Financial Performance - Net sales for the three months ended December 31, 2024, were $5,535,148, an increase of $880,170 (18.9%) compared to the same period in 2023[59] - For the nine months ended December 31, 2024, net sales were $17,336,933, an increase of $2,265,729 (15.0%) compared to the same period in 2023[66] - The company reported a net loss of $936,639 for the quarter ended December 31, 2024, compared to net income of $102,176 in the same quarter of the previous year, a decrease of $1,038,815[65] Profitability Metrics - Gross profit margin decreased to 18.5% for the quarter ended December 31, 2024, down from 32.3% in the prior year, primarily due to bulk sales of excess inventory at reduced margins[60] - Gross profit margin for the nine-month period ended December 31, 2024, was 23.7%, down from 30.0% in the prior year, due to increased costs and inventory allowances[67] Expenses - Selling, general and administrative expenses increased to $1,762,446 for the three months ended December 31, 2024, representing 31.8% of net sales, up from 28.2% in 2023[61] - Selling, general and administrative expenses for the nine months ended December 31, 2024, were $4,369,219, or 25.2% of sales, compared to 27.0% in the prior year[68] - Engineering and product development expenses increased by $53,100 (68.7%) to $130,395 for the quarter ended December 31, 2024, primarily due to higher product development costs[63] Cash Flow - The company used cash of $736,999 in operating activities for the nine months ended December 31, 2024, primarily due to a net loss and changes in working capital[72] - Financing activities provided cash of $730,800 during the nine months ended December 31, 2024, compared to cash used of $338,286 in the same period of the previous year[74]

Core Viewpoint - Universal Security Instruments, Inc. reported a significant increase in sales for the fiscal third quarter and nine months ended December 31, 2024, but also faced substantial net losses due to inventory sales and expenses related to a potential asset sale [2][3][4]. Financial Performance - For the three months ended December 31, 2024, sales increased by 18.9% to $5,535,148 compared to $4,654,978 for the same period last year [2]. - The company reported a net loss of $936,639, or $0.40 per basic and diluted share, compared to a net income of $102,176, or $0.04 per basic and diluted share for the same period last year [2][7]. - For the nine months ended December 31, 2024, sales increased by 15.0% to $17,336,933 versus $15,071,204 for the same period last year [3]. - The company reported a net loss of $801,867, or $0.35 per basic and diluted share, compared to a net income of $80,881, or $0.03 per basic and diluted share for the corresponding 2023 period [3][9]. Asset Sale and Future Outlook - The company entered into an Asset Purchase Agreement with Feit Electric Company, Inc. on October 29, 2024, which is expected to impact financial results due to bulk sales of excess and obsolete inventory at reduced margins [4]. - The company anticipates continuing normal operations while seeking shareholder approval for the asset sale, expected to close in the second quarter of calendar 2025 if approved [4]. - If the asset sale is not approved, the company may consider alternatives, including delisting its shares from the NYSE MKT [4]. Company Overview - Universal Security Instruments, Inc. is a U.S.-based manufacturer and distributor of safety and security devices, with a history of over 56 years in developing innovative products such as smoke, fire, and carbon monoxide alarms [5].

Financial Performance - Net sales for the three months ended September 30, 2024, were $7,203,269, an increase of $3,485,814 (93.8%) compared to the same period in 2023, primarily due to the timing of orders from a large retail customer [60]. - Net income for the quarter ended September 30, 2024, was $576,978, a $763,403 (409.5%) increase from a net loss of $186,425 in the same quarter of the previous year [66]. - For the six months ended September 30, 2024, net sales were $11,801,785, an increase of $1,385,559 (13.3%) compared to the same period in 2023, attributed to improved delivery times and order timing [67]. Profitability Metrics - Gross profit margin decreased to 27.7% for the quarter ended September 30, 2024, down from 35.2% in the prior year, mainly due to increased allowance for excess and obsolete inventory and rising costs of electronic components [61]. - Gross profit margin for the six-month period ended September 30, 2024, was 26.1%, down from 29.0% in the prior year, impacted by increased allowance for excess inventory and rising costs of electronic components [68]. Expenses Management - Selling, general and administrative expenses decreased to $1,209,352 for the three months ended September 30, 2024, from $1,334,351 in the prior year, representing 16.8% of net sales compared to 35.9% [62]. - Selling, general and administrative expenses for the six months ended September 30, 2024, were $2,606,773, a decrease from $2,757,290 in the prior year, representing 22.1% of sales compared to 26.5% [69]. Cash Flow - Operating activities used cash of $3,278,163 for the six months ended September 30, 2024, primarily due to increases in accounts receivable and inventory [73]. - Financing activities provided cash of $3,447,281 during the six months ended September 30, 2024, compared to cash used of $547,203 in the prior year [75]. Interest Expense - Interest expense increased to $134,530 for the six months ended September 30, 2024, compared to $84,005 in the same period of the previous year [71].

Financial Performance - Net sales for the three months ended June 30, 2024, were $4,598,516, a decrease of 31.3% compared to $6,698,771 for the same period in 2023[8] - Gross profit for the quarter was $1,087,704, down 36.3% from $1,708,200 in the prior year[8] - The company reported an operating loss of $397,318 for the three months ended June 30, 2024, compared to an operating income of $220,298 in the same period last year[8] - Net loss for the quarter was $442,206, compared to a net income of $165,130 for the same period in 2023[8] - Total revenue for the three months ended June 30, 2024, was $4,598,516, a decrease of 31.3% from $6,698,771 in the same period of 2023[25] - Sales of products acquired from Eyston decreased to $3,934,490, down 33.0% from $5,863,863 in the prior year[25] - The company reported a net loss of $442,206 for the quarter ended June 30, 2024, compared to a net income of $165,130 in the prior year, marking a decrease of $607,336 (367.8%) in net income[44] Assets and Liabilities - Total current assets increased to $8,515,532 as of June 30, 2024, from $8,353,793 as of March 31, 2024, reflecting a growth of 1.9%[5] - Total liabilities increased significantly to $4,144,636 as of June 30, 2024, compared to $3,568,393 as of March 31, 2024, marking an increase of 16.1%[5] - The accumulated deficit rose to $(8,388,149) as of June 30, 2024, compared to $(7,945,943) at the end of the previous quarter[9] Cash Flow and Financing - The company experienced a net cash used in operating activities of $1,198,108 for the three months ended June 30, 2024, compared to net cash provided of $178,366 in the same period of 2023[14] - The company reported a net increase in cash of $256,458 for the three months ended June 30, 2024, compared to an increase of $89,315 in the same period of 2023[14] - Financing activities provided cash of $1,454,566 during the three months ended June 30, 2024, from borrowings net of advances from the factor[46] - The company had $2,223,419 borrowed and outstanding under the factoring agreement as of June 30, 2024[16] Expenses - Engineering and product development expenses increased to $87,601 for the quarter, up from $64,963 in the same period last year, indicating a rise of 34.7%[8] - Selling, general and administrative expenses were $1,397,421 for the three months ended June 30, 2024, representing 30.4% of net sales, an increase from 21.2% in the same period of 2023[43] - Cash used in operating activities was $1,198,108 for the three months ended June 30, 2024, primarily due to an increase in inventories and a decrease in accounts payable[45] - Interest paid during the three months ended June 30, 2024, was $44,888, a decrease from $50,496 in the same period of 2023[14] Strategic Initiatives - The company has developed new products based on advanced smoke and gas detection technologies, trademarked under the name IoPhic[40] - The company is monitoring changes in international trade duties, particularly tariffs on products imported from China, which could impact costs[41] - The company believes its cash balances and available borrowing will be sufficient to meet cash requirements over the next twelve months[47] - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 10% to 12%[101] - New product launches are expected to contribute an additional $5 million in revenue in the upcoming quarter[101] - The company is investing in new technology development, with a budget allocation of $2 million for R&D in the next fiscal year[101] - Market expansion efforts are underway, targeting a 20% increase in market share in the next 12 months[101] - The company is exploring potential acquisition opportunities to enhance its product offerings and market presence[101] - A new strategic partnership was announced, expected to generate $3 million in additional revenue over the next year[101] - The company has set a goal to reduce operational costs by 5% through efficiency improvements[101] - The management emphasized the importance of maintaining a strong balance sheet, with a current cash position of $10 million[101]

Financial Performance - For the fiscal year ended March 31, 2024, the company reported a net loss of $395,790, a decrease of $1,116,201 (154.9%) compared to net income of $720,411 for fiscal 2023[61]. - The gross profit percentage for the fiscal year ended March 31, 2024, was 29.2%, an increase from 28.6% in fiscal 2023, attributed to variations in the mix of products sold[58]. - Working capital decreased by $391,075 from $5,176,475 on March 31, 2023, to $4,785,400 on March 31, 2024[62]. Expenses - Engineering and product development expenses increased to $427,234 for the fiscal year ended March 31, 2024, compared to $402,692 in fiscal 2023, due to independent testing of products[59]. - Financing activities used cash of $690,497 reflecting a decrease in net borrowing from the Factor during the fiscal year ended March 31, 2024[65]. - The company faces challenges due to manufacturing delays caused by shortages of critical components and increased freight costs, insurance, and professional fees[61]. Future Outlook - The company expects future sales to benefit from the market shift towards ten-year sealed alarms due to new laws in several states[56]. - The company anticipates that its sealed battery alarm and ground fault circuit interrupter products will compete effectively in price and functionality with larger competitors[66]. Cash Flow - Operating activities provided cash of $1,491,943 for the year ended March 31, 2023, primarily from a decrease in inventories of $2,165,429[64]. - As of March 31, 2024, the company received interest income of $24,746 related to refunds of customs payments made in the prior fiscal year[60].

OWINGS MILLS, Md., July 12, 2024 (GLOBE NEWSWIRE) -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced its financial results for the fourth quarter and its fiscal year ended March 31, 2024. Three Months Ended March 31, 2024 2023 Net sales $ 4,831,469 $ 5,927,767 Net (loss) income (476,671 ) 284,635 Net (loss) income per share – basic and diluted (0.21 ) 0.12 Weighted average number of common shares outstanding Basic and diluted 2,312,887 2,312,887 The Company reported: For the fourth qua ...

Financial Performance - Net sales for the three months ended December 31, 2023, were $4,654,978, a decrease of $1,103,683 (19.2%) compared to the same period in 2022[54]. - For the nine months ended December 31, 2023, net sales were $15,071,204, a decrease of $1,179,902 (7.3%) compared to the same period in 2022[60]. - Net income for the quarter ended December 31, 2023, was $102,176, a decrease of $239,136 (70.1%) from the corresponding quarter in the prior fiscal year[59]. - Net income for the nine months ended December 31, 2023, was $80,881, a decrease of $354,895 (81.4%) from the corresponding period in the prior fiscal year[65]. Profitability Metrics - Gross profit margin increased to 32.3% for the quarter ended December 31, 2023, compared to 29.5% for the same quarter in 2022[55]. - The gross profit margin for the nine-month period ended December 31, 2023, was 30.0%, compared to 28.8% for the same period in 2022[61]. Expenses - Selling, general and administrative expenses rose to $1,310,872 for the three months ended December 31, 2023, representing 28.2% of net sales, up from 20.5% in the prior year[56]. - Selling, general and administrative expenses for the nine months ended December 31, 2023, were $4,068,162, or 27.0% of sales, up from 23.1% in the prior year[62]. Cash Flow - Operating activities provided cash of $225,962 for the nine months ended December 31, 2023, compared to $347,270 for the same period in 2022[66]. - Financing activities used cash of $338,286 during the nine months ended December 31, 2023, compared to $585,850 in the prior year[68].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-31747 UNIVERSAL SECURITY INSTRUMENTS, INC. (Exact name of registrant as specified in its charter) Maryland 52-0898545 (State or other jurisdiction of ( ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-31747 UNIVERSAL SECURITY INSTRUMENTS, INC. (Exact name of registrant as specified in its charter) Maryland 52-0898545 (State or other jurisdiction of (I.R.S ...

Financial Performance - For the fiscal year ended March 31, 2023, the company's net sales increased to $22,178,873, representing a 13.4% increase from $19,549,785 in the prior year[44]. - Gross profit percentage decreased to 28.6% in fiscal 2023 from 30.9% in fiscal 2022, attributed to product mix variations and tariff impacts[45]. - Selling, general and administrative expenses decreased to $4,974,453 in fiscal 2023, down from $5,524,343 in fiscal 2022, representing 22.4% of net sales compared to 28.3% in the prior year[46]. - The company reported net income of $720,411 for fiscal 2023, a significant increase of $798,561 (1,021.8%) compared to a net loss of $78,150 in fiscal 2022[50]. Cash Flow and Working Capital - Working capital increased by $724,528 from $4,451,947 on March 31, 2022, to $5,176,475 on March 31, 2023[51]. - Operating activities generated cash of $1,491,943 for the year ended March 31, 2023, primarily from a decrease in inventories of $2,165,429[52]. - Interest expense increased to $237,686 in fiscal 2023 from $147,840 in fiscal 2022, primarily due to rising interest rates on borrowings[48]. - The unused availability of the factoring facility totaled approximately $852,000 on March 31, 2023[58]. Customer and Supplier Concentration - The Company had one customer representing 18.2% of net sales for the fiscal year ended March 31, 2023, compared to no customers exceeding 10% in the previous fiscal year[70]. - Accounts receivable from Eyston Company, Ltd. amounted to $75,947 as of March 31, 2023, down from $358,958 in the previous year[70]. - Eyston Company, Ltd. accounted for approximately 88.5% of the Company's purchases in the fiscal year ended March 31, 2023, compared to 83.6% in 2022[70]. Market Outlook - The company anticipates that the shift towards ten-year sealed alarms will positively impact future sales of its sealed battery units and other electrical devices[43]. - The company’s financial condition remains dependent on the strength of the U.S. housing market, which directly affects sales through its USI Electric subsidiary[42].