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, 2000
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 10, 2000
ADM TRONICS UNLIMITED, INC.
INDEX
Part I. Financial Information Page Number
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets - June 30, 2000 and
March 31, 2000 2
Consolidated Statements of Operations - For The Three
Months Ended June 30, 2000 and 1999 3
Consolidated Statements of Changes in Stockholders'
Equity - For The Three Months Ended June 30, 2000 4
Consolidated Statements of Cash Flows - For The Three
Months Ended June 30, 2000 and 1999 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,
2000 2000
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 415,528 $ 322,208
Accounts receivable--trade less allowance
for doubtful accounts of $95,000 299,813 259,938
Inventories:
Raw materials and supplies 313,366 321,004
Finished goods 49,336 21,541
Other current assets 27,837 36,329
Total Current Assets 1,105,880 961,020
Property and Equipment 137,270 147,709
Equipment in use and under lease agreements,
net of accumulated depreciation of $289,682
and $255,623 respectively 657,378 723,110
Equipment held for sale 858,251 848,626
Loan receivable from officers 61,891 63,191
Other Assets 194,376 213,719
Total Assets $ 3,015,046 $2,957,375
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable--trade 252,898 136,181
Accrued expenses and other 29,237 38,016
Notes payable - current 343,375 341,250
Total Current Liabilities 625,510 515,447
Commitments and contingencies 0 0
Stockholders' Equity 2,389,536 2,441,928
Total Liabilities & Stockholders' Equity $3,015,046 $2,957,375
See accompanying notes to consolidated financial statements
2
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
June 30,
2000 1999
Revenues:
Net sales $ 576,625 $ 576,473
Costs And Expenses:
Cost of sales 195,760 127,571
Selling, general and
administrative 438,995 422,683
Total cost and expenses 634,755 550,254
Operating Income (Loss) $( 58,130) $ 26,219
Other Income:
Interest and other income 5,338 13,480
Net income (loss) $( 52,792) $ 39,699
Net Income (loss) per
common share (.00) .00
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, 2000
(Unaudited)
Common Capital In
Stock Par Excess Of Accumulated
Shares Value Par Value Deficit Total
Balance,
March 31, 2000 47,382,037 23,691 6,762,018 (4,343,781) 2,441,928
Common stock options
issued for consulting
services 400 400
Net income (loss)
-Three months ended
June 30, 2000 (52,792) (52,792)
Balance
June 30, 2000 47,382,037 23,691 6,762,418 (4,396,573) 2,389,536
See accompanying notes to consolidated financial statements
4
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Three Months Ended June 30,
2000 1999
Cash Flows From Operating Activities:
Net income (loss) $( 52,792) $ 39,699
Adjustments to reconcile net income (loss)
to net cash flows from operating activities:
Depreciation and amortization 63,591 60,698
Common stock options issued
as compensation 400 0
Loss on disposal of equipment 1,181
Changes in operating assets and liabilities:
Accounts receivable--trade (39,875) (85,914)
Inventories (20,157) (183,042)
Other current assets 8,492 78,403
Equipment in use or under lease 31,674 20,051
Equipment held for sale (9,625) (9,717)
Net change in other assets 2,559 (9,849)
Accounts payable--trade 116,717 213,297
Accrued expenses and prepayments
from customers (8,779) (16,475)
Net cash flows provided by
operating activities 92,205 108,332
Cash Flows From Investing Activities:
Purchase of property and equipment (2,310) (6,556)
Loan to officer, net of repayments 1,300 (700)
Cash consideration paid for
company acquired (48,820)
Net cash flows provided (used in)
investing activities (1,010) (56,076)
Cash Flows From Financing Activities:
Payments on notes payable, net 2,125 (13,621)
Net change in cash and cash equivalents 93,320 38,635
Cash--Beginning of period 322,208 496,405
Cash--End of period 415,528 535,040
Supplemental disclosure of cash flow activities:
Interest paid 9,989 3,642
Non-cash investing and financing activities:
Fair value of assets acquired relating to
Needleeater business 68,820
Common stock options issued in connection with
acquisition of Needleeater business 20,000
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, 2000 the Company had cash of $415,528 as compared to $322,208
at March 31, 2000. This increase was principally the result of cash provided
by operating activities.
Operating Activities
Net cash flows increased $93,320 for the period as compared to
$38,635 in 1999. Primarily the increase for the period was the results of
a net increase in operating assets and liabilities of $81,006 and
depreciation of $63,591, offset by the net loss of ($52,792).
Investing Activities
Capital expenditures consisted of $2,310 for machinery and equipment and
loans to officers increased by $1,300, net of repayments.
Financing Activities
Notes payable increased $2,125, net of repayments.
The Company does not have any material external sources of liquidity or unused
sources of funds.
6
Results of Operations
Quarter Ended June 30, 2000
Revenues
Revenues were $576,625 in 2000 as compared to $576,473 in 1999 representing an
increase of $152. Chemical revenues decreased $47,384 and
revenues from the Company's medical activities increased by $47,536.
Gross Profit
Gross profit of $380,865 in 2000 was 15% lower than the gross profit in 1999.
Gross profit was 66% of revenues in 2000 as compared with 78% of revenues
in 1999. The decrease in gross profit was the result of the product
mix of sales with varying gross profit margins.
Operating Income (Loss)
Operating loss of ($58,130) in 2000 was $84,349 lower than the operating
loss of $26,219 in 1999. There was an increase in selling general and
administrative expenses and an increase in revenues with a higher
cost of sales.
Other Income (Loss)
Other income of $5,338 in 2000 decreased $8,142, from $13,480 in 1999. This
decrease was primarily related to the termination of rental income from a
sub-tenant and reduced interest income from short-term investments.
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, 2000
