Financial Performance - Net sales for the three months ended June 30, 2021, were $4,667,998, an increase of $1,727,230 (58.7%) compared to $2,940,768 in the same period of 2020[54] - Gross profit margin decreased to 27.0% for the quarter ended June 30, 2021, down from 36.6% in the prior year, primarily due to higher supply chain costs[55] - Selling, general and administrative expenses were $1,133,139 for the three months ended June 30, 2021, representing 24.3% of net sales, a decrease from 33.6% in the prior year[58] - Research and development expenses decreased by $32,862 (24.5%) to $101,056 for the three months ended June 30, 2021, due to lower payments to engineering consultants[59] - Net income for the quarter ended June 30, 2021, was $14,641, a significant improvement of $93,623 (118.5%) compared to a net loss of $78,982 in the same quarter of the previous year[61] Cash Flow - Operating activities used cash of $196,612 for the three months ended June 30, 2021, primarily due to an increase in accounts receivable[68] - Financing activities provided cash of $86,379 for the three months ended June 30, 2021, compared to cash used of $562,580 in the same period of 2020[70] - The unused availability under the Factoring Agreement was approximately $2,428,000 at June 30, 2021, which decreased to approximately $223,000 by August 19, 2021[64] Product Development - The Company has developed new products based on improved smoke and gas detection technologies, branded under the trade name IoPhic[52] Compliance and Strategy - The Company is working to regain compliance with NYSE listing requirements by increasing sales and improving financial performance[62]
Universal Security Instruments(UUU) - 2022 Q1 - Quarterly Report