Universal Security Instruments(UUU) - 2025 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended September 30, 2024, were $7,203,269, an increase of $3,485,814 (93.8%) compared to the same period in 2023, primarily due to the timing of orders from a large retail customer [60]. - Net income for the quarter ended September 30, 2024, was $576,978, a $763,403 (409.5%) increase from a net loss of $186,425 in the same quarter of the previous year [66]. - For the six months ended September 30, 2024, net sales were $11,801,785, an increase of $1,385,559 (13.3%) compared to the same period in 2023, attributed to improved delivery times and order timing [67]. Profitability Metrics - Gross profit margin decreased to 27.7% for the quarter ended September 30, 2024, down from 35.2% in the prior year, mainly due to increased allowance for excess and obsolete inventory and rising costs of electronic components [61]. - Gross profit margin for the six-month period ended September 30, 2024, was 26.1%, down from 29.0% in the prior year, impacted by increased allowance for excess inventory and rising costs of electronic components [68]. Expenses Management - Selling, general and administrative expenses decreased to $1,209,352 for the three months ended September 30, 2024, from $1,334,351 in the prior year, representing 16.8% of net sales compared to 35.9% [62]. - Selling, general and administrative expenses for the six months ended September 30, 2024, were $2,606,773, a decrease from $2,757,290 in the prior year, representing 22.1% of sales compared to 26.5% [69]. Cash Flow - Operating activities used cash of $3,278,163 for the six months ended September 30, 2024, primarily due to increases in accounts receivable and inventory [73]. - Financing activities provided cash of $3,447,281 during the six months ended September 30, 2024, compared to cash used of $547,203 in the prior year [75]. Interest Expense - Interest expense increased to $134,530 for the six months ended September 30, 2024, compared to $84,005 in the same period of the previous year [71].