Universal Security Instruments Announces its Fourth-Quarter and Year-End Results

Core Viewpoint - Universal Security Instruments, Inc. reported a significant decline in both net sales and net income for the fourth quarter and the fiscal year ended March 31, 2024, indicating challenges in the business environment, including supply chain issues and increased costs [1][3][4]. Financial Performance - For the fourth quarter ended March 31, 2024, net sales decreased by $1,096,298 (18.5%) to $4,831,469 compared to $5,927,767 in the same period last year [2][3]. - The company reported a net loss of $476,671, or $0.21 per share, compared to a net income of $284,635, or $0.12 per share for the same period last year [2][3]. - For the fiscal year ended March 31, 2024, net sales decreased by $2,276,200 (10.3%) to $19,902,673 from $22,178,873 in the previous fiscal year [3][8]. - The company reported a net loss of $395,790, or $0.17 per share, compared to a net income of $720,411, or $0.31 per share for the same period last year [3][8]. Operational Challenges - The financial results included approximately $150,000 related to an insurance audit and an increase in the provision for credit losses of about $168,000 recorded in the fourth quarter [4]. - Sales were negatively impacted by supply chain issues and rising ocean freight rates, which contributed to the overall decline in performance [4]. Balance Sheet Highlights - As of March 31, 2024, total assets were $8,544,750, an increase from $8,399,874 in the previous year [8][9]. - Cash decreased to $65,081 from $151,502 year-over-year, while accounts receivable also saw a decline [8]. - Total current liabilities increased to $3,568,393 from $2,868,985, indicating a rise in financial obligations [8].