Fri, Jul 12, 8:46 PM (57 days ago)
Universal Security Instruments, Inc. reported a net loss of $395,790 for the fiscal year ended March 31, 2024, compared to a net income of $720,411 in 2023, marking a significant decrease of $1,116,201. The decline is attributed to a 10.3% drop in sales to $19,902,673 from $22,178,873, due to delays in obtaining electronic components and ocean freight shipments. Gross profit margin increased slightly to 29.2% from 28.6% due to product mix variations. Operating expenses rose to $5,645,584 from $4,974,453, driven by higher provisions for credit losses, salaries, and professional fees. Working capital decreased by $391,075 to $4,785,400. The company’s future outlook depends on the recovery of the U.S. housing market and the acceptance of its new product offerings. Key risk factors include dependency on a single supplier, Eyston Company Ltd., and the impact of tariffs and shipping delays. The company is exploring strategic alternatives to enhance shareholder value.