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Universal Security Instruments, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $7,203,269 from $3,717,455 in the same quarter the previous year. The increase is attributed to the timing of orders from a large retail customer.
Gross profit for the quarter was $1,997,943, with a gross profit margin of 27.7%, down from 35.2% in the previous year. The decrease in margin is due to an increase in the allowance for excess and obsolete inventory and increased costs of electronic components.
Selling, general, and administrative expenses decreased to $1,209,352 from $1,334,351, representing 16.8% of net sales compared to 35.9% in the previous year.
Net income for the quarter was $576,978, compared to a net loss of $186,425 in the previous year. The improvement is primarily due to increased sales.
Cash used in operating activities was $3,278,163, mainly due to an increase in accounts receivable and inventories.
The company reported a net income of $134,772 for the six months ended September 30, 2024, compared to a net loss of $21,295 in the previous year.
Universal Security Instruments entered into an Asset Purchase Agreement with Feit Electric Company, Inc., to sell certain inventory and non-tangible assets. The transaction is subject to customary closing conditions and stockholder approval.
The company identified material weaknesses in its internal controls over financial reporting related to the classification and disclosure of amounts within financial statements and accounting for income taxes.
The company believes its current cash balance, available funds under its factoring agreement, and cash generated from operations will be sufficient to meet its cash requirements over the next twelve months.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Universal Security Instruments Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.