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]

Financial Performance - Net sales for the three months ended December 31, 2019 were $3,223,678, a decrease of $1,268,184 (28.2%) compared to the same period in 2018 [60]. - Gross profit margin for the three months ended December 31, 2019 was 23.9%, slightly up from 23.6% in the prior year [61]. - Selling, general and administrative expenses for the three months ended December 31, 2019 were $1,083,913, representing 33.6% of net sales, an increase from 24.9% in the prior year [62]. - The net loss for the quarter ended December 31, 2019 was $1,011,833, an increase of $494,840 (95.7%) compared to the same quarter in 2018 [65]. - Net sales for the nine months ended December 31, 2019 were $11,189,238, a decrease of $1,874,872 (14.3%) compared to the prior period [66]. - Gross profit margin for the nine months ended December 31, 2019 was 27.8%, down from 28.8% in the same period of the prior year [67]. - Selling, general and administrative expenses for the nine months ended December 31, 2019 were $3,455,661, representing 30.9% of sales, up from 26.2% in the prior year [68]. - The net loss for the nine months ended December 31, 2019 was $2,321,601, an increase of $1,244,451 (115.5%) compared to the same period in 2018 [71]. - The Joint Venture reported net sales of $1,680,617 for the three months ended December 31, 2019, a decrease of 47.8% compared to the prior year [72]. Lease Accounting - The Company adopted the new lease accounting standard (ASC 842) on April 1, 2019, with no net cumulative effect adjustment to the accumulated deficit [84]. - Right-of-use assets and lease liabilities related to the Company's operating leases amount to $475,538 at the date of adoption [87]. - The Company elected to account for lease and non-lease components as a single lease component under ASC 842 [85]. - Lease expense for operating leases is recognized on a straight-line basis over the lease term, including options to extend or terminate [86]. - The Company uses its incremental borrowing rate to determine the present value of lease payments when implicit rates are not provided [87]. - All existing lease agreements classified as operating leases under ASC 840 remain classified as operating leases under ASC 842 [86]. - The Company's leases include fixed lease payments and may also include variable payments based on a rate or index [85]. - None of the Company's lease agreements contain residual value guarantees or material restrictive covenants [86]. - The Company has options to renew certain leases at its sole discretion [85]. - Lease payments are included in the measurement of the Company's lease liabilities to the extent they are fixed or variable amounts based on the lease contract [85].

Financial Performance - Net sales for the three months ended September 30, 2019 were $3,622,269, a decrease of $903,983 (20.0%) compared to the same period in 2018[57] - For the six months ended September 30, 2019, net sales were $7,965,560, a decrease of $606,688 (7.1%) from the same period in 2018[63] - The Hong Kong Joint Venture reported net sales of $1,770,656 for the three months ended September 30, 2019, a decrease of 62.2% compared to the prior year[69] Profitability - Gross profit margin decreased to 30.1% for the quarter ended September 30, 2019, down from 32.2% in the prior year, primarily due to tariffs and product mix[58] - The gross profit margin for the six months ended September 30, 2019 was 29.3%, down from 31.5% in the prior year[64] - The company reported a net loss of $700,814 for the quarter, an increase of $579,490 (477.6%) compared to the prior year[62] - Net loss for the six months ended September 30, 2019 was $1,309,768, an increase of $749,611 (133.8%) compared to the same period in 2018[68] Expenses - Selling, general and administrative expenses increased to $1,134,909 for the three months ended September 30, 2019, representing 31.3% of net sales, up from 24.3% in 2018[59] - Research and development expenses rose by $55,815 (46.5%) to $176,733 for the quarter, driven by costs related to revised smoke alarm testing standards[60] - Interest expense for the six months ended September 30, 2019 was $213,028, up from $177,353 in the same period of the previous year[67] Lease Accounting - The Company adopted the new lease accounting standard ASC 842 on April 1, 2019, with no net cumulative effect adjustment to retained earnings[80] - Right-of-use assets and lease liabilities related to the Company's operating leases amount to $475,538 at the date of adoption[83] - The Company has elected to account for lease and non-lease components as a single lease component under ASC 842[81] - Lease expense for operating leases is recognized on a straight-line basis over the lease term, including options to extend or terminate[82] - The Company’s leases include fixed lease payments and may also include variable payments based on a rate or index[81] - None of the Company's lease agreements contain residual value guarantees or material restrictive covenants[82] - The Company uses its incremental borrowing rate to determine the present value of lease payments when implicit rates are not provided[83] - The Company has options to renew certain leases at its sole discretion[81] - Lease payments are included in the measurement of the Company's lease liabilities to the extent they are fixed or variable based on a rate or index[81] - The Company elected practical expedients that allow for the carryforward of historical lease classification[82]

Financial Performance - Net sales for the three months ended June 30, 2019, were $4,343,291, an increase of $297,295 (7.3%) compared to $4,045,996 in the same period of the prior year [52]. - The net loss for the quarter ended June 30, 2019, was $608,954, an increase of $170,121 (38.8%) compared to a net loss of $438,833 in the same quarter of the prior year [57]. - The Joint Venture's net sales for the three months ended June 30, 2019, were $3,149,100, a decrease from $3,266,557 in the prior year [58]. Profitability - Gross profit margin decreased to 28.7% for the quarter ended June 30, 2019, down from 30.7% in the prior year, primarily due to increased tariffs [53]. - The Joint Venture's gross profit margin decreased to 5.1% from 10.6% in the prior year, influenced by sales volume of various products [59]. Expenses - Selling, general and administrative expenses were $1,236,839, representing 28.5% of net sales, a decrease from 29.6% in the prior year [54]. - Research and development expenses decreased by $12,744 (8.3%) to $140,643 for the three months ended June 30, 2019, due to reduced expenditures on independent testing facilities [55]. Cash Flow and Working Capital - Working capital decreased by $400,973 from $2,354,313 at March 31, 2019, to $1,953,340 at June 30, 2019 [64]. - Operating activities provided cash of $5,336 for the three months ended June 30, 2019, primarily due to an increase in accounts payable and accrued expenses [68]. Future Outlook - The Company plans to increase sales through the delivery of its line of sealed battery ionization smoke alarms and ground fault circuit interrupters, expecting continued growth [67].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended March 31, 2019 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 registrant as specified in its charter) | MARYLAND | 52-0898545 | | --- | --- | | (Sta ...

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, 2018 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) (State or other jurisdiction of (I.R.S. Employer incorporation or organi ...