$UUU

UNIVERSAL SAFETY PRODUCTS, INC.

CIK:0000102109|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 109,559	$ 3,824,247
Cost of goods sold	100,428	3,130,112
GROSS PROFIT	9,131	694,135
Selling, general and administrative expense	743,823	1,113,303
Engineering and product development expense	1,367	112,007
Depreciation	1,135
Operating loss	(737,194)	(531,175)
Other income (expense):
Gain on sale of assets		2,820,668
Change in fair value of derivative liability	150,635
Interest (expense) income	(75,527)	3,828
Total other income before taxes	75,108	2,824,496
Net (loss) income before taxes	(662,086)	2,293,321
Provision for income taxes:
Current		122,000
Deferred income taxes		361,000
NET (LOSS) INCOME	$ (662,086)	$ 1,810,321
(Loss) earnings per share:
Basic (in dollars per share)	$ (0.23)	$ 0.78
Diluted (in dollars per share)	$ (0.23)	$ 0.78
Shares used in computing (loss) earnings per share:
Weighted average basic shares outstanding (in shares)	2,936,694	2,312,887
Weighted average diluted shares outstanding (in shares)	2,936,694	2,312,887

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES:
Net (loss) income	$ (662,086)	$ 1,810,321
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Gain on sale of assets		(2,820,668)
Change in fair value of derivative liability	(150,635)
Depreciation	1,135
Amortization of original issue discount and accrued interest on convertible debt	99,839
Deferred income taxes		361,000
Changes in operating assets and liabilities:
Decrease in accounts receivable and amount due from factor	1,208	1,579,321
(Increase) decrease in inventories and prepaid expenses	(103,842)	3,768,052
Increase (decrease) in accounts payable	96,330	(1,980,177)
Decrease in assets - held for sale		(1,681,937)
Direct debt issuance costs paid, classified as a financing activity	30,000
Increase in accrued liabilities	246	47,591
Decrease in operating lease liability		(13,330)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	(687,805)	1,070,173
INVESTING ACTIVITIES:
Proceeds from sale of assets		4,955,108
Decrease in trade accounts payable related to closing costs on sale		(452,503)
Purchase of fixed asset	(45,401)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(45,401)	4,502,605
FINANCING ACTIVITIES:
Proceeds from the issuance of convertible debt, net of discount	1,000,000
Convertible debt issuance costs	(30,000)
Net repayment - line of credit - factor		(2,100,458)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	970,000	(2,100,458)
NET INCREASE IN CASH	236,794	3,472,320
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	3,473,619	348,074
CASH AND CASH EQUIVALENTS AT END OF PERIOD	3,710,413	$ 3,820,394
Non-cash supplemental Information:
Convertible notes settled through issuance of common stock	(682,507)
Reclassification of derivative liability to additional paid in capital upon settlement of convertible notes	$ (204,365)

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2026	Mar. 31, 2026
CURRENT ASSETS
Cash and cash equivalents	$ 3,710,413	$ 3,473,619
Accounts receivable:
Trade and other receivables, less provision for credit losses of $767,000 as of June 30, 2026 and March 31, 2026	316,546	317,754
Inventories - finished goods, net of allowance of $510,000 as of June 30, 2026 and March 31, 2026	411,369	370,852
Prepaid expenses	405,915	342,590
TOTAL CURRENT ASSETS	4,844,243	4,504,815
Property and equipment, net	44,266
TOTAL ASSETS	4,888,509	4,504,815
CURRENT LIABILITIES
Convertible debenture, net of discount	709,240	600,908
Derivative component of convertible debenture	263,000	309,000
Accounts payable	357,978	261,648
Accrued liabilities:
Accrued payroll and employee benefits	28,360	55,253
Accrued liabilities, legal and other	69,139	42,000
TOTAL CURRENT LIABILITIES	1,427,717	1,268,809
TOTAL LIABILITIES	1,427,717	1,268,809
SHAREHOLDERS' EQUITY
Common stock, $.01 par value per share; authorized 20,000,000 shares; 3,028,463 and 2,842,887 shares issued and outstanding as of June 30, 2026 and March 31, 2026, respectively	30,285	28,429
Additional paid-in capital	16,636,402	15,751,386
Accumulated deficit	(13,205,895)	(12,543,809)
TOTAL SHAREHOLDERS' EQUITY	3,460,792	3,236,006
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 4,888,509	$ 4,504,815