OWINGS MILLS, Md., Sept. 28,
2016 /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, 2016 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 of the Form 10-K and
the Company's Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30,2016 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 with respect
to the Company's late Annual Report on Form 10-K, and the Company
is working diligently to file its late Quarterly Report on Form
10-Q.
The Company reported the following for its fourth quarter and
fiscal year ended March 31, 2016:
- For the fourth quarter ended March 31,
2016, a net loss of $775,241,
or $0.34 per basic and diluted share,
on sales of $3,413,217. This compares
to a net loss of $748,500, or
$0.32 per basic and diluted share, on
sales of $2,782,210 for the
comparable period of the previous year.
- For the 12 months ended March 31,
2016, sales increased 38.9% to $13,740,840 versus $9,891,554 for the same period last year. The
Company reported a net loss of $2,137,792, or $0.92 per basic and diluted share, versus a net
loss of $3,704,985, or $1.60 per basic and diluted share, for the same
period last year.
Harvey Grossblatt, President and
Chief Executive Officer said, "The Company continues to increase it
sales of its new line of sealed ionization smoke, carbon monoxide
and combination alarms and expects this trend to continue and to
accelerate with the completion of its sealed photoelectric units in
the January to March 2017 quarter.
Also the Company expects its Joint Venture sales to increase which
should return the Joint Venture to profitability. In addition
the Company is pleased to report that the auditor's opinion letter
to the audited consolidated financial statements for the fiscal
year ended March 31, 2016 no longer
includes a going concern qualification as management continues to
execute on its plan to increase sales, obtain additional financing,
and reduce expense."
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
manufacturer (through its Hong Kong Joint Venture) and distributor
of safety and security devices. Founded in 1969, the Company has a
47 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, 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.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
(UNAUDITED)
|
|
Three Months Ended
March 31,
|
|
2016
|
2015
|
Net sales
|
$3,413,217
|
$2,782,210
|
Net loss
|
(775,241)
|
(748,500)
|
Net loss per share –
basic and diluted
|
(0.34)
|
(0.32)
|
|
|
|
Weighted average
number of common shares outstanding
Basic and
diluted
|
2,312,887
|
2,312,887
|
|
|
|
|
|
(AUDITED)
|
|
Fiscal Year Ended
March 31,
|
|
2016
|
2015
|
Net sales
|
$13,740,840
|
$9,891,554
|
Net loss
|
(2,137,792)
|
(3,704,985)
|
Net loss per share –
basic and diluted
|
(0.92)
|
(1.60)
|
|
|
|
Weighted average
number of common shares outstanding
Basic and
diluted
|
2,312,887
|
2,312,887
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
ASSETS
|
|
|
March 31,
|
|
2016
|
2015
|
Cash
|
$
362,728
|
$
49,427
|
Funds held by
factor
|
-
|
631,906
|
Accounts receivable
and amount due from factor
|
1,929,604
|
1,788,323
|
Inventory
|
3,883,247
|
3,852,182
|
Prepaid
expenses
|
410,166
|
438,745
|
TOTAL CURRENT
ASSETS
|
6,585,745
|
6,760,583
|
|
|
|
INVESTMENT IN HONG
KONG JOINT VENTURE
|
11,779,663
|
12,943,280
|
PROPERTY, PLANT AND
EQUIPMENT – NET
|
71,556
|
104,618
|
OTHER
ASSETS
|
73,075
|
97,547
|
TOTAL
ASSETS
|
$18,510,039
|
$19,906,028
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Line of credit -
factor
|
$
313,891
|
$
-
|
Accounts payable
trade
|
587,343
|
668,846
|
Accounts payable–
Hong Kong Joint Venture
|
1,070,103
|
299,985
|
Accrued
liabilities
|
150,807
|
180,200
|
TOTAL CURRENT
LIABILITIES
|
2,122,144
|
1,149,031
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
Common stock, $.01
par value per share; 20,000,000 authorized, 2,312,887 shares
outstanding at March 31, 2016 and 2015
|
23,129
|
23,129
|
Additional paid-in
capital
|
12,885,841
|
12,885,841
|
Retained
earnings
|
2,450,540
|
4,588,332
|
Accumulated other
comprehensive income
|
1,028,385
|
1,259,695
|
TOTAL SHAREHOLDERS'
EQUITY
|
16,387,895
|
18,756,997
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$18,510,039
|
$19,906,028
|
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SOURCE Universal Security Instruments, Inc.