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 September 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 Jurisdiction (I.R.S. Employer Identifi-
of Incorporation or organization) cation Number)
224-S Pegasus Ave., 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 November 7, 2000
ADM TRONICS UNLIMITED, INC.
INDEX
Page Number
Part I. Financial Information
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets - September 30, 2000
and March 31, 2000 2
Consolidated Statements of Operations - For the
three months and six months ended September
30, 2000 and 1999 3
Consolidated Statement of Changes in Stockholders'
Equity - For the six months ended September 30, 2000 4
Consolidated Statements of Cash Flows - For the
six months ended September 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 7-8
1
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
SEPTEMBER MARCH
ASSETS 30, 2000 31, 2000
Current assets:
Cash and equivalents 444,924 322,208
Accounts receivable--trade, less
allowance for doubtful
accounts of $95,000 142,171 259,938
Inventories:
Raw materials and supplies 364,750 321,004
Finished goods 44,174 21,541
Other current assets 28,290 36,329
Total current assets 1,024,309 961,020
Property and equipment 125,560 147,709
Equipment in use and under lease agreements,
net of accumulated depreciation of
$352,972 and $255,623 respectively 648,969 723,110
Equipment held for sale 806,615 848,626
Loan receivable from officer, bearing
interest at 3% per annum, unsecured 60,591 63,191
Other assets 176,569 213,719
Total assets 2,842,613 2,957,375
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable-trade 260,237 136,181
Accrued expenses and other 95,575 38,016
Notes payable 244,695 341,250
Total current liabilities 600,507 515,447
Notes payable-non-current -0- -0-
Commitments and contingencies -0- -0-
Stockholders' equity 2,242,106 2,441,928
Total liabilities and
stockholders' equity 2,842,613 2,957,375
2
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
Revenues 484,861 794,215 1,061,486 1,370,688
Costs and expenses:
Cost of sales 302,522 499,513 498,282 627,084
Selling, general and
administrative 326,674 428,662 775,669 851,345
Total costs and
expenses 639,196 928,175 1,273,951 1,478,429
Operating income (loss) (154,335)(133,960) (212,465) (107,741)
Other income:
Interest and other income 6,505 13,869 11,843 27,349
Income (loss) before
income taxes (147,830)(120,091) (200,622) (80,392)
Income taxes -0- -0- -0- -0-
Net income (loss) (147,830)(120,091) (200,622) (80,392)
Net income (loss) per common share (0.003) (0.003) (0.004) (0.002)
3
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED)
CAPITAL IN
EXCESS OF
PAR PAR ACCUMULATED
SHARES VALUE 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 800 800
Net income (loss)--For the six
months ended September
30, 2000 (200,622) (200,622)
Balance, September
30, 2000 47,382,037 23,691 6,762,818 (4,544,403) 2,242,106
4
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
SEPTEMBER 30,
2000 1999
Cash flows from Operating activities:
Net income (loss) (200,622) (80,392)
Adjustments to reconcile net income (loss)
to net cash from operating activities:
Depreciation and amortization 125,553 121,393
Loss on disposal equipment -0- 1,181
Provision for loss on note receivable -0- -0-
Common stock options issued as compensation 800 -0-
Changes in operating assets and liabilities:
Accounts receivable--trade 117,767 (189,636)
Inventories (66,379) (296,889)
Other current assets 8,039 78,514
Equipment in use or under lease 4,042 33,951
Equipment held for sale 42,011 (24,024)
Other assets 6,155 (9,849)
Accounts payable--trade 124,056 224,940
Accrued expenses and other 57,559 52,850
Net cash flows provided by (used in)
operating activities 218,981 (87,961)
Cash flows from Investing activities:
Purchases of property and equipment (2,310) (7,256)
Cash consideration paid for company acquired -0- (48,820)
Loan to officer, net of repayments 2,600 600
Net cash flows provided by (used in)
investing activities 290 (55,476)
Cash flows from Financing activities:
Payments on notes payable (96,555) 38,827
Net change in cash and cash equivalents 122,716 (104,610)
Cash and cash equivalents--beginning of year 322,208 496,405
Cash and cash equivalents--end of period 444,924 391,795
Supplemental disclosure of cash flow activities:
Interest paid 19,950 7,265
Non-cash investing and financing activities:
Common stock options issued in connection with
acquisition of Needleeater business -0- 20,000
Fair value of assets acquired
relating to Needleeater business -0- 68,820
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,
2000 (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 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.
Note 2. Segment Information
Information about segment information is as follows:
Six Months Ended September 30, 2000: CHEMICAL MEDICAL TOTAL
Revenues from external customers 390,648 670,838 1,061,486
Segment profit (loss) (204,908) 4,286 (200,622)
Six Months Ended September 30, 1999:
Revenues from external customers 465,727 904,961 1,370,688
Segment profit (loss) (213,230) 132,838 (80,392)
Three Months Ended September 30, 2000:
Revenues from external customers 216,722 268,139 484,861
Segment profit (loss) (112,232) (35,598) (147,830)
Three Months Ended September 30, 1999:
Revenues from external customers 244,417 549,798 794,215
Segment profit (loss) (98,554) (21,537) (120,091)
6
ADM TRONICS UNLIMITED, INC.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
At September 30, 2000 the Company had cash and equivalents of $444,924 as
compared to $322,208 at March 31, 2000. This increase was the result of net
cash flows provided by operations and investing activities offset by net cash
flows used in financing activities.
Operating Activities
Net cash flows provided by operating activities increased $306,942 to
$218,981 for the six months ended September 30, 2000 as compared to net cash
flows of ($87,961) for the six months ended September 30, 1999. This
increase was primarily the result of a net decrease in operating assets and
an increase in operating liabilities and depreciation offset by the loss for
the six months ended September 30, 2000.
Investing Activities
Cash flows provided by investing activities consisted of repayments of the
officer loan offset by cash expenditures of $2,310 for the purchase of equip-
ment.
Financing Activities
Cash flows used in financing activities primarily consisted of $105,000
pay-down of a line of credit offset by an increase in notes payable as the
result of the settlement of a legal dispute with a subsidiary's prior
landlord and owner.
The Company does not have any material external sources of liquidity or
unused sources of funds.
Results of Operations
Quarter Ended September 30, 2000
Revenues
Revenues were $484,861 in 2000 as compared to $794,215 in 1999 representing a
decrease of $309,354 or 39%. Revenues from the Company's medical electronics
activities decreased $281,659 and chemical revenues decreased $27,695.
Gross Profit
Gross profit of $182,339 in 2000 as compared to $294,702 in 1999 was $112,363
or 38% below the gross profit in 1999. Gross profit was 38% of revenues in
2000 as compared with 37% of revenues in 1999. The increase in gross profit
margin was primarily due to the product mix of sales with higher sales of
products with a higher gross margin.
7
ADM TRONICS UNLIMITED, INC.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Operating Income (Loss)
Operating loss in 2000 was ($154,335) compared to ($133,960) in 1999.
Selling, general and administrative expenses decreased by $101,988
primarily due to a reduction in personnel and consulting expenses.
Other Income
Other income in 2000 was $6,505 as compared to $13,869 in 1999. The de-
crease was primarily due to a decrease in rental income from a sub-tenant
and a decrease in interest income from reduced amounts invested.
Results of Operations
Six Months Ended September 30, 2000
Revenues
Revenues were $1,061,486 as compared to $1,370,688 in 1999 representing a
decrease of $309,202 or 23%. Revenues from the Company's medical elec-
tronics activities decreased $234,123 and chemical revenues decreased $75,079.
Gross Profit
Gross profit of $563,204 in 2000 as compared to $743,604 in 1999 was $180,400
or 24% lower than the gross profit in 1999. Gross profit was 53% of revenues
in 2000 and 54% in 1999. The decrease in gross profit margin is due to the
mix in product sales with lower sales of products with a lower gross margin.
Operating Income (Loss)
Operating loss was ($212,465) in 2000 compared to ($107,741) in 1999.
Selling, general and administrative expenses decreased by $75,676 due to
a reduction in personnel and consulting expenses.
Other Income
Other income of $11,843 in 2000 decreased $15,506 from $27,349 in 1999,
primarily due to a decrease in rental income from a sub-tenant and a
reduction in interest income from reduced amounts invested.
8
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
November 14, 2000
