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].

For the Quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 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 ...

Table of Contents For the Quarterly period ended June 30, 2022 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. Employer incorporation or organization) Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [☒] QUARTERLY REPORT PURSU ...

Table of Contents | | | Securities registered pursuant to Section 12(g) of the Act: UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended March 31, 2022 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to . Commission file number: 001-31747 UNIVERSAL SECURITY INSTRUMENTS, INC. (Exact name of re ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period ended December 31, 2021 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 11407 Cronhill Drive, Suite A ...

Financial Performance - Net sales for the three months ended September 30, 2021 were $5,272,223, a decrease of $1,185,072 (18.4%) compared to $6,457,295 in the prior year due to shipping delays and a lack of repeat orders from a major retailer [60]. - Net income for the quarter ended September 30, 2021 was $107,696, a decrease of $618,149 (85.2%) compared to $725,845 in the same quarter of the previous year [65]. - For the six months ended September 30, 2021, net sales were $9,940,221, an increase of $542,158 (5.8%) compared to $9,398,063 in the prior period, attributed to the ability to fill orders for new customers [66]. Profitability Metrics - Gross profit margin for the quarter ended September 30, 2021 was 29.9%, down from 32.6% in the prior year, primarily due to increased freight and tariff costs [61]. - Gross profit margin for the six months ended September 30, 2021 was 28.5%, down from 33.8% in the prior year, due to increased freight and customs charges [67]. Expenses - Selling, general and administrative expenses increased to $1,357,103 for the three months ended September 30, 2021, representing 25.7% of net sales, up from 19.6% in the prior year [63]. - Research and development expenses for the six months ended September 30, 2021 were $198,126, a decrease of $27,542 (12.2%) compared to $225,668 in the prior year [69]. - Interest expense for the six months ended September 30, 2021 was $23,798, significantly lower than $57,762 in the same period of the previous year [70]. Cash Flow and Working Capital - Operating activities used cash of $2,386,577 for the six months ended September 30, 2021, primarily due to an increase in accounts receivable and inventories [78]. - The Company anticipates that the availability from its factoring agreement and cash flows from operations will provide sufficient working capital for the next twelve months [76].

Financial Performance - Net sales for the three months ended June 30, 2021, were $4,667,998, an increase of $1,727,230 (58.7%) compared to $2,940,768 in the same period of 2020[54] - Gross profit margin decreased to 27.0% for the quarter ended June 30, 2021, down from 36.6% in the prior year, primarily due to higher supply chain costs[55] - Selling, general and administrative expenses were $1,133,139 for the three months ended June 30, 2021, representing 24.3% of net sales, a decrease from 33.6% in the prior year[58] - Research and development expenses decreased by $32,862 (24.5%) to $101,056 for the three months ended June 30, 2021, due to lower payments to engineering consultants[59] - Net income for the quarter ended June 30, 2021, was $14,641, a significant improvement of $93,623 (118.5%) compared to a net loss of $78,982 in the same quarter of the previous year[61] Cash Flow - Operating activities used cash of $196,612 for the three months ended June 30, 2021, primarily due to an increase in accounts receivable[68] - Financing activities provided cash of $86,379 for the three months ended June 30, 2021, compared to cash used of $562,580 in the same period of 2020[70] - The unused availability under the Factoring Agreement was approximately $2,428,000 at June 30, 2021, which decreased to approximately $223,000 by August 19, 2021[64] Product Development - The Company has developed new products based on improved smoke and gas detection technologies, branded under the trade name IoPhic[52] Compliance and Strategy - The Company is working to regain compliance with NYSE listing requirements by increasing sales and improving financial performance[62]

Financial Performance - For the fiscal year 2021, the company's net sales increased to $17,520,151, representing an 18.4% increase from $14,803,024 in fiscal 2020[53]. - The gross profit percentage for fiscal year 2021 was 32.2%, up from 25.4% in fiscal 2020, attributed to increased demand and tariff refunds[54]. - Selling, general and administrative expenses rose to $5,034,380 in fiscal 2021, but decreased as a percentage of net sales to 28.7% from 31.3% in fiscal 2020[55]. - The company reported a net income of $268,343 for fiscal year 2021, a significant improvement from a net loss of $5,813,891 in fiscal 2020[59]. Cash Flow and Working Capital - Working capital increased by $505,103 from $5,059,498 on March 31, 2020, to $5,564,601 on March 31, 2021[61]. - Operating activities generated cash of $1,388,172 for the year ended March 31, 2021, primarily from a decrease in inventories of $942,766[62]. Future Outlook - The company anticipates that improved housing market conditions and sales of sealed products will enhance profitability going forward[63]. Research and Development - Research and development expenses decreased to $471,545 in fiscal 2021 from $691,886 in fiscal 2020 due to reduced independent testing[56]. Customer Concentration - One customer represented 21.9% of the Company's net sales for the fiscal year ending March 31, 2021, while two customers accounted for 12.2% and 10.3% of net sales for the fiscal year ending March 31, 2020[82]. Revenue Recognition - Revenue is recognized at the point when control over the product is transferred to the customer, typically upon shipment or delivery[77]. - The primary source of revenue is from the sale of safety and security products based on purchase orders or contracts[77]. Inventory Management - The Company evaluates inventories quarterly and writes down obsolete or unmarketable inventory based on future demand and market conditions[80]. - The Company uses the expected value method to estimate variable consideration, including trade discounts and product returns, ensuring that significant reversals in recognized revenue are unlikely[78]. Accounts Receivable - Accounts receivable due from Eyston Company, Ltd. amounted to $381,401 as of March 31, 2021, as the Company acquires all smoke alarm and carbon monoxide alarm products from this supplier[82]. - The Company established allowances for doubtful accounts based on historical experience[79]. Tax Positions - The Company recognized a liability for deferred tax assets due to temporary differences, establishing a valuation allowance to offset the value of these assets based on historical losses and uncertainty in generating future taxable income[74]. - The Company follows ASC 740-10 for tax positions, recognizing the impact of tax positions that are more likely than not to be sustained[75]. Off-Balance Sheet Arrangements - The Company does not have any off-balance sheet arrangements that materially affect liquidity or capital resources[81]. Loan Forgiveness - The company received a Paycheck Protection Program loan of $221,400 in May 2020, which was subsequently forgiven[67]. Joint Venture Performance - The Hong Kong Joint Venture reported sales of $8,054,070 for fiscal year 2020, with gross margins of 3.4%[68][69].