Universal Security Instruments Announces its Fourth-Quarter and Year-End Results
OWINGS MILLS, Md., July 14, 2022 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced its financial results for the fourth quarter and its fiscal year ended March 31, 2022.
The Company reported:
- For the fourth quarter ended March 31, 2022, sales increased $1,293,212 (43.1%) to $4,290,550 from $2,997,338 from the comparable period last year. The Company reported a net loss of $235,838, or $0.10 per basic and diluted share compared to a net loss of $456,838, or $0.20 per basic and diluted share for the comparable period of the previous year.
- For the 12 months ended March 31, 2022, sales increased $2,029,634 (11.6%) to $19,549,785 versus $17,520,151 for the fiscal year ended March 31, 2021. The Company reported a net loss of $78,150, or $0.03 per basic and diluted share, versus net income of $268,343 or $0.12 per basic and diluted share, for the same period last year. The results for the 12 months ended March 31, 2021 included forgiveness of the Company's Payroll Protection Plan loan in the amount of $221,400.
Harvey Grossblatt, President and Chief Executive Officer said, "While our sales have increased for the year, our gross margins have decreased due to higher costs caused by supply chain disruptions due to ocean freight shortages, port congestion in Long Beach, California and domestic trucking issues. We are also experiencing difficulty obtaining raw materials such as micro-processing chips and other electrical components.
UNIVERSAL SECURITY INSTRUMENTS, INC. is distributor of safety and security devices. Founded in 1969, the Company has an over 50-year heritage of developing innovative and easy-to-install products, including smoke, fire and carbon monoxide alarms. For more information on Universal Security Instruments, visit our website at www.universalsecurity.com. On February 25, 2022, the Company entered into an Agreement and Plan of Merger by and among the Company, a wholly owned subsidiary of the Company and Infinite Reality, Inc. Closing is subject to shareholder and regulatory approval. On May 16, 2022, the Company filed with the SEC a proxy statement and Form S-4 registration statement in connection with the Merger.
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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain matters discussed in this news release may constitute forward-looking statements within the meaning of the federal securities laws that inherently include certain risks and uncertainties. Actual results could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, among other items, currency fluctuations, the impact of current and future laws and governmental regulations, and other factors which may be identified from time to time in our Securities and Exchange Commission filings and other public announcements. We do not undertake and specifically disclaim any obligation to update any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements. We will revise our outlook from time to time and frequently will not disclose such revisions publicly.
UNIVERSAL SECURITY INSTRUMENTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||
(UNAUDITED) |
||
Three Months Ended March 31, |
||
2022 |
2021 |
|
Net sales |
$4,290,550 |
$2,997,338 |
Net loss |
(235,838) |
(456,838) |
Net loss per share – basic and diluted |
(0.10) |
(0.20) |
Weighted average number of common shares outstanding Basic and diluted
|
2,312,887
|
2,312,887
|
Fiscal Year Ended March 31, |
||
2022 |
2021 |
|
Net sales |
$19,549,785 |
$17,520,151 |
Net (loss) income |
(78,150) |
268,343 |
Net (loss) income per share – basic and diluted |
(0.03) |
0.12 |
Weighted average number of common shares outstanding Basic and diluted
|
2,312,887
|
2,312,887
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
ASSETS |
March 31, |
||
2022 |
2021 |
||
Cash |
$ 438,735 |
$ 160,604 |
|
Accounts receivable and amount due from factor |
4,090,113 |
2,583,463 |
|
Inventory |
6,229,061 |
4,181,193 |
|
Prepaid expenses |
241,342 |
336,699 |
|
TOTAL CURRENT ASSETS |
10,999,251 |
7,261,959 |
|
PROPERTY AND EQUIPMENT – NET |
477,627 |
184,678 |
|
OTHER ASSETS |
44,243 |
48,717 |
|
TOTAL ASSETS |
$11,521,121 |
$7,495,354 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Line of credit - factor Short-term portion of operating lease liability |
$2,157,086 131,880 |
$ 18,904 171,122 |
|
Accounts payable– Trade Note payable – Eyston Company Ltd. Accrued liabilities |
2,557,433 1,081,440 619,465 |
1,264,709 - 242,623 |
|
TOTAL CURRENT LIABILITIES |
6,547,304 |
1,697,358 |
|
NOTE PAYABLE – Eyston Company Ltd. - noncurrent LONG-TERM PORTION OF OPERATING LEASE LIABILITY TOTAL LONG-TERM LIABILITIES |
- 335,411 335,411 |
1,081,440 - 1,081,440 |
|
COMMITMENTS AND CONTINGENCIES
|
- |
- |
|
SHAREHOLDERS' EQUITY |
|||
Common stock, $.01 par value per share; 20,000,000 authorized, 2,312,887 shares issued and outstanding at March 31, 2022 and 2021 |
23,129 |
23,129 |
|
Additional paid-in capital |
12,885,841 |
12,885,841 |
|
(Accumulated Deficit) |
(8,270,564) |
(8,192,414) |
|
TOTAL SHAREHOLDERS' EQUITY |
4,638,406 |
4,716,556 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$11,521,121 |
$7,495,354 |
|
Contact: Harvey Grossblatt, President
Universal Security Instruments, Inc.
410-363-3000, Ext. 224
Or
Zachary Mizener
Lambert & Co.
315-529-2348
SOURCE Universal Security Instruments, Inc.
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