For Immediate Release

Contact: Harvey Grossblatt, President

Universal Security Instruments, Inc.

410-363-3000, Ext. 224

Or

Zachary Mizener

Lambert & Co.

315-529-2348

Universal Security Instruments Announces its Fourth-Quarter and Year-End Results

OWINGS MILLS, Md. July 14, 2023 - Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced its financial results for the fourth quarter and its fiscal year ended March 31, 2023.

The Company reported:

  • For the fourth quarter ended March 31, 2023, sales increased $1,637,217 (38.2%) to $5,927,767 from $4,290,550 from the comparable period last year. The Company reported net income of $284,635, or $0.12 per basic and diluted share compared to a net loss of $235,838, or $0.10 per basic and diluted share for the comparable period of the previous year.
  • For the twelve months ended March 31, 2023, sales increased $2,629,088 (13.4%) to $22,178,873 versus $19,549,785 for the fiscal year ended March 31, 2022. The Company reported net income of $720,411, or $0.31 per basic and diluted share, versus a net loss of $78,150 or $0.03 per basic and diluted share, for the same period last year. Results for the twelve months ended March 31, 2023, included the receipt of a federal employee retention credit of approximately $181,000 during the second fiscal quarter of the fiscal year.

.

Harvey Grossblatt, President and Chief Executive Officer said, "Universal was very pleased to return to profitability with higher sales despite continuing supply chain issues. We continue to strengthen our financial statements by reducing our debt. and increasing shareholder equity."

11407 CRONHILL DRIVE, SUITE A • OWINGS MILLS, MARYLAND 21117, USA

  1. 363-3000•www.universalsecurity.com

UNIVERSAL SECURITY INSTRUMENTS, INC. is a distributor of safety and security devices. Founded in 1969, the Company has an over 54-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.

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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/Page 2

UNIVERSAL SECURITY INSTRUMENTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended March 31,

2023

2022

Net sales

$5,927,767

$4,290,550

Net income (loss)

284,635

(235,838)

Net income (loss) per share - basic and diluted

0.12

(0.10)

Weighted average number of common shares outstanding

Basic and diluted

2,312,887

2,312,887

Fiscal Year Ended March 31,

2023

2022

Net sales

$22,178,873

$19,549,785

Net income (loss)

720,411

(78,150)

Net income (loss) per share - basic and diluted

0.31

(0.03)

Weighted average number of common shares outstanding

Basic and diluted

2,312,887

2,312,887

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

March 31,

2023

2022

Cash

$ 151,502

$ 438,735

Accounts receivable and amount due from factor

3,664,948

4,090,113

Inventory

4,063,632

6,229,061

Prepaid expenses

165,378

241,342

TOTAL CURRENT ASSETS

8,045,460

10,999,251

PROPERTY AND EQUIPMENT - NET

318,641

477,627

OTHER ASSETS

35,773

44,243

TOTAL ASSETS

$8,399,874

$11,521,121

LIABILITIES AND SHAREHOLDERS' EQUITY

Line of credit - factor

$1,459,350

$ 2,157,086

Short-term portion of operating lease liability

151,230

131,880

Accounts payable- Trade

948,465

2,557,433

Note payable - Eyston Company Ltd.

-

1,081,440

Accrued liabilities

309,940

619,465

TOTAL CURRENT LIABILITIES

2,868,985

6,547,304

LONG-TERM PORTION OF OPERATING LEASE LIABILITY

172,072

335,411

TOTAL LONG-TERM LIABILITIES

172,072

335,411

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, 2023 and 2022

23,129

23,129

Additional paid-in capital

12,885,841

12,885,841

(Accumulated Deficit)

(7,550,153)

(8,270,564)

TOTAL SHAREHOLDERS' EQUITY

5,358,817

4,638,406

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$8,399,874

$11,521,121

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Universal Security Instruments Inc. published this content on 14 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 July 2023 20:28:18 UTC.