0001104659-26-017568
SEC filingUniversal Safety Products, Inc. reported a net loss of $2.3 million for Q3 2026 (period ending December 31, 2025), driven by an operating loss of $2.2 million despite a $2.8 million gain on sale of assets. Revenue was minimal at $23,000 with a gross loss of $277,000 due to cost of goods sold of $300,000 exceeding sales. The company generated positive operating cash flow of $1.3 million, primarily from adjustments including the asset sale gain and stock-based compensation. Cash increased by $3.9 million to $4.3 million, supported by $4.5 million from investing activities from asset sales, though financing activities used $1.9 million including dividend payments. The balance sheet shows total assets of $5.5 million with shareholders' equity of $2.3 million and current liabilities of $3.2 million. The quarter reflects significant non-operational gains offsetting core operational challenges.
Universal Safety Products, Inc. reported a net loss of $2.3 million for Q3 2026 (period ending December 31, 2025), compared to no prior period data provided for QoQ comparison. The operating loss was $2.2 million, with minimal revenue of $23,000 and cost of goods sold of $300,000 resulting in a gross loss of $277,000. Selling, general and administrative expenses were $1.9 million, and engineering and product development expense was $14,000. A significant gain on sale of assets of $2.8 million partially offset operating losses, while other items included a change in fair value of derivative component of convertible debt of -$135,000 and interest expense net of -$79,000. The provision for income tax benefit was -$114,000. Loss per share was $1.00 basic and diluted based on 2.3 million weighted average shares outstanding.
Revenue analysis is limited as the document discloses only total net sales of $23,000 with no segment or geographic breakdown provided. The minimal revenue indicates negligible sales activity during the quarter, with cost of goods sold of $300,000 substantially exceeding revenue, resulting in a gross loss. No growth drivers, product lines, or customer concentrations are detailed in the available data. The absence of segment information suggests the company may not report segmented operations or such data is not included in this filing.
The company reported negative gross margin due to gross loss of $277,000 on $23,000 revenue, indicating severe cost inefficiencies. Operating margin is deeply negative at -9,565% (calculated as operating loss of -$2.2M divided by revenue of $23K), though this percentage is not explicitly stated in the source and should be interpreted cautiously given the minimal revenue base. The cost structure shows selling, general and administrative expenses of $1.9 million dominating operating costs, while engineering and product development expense was modest at $14,000. Profitability was significantly impacted by the gross loss and high operating expenses, partially mitigated by the $2.8 million gain on asset sale.
Operating cash flow was positive at $1.3 million, driven by adjustments including a $2.8 million gain on sale of asset (added back to net loss of -$1.5M), $897,000 stock-based compensation, and $361,000 deferred income taxes. Investing activities provided $4.5 million primarily from $5.0 million proceeds from sale of assets, while financing activities used $1.9 million including $2.3 million cash dividend paid and $2.5 million issuance of convertible debt offset by $2.1 million net repayment on line of credit. Cash increased by $3.9 million to $4.3 million. The balance sheet shows total assets of $5.5 million with current assets of $5.5 million including cash ($4.3M), accounts receivable ($286K), inventories ($754K), and assets held for sale ($1.7M). Total liabilities are $3.2 million (all current), including convertible debenture ($1.9M) and derivative component ($949K). Shareholders' equity is $2.3 million with accumulated deficit of $11.5 million.
No management guidance, strategic priorities, or specific risk factors are disclosed in the provided document content or XBRL data. The filing does not include forward-looking statements, outlook discussions, or explicit commentary on future performance. Investors should note the absence of disclosed guidance in this quarterly report.