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, 1999
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:
47,382,037 shares of Common Stock, $.0005 par value,
as of August 5, 1999
ADM TRONICS UNLIMITED, INC.
INDEX
Part I. Financial Information Page Number
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets - June 30, 1999 and
March 31, 1999 2
Consolidated Statements of Operations - For The Three
Months Ended June 30, 1999 and 1998 3
Consolidated Statements of Changes in Stockholders'
Equity - For The Three Months Ended June 30, 1999 4
Consolidated Statements of Cash Flows - For The Three
Months Ended June 30, 1999 and 1998 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,
1999 1999
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 535,040 $ 496,405
Accounts receivable--trade less allowance
for doubtful accounts of $52,200 439,890 353,976
Inventories:
Raw materials and supplies 584,894 392,066
Finished goods--chemicals 66,796 56,226
Other current assets 24,197 102,600
Total Current Assets 1,650,817 1,401,273
Property and Equipment 179,580 185,916
Equipment in use and under lease agreements,
net of accumulated depreciation of $174,563
and $139,813 respectively 681,767 736,566
Equipment held for sale 746,224 736,507
Loan receivable from officers 65,891 65,191
Other Assets 262,162 218,088
Total Assets $ 3,586,441 $3,343,541
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable--trade 486,780 273,483
Accrued expenses and other 42,910 59,385
Notes payable - current 131,470 145,091
Total Current Liabilities 661,160 477,959
Commitments and contingencies 0 0
Stockholders' Equity 2,925,281 2,865,582
Total Liabilities & Stockholders' Equity $3,586,441 $3,343,541
See accompanying notes to consolidated financial statements
2
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
June 30,
1999 1998
Revenues:
Net sales $ 576,473 $ 555,822
Costs And Expenses:
Cost of sales 127,571 275,870
Selling, general and
administrative 422,683 377,803
Total cost and expenses 550,254 653,673
Operating Income (Loss) $ 26,219 $( 97,851)
Other Income:
Interest, net of expense and
other income 13,480 11,101
Net income (loss) $ 39,699 $( 86,750)
Net Income (loss) per
common share .001 ( 0.002)
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, 1999
(Unaudited)
Common Capital In
Stock Par Excess Of Accumulated
Shares Value Par Value Deficit Total
Balance,
March 31, 1999 47,382,037 23,691 6,740,718 (3,898,827) 2,865,582
Common stock
options issued 20,000 20,000
Net income(loss)
- -Three months ended
June 30, 1999 39,699 39,699
Balance
June 30, 1999 47,382,037 23,691 6,760,718 (3,859,128) 2,925,281
See accompanying notes to consolidated financial statements
4
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Three Months Ended June 30,
1999 1998
Cash Flows From Operating Activities:
Net income (loss) $ 39,699 $( 86,750)
Adjustments to reconcile net income (loss)
to net cash flows from operating activities:
Depreciation and amortization 60,698 16,100
Stock issued for services 0 26,495
Loss on disposal of equipment 1,181 0
Changes in operating assets and liabilities:
Accounts receivable--trade (85,914) (7,910)
Inventories (183,042) 59,380
Other current assets 78,403 (11,794)
Equipment in use or under lease 20,051 1,714
Equipment held for sale (9,717) (1,415)
Net change in other assets (9,849) (78,677)
Accounts payable--trade 213,297 (252,901)
Accrued expenses and prepayments
from customers (16,475) 47,186
Net cash flows provided by (used in)
operating activities 108,332 (288,572)
Cash Flows From Investing Activities:
Purchase of property and equipment (6,556) (8,395)
Loan to officer, net of repayments (700) (12,375)
Cash consideration paid for
company acquired (48,820) 0
Net cash flows provided by (used in)
investing activities (56,076) (20,770)
Cash Flows From Financing Activities:
Payments on notes payable, net (13,621) (13,477)
Net change in cash and cash equivalents 38,635 (322,819)
Cash--Beginning of period 496,405 1,127,847
Cash--End of period 535,040 805,028
Supplemental disclosure of cash flow activities:
Interest paid 3,642 2,463
Non-cash investing and financing activities:
Common stock issued in connection with
consulting agreement 0 94,500
Fair value of assets acquired relating to
Needleeater business 68,820 0
Common stock options issued in connection with
acquisition of Needleeater business 20,000 0
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,
1999 (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, 1999 the Company had cash of $535,040 as compared to $496,405
at March 31, 1999. This increase was principally the result of cash provided
by operating activities.
Operating Activities
Net cash flows increased $108,332 for the period as compared to a decrease of
$288,572 in 1998. Net income accounted for an increase of $39,699 in 1999 as
compared to a decrease of $86,750 attributable to net loss in 1998.
Accounts receivable decreased in 1999 by $85,914 and inventories decreased by
$183,042. Accounts payable increased in 1999 by $213,297.
Investing Activities
Capital expenditures consisted of $6,556 for various machinery and equipment.
Loans to officers increased by $700, net of repayments. Cash consideration
of $48,820 was paid to acquire the Needleeater business.
Financing Activities
The Company made net payments of $13,621 on notes payable.
The Company does not have any material external sources of liquidity or unused
sources of funds.
6
Results of Operations
Quarter Ended June 30, 1999
Revenues
Revenues were $576,473 in 1999 as compared to $555,822 in 1998 representing an
increase of $20,651 or 4%. Chemical revenues increased $13,917 and
revenues from the Company's medical activities increased by $6,734.
Gross Profit
Gross profit of $448,902 in 1999 was 60% above the gross profit in 1998.
Gross profit was 78% of revenues in 1999 as compared with 50% of revenues
in 1998. The increase in gross profit was the result of the product
mix of sales with varying gross profit margins.
Operating Income (Loss)
Operating income of $26,219 in 1999 was $124,070 higher than the operating
loss of $97,851 in 1998. There was an increase in selling general and
administrative expenses, which was offset by an increase in revenues with
a lower cost of sales.
Other Income (Loss)
Other income of $13,480 in 1999 increased $2,379, from $11,101 in 1998. This
increase was primarily related to the collection of rental income from a
sub-tenant.
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 16, 1999
