Universal Security Instruments Inc. Q1 2025 Update

TL;DR

USUR Q1 2025: Financials updated, Eyston product lines integrated.

AI Summary

Universal Security Instruments Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial information, including retained earnings and additional paid-in capital as of June 30, 2024, and March 31, 2024. It also references specific product lines like GFCIS and Ventilation Fans acquired from Eyston Company Ltd. during the first quarter of fiscal year 2025.

Why It Matters

This filing provides a snapshot of Universal Security Instruments Inc.'s financial health and operational activities for the first quarter of its fiscal year 2025, offering insights into its capital structure and product line developments.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report with no immediate indicators of significant financial distress or major operational shifts.

Key Numbers

• 2024-06-30 — Reporting Date (End of the first quarter of fiscal year 2025)
• 2024-03-31 — Previous Fiscal Year End (Comparison point for financial data)

Key Players & Entities

• UNIVERSAL SECURITY INSTRUMENTS INC (company) — Filer
• 20240630 (date) — Reporting period end date
• Eyston Company Ltd. (company) — Supplier of acquired products
• GFCIS and Ventilation Fans (product) — Specific product lines mentioned

FAQ

Filing Documents

• uuu-20240630x10q.htm (10-Q) — 493KB
• uuu-20240630xex31d1.htm (EX-31.1) — 12KB
• uuu-20240630xex31d2.htm (EX-31.2) — 12KB
• uuu-20240630xex32d1.htm (EX-32.1) — 6KB
• uuu-20240630xex99d1.htm (EX-99.1) — 79KB
• uuu-20240630xex99d1001.jpg (GRAPHIC) — 4KB
• uuu-20240630xex99d1002.jpg (GRAPHIC) — 2KB
• 0001410578-24-001526.txt ( ) — 2194KB
• uuu-20240630.xsd (EX-101.SCH) — 22KB
• uuu-20240630_cal.xml (EX-101.CAL) — 26KB
• uuu-20240630_def.xml (EX-101.DEF) — 52KB
• uuu-20240630_lab.xml (EX-101.LAB) — 179KB
• uuu-20240630_pre.xml (EX-101.PRE) — 112KB
• uuu-20240630x10q_htm.xml (XML) — 147KB

- Financial Information

Part I - Financial Information Page Item 1. Condensed Consolidated Financial Statements: Condensed Consolidated Balance Sheets at June 30, 2024 (unaudited) and March 31, 2024 3 Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statement of Shareholders' Equity for the Three Months Ended June 30, 2024 (unaudited) 5 Condensed Consolidated Statement of Shareholders' Equity for the Three Months Ended June 30, 2023 (unaudited) 6 Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2024 and 2023 (unaudited) 7 Notes to Condensed Consolidated Financial Statements (unaudited) 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 4.

Controls and Procedures

Controls and Procedures 15

- Other Information

Part II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 15 Item 6. Exhibits 16

Signatures

Signatures 17 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS UNIVERSAL SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (unaudited) (audited) June 30, 2024 March 31, 2024 CURRENT ASSETS Cash $ 321,539 $ 65,081 Accounts receivable: Trade, net of provision for credit losses of $ 325,000 602,383 1,101,991 Receivables - other 5,500 5,500 607,883 1,107,491 Amount due from factor 2,347,281 2,202,663 Inventories – finished goods 5,106,588 4,751,826 Prepaid expenses 132,241 226,732 TOTAL CURRENT ASSETS 8,515,532 8,353,793 INTANGIBLE ASSETS - NET 30,183 31,301 PROPERTY AND EQUIPMENT – NET 119,742 159,656 TOTAL ASSETS $ 8,665,457 $ 8,544,750 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Line of credit - factor $ 2,223,419 $ 768,853 Short-term portion of operating lease liability 132,659 158,742 Accounts payable - trade 910,486 870,323 Accounts payable – Eyston Company Ltd. 616,119 1,501,169 Accrued liabilities: Accrued payroll and employee benefits 155,588 154,878 Accrued commissions and other 106,365 114,428 TOTAL CURRENT LIABILITIES 4,144,636 3,568,393 LONG-TERM PORTION OF OPERATING LEASE LIABILITY — 13,330 TOTAL LONG-TERM LIABILITIES — 13,330 COMMITMENTS AND CONTINGENCIES — — SHAREHOLDERS' EQUITY Common stock, $ .01 par value per share; authorized 20,000,000 shares; 2,312,887 shares issued and outstanding at June 30, 2024, and March 31, 2024 23,129 23,129 Additional paid-in capital 12,885,841 12,885,841 Accumulated Deficit ( 8,388,149 ) ( 7,945,943 ) TOTAL SHAREHOLDERS' EQUITY 4,520,821 4,963,027 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,665,457 $ 8,544,750 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents UNIVERSAL SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES CONDENSED C

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

ITEM 2 . MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS As used throughout this Report, "we," "our," "the Company" "USI" and similar words refers to Universal Security Instruments, Inc.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains certain forward-looking statements reflecting our current expectations with respect to our operations, performance, financial condition, and other developments. These forward-looking statements may generally be identified by the use of the words "may", "will", "believes", "should", "expects", "anticipates", "estimates", and similar expressions. These statements are necessarily estimates reflecting management's best judgment based upon current information and involve a number of risks and uncertainties. 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 could affect our financial performance and could cause our actual results for future periods to differ materially from those anticipated or projected. While it is impossible to identify all such factors, such factors include, but are not limited to, those risks identified in our periodic reports filed with the Securities and Exchange Commission. OVERVIEW We are in the business of marketing and distributing safety and security products. Our financial statements detail our sales and other operational results for the three-month periods ended June 30, 2024, and 2023. The Company has developed products based on new smoke and gas detection technologies, with what the Company believes are improved sensing technology and product features. Most of our new technologies and features have been trademarked under the trade name IoPhic. Changes in international trade duties and other aspects of international trade policy, both in the U.S. and abroad, could materially impact the cost of our products. All of our products are imported from the Peoples Republic of China (PRC). To date, only certain of our products such as Carbon Monoxide and Photoelectric alarms, and wiring devices, have been subjected to tariffs of 25%. We are monitoring the

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View this 10-Q filing on SEC EDGAR