OWINGS MILLS, Md., July 14, 2016 /PRNewswire/ -- Universal
Security Instruments, Inc. (NYSE MKT: UUU) announced today that it
is further delaying the filing of its Annual Report on Form 10-K
for the fiscal year ended March 31,
2016 with the Securities and Exchange Commission
("SEC").
As the Company previously disclosed in its Notification of Late
Filing on Form 12b-25 filed with the SEC on June 28, 2016, the Company delayed filing its
Annual Report on Form 10-K because of unforeseen delays in the
completion of the financial statements of the Company's 50%-owned
Hong Kong Joint Venture. Pursuant to Rule 12b-25 under
the Securities Exchange Act of 1934, the Company received an
extension until July 14, 2016 to file
its fiscal year ended March 31, 2016
Annual Report on Form 10-K, which extension will expire without the
filing of the Company's Form 10-K.
Based on current unaudited information, the preliminary results
which the Company anticipates that it should report in its Annual
Report on Form 10-K are as follows:
- A net loss for the fourth quarter of approximately $856,180, or $0.36
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 approximately 38.9% to $13,740,840 versus $9,891,554 for the same period last year. The
Company expects to report a net loss of approximately $2,218,731, or $0.96 per basic and diluted share, for the fiscal
year 2016, versus a net loss of $3,704,985, or $1.60 per basic and diluted share, for same
period last year.
- Total assets of approximately $18,317,733 for the fiscal year ended
March 31, 2016, compared to total
assets of $19,906,028 for the fiscal
year ended March 31, 2015.
- Total liabilities of approximately $2,122,144 for the fiscal year ended March 31, 2016, compared to total liabilities of
$1,149,031 for the fiscal year ended
March 31, 2015.
- Total shareholders' equity of approximately $16,195,589 for the fiscal year ended
March 31, 2016, compared to total
shareholders' equity of $18,756,997
for the fiscal year ended March 31,
2015.
The Company also announced that it has been in communication
with NYSE MKT LLC (the "Exchange") to discuss the anticipated late
filing of the Annual Report on Form 10-K. In connection
therewith, on July 14, 2016, the
Company received a letter from the Exchange stating that the
Exchange has determined that the Company is not in compliance with
Sections 134 and 1101 of the Exchange's Company Guide (the "Company
Guide") due to the Company's failure to timely file its Annual
Report on Form 10-K for the fiscal year ended March 31, 2016 with the SEC. The letter
also states that the Company's failure to timely file its Annual
Report on Form 10-K is a material violation of its listing
agreement with the Exchange and, therefore, pursuant to Section
1003(d) of the Company Guide, the Exchange is authorized to suspend
and, unless prompt corrective action is taken, remove the Company's
securities from the Exchange.
The Exchange has informed the Company that, in order to maintain
its listing on the Exchange, the Company must, by July 28, 2016, submit a plan of compliance (the
"10-K Plan") addressing how it intends to regain compliance with
Sections 134 and 1101 of the Company Guide by October 12, 2016 (the "10-K Plan Period").
If the Company's 10-K Plan is accepted by the Exchange, then the
Company will be able to continue its listing during the 10-K Plan
Period, during which time the Company will be subject to periodic
review to determine whether it is making progress consistent with
the 10-K Plan. If the Company does not submit a Plan, or if
the Company's 10-K Plan is not accepted by the Exchange, then the
Company will be subject to delisting proceedings.
Furthermore, if the 10-K Plan is accepted by the Exchange, but the
Company is not in compliance with the continued listing standards
of the Company Guide by October 12,
2016, or if the Company does not make progress consistent
with the 10-K Plan during the 10-K Plan Period, then the Exchange
staff will initiate delisting proceedings as appropriate. The
Company is working diligently to submit the 10-K Plan by
July 28, 2016 and regain compliance
with the Company Guide.
The Company is working diligently to complete and file its
Annual Report on Form 10-K with the SEC, which, as previously
disclosed, the Company expects to do on or prior to August 19, 2016.
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
43 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.
11407 CRONHILL DRIVE, SUITE A • OWINGS MILLS, MARYLAND 21117, USA
(410) 363-3000 •
www.universalsecurity.com
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SOURCE Universal Security Instruments, Inc.