Universal Security Instruments(UUU) - 2020 Q1 - Quarterly Report

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].