Universal Security Instruments(US:UUU)2025-11-19 21:36Financial Performance - Net sales for the three months ended September 30, 2025, were $759,999, a decrease of $6,443,270 (89.4%) compared to $7,203,269 in the prior year due to the sale of the smoke and carbon monoxide alarm business[69]. - For the six months ended September 30, 2025, net sales were $4,584,246, a decrease of $7,217,539 (61.2%) compared to $11,801,785 in the prior year[76]. Profitability - Gross profit margin increased to 60.4% for the quarter ended September 30, 2025, compared to 27.7% for the same quarter in 2024, primarily due to a refund of previously recorded tariffs[70]. - The gross profit margin for the six months ended September 30, 2025, was 25.2%, down from 26.1% in the same period of 2024[77]. - The company reported a net loss of $999,780 for the quarter ended September 30, 2025, compared to net income of $576,978 in the same quarter of the previous year, a decrease of $1,576,758 (273.3%) in net income[75]. - The company reported net income of $810,541 for the six months ended September 30, 2025, an increase of $675,769 (501.4%) compared to $134,772 in the same period of the previous year, driven by the gain on the sale of the smoke and carbon monoxide business[81]. Expenses - Selling, general and administrative expenses rose to $1,311,187 for the three months ended September 30, 2025, representing 172.5% of net sales, up from 16.8% in the prior year[72]. - Selling, general and administrative expenses for the six months ended September 30, 2025, were $2,424,490, accounting for 52.9% of sales, up from 22.1% in the prior year[78]. Cash Flow - Operating activities provided cash of $3,940,773 for the six months ended September 30, 2025, primarily due to a decrease in accounts receivable and inventories[82]. Strategic Actions - The company closed the asset sale to Feit Electric Company on May 22, 2025, allowing it to focus on importing and marketing other product lines[67].