company is advancing uranium exploration projects in the United States and Paraguay, targeting assets critical to the global energy transition [4] - Vanguard is committed to responsible exploration and value creation through the acquisition and advancement of highly prospective uranium properties [4]

Core Viewpoint - Vanguard Mining Corp. has applied for a management cease trade order due to the inability to file its audited annual financial statements by the deadline, which has been granted by Canadian securities regulatory authorities [2]. Group 1: Management Cease Trade Order (MCTO) - The Company applied for an MCTO because it could not file its audited annual financial statements for the fiscal year ended December 31, 2024 by the April 30, 2025 deadline [2]. - The MCTO was granted on May 7, 2025, restricting the Chief Executive Officer and Chief Financial Officer from trading in the Company's securities until the Annual Filings are completed [2]. - Other shareholders are not affected by the MCTO and can continue to trade in the Company's securities [2]. Group 2: Filing Status and Compliance - The Company and its auditors are working diligently to complete the Annual Filings and anticipate filing them on or before June 30, 2025 [3]. - Since the Default Announcement, the Company confirms that no material changes have occurred that have not been disclosed, and it has complied with NP 12-203 guidelines [4]. - The Company will continue to meet the provisions of NP 12-203 as long as it remains in default of its filing requirements [5].