Financial Performance - Net sales for the three months ended September 30, 2021 were $5,272,223, a decrease of $1,185,072 (18.4%) compared to $6,457,295 in the prior year due to shipping delays and a lack of repeat orders from a major retailer [60]. - Net income for the quarter ended September 30, 2021 was $107,696, a decrease of $618,149 (85.2%) compared to $725,845 in the same quarter of the previous year [65]. - For the six months ended September 30, 2021, net sales were $9,940,221, an increase of $542,158 (5.8%) compared to $9,398,063 in the prior period, attributed to the ability to fill orders for new customers [66]. Profitability Metrics - Gross profit margin for the quarter ended September 30, 2021 was 29.9%, down from 32.6% in the prior year, primarily due to increased freight and tariff costs [61]. - Gross profit margin for the six months ended September 30, 2021 was 28.5%, down from 33.8% in the prior year, due to increased freight and customs charges [67]. Expenses - Selling, general and administrative expenses increased to $1,357,103 for the three months ended September 30, 2021, representing 25.7% of net sales, up from 19.6% in the prior year [63]. - Research and development expenses for the six months ended September 30, 2021 were $198,126, a decrease of $27,542 (12.2%) compared to $225,668 in the prior year [69]. - Interest expense for the six months ended September 30, 2021 was $23,798, significantly lower than $57,762 in the same period of the previous year [70]. Cash Flow and Working Capital - Operating activities used cash of $2,386,577 for the six months ended September 30, 2021, primarily due to an increase in accounts receivable and inventories [78]. - The Company anticipates that the availability from its factoring agreement and cash flows from operations will provide sufficient working capital for the next twelve months [76].
Universal Security Instruments(UUU) - 2022 Q2 - Quarterly Report