Universal Security Instruments Inc. Files 2024 10-K

TL;DR

USUR 10-K filed for FY24. Financials for safety alarms & fans detailed.

AI Summary

Universal Security Instruments Inc. filed its 10-K for the fiscal year ending March 31, 2024. The company, headquartered in Owings Mills, MD, operates in the wholesale of electronic parts and equipment. Key financial data points such as retained earnings and additional paid-in capital for the fiscal years ending March 31, 2022, 2023, and 2024 are detailed within the filing.

Why It Matters

This filing provides investors and analysts with a comprehensive overview of Universal Security Instruments Inc.'s financial performance and position for the fiscal year ending March 31, 2024.

Risk Assessment

Risk Level: low — The filing is a standard annual report and does not indicate any immediate or unusual risks.

Key Numbers

• 2024-03-31 — Fiscal Year End (Reporting period for the 10-K)
• 2023-04-01 — Fiscal Year Start (Beginning of the reporting period)

Key Players & Entities

• UNIVERSAL SECURITY INSTRUMENTS INC (company) — Filer of the 10-K
• 2024-03-31 (date) — Fiscal year end
• 2023-03-31 (date) — Previous fiscal year end
• 2022-03-31 (date) — Prior fiscal year end
• Owings Mills, MD (location) — Company headquarters

FAQ

Key Financial Figures

• $19,902,673 — for the year ended March 31, 2024, were $19,902,673 compared to $22,178,873 for the year en
• $22,178,873 — 31, 2024, were $19,902,673 compared to $22,178,873 for the year ended March 31, 2023. We r
• $395,790 — rch 31, 2023. We reported a net loss of $395,790 in fiscal 2024 compared to net income o
• $720,411 — n fiscal 2024 compared to net income of $720,411 in fiscal 2023, a decrease in net earni
• $1,116,201 — cal 2023, a decrease in net earnings of $1,116,201. The net loss for the fiscal year ended
• $2,382,000 — as of March 31, 2023, was approximately $2,382,000. The increase in backlog is primarily d
• $15,000 — rea maintenance, currently approximates $15,000 and increases 3.0% per year. Effective
• $4,900 — mon area maintenance, was approximately $4,900 per month during the current fiscal yea
• $1.59 — e for the Common Stock on that date was $1.59. We have not paid any cash dividends on
• $2,276,200 — rior year of $22,178,873, a decrease of $2,276,200 (10.3%). The decrease in sales was prim
• $5,645,584 — nd administrative expenses increased to $5,645,584 in fiscal 2024 from $4,974,453 in fisca
• $4,974,453 — eased to $5,645,584 in fiscal 2024 from $4,974,453 in fiscal 2023. As a percentage of net
• $427,234 — e fiscal year ended March 31, 2024, was $427,234. Engineering and product development ex
• $402,692 — e fiscal year ended March 31, 2023, was $402,692. The increase in overall engineering an
• $155,731 — ompany incurred net interest expense of $155,731 and $237,686, respectively, related to

Filing Documents

• uuu-20240331x10k.htm (10-K) — 685KB
• uuu-20240331xex23d1.htm (EX-23.1) — 3KB
• uuu-20240331xex31d1.htm (EX-31.1) — 12KB
• uuu-20240331xex31d2.htm (EX-31.2) — 12KB
• uuu-20240331xex32d1.htm (EX-32.1) — 7KB
• uuu-20240331xex99d1.htm (EX-99.1) — 89KB
• uuu-20240331xex99d1001.jpg (GRAPHIC) — 7KB
• uuu-20240331xex99d1002.jpg (GRAPHIC) — 3KB
• 0001410578-24-001074.txt ( ) — 3512KB
• uuu-20240331.xsd (EX-101.SCH) — 32KB
• uuu-20240331_cal.xml (EX-101.CAL) — 34KB
• uuu-20240331_def.xml (EX-101.DEF) — 81KB
• uuu-20240331_lab.xml (EX-101.LAB) — 273KB
• uuu-20240331_pre.xml (EX-101.PRE) — 184KB
• uuu-20240331x10k_htm.xml (XML) — 360KB

Business

Business 3 Item 1B. Unresolved Staff Comments 4 Item 1C. Cybersecurity 4 Item 2.

Properties

Properties 5 Item 3.

Legal Proceedings

Legal Proceedings 5 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 6 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 10 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 10 Item 9A.

Controls and Procedures

Controls and Procedures 10 Item 9B. Other Information 11 PART III Item 10. Directors, Executive Officers and Corporate Governance 12 Item 11.

Executive Compensation

Executive Compensation 12 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 12 Item 13. Certain Relationships and Related Transactions, and Director Independence 12 Item 14. Principal Accountant Fees and Services 12 PART IV Item 15. Exhibits 13

Signatures

Signatures 15 2 Table of Contents PART I ITEM 1 .

BUSINESS

BUSINESS General Universal Security Instruments, Inc. ("we" or "the Company") designs and markets a variety of popularly priced safety products consisting primarily of smoke alarms, carbon monoxide alarms and related products. Most of our products require minimal installation and are designed for easy installation by the consumer without professional assistance and are sold through retail stores. We also market products to the electrical distribution trade through our wholly owned subsidiary, USI Electric, Inc. ("USI Electric"). The electrical distribution trade includes electrical and lighting distributors as well as manufactured housing companies. Products sold by USI Electric usually require professional installation. Our sales for the year ended March 31, 2024, were $19,902,673 compared to $22,178,873 for the year ended March 31, 2023. We reported a net loss of $395,790 in fiscal 2024 compared to net income of $720,411 in fiscal 2023, a decrease in net earnings of $1,116,201. The net loss for the fiscal year ended March 31, 2024, is attributed to a decrease in sales to retail customers, and increased selling, general, and administrative expense, principally increased insurance, professional fees, salaries, and allowances for credit losses. The Company was incorporated in Maryland in 1969. Our principal executive office is located at 11407 Cronhill Drive, Suite A, Owings Mills, Maryland 21117, and our telephone number is 410-363-3000. Information about us may be obtained from our website www.universalsecurity.com. Copies of our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, are available free of charge on our website as soon as they are filed with the Securities and Exchange Commission (SEC) through a link to the SEC's EDGAR reporting system. Simply select the "Investor Relations" menu item, and then click on the "SEC Filings" link. The SEC's EDGAR reporting system can also be accessed directly at www.sec.gov .

PROPERTIES

PROPERTIES Effective March 2022, we extended our operating lease for a 15,000 square foot office and warehouse located in Baltimore County, Maryland to expire in April 2025 subject to a right to terminate the lease if the Company enters into a binding agreement to sell the assets of the Company. Monthly rental expense, with common area maintenance, currently approximates $15,000 and increases 3.0% per year. Effective March 2003, we entered into an operating lease for office space in Naperville, Illinois. This lease, consisting of 3,400 square feet, is continued on a month-to-month basis. The monthly rental, with common area maintenance, was approximately $4,900 per month during the current fiscal year. The Company believes that its current facilities are currently suitable and adequate. ITEM 3 .

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS From time to time the Company is involved in various claims and routine litigation matters. In the opinion of management, after consultation with legal counsel, the outcomes of such matters are not anticipated to have a material adverse effect on the Company's consolidated financial position, results of operations, or cash flows. 5 Table of Contents PART II ITEM 5 . MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Common Stock Our common stock, $.01 par value (the "Common Stock") trades on the NYSE MKT LLC exchange, under the symbol UUU. As of March 31, 2024, there were 121 record holders of the Common Stock. The closing price for the Common Stock on that date was $1.59. We have not paid any cash dividends on our common stock, and it is our present intention to retain all cash flow for use in future operations. As previously announced, while the Company continues to generate sufficient capital to satisfy the ongoing cash requirements for its current operations, management believes that access to additional funding or other resources, or identifying the right strategic business combination, would allow the Company to drive long term value for its shareholders while taking advantage of sales growth opportunities that the Company seeks to execute. Management believes that it would be advantageous to the Company and its shareholders to explore strategic alternatives as the Company pursues additional sources of capital. There is no deadline or definitive timetable set for completion of the strategic alternatives process, and there can be no assurance any proposal will be made or accepted, any agreement will be executed, or any transaction will be consummated. ITEM 7 .

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Forward-Looking Statements When used in this discussion and elsewhere in this Annual Report on Form 10-K, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and readers are advised that various factors, including Risk Factors discussed in earlier filings, and other risks could affect our financial performance and could cause our actual results for future periods to differ materially from those anticipated or projected. We do not undertake and specifically disclaim any obligation to update any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. General We are in the business of marketing and distributing safety and security products which are primarily manufactured in the Peoples Republic of China (PRC). Our consolidated financial statements detail our sales and other operational results. Accordingly, the following discussion and analysis of the fiscal years ended March 31, 2024, and 2023 relate to the operational results of the Company and its consolidated subsidiaries. Our overall sales are primarily dependent upon the strength of the U.S. housing market. As stated elsewhere in this report, our USI Electric subsidiary markets our products to the electrical distribution trade (primarily electrical and lighting distributors and manufactured housing companies); conditions that impact new home construction and new home sales directly impacts sales by our USI Electric subsidiary. Our operating results for the fiscal years ended March 31, 2024, and 2023 continue to be dependent upon the economic conditions of the U.S. housing market.

View Full Filing

View this 10-K filing on SEC EDGAR