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, 1997
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)
Issuer's Telephone Number, including
Area Code: (201) 767-6040
Check whether the Issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months
(or for such shorter period that the Issuer was required to file such
reports), and (2) has been subject to the filing requirements for the
past 90 days:
YES X NO______
State the number of shares outstanding of each of the Issuer's
classes of common equity, as of the latest practicable date:
42,474,907 shares of Common Stock, $.0005 par value,
as of August 8, 1997
ADM TRONICS UNLIMITED, INC.
INDEX
Part I. Financial Information Page Number
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets - June 30, 1997 and
March 31, 1997 2
Consolidated Statements of Operations - For The Three
Months Ended June 30, 1997 and 1996 3
Consolidated Statements of Changes in Stock holders'
Equity - For The Three Months Ended June 30, 1997 4
Consolidated Statements of Cash Flows - For The Three
Months Ended June 30, 1997 and 1996 5
Notes To Consolidated Financial Statements 6
Item 2. Management's Discussion And Analysis of Financial
Condition and Results of Operations 6-7
1
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED BALANCE SHEETS
June 30, March 31,
1997 1997
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 1,046,231 1,174,965
Certificates of Deposit 0 107,000
Accounts receivable--trade less allowance
for doubtful accounts of $ 5,000 256,808 315,164
Inventories:
Raw materials and supplies 120,812 130,543
Finished goods--chemicals 61,055 73,634
Other current assets 31,586 35,526
Total Current Assets 1,516,492 1,836,832
Property and Equipment 53,333 54,831
Equipment held for sale or lease, net of
accumulated depreciation of $51,368 and
$51,014, respectively 321,639 321,823
Notes Receivable 82,307 82,306
Loan receivable from officers 64,652 66,652
Other Assets 554,137 506,864
Total Assets $ 2,592,560 $2,869,308
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable--trade 72,000 142,394
Accrued expenses and other 16,819 22,556
Prepayments from customer 0 69,293
Total Current Liabilities 88,819 234,243
Stockholders' Equity 2,503,741 2,635,065
Total Liabilities & Stockholders' Equity $2,592,560 $2,869,308
See accompanying notes to consolidated financial statements
2
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
June 30,
1997 1996
Revenues:
Net sales $ 277,061 $ 439,931
Costs And Expenses:
Cost of sales 127,873 141,140
Selling, general and 290,749 203,037
administrative
Total cost and expenses 418,622 344,177
Operating Income (Loss) ($141,561) $ 95,754
Other Income:
Interest,net of expense and 10,237 13,452
other income
Net income (loss) ($131,324) $ 109,206
Net Income (loss) per ( 0.003) 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, 1997
(Unaudited)
Common Capital In
Stock Par Excess Of Accumulated
Shares Value Par Value Deficit Total
Balance,
March 31, 1997 42,474,907 21,237 4,819,436 (2,205,608) 2,635,065
Net income(loss)
Three months
ended June 30, 1997 (131,324) (131,324)
Balance
June 30, 1997 42,474,907 21,237 4,819,436 (2,336,932) 2,503,741
See accompanying notes to consolidated financial statements
4
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Three Months Ended June 30,
1997 1996
Cash Flows From Operating Activities:
Net income (loss) ($ 131,324) $ 109,206
Adjustments to reconcile net income (loss)
to net cash flows from operating activities:
Depreciation and amortization 5,804 4,655
Changes in operating assets and liabilities
Accounts receivable--trade ( 58,356) (197,161)
Inventories (22,310) 61,893
Other current assets (3,940) ( 1,818)
Equipment held for sale or lease 184 (33,279)
Net change in other assets (44,818) (38,755)
Accounts payable--trade (70,394) 97,483
Accrued expenses pre payments (75,029) (28,735)
from customers
Net cash flows provided by (used in)
operating activities (230,971) (83,102)
Cash Flows From Investing Activities:
Purchase of property and equipment (2,763) (725)
Principal payments on notes receivable 0 (3,000)
Repayments of loans to officers (2,000) 0
Net change in certificates of deposit 107,000 (105,390)
Net cash flows provided by (used in)
investing activities 102,237 101,665
Cash Flows From Financing Activities:
Net change in cash and cash equivalents (128,734) 18,563
Cash--Beginning of year 1,174,965 1,113,626
Cash--End of period 1,046,231 1,132,189
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,
1997 (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, 1997 the Company had cash of $1,046,231 as compared to cash and
certificates of deposit of $1,281,965 at March 31, 1997. This decrease was
principally the result of cash used in operating activities.
Operating Activities
Net cash decreased $128,734 for the period as compared to an increase of
$18,563 in 1996. Net loss accounted for a decrease of $131,324 in 1997 as
compared to an increase of $109,206 attributable to net income in 1996.
Accounts receivable decreased in 1997 by $58,356 principally due to a
reduction in sales for the period. Inventory decreased by $22,310 in
conjunction with the reduction in sales.
Investing Activities
Capital expenditures consisted of $2,763 for the purchase of office
equipment. There were maturities of Certificates of Deposit of $107,000.
Financing Activities
The Company did not have any financing activities during the period ended
June 30, 1997 and June 30, 1996.
The Company does not have any material external sources of liquidity or unused
sources of funds.
6
Results of Operations
Quarter Ended June 30, 1997
Revenues
Revenues were $277,061 in 1997 as compared to $439,931 in 1996 representing a
decrease of $162,870 or 37%. Chemical revenues decreased $53,906 and
revenues from the Company's Sonotron Medical activities decreased by $108,964.
Gross Profit
Gross profit of $149,188 in 1997 was 50% below the gross profit in 1996.
Gross profit was 54% of revenues in 1997 as compared with 68% of revenues
in 1996. The decrease in gross profit was the result of the product
mix of sales which consisted of a relative increase in sales of chemical
products with a lower gross margin and a decrease in sales of the Company's
Sonotron Medical products.
Operating Income (Loss)
Operating loss of $141,561 in 1997 was $237,315 below the operating income of
$95,754 in 1996. This was due to an increase in selling general and
administrative expenses related to legal fees and associated costs the company
incurred in its arbitration and counter claims with a former distributor of
the Sonotron Medical Products and expenses for participation in an
international medical exhibition and a decrease in sales and a change in the
product mix of sales for the period.
Other Income (Loss)
Other income of $10,237 in 1997 decreased $3,219, from $13,456 in 1996, due to
a decrease in interest income from reduced amounts invested.
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 13, 1997
