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**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**FORM      10-Q**

**x      QUARTERLY REPORT      PURSUANT TO SECTION 13 OR 15(d) OF**

**THE      SECURITIES EXCHANGE ACT OF 1934**

**Commission      file number **
**001-31747**

**UNIVERSAL      SECURITY INSTRUMENTS, INC.**

| **Maryland**                                   |   | **52-0898545**                     |
|------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of |   | (I.R.S.                Employer    |
| incorporation                or organization)  |   | Identification                No.) |

| **7-A                Gwynns Mill Court**                |   |                      |
|---------------------------------------------------------|--------|---------------------------|
| **Owings                Mills, Maryland**               |   | **21117**                 |
| (Address                of principal executive offices) |   | (Zip                Code) |

**(410)      363-3000**

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**TABLE      OF CONTENTS**

|                                              |   |                                                                             | **Page** |
|---------------------------------------------------|--------|----------------------------------------------------------------------------------|----------|
| **Part                I - Financial Information** |   |                                                                             |     |
| **Item                1.**                        |   | Consolidated                Financial Statements (unaudited):                    |     |
|                                              |   |                                                                             |     |
|                                              |   | Consolidated                Balance Sheets at June 30, 2007                      |     |
|                                              |   | and                March 31, 2007                                                | 3        |
|                                              |   |                                                                             |     |
|                                              |   | Consolidated                Statements of Earnings for the Three                 | 4        |
|                                              |   | Months                Ended June 30, 2007 and 2006                               |     |
|                                              |   |                                                                             |     |
|                                              |   | Consolidated                Statements of Cash Flows for the Three               | 5        |
|                                              |   | Months                Ended June 30, 2007 and 2006                               |     |
|                                              |   |                                                                             |     |
|                                              |   | Notes                to Consolidated Financial Statements                        | 6        |
|                                              |   |                                                                             |     |
| **Item                2.**                        |   | Management’s                Discussion and Analysis of Financial Condition |     |
|                                              |   | and                Results of Operations                                         | 11       |
|                                              |   |                                                                             |     |
| **Item                3.**                        |   | Quantitative                and Qualitative Disclosure About Market Risk         | 14       |
|                                              |   |                                                                             |     |
| **Item                4.**                        |   | Controls                and Procedures                                           | 14       |
|                                              |   |                                                                             |     |
| **Part                II - Other Information**    |   |                                                                             |     |
|                                              |   |                                                                             |     |
| **Item                1.**                        |   | Legal                Proceedings                                                 | 15       |
|                                              |   |                                                                             |     |
| **Item                6.**                        |   | Exhibits                                                                         | 15       |
|                                              |   |                                                                             |     |
|                                              |   | Signatures                                                                       | 16       |

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**PART      I - FINANCIAL INFORMATION**

**ITEM      1.**

**UNIVERSAL      SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                                                                                                                                        |   | June                30, 2007 |       | March                31, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|-------------------------------|--------|
|                                                                                                                                                                                                                                                        |   | Unaudited                    |       | Audited                       |   |
| **ASSETS**                                                                                                                                                                                                                                             |   |                         |       |                          |   |   |   |
| CURRENT                ASSETS                                                                                                                                                                                                                          |   |                         |       |                          |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                               |   | $                            | 336,541    |                          | $      | 240,545 |   |
| Accounts                receivable:                                                                                                                                                                                                                    |   |                         |       |                          |   |   |   |
| Trade                less allowance for doubtful accounts of $15,000                                                                                                                                                                                   |   |                         | 3,204,500  |                          |   | 2,555,895 |   |
| Employees                                                                                                                                                                                                                                              |   |                         | 18,650     |                          |   | 22,073 |   |
|                                                                                                                                                                                                                                                   |   |                         | 3,223,150  |                          |   | 2,577,968 |   |
| Amount                due from factor                                                                                                                                                                                                                  |   |                         | 7,959,306  |                          |   | 7,158,597 |   |
| Inventories,                net of allowance for obsolete inventory of $40,000                                                                                                                                                                         |   |                         | 12,183,418 |                          |   | 11,318,734 |   |
| Prepaid                expenses                                                                                                                                                                                                                        |   |                         | 349,192    |                          |   | 237,666 |   |
| TOTAL                CURRENT ASSETS                                                                                                                                                                                                                    |   |                         | 24,051,607 |                          |   | 21,533,510 |   |
|                                                                                                                                                                                                                                                   |   |                         |       |                          |   |   |   |
| DEFERRED                TAX ASSET                                                                                                                                                                                                                      |   |                         | 810,933    |                          |   | 808,566 |   |
| INVESTMENT                IN JOINT VENTURE                                                                                                                                                                                                             |   |                         | 9,672,034  |                          |   | 9,072,284 |   |
| PROPERTY                AND EQUIPMENT - NET                                                                                                                                                                                                            |   |                         | 4,103,184  |                          |   | 3,030,060 |   |
| GOODWILL                                                                                                                                                                                                                                               |   |                         | 1,890,304  |                          |   | 1,732,562 |   |
| OTHER                ASSETS                                                                                                                                                                                                                            |   |                         | 15,486     |                          |   | 18,486 |   |
| TOTAL                ASSETS                                                                                                                                                                                                                            |   | $                            | 40,543,548 |                          | $      | 36,195,468 |   |
|                                                                                                                                                                                                                                                   |   |                         |       |                          |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                                                                                                                          |   |                         |       |                          |   |   |   |
| CURRENT                LIABILITIES                                                                                                                                                                                                                     |   |                         |       |                          |   |   |   |
| Current                portion of note payable - factor                                                                                                                                                                                                |   | $                            | 3,687,379  |                          | $      | 2,254,966 |   |
| Current                portion of notes payable - other                                                                                                                                                                                                |   |                         | 211,639    |                          |   | 231,625 |   |
| Current                portion of lease obligation                                                                                                                                                                                                     |   |                         | 92,084     |                          |   | 74,394 |   |
| Accounts                payable                                                                                                                                                                                                                        |   |                         | 6,530,743  |                          |   | 6,777,283 |   |
| Accrued                liabilities:                                                                                                                                                                                                                    |   |                         |       |                          |   |   |   |
| Litigation                reserve                                                                                                                                                                                                                      |   |                         | 724,192    |                          |   | 703,193 |   |
| Payroll                and employee benefits                                                                                                                                                                                                           |   |                         | 737,695    |                          |   | 622,083 |   |
| Commissions                and other                                                                                                                                                                                                                   |   |                         | 660,257    |                          |   | 691,981 |   |
| TOTAL                CURRENT LIABILITIES                                                                                                                                                                                                               |   |                         | 12,643,989 |                          |   | 11,355,525 |   |
| LONG-TERM                OBLIGATIONS:                                                                                                                                                                                                                  |   |                         |       |                          |   |   |   |
| Note                payable - factor, net of current portion                                                                                                                                                                                           |   |                         | 2,031,115  |                          |   | - |   |
| Capital                lease obligations, net of current portion                                                                                                                                                                                       |   |                         | 131,086    |                          |   | 168,062 |   |
| Long-term                obligations                                                                                                                                                                                                                   |   |                         | 86,000     |                          |   | - |   |
| COMMITMENTS                AND CONTINGENCIES                                                                                                                                                                                                           |   |                         | -          |                          |   | - |   |
| Minority                interest                                                                                                                                                                                                                       |   |                         | -          |                          |   | - |   |
| SHAREHOLDERS’                EQUITY                                                                                                                                                                                                              |   |                         |       |                          |   |   |   |
| Common                stock, $.01 par value per share; authorized 20,000,000 shares;                issuedand                outstanding 2,481,078 and 2,475,612 shares at June 30, 2007                andMarch                31, 2007, respectively |   |                         | 24,822     |                          |   | 24,756 |   |
| Additional                paid-in capital                                                                                                                                                                                                              |   |                         | 13,308,824 |                          |   | 13,214,025 |   |
| Retained                earnings                                                                                                                                                                                                                       |   |                         | 12,142,554 |                          |   | 11,545,304 |   |
| Other                comprehensive income (loss)                                                                                                                                                                                                       |   |                         | 175,158    |                          |   | (112,204 | ) |
| TOTAL                SHAREHOLDERS’ EQUITY                                                                                                                                                                                                        |   |                         | 25,651,358 |                          |   | 24,671,881 |   |
| TOTAL                LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                        |   | $                            | 40,543,548 |                          | $      | 36,195,468 |   |

*The      accompanying notes are an integral part of these consolidated financial      statements. *

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**UNIVERSAL      SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF EARNINGS**

**(Unaudited)**

|                                                                 |   | Three                Months Ended June 30, |       |
|----------------------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                                 |   |  2007                                 |       |  2006 |   |
|                                                                 |   |                                       |       |   |   |
| Net                sales                                             |   | $                                          | 12,955,431 |   | $ | 8,038,437 |   |
| Cost                of goods sold                                    |   |                                       | 9,877,428  |   |   | 5,257,920 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| GROSS                PROFIT                                          |   |                                       | 3,078,003  |   |   | 2,780,517 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| Research                and development expense                      |   |                                       | 69,890     |   |   | 52,312 |   |
| Selling,                general and administrative expense           |   |                                       | 2,254,692  |   |   | 1,846,813 |   |
| Loss                on currency translation                          |   |                                       | (42,165    | ) |   | - |   |
|                                                                 |   |                                       |       |   |   |   |   |
| Operating                income                                      |   |                                       | 711,256    |   |   | 881,392 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| Other                income (expense):                               |   |                                       |       |   |   |   |   |
| Interest                income                                       |   |                                       | -          |   |   | 16,597 |   |
| Interest                expense                                      |   |                                       | (90,128    | ) |   | (7,500 | ) |
|                                                                 |   |                                       |       |   |   |   |   |
| INCOME                BEFORE EARNINGS FROM AFFILIATES                |   |                                       | 621,128    |   |   | 890,489 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| Equity                in earnings of Joint Venture                   |   |                                       | 599,750    |   |   | 1,052,979 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| NET                INCOME BEFORE TAXES and MINORITY INTEREST         |   |                                       | 1,220,878  |   |   | 1,943,468 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| Provision                for income tax                              |   |                                       | 429,876    |   |   | 366,000 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| NET                INCOME BEFORE MINORITY INTEREST                   |   |                                       | 791,002    |   |   | 1,577,468 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| Minority                interest                                     |   |                                       | -          |   |   | - |   |
|                                                                 |   |                                       |       |   |   |   |   |
| NET                INCOME                                            |   | $                                          | 791,002    |   | $ | 1,577,468 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| Net                income per common share amounts:                  |   |                                       |       |   |   |   |   |
| Basic                                                                |   | $                                          | 0.32       |   | $ | 0.68 |   |
| Diluted                                                              |   | $                                          | 0.31       |   | $ | 0.62 |   |
|                                                                 |   |                                       |       |   |   |   |   |
| Weighted                average number of common shares outstanding: |   |                                       |       |   |   |   |   |
| Basic                                                                |   |                                       | 2,479,979  |   |   | 2,309,601 |   |
| Diluted                                                              |   |                                       | 2,533,733  |   |   | 2,534,371 |   |

*The      accompanying notes are an integral part of these consolidated financial      statements.*

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**UNIVERSAL      SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                      |   | Three                Months Ended June 30, |       |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                                                                                      |   |  2007                                 |       |  2006 |   |
| OPERATING                ACTIVITIES                                                                                       |   |                                       |       |   |   |
| Net                income                                                                                                 |   | $                                          | 791,002    |   | $ | 1,577,468 |   |
| Adjustments                to reconcile net income to net cash (used in) provided by operating                activities: |   |                                       |       |   |   |   |   |
| Depreciation                and amortization                                                                              |   |                                       | 76,345     |   |   | 3,212 |   |
| Earnings                of the Joint Venture                                                                              |   |                                       | (599,750   | ) |   | (1,052,979 | ) |
| Changes                in operating assets and liabilities:                                                               |   |                                       |       |   |   |   |   |
| Increase                in accounts receivable and amounts due from factor                                                |   |                                       | (1,082,855 | ) |   | (289,478 | ) |
| Increase                in inventories and prepaid expenses                                                               |   |                                       | (971,253   | ) |   | (1,235,301 | ) |
| Decrease                in accounts payable and accrued expenses                                                          |   |                                       | (548,974   | ) |   | (253,589 | ) |
| Increase                in deferred tax asset                                                                             |   |                                       | (2,367     | ) |   | - |   |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| NET                CASH (USED IN) OPERATING ACTIVITIES                                                                    |   |                                       | (2,337,852 | ) |   | (1,250,667 | ) |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| INVESTING                ACTIVITIES:                                                                                      |   |                                       |       |   |   |   |   |
| Purchase                of property and equipment                                                                         |   |                                       | (1,149,469 | ) |   | - |   |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| NET                CASH (USED IN) INVESTING ACTIVITIES                                                                    |   |                                       | (1,149,469 | ) |   | - |   |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| FINANCING                ACTIVITIES:                                                                                      |   |                                       |       |   |   |   |   |
| Tax                benefit from exercise of stock options                                                                 |   |                                       | 44,178     |   |   | 366,000 |   |
| Borrowings                net of repayments from Commercial Bank                                                          |   |                                       | 3,463,528  |   |   | - |   |
| Payments                of notes payable acquired in acquisition                                                          |   |                                       | (19,986    | ) |   | - |   |
| Payments                of lease obligation                                                                               |   |                                       | (19,286    | ) |   | - |   |
| Proceeds                from issuance of common stock from exercise of employeestock                options               |   |                                       | 50,779     |   |   | 389,409 |   |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| NET                CASH PROVIDED BY FINANCING ACTIVITIES                                                                  |   |                                       | 3,519,213  |   |   | 755,409 |   |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| Impact                of foreign currency on cash                                                                         |   |                                       | 64,104     |   |   | - |   |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| INCREASE                (DECREASE) IN CASH                                                                                |   |                                       | 95,996     |   |   | (459,258 | ) |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| Cash                at beginning of period                                                                                |   |                                       | 240,545    |   |   | 3,015,491 |   |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| CASH                AT END OF PERIOD                                                                                      |   | $                                          | 336,541    |   | $ | 2,520,233 |   |
|                                                                                                                      |   |                                       |       |   |   |   |   |
| Supplemental                information:                                                                                  |   |                                       |       |   |   |   |   |
| Interest                paid                                                                                              |   | $                                          | 90,128     |   | $ | 17,941 |   |

*The      accompanying notes are an integral part of these consolidated financial      statements.*

----

**UNIVERSAL      SECURITY INSTRUMENTS, INC. AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Statement      of Management**

**Acquisition**

|                                               |   | Three                Months EndedJune                30, |      |
|----------------------------------------------------|--------|----------------------------------------------------------|-----------|
|                                               |   | 2007                                                     |      | 2006 |   |
| Revenue                                            |   | $                                                        | 3,269,773 |   | $ | 4,422,475 |   |
| Net                (loss) Income                   |   |                                                     | (415,799  | ) |   | 20,917 |   |
| (Loss)/Earnings                per share (diluted) |   |                                                     | ($0.16    | ) | $ | 0.01 |   |

**Goodwill**

----

**Income      Taxes**

**Joint      Venture**

|                                       |   | 2007   |       | 2006   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|
| Net                  sales                 |   | $      | 8,961,882  |   |   | 9,043,990 |   |
| Gross                  profit              |   |   | 2,338,140  |   |   | 3,387,793 |   |
| Net                  income                |   |   | 1,080,789  |   |   | 2,244,414 |   |
| Total                  current assets      |   |   | 13,793,083 |   |   | 11,706,237 |   |
| Total                  assets              |   |   | 25,458,275 |   |   | 22,141,256 |   |
| Total                  current liabilities |   |   | 6,779,592  |   |   | 7,239,877 |   |

**Foreign      Currency Translation**

----

**Capital      Lease Obligation**

| 2008                                                |   | $      | 77,550  |   |
|-----------------------------------------------------|--------|--------|---------|--------|
| 2009                                                |   |   | 103,368 |   |
| 2010                                                |   |   | 49,549  |   |
| 2011                                                |   |   | 24,750  |   |
| Total                  minimum lease payments       |   |   | 255,217 |   |
| Less:                  amount representing interest |   |   | (32,047 | )      |
|                                                |   |   | 223,170 |   |
| Less:                  current portion              |   |   | 92,084  |   |
|                                                |   | $      | 131,086 |   |

**Business      Segments **

|                                                      |   | U.S.                  Operations |       | Canadian                  Operations |   |
|-----------------------------------------------------------|--------|----------------------------------|------------|--------------------------------------|--------|
| Net                  sales                                |   | $                                | 10,449,343 |                                 | $      | 2,506,088 |   |
| Cost                  of sales                            |   |                             | 7,734,009  |                                 |   | 2,143,419 |   |
| Gross                  profit                             |   |                             | 2,715,334  |                                 |   | 362,669 |   |
| Selling,                  general and administrative, and |   |                             |       |                                 |   |   |   |
| research                  and development                 |   |                             | 1,621,867  |                                 |   | 744,880 |   |
| Operating                  income (loss)                  |   |                             | 1,093,467  |                                 |   | (382,211 | ) |
| Equity                  in earnings of Joint Venture      |   |                             | 599,750    |                                 |   | - |   |
| Interest                  income (expense)                |   |                             | (58,497    | )                                    |   | (31,631 | ) |
| Net                  income (loss) before taxes           |   |                             | 1,634,720  |                                 |   | (413,842 | ) |
| Provision                  for income taxes (benefit)     |   |                             | 429,876    |                                 |   | - |   |
| Net                  income (loss)                        |   |                             | 1,204,844  |                                 |   | (413,842 | ) |

**Net      Income Per Common Share**

----

|                                                                                                                                    |   | Three                Months Ended June                30, |      |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|-----------|
|                                                                                                                                    |   | 2007                                                      |      | 2006 |   |
| Weighted                average number of common shares outstanding for basic EPS                                                       |   |                                                      | 2,479,979 |   |   | 2,309,601 |   |
| Shares                issued upon the assumed exercise of outstanding stock                options                                      |   |                                                      | 53,754    |   |   | 224,770 |   |
| Weighted                average number of common and common equivalent shares outstanding                for                diluted EPS |   |                                                      | 2,533,733 |   |   | 2,534,371 |   |

**Credit      Facility**

**Notes      Payable - Other**

**Stock      Based Compensation**

*Adoption      of SFAS No. 123R. *
*      Share-Based Payment*
*      Accounting for Stock Issued to Employees*

----

*Fair      Value Determination.*

*Stock      Option Activity.*

*Stock      Compensation Expense.*

**Recently      Issued Accounting Pronouncements**

*Fair      Value Measurements*
*Fair      Value Measurement (SFAS 157)*

*The      Fair Value Option for Financial Assets and Financial      Liabilities*
*The      Fair Value Option for Financial Assets and Financial      Liabilities*

**Reclassifications**

----

**ITEM      2.**

**FORWARD-LOOKING        STATEMENTS**

**OVERVIEW**

**RESULTS        OF OPERATIONS**

**Three        Months Ended June 30, 2007 and 2006**

*Sales.*

*Gross      Profit Margin.*

----

*Expenses.*

*Interest      Expense and Income.*

*Income      Taxes.*

*Net      Income.*

**FINANCIAL        CONDITION AND LIQUIDITY**

----

**JOINT        VENTURE**

*Net      Sales.*

*Net      Income.*

*Gross      Margins.*

*Expenses.*

*Interest      Income and Expense.*

*Liquidity.*

**CRITICAL        ACCOUNTING POLICIES**

----

*Revenue      Recognition in Financial Statements*

**ITEM      3.**

**ITEM      4.**

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**PART      II - OTHER INFORMATION**

**ITEM      1.**

**ITEM      6.** EXHIBITS

| Exhibit                  No. |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                          |   | Articles                  of Incorporation (incorporated by reference to the Company’s Quarterly                  Report on Form 10-Q for the period ended December 31, 1988, File                  No.                  1-31747)                                                                                                                                                                                                                                                                                                                |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 3.2                          |   | Articles                  Supplementary, filed October 14, 2003 (incorporated by reference                  to                  Exhibit 3.1 to the Company’s Current Report on Form 8-K filed October 31,                  2002, File No. 1-31747)                                                                                                                                                                                                                                                                                               |
| 3.3                          |   | Bylaws,                  as amended (incorporated by reference to Exhibit 3.1 to the Company’s                  Current Report on Form 8-K filed June 13, 2007, File No.                  1-31747)                                                                                                                                                                                                                                                                                                                                               |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1                         |   | Non-Qualified                  Stock Option Plan, as amended (incorporated by reference to Exhibit                  10.1                  to the Company’s Quarterly Report on Form 10-Q for the period ended                  September 30, 2003, File No. 1-31747)                                                                                                                                                                                                                                                                             |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.2                         |   | Hong                  Kong Joint Venture Agreement, as amended (incorporated by reference                  to                  Exhibit 10.2 to Amendment No. 1 on Form 10-K/A to the Company’s Annual                  Report on Form 10-K for the year ended March 31, 2006, File No.                  1-31747)                                                                                                                                                                                                                                 |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.3                         |   | Amended                  and Restated Factoring Agreement between the Registrant and The                  CIT Group                  Commercial Services Inc. (“CIT”), dated June 22, 2007 (substantially                  identical agreement entered into by the Registrant’s wholly-owned                  subsidiary, USI Electric, Inc.) (incorporated by reference to Exhibit                  10.1                  to the Company’s Current Report on Form 8-K filed June 26, 2007, File No.                  1-31747) |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.4                         |   | Amended                  and Restated Inventory Security Agreement between the Registrant                  and CIT,                  dated June 22, 2007 (substantially identical agreement entered                  into by the                  Registrant’s wholly-owned subsidiary, USI Electric, Inc.) (incorporated by                  reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K                  filed June 26, 2007, File No. 1-31747)                                                                |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.5                         |   | Credit                  Agreement between International Conduits Ltd. (“Icon”) and CIT Financial                  Ltd. (“CIT Canada”), dated June 22, 2007 (“CIT Canada Credit Agreement”)                  (incorporated by reference to Exhibit 10.3 to the Company’s Current Report                  on Form 8-K filed June 26, 2007, File No. 1-31747)                                                                                                                                                   |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.6                         |   | General                  Security Agreement between CIT Canada and Icon, dated June 22,                  2007, with                  respect to the obligations of Icon under the CIT Canada Credit                  Agreement                  (incorporated by reference to Exhibit 10.4 to the Company’s Current Report                  on Form 8-K filed June 26, 2007, File No. 1-31747)                                                                                                                                                   |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.7                         |   | Guaranty                  made by the Registrant and USI Electric Inc., in favor of CIT Canada,                  dated June 22, 2007, with respect to the obligations of Icon under                  the CIT                  Canada Credit Agreement (incorporated by reference to Exhibit 10.5                  to the                  Company’s Current Report on Form 8-K filed June 26, 2007, File No.                  1-31747)                                                                                                           |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.8                         |   | Lease                  between Universal Security Instruments, Inc. and National Instruments                  Company dated October 21, 1999 for its office and warehouse located                  at 7-A                  Gwynns Mill Court, Owings Mills, Maryland 21117 (incorporated by                  reference                  to Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the                  Fiscal Year Ended March 31, 2000, File No. 1-31747)                                                                |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.9                         |   | Amended                  and Restated Employment Agreement dated July 18, 2006 between the                  Company                  and Harvey B. Grossblatt (incorporated by reference to Exhibit                  10.7 to the                  Company’s Quarterly Report on Form 10-Q for the period ended September                  30,                  2006, File No. 1-31747)                                                                                                                                                           |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.1                         |   | Rule                  13a-14(a)/15d-14(a) Certification of Chief Executive                  Officer*                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.2                         |   | Rule                  13a-14(a)/15d-14(a) Certification of Chief Financial                  Officer*                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 32.1                         |   | Section                  1350 Certifications*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 99.1                         |   | Press                  Release dated August 14,                  2007*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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**SIGNATURES**

|                               |                                                                |                                  |
|------------------------------------|---------------------------------------------------------------------|---------------------------------------|
|                               | **UNIVERSAL                SECURITY INSTRUMENTS, INC.**(Registrant) |
|                          |                                                           |                             |
| Date:              August 14, 2007 | By:                                                       | /s/              Harvey B. Grossblatt |
|                               | Harvey              B. Grossblatt                                   |
|                               | President,                Chief Executive Officer                   |
|         |                                                                  |                           |
|--------------|-----------------------------------------------------------------------|--------------------------------|
|    |                                                             |                      |
|              | By:                                                         | /s/              James B. Huff |
|         | James              B. Huff                                            |
|         | Vice                President, Chief Financial                Officer |

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