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].

Financial Performance - Net sales for the three months ended December 31, 2020, were $5,124,750, an increase of $1,901,072 (59.0%) compared to the same period in 2019[65] - Net income for the quarter ended December 31, 2020, was $78,318, a significant improvement of $1,090,151 (107.7%) from a net loss of $(1,011,833) in the same quarter of the previous year[70] - For the nine months ended December 31, 2020, net sales were $14,522,813, an increase of $3,333,575 (29.8%) compared to the same period in 2019[71] Profitability - Gross profit margin improved to 29.7% for the quarter ended December 31, 2020, up from 23.9% in the prior year, positively impacted by reduced tariffs[66] - The gross profit margin for the nine months ended December 31, 2020, was 32.4%, up from 27.8% in the prior year, benefiting from tariff refunds[72] Expenses - Research and development expenses decreased by $63,160 (37.2%) to $106,608 for the quarter ended December 31, 2020, due to lower payments to engineering consultants[68] - Interest expense for the quarter ended December 31, 2020, was $14,086, a decrease of $105,222 (88.2%) from $119,308 in the same quarter of 2019[69] Working Capital and Financing - The Company anticipates sufficient working capital for the next twelve months, supported by increased sales and funds from the Paycheck Protection Program[62] - The unused availability under the factoring agreement totaled approximately $3,482,000 at December 31, 2020[79] - Financing activities used cash of $1,340,265 during the nine months ended December 31, 2020, compared to $506,930 for the same period in 2019[83] - Loan proceeds of $221,400 were received under the Paycheck Protection Program of the CARES Act for the nine months ended December 31, 2020[83] - Repayments, net of advances on the line of credit from the factor, amounted to $1,561,665 for the nine months ended December 31, 2020, compared to $506,930 for the same period in 2019[83] Compliance and Accounting - The Company is executing a plan to regain compliance with NYSE listing requirements by increasing sales and reducing liabilities, including a $4,000,000 reduction from the sale of its interest in the Hong Kong Joint Venture[77] - There have been no material changes to the significant accounting policies since the filing of the Form 10-K[84] - The accounting principles used in preparing the unaudited condensed consolidated financial statements conform to U.S. generally accepted accounting principles[84]

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 September 30, 2020 OR 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.) 11407 Cronhill Drive, Suite A Owings Mills ...

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 June 30, 2020 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 incorpo ...

Financial Performance - Net sales for the fiscal year 2020 were $14,803,024, a decrease of $2,785,016 (15.8%) compared to $17,588,040 in fiscal 2019[51] - Gross profit percentage for fiscal year 2020 was 25.4%, down from 31.6% in fiscal 2019, attributed to the mix of products sold[52] - The company reported a net loss of $5,813,891 for fiscal year 2020, an increase of $4,465,905 (331.3%) from a net loss of $1,347,986 in fiscal 2019[57] - The Hong Kong Joint Venture's sales decreased to $8,054,070 in fiscal 2020 from $13,252,710 in fiscal 2019, primarily due to reduced sales to the company[67] - Gross margins for the Hong Kong Joint Venture fell to 3.4% in fiscal 2020 from 13.0% in the prior fiscal year[68] Expenses - Selling, general and administrative expenses decreased to $4,628,881 in fiscal 2020 from $4,864,522 in fiscal 2019, but increased as a percentage of net sales to 31.3%[53] - Research and development expenses rose to $691,886 in fiscal 2020, with approximately $200,000 allocated for new product development, compared to $502,845 in fiscal 2019[54] Working Capital - Working capital increased by $2,705,185 from $2,354,313 on March 31, 2019, to $5,059,498 on March 31, 2020[59] Future Outlook - The company anticipates improved profitability with the expected growth in sales of sealed battery alarms and ground fault circuit interrupters[66] - The company received a Paycheck Protection Program loan of $221,400 under the CARES Act, which is expected to be forgiven[66] Revenue Recognition - The Company recognizes revenue from the sale of safety and security products at the point when control is transferred to the customer, typically upon shipment or delivery[76] - Revenue is recorded at the transaction price net of estimates of variable consideration, which may include trade discounts and product returns[77] Inventory and Valuation - Inventories are valued at the lower of cost or net realizable value, with cost determined using the first in/first out method[79] - The Company evaluates inventories quarterly and writes down obsolete or unmarketable inventory based on future demand assumptions[79] Allowances and Tax Positions - The Company has established allowances for anticipated doubtful accounts based on historical experience[78] - Deferred tax assets are reviewed periodically for recoverability, and a valuation allowance is established if it is more likely than not that the tax benefits will not be realized[74] - The Company follows ASC 740-10 for tax positions, recognizing the impact of a tax position if it is more likely than not to be sustained[75] Management Estimates - Management's estimates and judgments in preparing financial statements are based on historical experiences and current economic trends[74] Shipping and Handling - Shipping and handling costs after control has transferred are recorded as fulfillment costs in selling, general, and administrative expenses[76] Off-Balance Sheet Arrangements - The Company does not have any off-balance sheet arrangements that could materially affect liquidity or capital resources[80]

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, 2019 11407 Cronhill Drive, Suite A Owings Mills, Maryland 21117 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (410) 363-3000 Inapplicable (Former name, former address and former fiscal year if changed from last report.) Indicate by check ...

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 September 30, 2019 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 in ...

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 June 30, 2019 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 incorpo ...