<span item_type="fundamental" item_id="91b566b0e94f2c8fa2142b972e83b6fe" counter_id="ST/US/UUU" env="prod"></span><span item_type="announcement" item_id="617954753211271425" env="prod"></span><p>Revenue: As of FY2026 Q3, the actual value is USD 22.55 K.</p><p>EPS: As of FY2026 Q3, the actual value is USD -0.99.</p><p>EBIT: As of FY2026 Q3, the actual value is USD -2.109 M.</p><p></p><h4>Net Sales</h4><ul><li>For the three months ended December 31, 2025, net sales for Universal Safety Products, Inc. were $22,549, marking a decrease of $5,512,599 (99.6%) compared to $5,535,148 for the comparable period in 2024. This decrease was primarily due to the sale of the smoke and carbon monoxide alarm portion of the Company’s business and a one-time return of goods from a large customer.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li><li>For the nine months ended December 31, 2025, net sales were $4,606,795, a decrease of $12,730,138 (73.4%) compared to $17,336,933 for the comparable period in 2024, primarily due to the sale of the smoke and carbon monoxide alarm business.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li></ul><h4>Gross Profit Margin</h4><ul><li>For the three months ended December 31, 2025, gross profit margin decreased principally due to sales returns and allowances.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li><li>For the nine months ended December 31, 2025, the gross profit margin was 19.0%, down from 23.7% for the nine months ended December 31, 2024, primarily due to the sale of the smoke and carbon monoxide alarm portion of the Company’s business.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li></ul><h4>Selling, General and Administrative Expenses</h4><ul><li>For the three months ended December 31, 2025, these expenses were $1,896,159, compared to $1,762,446 for the comparable period in 2024. The increase was mainly due to approximately $600,000 in professional fees for strategic alternatives and merger activities, a charge of $896,700 for incentive stock options, and workforce reduction charges, partially offset by a $220,000 reduction in the allowance for credit losses.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li><li>For the nine months ended December 31, 2025, these expenses were $4,320,649, compared to $4,369,219 for the comparable period in 2024. Relative stability despite decreased sales was attributed to an increase in the allowance for credit losses of $180,000, a charge for incentive stock options of $896,700, workforce reduction charges, and timing of expenditures for strategic alternatives.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li></ul><h4>Engineering and Product Development Expenses</h4><ul><li>For the three months ended December 31, 2025, these expenses were $14,193, an $116,202 (89.1%) decrease from $130,395 in the comparable period in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li><li>For the nine months ended December 31, 2025, these expenses were $202,882, compared to $328,367 in the comparable period in 2024. Decreases were primarily due to the cessation of these activities following the sale of the smoke and carbon monoxide alarm business.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li></ul><h4>Other Income (Expense)</h4><ul><li>For the three months ended December 31, 2025, other expense included a change in the fair value of the derivative component of convertible debt of $135,000 and net interest expense of $78,824. Net interest expense for the three months ended December 31, 2024, was $77,409.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li><li>For the nine months ended December 31, 2025, other expense included a change in the fair value of the derivative component of convertible debentures of $182,000. Other income for the nine months ended December 31, 2025, included a gain on the sale of inventory and intangible assets of $2,820,668. Net interest expense for the nine months ended December 31, 2025, was $86,049, compared to $211,939 for the comparable period in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li></ul><h4>Net Loss</h4><ul><li>For the three months ended December 31, 2025, Universal Safety Products, Inc. reported a net loss of - $2,287,174, an increase of $1,350,535 (144.2%) compared to a net loss of - $936,639 for the comparable period in 2024. The increased net loss was mainly due to the sale of the smoke and carbon monoxide alarm business, charges for incentive stock options and workforce reductions, and strategic alternative efforts, partially offset by a reduction in credit loss allowance.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li><li>For the nine months ended December 31, 2025, Universal Safety Products, Inc. reported a net loss of - $1,476,633, an increase of $674,766 (84.1%) compared to a net loss of - $801,867 for the comparable period in 2024. The increased net loss was primarily due to the sale of the smoke and carbon monoxide alarm business, the charge for incentive stock options, and efforts to pursue strategic alternatives.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li></ul><h4>Cash Flow</h4><ul><li><strong>Operating Activities</strong>: Operating activities provided cash of $1,347,625 for the nine months ended December 31, 2025, driven by decreases in accounts receivable and amounts due from factor ($3,743,519), and inventories and prepaid expenses ($2,294,183), partially offset by a component of the gain on asset sale ($2,820,668) and other factors. Operating activities used cash of - $736,999 for the nine months ended December 31, 2024, mainly due to a net loss of - $801,867, offset by an increase in accounts payable and accrued expenses ($1,233,487) and other factors.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li><li><strong>Investing Activities</strong>: Investing activities provided cash of $4,502,605 for the nine months ended December 31, 2025, from the sale of assets, net of related liabilities. There were no investing activities for the nine months ended December 31, 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li><li><strong>Financing Activities</strong>: Financing activities used cash of - $1,905,828 during the nine months ended December 31, 2025, including net repayments to the factor of - $2,093,041 and a special dividend of - $2,312,787, partially offset by net borrowing of convertible debt of $2,500,000. Financing activities provided cash of $730,800 during the nine months ended December 31, 2024, from net borrowings from the factor.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></li></ul><h4>Future Outlook and Strategy</h4><p>Universal Safety Products, Inc. plans to continue importing and marketing its product lines, excluding smoke alarms and carbon monoxide alarms, while actively exploring other business opportunities to enhance long-term shareholder value. The Company anticipates that its current cash balances from convertible debentures, available funds from its factoring agreement, and cash generated from ongoing operations will adequately cover its cash requirements for the next twelve months and beyond. However, the Company notes that tariffs ranging from 20% to 45% on imported products from China introduce uncertainty regarding its ability to import products competitively, which could negatively impact sales.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/102109/000110465926017568/uuu-20251231x10q.htm"></span></p>

Universal Safety Products | 10-Q: FY2026 Q3 Revenue: USD 22.55 K