Core Viewpoint - Universal Security Instruments, Inc. reported a significant increase in sales for the fiscal third quarter and nine months ended December 31, 2024, but also faced substantial net losses due to inventory sales and expenses related to a potential asset sale [2][3][4]. Financial Performance - For the three months ended December 31, 2024, sales increased by 18.9% to $5,535,148 compared to $4,654,978 for the same period last year [2]. - The company reported a net loss of $936,639, or $0.40 per basic and diluted share, compared to a net income of $102,176, or $0.04 per basic and diluted share for the same period last year [2][7]. - For the nine months ended December 31, 2024, sales increased by 15.0% to $17,336,933 versus $15,071,204 for the same period last year [3]. - The company reported a net loss of $801,867, or $0.35 per basic and diluted share, compared to a net income of $80,881, or $0.03 per basic and diluted share for the corresponding 2023 period [3][9]. Asset Sale and Future Outlook - The company entered into an Asset Purchase Agreement with Feit Electric Company, Inc. on October 29, 2024, which is expected to impact financial results due to bulk sales of excess and obsolete inventory at reduced margins [4]. - The company anticipates continuing normal operations while seeking shareholder approval for the asset sale, expected to close in the second quarter of calendar 2025 if approved [4]. - If the asset sale is not approved, the company may consider alternatives, including delisting its shares from the NYSE MKT [4]. Company Overview - Universal Security Instruments, Inc. is a U.S.-based manufacturer and distributor of safety and security devices, with a history of over 56 years in developing innovative products such as smoke, fire, and carbon monoxide alarms [5].
Universal Security Instruments Reports Second-Quarter Results