SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to ______
Commission File No. 0-17629
ADM TRONICS UNLIMITED, INC.
(Exact name of registrant as specified in its Charter)
Delaware 22-1896032
(State or Other Jurisd- (I.R.S. Employer Identifi-
iction of Incorporation cation Number)
or organization)
224-S Pegasus Avenue, Northvale, New Jersey 07647
(Address of Principal Executive Offices)
Registrant's Telephone Number, including
Area Code: (201) 767-6040
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
the filing requirements for at least the past 90 days:
YES X NO______
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date:
42,474,907 shares of Common Stock, $.0005 par value,
as of August 9, 1996
ADM TRONICS UNLIMITED, INC.
INDEX
Part I. Financial Information Page Number
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets - June 30, 1996 and
March 31, 1996 2
Consolidated Statements of Operations - For The Three
Months Ended June 30, 1996 and 1995 3
Consolidated Statements of Changes in Stock holders'
Equity - For The Three Months Ended June 30, 1996 4
Consolidated Statements of Cash Flows - For The Three
Months Ended June 30, 1996 and 1995 5
Notes To Consolidated Financial Statements 6-7
Item 2. Management's Discussion And Analysis of Financial
Condition and Results of Operations 6
1
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED BALANCE SHEETS
June 30, March 31,
1996 1996
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 1,132,189 1,113,626
Certificates of Deposit 0 105,390
Securities held to maturity 100,297 100,297
Accounts receivable--trade less allowance
for doubtful accounts of $20,500 397,919 200,758
Inventories:
Raw materials and supplies 166,965 129,809
Finished goods--chemicals 84,831 60,094
Other current assets 173,463 172,282
Total Current Assets 2,055,664 1,882,256
Property and Equipment 44,699 48,629
Equipment held for sale or lease, net of
accumulated depreciation of $49,953 and
$49,599, respectively 430,221 463,500
Notes Receivable 85,306 82,306
Equity securities available for sale 20,000 20,000
Loan receivable from officers, bearing
interest at 3% per annum 68,252 68,252
Other Assets 378,785 340,030
Total Assets $ 3,082,927 $2,904,973
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable--trade 155,909 58,426
Accrued expenses and other 20,177 27,431
Prepayments from customer 103,462 124,943
Total Current Liabilities 279,548 210,800
Deferred Sales Revenue 65,860 65,860
Stockholders' Equity 2,737,519 2,628,313
Total Liabilities & Stockholders' Equity $3,082,927 $2,904,973
See accompanying notes to consolidated financial statements
2
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
June 30,
1996 1995
Revenues:
Net sales $ 439,931 $ 531,014
Costs And Expenses:
Cost of sales 141,140 162,105
Selling, general and 203,037 317,734
administrative
Total cost and expenses 344,177 479,839
Operating Income (Loss) $ 95,754 $ 51,175
Other Income:
Interest,net of expense and 13,452 20,869
other income
Income (loss) before income
tax benefit $ 109,206 $ 72,044
Income tax benefit 0 0
Net income (loss) $ 109,206 $ 72,044
Net Income (loss) per 0.002 0.002
common share
See accompanying notes to consolidated financial statements.
3
ADMTRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED JUNE 30, 1996
(Unaudited)
Common Capital In
Stock Par Excess Of Accumulated
Shares Value Par Value Deficit Total
Balance,
March 31, 1996 42,474,907 21,237 4,819,436 (2,212,360) 2,628,313
Net income(loss)
Three months
ended June 30, 1996 109,206 109,206
Balance
June 30, 1996 42,474,907 21,237 4,819,436 (2,103,154) 2,737,519
See accompanying notes to consolidated financial statements
4
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Three Months Ended June 30,
1996 1995
Cash Flows From Operating Activities:
Net income (loss) $ 109,206 $ 72,044
Adjustments to reconcile net income (loss)
to net cash flows from operating activities:
Depreciation and amortization 4,301 9,001
Changes in operating assets and liabilities:
Accounts receivable--trade (197,161) 53,808
Inventories (61,893) 27,394
Other current assets (1,181) (13,300)
Other assets 0 (17,455)
Equipment held for sale or lease 33,633 (74,220)
Accounts payable--trade 97,483 203,483
Customer deposits payable (21,481) 198,045
Accrued expenses and other (7,254) 742
Net cash flows provided by (used in)
operating activities (44,347) 459,542
Cash Flows From Investing Activities:
Purchase of property and equipment (725) (910)
Principal payments (Loan) on notes receivable (3,000) 16,269
Net changes in certificates of deposit 105,390 (1,743)
Net increase in other assets (38,755) 0
Net cash flows provided by (used in)
investing activities 62,910 13,616
Cash Flows From Financing Activities:
Repayments of notes and leases payable 0 (633)
Net change in cash and cash equivalents 18,563 472,525
Cash--Beginning of year 1,113,626 286,546
Cash--End of period 1,132,189 759,071
Supplemental cash flow information:
Interest paid 135 1,250
Income taxes paid 0 400
See accompanying notes to consolidated financial statements.
5
ADM TRONICS UNLIMITED, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Basis of Presentation:
The consolidated balance sheet at the end of the preceding fiscal year has
been derived from the audited consolidated balance sheet contained in the
Company's annual report on Form 10-KSB for the fiscal year ended March 31,
1996 (the "Form 10-KSB") and is presented for comparative purposes. All
other financial statements are unaudited. In the opinion of management, all
adjustments which include only normal recurring adjustments necessary to
present fairly the financial position, results of operations and changes in
financial positions for all periods presented have been made. The results of
operations for interim periods are not necessarily indicative of the operating
results for the full year.
Footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been omitted in
accordance with the published rules and regulations of the Securities and
Exchange Commission. These consolidated financial statements should be read in
conjunction with the financial statements and notes thereto included in the
Form 10-KSB.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
At June 30, 1996 the Company had cash of $1,132,189 as compared to cash and
certificates of deposit to $1,219,016 at March 31, 1996. This decrease was
principally the result of cash flows used in operating activities and
investments in other assets.
Operating Activities
Net cash decreased $44,347 for the period as compared to an increase of
$459,542 in 1995. Net income provided $109,206 in 1996 as compared to $72,044
in 1995. Customer deposits payable used $21,481 in 1996 as compared to the
receipt of $18,045 in 1995. Accounts receivable were increased in 1995 by
$197,161 as a result of the timing of shipments to Non-U.S. customers.
Inventory increased by $61,893 due to an increase in long-lead items for the
companys' medical electronic products.
Investing Activities
Capital expenditures consisted of $725 for the purchase of office equipment and
additional loan on notes receivable in the amount of $3,000. Certificates of
deposit it were decreased by $105,390.
Financing Activities
The Company did not have any financing activities during the three months ended
June 30, 1996, as compared to the payment of $633 of notes and leases payable
for the three months ended June 30, 1995.
The Company does not have any material external sources of liquidity or unused
sources of funds.
6
Results of Operations
Quarter Ended June 30, 1996
Revenues
Revenues were $439,931 in 1996 as compared to $531,014 in 1995 representing a
decrease of $91,083 or 17%. Chemical revenues increased $7,821 offset by a
decrease in revenues from the Company's Sonotron Medical activities of $98,904.
Gross Profit
Gross profit of $298,791 in 1996 was $70,118, or 19%, below the gross profit
in 1995. Gross profit was 68% of revenues in 1996 as compared with 69% of
revenues in 1995. The decrease in gross profit was the result of the product
mix of sales with an increase in sales of chemical products with a lower gross
margin offset by a decrease in sales of the Company's Sonotron Medical products.
Operating Income
Operating income of $95,754 in 1996 was $44,579 above the operating income of
$51,175 in 1995. This was due to a decrease in selling general and
administrative expenses related to legal fees and associated costs the company
incurred in its patent infringement action brought against unrelated third
parties during the three months ended June 30, 1995.
Other Income (Loss)
Other income of $13,456 in 1996 decreased $7,417,from $20,869 in 1995, due to
a decrease in interest income from reductions in available rates.
7
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ADM Tronics Unlimited, Inc.
By:\s\Alfonso DiMino
Dr. Alfonso DiMino
President
And By:\s\Andre' DiMino
Andre' DiMino
Principal Financial Officer
Dated: Northvale, New Jersey
August 14, 1996
