Universal Security Instruments Reports Third-Quarter Results

Universal Security Instruments, Inc. (NYSE AMEX: UUU) reported its financial results for the fiscal third quarter and nine months ended December 31, 2024, revealing an 18.9% increase in sales to $5.54 million compared to the previous year, but a net loss of $936,639, down from a net income of $102,176. Year-to-date sales rose 15% to $17.34 million, while the company posted a net loss of $801,867, a decline from a net income of $80,881 in the same period of 2023.

The company attributed these losses to several factors, including bulk sales of excess and obsolete inventory at reduced gross profit margins and substantial expenses incurred in the quarter and nine months ended December 31, 2024, in furtherance of the potential asset sale to Feit Electric Company. The asset sale is expected to drive long-term value for shareholders if approved, but the expenses and reduced profit margins associated with the sale contributed to the net loss in the short term.

Universal Security Instruments' CEO, Harvey Grossblatt, stated that the company expects to continue business as usual while it seeks shareholder approval of the potential sale and closing of the Asset Purchase Agreement, which, if approved, is expected to occur in the second quarter of calendar 2025. If the asset sale is not approved, the company may consider alternatives, including delisting its shares from the NYSE MKT and terminating its periodic reporting obligations under the federal securities laws.



Universal Security Instruments, Inc. is a U.S.-based manufacturer and distributor of safety and security devices. Founded in 1969, the company has an over 56-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 their website at .

Insert a bar chart comparing Universal Security Instruments' sales and net income for the third quarter and nine months of 2024 and 2023

The company's accumulated deficit has increased to $8,747,810, highlighting ongoing financial difficulties and putting pressure on future operations. If the asset sale is not approved, the company may face further challenges in maintaining profitability and financial stability. Shareholders can contact Laurel Hill Advisory Group LLC at 1-888-742-1305 for assistance in voting their shares.

Universal Security Instruments' stock price has been volatile in recent months, reflecting the uncertainty surrounding the company's financial performance and the potential impact of the asset sale. Investors will closely monitor the company's progress and the outcome of the shareholder vote on the asset sale, as well as any alternative courses of action the company may pursue.