Financial Performance - Net sales for the three months ended December 31, 2024, were $5,535,148, an increase of $880,170 (18.9%) compared to the same period in 2023[59] - For the nine months ended December 31, 2024, net sales were $17,336,933, an increase of $2,265,729 (15.0%) compared to the same period in 2023[66] - The company reported a net loss of $936,639 for the quarter ended December 31, 2024, compared to net income of $102,176 in the same quarter of the previous year, a decrease of $1,038,815[65] Profitability Metrics - Gross profit margin decreased to 18.5% for the quarter ended December 31, 2024, down from 32.3% in the prior year, primarily due to bulk sales of excess inventory at reduced margins[60] - Gross profit margin for the nine-month period ended December 31, 2024, was 23.7%, down from 30.0% in the prior year, due to increased costs and inventory allowances[67] Expenses - Selling, general and administrative expenses increased to $1,762,446 for the three months ended December 31, 2024, representing 31.8% of net sales, up from 28.2% in 2023[61] - Selling, general and administrative expenses for the nine months ended December 31, 2024, were $4,369,219, or 25.2% of sales, compared to 27.0% in the prior year[68] - Engineering and product development expenses increased by $53,100 (68.7%) to $130,395 for the quarter ended December 31, 2024, primarily due to higher product development costs[63] Cash Flow - The company used cash of $736,999 in operating activities for the nine months ended December 31, 2024, primarily due to a net loss and changes in working capital[72] - Financing activities provided cash of $730,800 during the nine months ended December 31, 2024, compared to cash used of $338,286 in the same period of the previous year[74]
Universal Security Instruments(UUU) - 2025 Q3 - Quarterly Report