Universal Safety Products Inc. reported net sales of USD 22,549 in Q3 FY2026 (quarter ended Dec. 31, 2025), down 99.6%, and a net loss of USD 2.29 million. Selling, general and administrative expenses were USD 1.90 million, while engineering and product development expenses were USD 14,193. The company also recorded USD 135,000 of other expense related to changes in the fair value of the derivative component of convertible debentures, and net interest expense of USD 78,824. For 9M FY2026 (nine months ended Dec. 31, 2025), net sales were USD 4.61 million, down 73.4%, and net loss was USD 1.48 million. Gross profit margin was 19.0%. Selling, general and administrative expenses were USD 4.32 million and engineering and product development expenses were USD 202,882. Other items included a USD 2.82 million gain on the sale of inventory and intangible assets, USD 182,000 of other expense tied to the fair value change of the derivative component of convertible debentures, and net interest expense of USD 86,049. The company said results reflected the May 22, 2025 closing of its asset sale to Feit Electric covering its smoke and carbon monoxide alarm business and certain non-tangible assets, and noted a one-time return of goods approved for a large customer. It added that it intends to continue importing and marketing product lines other than smoke and carbon monoxide alarms, is exploring strategic alternatives and merger activities (including about USD 600,000 of professional fees in the quarter), and highlighted tariff exposure on imports from China, with certain products subject to tariffs of 20% to 45%. Subsequent to Dec. 31, 2025, USD 1.55 million of convertible debt was converted into 405,000 shares of common stock.

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