PR Newswire | Jul 8, 2021 04:32PM EDT

07/08 15:30 CDT

Universal Security Instruments Announces its Fourth-Quarter and Year-End Results OWINGS MILLS, Md., July 8, 2021

OWINGS MILLS, Md., July 8, 2021 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced its financial results for the fourth quarter and its fiscal year ended March 31, 2021.

The Company reported:

* For the fourth quarter ended March 31, 2021, sales decreased $616,448 (17.1%) to $2,997,338 from $3,613,786 from the comparable period last year. The Company reported a net loss of $456,838, or $0.19 per basic and diluted share compared to a net loss of $3,492,290, or $1.51 per basic and diluted share for the comparable period of the previous year. * For the 12 months ended March 31, 2021, sales increased $2,717,127 (18.4%) to $17,520,151 versus $14,803,024 for the fiscal year ended March 31, 2020. The Company reported net income of $268,343, or $0.12 per basic and diluted share, versus a net loss of $5,813,891 or $2.51 per basic and diluted share, for the same period last year.

Harvey Grossblatt, President and Chief Executive Officer said, "We are pleased that the Company returned to profitability for the fiscal year ended March 31, 2021 despite our fiscal fourth quarter being negatively impacted by severe supply chain challenges, including a global shortage of shipping containers, and congestion at West Coast port facilities, which impacted our ability to receive inventory and ship orders. These challenges have improved somewhat during the fiscal first quarter of our fiscal year ending March 31, 2022, and the Company was able to start shipping backorders to our customers. Our previous year-end results included a charge of $2,472,620 from the previously reported sale of our 50% interest in the Hong Kong Joint Venture, as well as our share of the Hong Kong Joint Venture's net loss in the amount $1,369,655."

11407 CRONHILL DRIVE, SUITE A OWINGS MILLS, MARYLAND 21117, USA(410) 363-3000 www.universalsecurity.com

UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based distributor of safety and security devices. Founded in 1969, the Company has a 48-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.

"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,

2021 2020

Net sales $2,997,338 $3,613,786

Net loss (456,838) (3,492,290)

Net loss per share - basic and diluted (0.19) (1.51)

Weighted average number of common shares outstanding 2,312,887 2,312,887 Basic and diluted

Fiscal Year Ended March 31,

2021 2020

Net sales $17,520,151 $14,803,024

Net income (loss) 268,343 (5,813,891)

Net income (loss) per share - basic and diluted 0.12 (2.51)

Weighted average number of common shares outstanding 2,312,887 2,312,887 Basic and diluted

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

March 31,

2021 2020

Cash $ 160,604 $ 93,794

Accounts receivable and amount due from factor 2,583,463 2,446,533

Inventory 4,181,193 5,123,959

Prepaid expenses 336,699 113,145

TOTAL CURRENT ASSETS 7,261,959 7,777,431

PROPERTY AND EQUIPMENT - NET 184,678 346,477

OTHER ASSETS 48,717 53,189

TOTAL ASSETS $ 7,495,354 $8,177,097

LIABILITIES AND SHAREHOLDERS' EQUITY

Line of credit - factor $ 18,904 $ 1,561,665

Short-term portion of operating lease liability 171,122 158,578

Accounts payable- Trade 509,561 505,904

Accounts payable - Eyston Company Ltd. 755,148 266,409

Accrued liabilities 242,623 225,377

TOTAL CURRENT LIABILITIES 1,697,358 2,717,933

ACCOUNTS PAYABLE - Eyston Company Ltd. - noncurrent 1,081,440 839,831

LONG-TERM PORTION OF OPERATING LEASE LIABILITY - 171,120

TOTAL LONG-TERM LIABILITIES 1,081,440 1,010,951

COMMITMENTS AND CONTINGENCIES - -

SHAREHOLDERS' EQUITY

Common stock, $.01 par value per share; 20,000,000 authorized, 2,312,887 23,129 23,129shares outstanding at March 31, 2021 and 2020

Additional paid-in capital 12,885,841 12,885,841

(Accumulated Deficit) (8,192,414) (8,460,757)

TOTAL SHAREHOLDERS' EQUITY 4,716,556 4,448,213

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,495,354 $8,177,097

Contact: Harvey Grossblatt, President Universal Security Instruments, Inc.410-363-3000, Ext. 224OrZachary MizenerLambert & Co. (616) 233-0500

View original content: https://www.prnewswire.com/news-releases/universal-security-instruments-announces-its-fourth-quarter-and-year-end-results-301327272.html

SOURCE Universal Security Instruments, Inc.