OWINGS MILLS, Md., Aug. 25,
2015 /PRNewswire/ -- Universal Security Instruments,
Inc. (NYSE Amex: UUU) today announced that it has filed its Annual
Report on Form 10-K for the fiscal year ended March 31, 2015 which was not timely filed due to
unforeseen delays in the completion of the financial statements of
the Company's 50%-owned Hong Kong Joint Venture. As previously
reported, the Company had received a letter from NYSE MKT LLC (the
"Exchange") stating that the delayed filing violated Exchange rules
and that unless prompt corrective action is taken, the Company
could be subject to delisting. The Company believes that the filing
of the Annual Report on Form 10-K satisfies the Exchange's
requirements for prompt corrective action.
The Company noted that the auditor's opinion letter to the
audited consolidated financial statements for the fiscal year ended
March 31, 2015, included in the
Company's Annual Report on Form 10-K includes a going concern
qualification. This qualification and the related disclosures
in our financial statements are based on the Company's history of
losses, declining revenue, and over reliance on short term
financing. Management's plan in response to these conditions
includes increasing sales resulting from the delivery of the
Company's new line of sealed battery ionization smoke alarms and
carbon monoxide products, decreasing expenses and obtaining
additional financing on its credit facility. Though no
assurance can be given, if management's plan is successful over the
next twelve months, the Company anticipates that it should be able
to meet its cash needs. In addition management is in
discussions with its factor to change its factoring
agreement which should provide access to working capital when
needed.
The Company reported the following for its fourth quarter and
fiscal year ended March 31, 2015:
- For the fourth quarter ended March 31,
2015, a net loss of $748,500,
or $0.32 per basic and diluted share,
on sales of $2,782,210. This
compares to a net loss of $1,504,306,
or $0.65 per basic and diluted share,
on sales of $2,636,933 for the
comparable period of the previous year.
- For the 12 months ended March 31,
2015, sales decreased 21.4% to $9,891,554 versus $12,577,127 for the same period last year.
The Company reported a net loss of $3,704,985, or $1.60 per basic and diluted share, versus a net
loss of $4,450,244, or $1.94 per basic and diluted share, for the same
period last year. For the fiscal year ending March 31, 2014 our operations were impacted by
lower sales and a non-cash charge to fully reserve our
deferred tax asset in the amount of $2,310,835.
Harvey Grossblatt, President and
Chief Executive Officer said, "The primarily reason for lower sales
was the delay in obtaining certification for our new line of sealed
smoke alarms and carbon monoxide (CO) alarms. We have now
received approvals for our complete line of sealed ionization
smoke, CO and combination smoke and CO alarms. We should have
approvals for our complete line of photoelectric models later this
fiscal year. Once we receive all of our approvals we
expect the Company to return to profitability and expect fiscal
year 2016 to be substantially improved from our current fiscal year
as we will start delivering higher levels of sealed product."
UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based
manufacturer (through its Hong Kong Joint Venture) and distributor
of safety and security devices. Founded in 1969, the Company has a
45 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, our Hong Kong Joint Venture's respective ability
to maintain operating profitability, currency fluctuations, the
impact of current and future laws and governmental regulations
affecting us and our Hong Kong Joint Venture 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.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
Three Months Ended
March 31,
|
|
2015
|
2014
|
Sales
|
$2,782,210
|
$2,636,933
|
Net loss
|
(748,500)
|
(1,504,306)
|
Net loss per share –
basic
|
(0.32)
|
(0.65)
|
Net loss per share –
diluted
|
(0.32)
|
(0.65)
|
Weighted average
number of common shares outstanding
|
|
|
Basic
|
2,312,887
|
2,296,498
|
Diluted
|
2,312,887
|
2,296,498
|
|
|
(AUDITED)
|
|
Twelve Months Ended
March 31,
|
|
2015
|
2014
|
Sales
|
$9,891,554
|
$12,577,127
|
Net loss
|
(3,704,985)
|
(4,450,244)
|
Net loss per share –
basic
|
(1.60)
|
(1.94)
|
Net loss per share –
diluted
|
(1.60)
|
(1.94)
|
Weighted average
number of common shares outstanding
|
|
|
Basic
|
2,312,887
|
2,290,010
|
Diluted
|
2,312,887
|
2,290,010
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
ASSETS
|
|
|
March 31,
|
|
2015
|
2014
|
Cash, cash
equivalents and investments
|
$ 49,427
|
$ 2,050,993
|
Funds held by
factor
|
631,906
|
-
|
Accounts receivable
and amount due from factor
|
1,734,423
|
2,289,122
|
Inventory
|
3,906,082
|
4,194,213
|
Prepaid
expenses
|
438,745
|
406,012
|
TOTAL CURRENT
ASSETS
|
6,760,583
|
8,940,340
|
|
|
|
INVESTMENT IN HONG
KONG JOINT VENTURE
|
12,943,280
|
14,002,270
|
PROPERTY, PLANT AND
EQUIPMENT – NET
|
104,618
|
146,212
|
OTHER
ASSETS
|
97,547
|
114,154
|
TOTAL
ASSETS
|
$19,906,028
|
$23,202,976
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$ 668,846
|
$ 606,314
|
Accounts payable–
Hong Kong Joint Venture
|
299,985
|
28,681
|
Accrued
liabilities
|
180,200
|
150,566
|
TOTAL CURRENT
LIABILITIES
|
1,149,031
|
785,561
|
|
|
|
LONG TERM
OBLIGATION
|
-
|
25,000
|
SHAREHOLDERS'
EQUITY
|
|
|
Common stock, $.01
par value per share; 20,000,000 authorized, 2,312,887 shares
outstanding at March 31, 2015 and 2014
|
23,129
|
23,129
|
Additional paid-in
capital
|
12,885,841
|
12,885,841
|
Retained
earnings
|
4,588,332
|
8,293,317
|
Accumulated other
comprehensive income
|
1,259,695
|
1,190,128
|
TOTAL SHAREHOLDERS'
EQUITY
|
18,756,997
|
22,392,415
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$19,906,028
|
$23,202,976
|
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SOURCE Universal Security Instruments, Inc.