Universal Security Instruments Announces Quarterly Results and Proxy Solicitation for Potential Asset Sale

On February 14, 2025, Universal Security Instruments, Inc. (NYSE: UUU) revealed its operational outcomes for the fiscal quarter and nine months ending December 31, 2024. The company’s recent financial disclosures were detailed in a press release made available on the same day.

For the three-month period culminating on December 31, 2024, Universal Security Instruments noted a sales boost of 18.9%, amounting to $5,535,148 compared to $4,654,978 in the corresponding period of the prior year. Unfortunately, the company documented a net loss of $936,639, translating to $0.40 per basic and diluted share. In contrast, the company recorded a net income of $102,176 or $0.04 per basic and diluted share for the equivalent period in the prior year.

Regarding the results for the nine months ended December 31, 2024, Universal Security Instruments saw a 15.0% rise in sales to $17,336,933 in comparison to $15,071,204 for the same period in 2023. However, the company faced a net loss of $801,867, equivalent to $0.35 per basic and diluted share, contrasting with a net income of $80,881 or $0.03 per basic and diluted share reported for the corresponding 2023 period.

Harvey Grossblatt, CEO of Universal Security Instruments, remarked on the performance, attributing the decline in quarterly and year-to-date results to bulk sales of excess inventory at reduced margins and significant expenses incurred in connection with a potential asset sale. Grossblatt emphasized that the company is proceeding with business as usual while seeking shareholder approval of the proposed sale, scheduled for the second quarter of 2025 if sanctioned.

Grossblatt acknowledged the Board’s approval of the asset sale to Feit Electric Company, highlighting the decision’s potential to enhance long-term value for shareholders. In cases where the asset sale is not ratified, Universal Security Instruments might need to consider alternatives, including delisting shares from NYSE MKT and terminating periodic reporting obligations under federal securities regulations.

The attached Exhibit 99.1 in the filing specifies detailed financial statements and exhibits illustrating Universal Security Instruments’ performance during the specified periods. Shareholders are encouraged to review the proxy statement diligently before deciding on voting matters related to the potential asset sale.

The company’s stock status and further updates can be found on the New York Stock Exchange (NYSE: UUU).

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The news release contains forward-looking statements subject to inherent risks and uncertainties. Actual results may diverge materially from projected outcomes due to various factors as detailed in Securities and Exchange Commission filings.

For media inquiries, contact Harvey Grossblatt, CEO at (410) 363-3000, Ext. 224, or Zachary Mizener at Lambert & Co. on (315) 529-2348.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Universal Security Instruments’s 8K filing here.

About Universal Security Instruments

Universal Security Instruments, Inc, together with its subsidiary, engages in the marketing and distribution of safety and security products in the United States. The company offers a line of safety alarms units, including replaceable batteries, sealed batteries, and battery backup alarms; and smoke alarms, which include hearing impaired and heat alarms, as well as carbon monoxide alarms, door chimes, ventilation products, ground fault circuit interrupters, and other electrical devices under the UNIVERSAL and USI Electric trade names.