Universal Safety Products, Inc. Reports Second-Quarter Results

Rhea-AI Summary

Universal Safety Products (NYSE AMEX: UUU) reported fiscal second-quarter and six-month results for the period ended September 30, 2025. Q2 sales fell 89.4% to $759,999 and the company recorded a Q2 net loss of $999,780 ($0.43 per share). For the six months, sales fell 61.2% to $4,584,246 while net income was $810,541 (basic $0.35; diluted $0.33), aided by the May 2025 sale of its smoke and carbon monoxide alarm business. Management cited increased accounts-receivable reserves and substantially lower sales as primary drivers of the quarterly loss. At September 30, 2025, cash was $5,225,625 and total assets were $6,769,836.

Positive

• Six-month net income of $810,541
• Cash balance increased to $5,225,625 at Sept. 30, 2025
• Sale of smoke and CO alarm business completed in May 2025

Negative

• Quarterly sales down 89.4% to $759,999
• Quarterly net loss of $999,780 (−$0.43 per share)
• Six-month sales down 61.2% to $4,584,246
• Accounts receivable reduced to $707,464 at Sept. 30, 2025

Insights

Financial analyst

Q2 shows a sharp revenue collapse after the May 2025 divestiture; a one-time gain lifted six-month income but quarterly operations lost money.

Sales fell 89.4% in the three months to Sept. 30, 2025 to $759,999, driven by the May 2025 sale of the smoke and CO alarm business; the company reported a $999,780 net loss for the quarter and a reserve build against accounts receivable that materially reduced short-term profitability. Cash rose to $5,225,625 at period end while accounts receivable and inventory both declined sharply, consistent with a business-line sale.

The six-month result shows a $810,541 net income primarily from the asset sale, not recurring operations, so underlying revenue generation weakened meaningfully. Key risks include customer deductions that required increased reserves, reduced working capital tied to lower receivables and inventory, and the uncertain timing and economics of the announced new business segment.

Watch for three concrete near-term items: progress and commercial detail for the new business segment now being finalized after May 2025, changes in accounts receivable reserve levels in the next quarterly filing, and quarterly sales trends that would indicate whether revenue recovers from the divestiture over the next 12 months. Given the mix of a one-time gain and a large operating decline, the update is neutral for stakeholders until follow-on operational detail appears.

OWINGS MILLS, Md., Nov. 19, 2025 (GLOBE NEWSWIRE) -- Universal Safety Products, Inc. (NYSE AMEX: UUU) today announced results for its fiscal second quarter and six months ended September 30, 2025.

For the three months ended September 30, 2025, sales decreased 89.4% to $759,999 compared to sales of $7,203,269 for the same period last year. The Company reported a net loss of $999,780, or $0.43 per basic and diluted share, compared to net income of $576,978 or $0.25 per basic and diluted share for the same period last year.

For the six months ended September 30, 2025, sales decreased 61.2% to $4,584,246 versus $11,801,785 for the same period last year. The Company reported net income of $810,541, or $0.35 per basic share and $0.33 per diluted share, compared to net income of $134,772 or $0.06, per basic and diluted share for the corresponding 2024 period.

Harvey B. Grossblatt, CEO said “the sales decreases in the three and six-month periods were due to the sale of our smoke and carbon monoxide alarm business in May 2025. The primary reason for the loss in the three-month period was an increase to our reserves for accounts receivable to cover potential deductions from customers and substantially lower sales. The gain for the six-month period was primarily due to the sale of our smoke and CO alarm business. The Company is finalizing its plans for a new business segment.

UNIVERSAL SAFETY PRODUCTS, INC. is a U.S.-based manufacturer and distributor of safety and electrical devices. Founded in 1969, the Company has an over 56-year heritage of developing innovative and easy-to-install products, including smoke, fire and carbon monoxide alarms. For more information on Universal Safety Products, Inc, visit our website at www.universalsafetyprod.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, currency fluctuations, the impact of current and future laws and governmental regulations affecting us 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 SAFETY PRODUCTS, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(UNAUDITED)

	Three Months Ended September 30,
		2025			2024
Sales		$759,999			$7,203,269
Net (loss) income		(999,780)			576,978
Net (loss) income per share:
Basic Diluted	$ (0.43) (0.43)				$ 0.25 0.25
Weighted average number of common shares outstanding:
Basic Diluted		2,312,887 2,312,887			2,312,887 2,312,887

	Six Months Ended September 30,
		2025		2024
Sales	$	4,584,246		$11,801,785
Net income		810,541		134,772
Earnings per share:
Basic Diluted	$	0.35 0.33	$	0.06 0.06
Weighted average number of common shares outstanding:
Basic Diluted		2,312,887 2,487,431		2,312,887 2,312,887

CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

ASSETS
	Sept. 30, 2025			Sept. 30, 2024
Cash	$5,225,625			$234,199
Accounts receivable and amount due from factor		707,464			6,460,368
Inventory		672,359			5,980,798
Prepaid expense		164,388			152,429
TOTAL CURRENT ASSETS		6,769,836			12,827,794
PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS–NET		-			108,892
OTHER ASSETS		-			-
TOTAL ASSETS	$6,769,836			$12,936,686
LIABILITIES AND SHAREHOLDERS’ EQUITY
Line of credit – factor Convertible Debentures Derivative Component of convertible debentures Short-term portion of operating lease liability Accounts payable	$	- 1,762,355 814,000 - 268,071		$4,216,134 - - 93,065 3,064,147
Accrued liabilities		263,945			465,541
TOTAL CURRENT LIABILITIES		3,108,371			7,838,887
COMMITMENTS AND CONTINGENCIES		-			-
SHAREHOLDERS’ EQUITY:
Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and outstanding 2,312,887 at September 30, 2025 and 2024		23,129			23,129
Additional paid-in capital		12,885,841			12,885,841
Accumulated Deficit		(9,247,505)			(7,811,171)
TOTAL SHAREHOLDERS’ EQUITY		3,661,465			5,097,799
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$6,769,836			$12,936,686

Contact: Harvey Grossblatt, CEO
Universal Safety Products, Inc.
(410) 363-3000, Ext. 224
or
Lambert & Co.
(315) 529-2348

FAQ

Why did UUU report a large Q2 2025 loss?

Management cited increased accounts-receivable reserves and substantially lower sales as the primary causes of the Q2 2025 loss.

How much did Universal Safety Products (UUU) sell in Q2 2025?

UUU reported Q2 sales of $759,999, an 89.4% decline versus Q2 2024.

What impact did the May 2025 sale of the smoke and CO alarm business have on UUU results?

The sale completed in May 2025 contributed to the six-month gain and helped drive six-month net income of $810,541.

What were UUU's cash and total assets at September 30, 2025?

UUU reported cash of $5,225,625 and total assets of $6,769,836 at Sept. 30, 2025.

How did UUU's six-month sales and EPS compare year-over-year through Sept. 30, 2025?

Six-month sales fell to $4,584,246 (down 61.2%) while basic EPS rose to $0.35 for the period.