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]
Universal Security Instruments(UUU) - 2025 Q1 - Quarterly Report