Financial Performance - Net sales for the three months ended December 31, 2020, were $5,124,750, an increase of $1,901,072 (59.0%) compared to the same period in 2019[65] - Net income for the quarter ended December 31, 2020, was $78,318, a significant improvement of $1,090,151 (107.7%) from a net loss of $(1,011,833) in the same quarter of the previous year[70] - For the nine months ended December 31, 2020, net sales were $14,522,813, an increase of $3,333,575 (29.8%) compared to the same period in 2019[71] Profitability - Gross profit margin improved to 29.7% for the quarter ended December 31, 2020, up from 23.9% in the prior year, positively impacted by reduced tariffs[66] - The gross profit margin for the nine months ended December 31, 2020, was 32.4%, up from 27.8% in the prior year, benefiting from tariff refunds[72] Expenses - Research and development expenses decreased by $63,160 (37.2%) to $106,608 for the quarter ended December 31, 2020, due to lower payments to engineering consultants[68] - Interest expense for the quarter ended December 31, 2020, was $14,086, a decrease of $105,222 (88.2%) from $119,308 in the same quarter of 2019[69] Working Capital and Financing - The Company anticipates sufficient working capital for the next twelve months, supported by increased sales and funds from the Paycheck Protection Program[62] - The unused availability under the factoring agreement totaled approximately $3,482,000 at December 31, 2020[79] - Financing activities used cash of $1,340,265 during the nine months ended December 31, 2020, compared to $506,930 for the same period in 2019[83] - Loan proceeds of $221,400 were received under the Paycheck Protection Program of the CARES Act for the nine months ended December 31, 2020[83] - Repayments, net of advances on the line of credit from the factor, amounted to $1,561,665 for the nine months ended December 31, 2020, compared to $506,930 for the same period in 2019[83] Compliance and Accounting - The Company is executing a plan to regain compliance with NYSE listing requirements by increasing sales and reducing liabilities, including a $4,000,000 reduction from the sale of its interest in the Hong Kong Joint Venture[77] - There have been no material changes to the significant accounting policies since the filing of the Form 10-K[84] - The accounting principles used in preparing the unaudited condensed consolidated financial statements conform to U.S. generally accepted accounting principles[84]
Universal Security Instruments(UUU) - 2021 Q3 - Quarterly Report