-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, K+tM/xfZ1k8v7DPkxD3e2rXvDNGAbkP5WVUVNTjJlcpe7HjZnQArsq0uW3dckbrv WRmMCDmHg7WI2CtDKTLTpQ== 0000849401-99-000010.txt : 19990222 0000849401-99-000010.hdr.sgml : 19990222 ACCESSION NUMBER: 0000849401-99-000010 CONFORMED SUBMISSION TYPE: 10QSB/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19990219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADM TRONICS UNLIMITED INC/DE CENTRAL INDEX KEY: 0000849401 STANDARD INDUSTRIAL CLASSIFICATION: ADHESIVES & SEALANTS [2891] IRS NUMBER: 221896032 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10QSB/A SEC ACT: SEC FILE NUMBER: 000-17629 FILM NUMBER: 99545727 BUSINESS ADDRESS: STREET 1: 224 S PEGASUS AVE CITY: NORTHVALE STATE: NJ ZIP: 07647 BUSINESS PHONE: 2017676040 MAIL ADDRESS: STREET 1: 224 S PEGASUS AVE CITY: MORTHVALE STATE: NJ ZIP: 07647 10QSB/A 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB/A (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, 1998 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: 47,406,652 shares of Common Stock, $.0005 par value, as of February 18, 1999 ADM TRONICS UNLIMITED, INC. INDEX Part I. Financial Information Page Number Item 1. Consolidated Financial Statements: Consolidated Balance Sheets - June 30, 1998 and March 31, 1998 2 Consolidated Statements of Operations - For The Three Months Ended June 30, 1998 and 1997 3 Consolidated Statements of Changes in Stockholders' Equity - For The Three Months Ended June 30, 1998 4 Consolidated Statements of Cash Flows - For The Three Months Ended June 30, 1998 and 1997 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, 1998 1998 (Unaudited) ASSETS CURRENT ASSETS: Cash $ 805,028 1,127,947 Accounts receivable--trade less allowance for doubtful accounts of $15,500 325,798 317,888 Inventories: Raw materials and supplies 204,729 261,000 Finished goods--chemicals 56,426 59,535 Other current assets 103,900 24,101 Total Current Assets 1,495,881 1,790,371 Property and Equipment 79,153 75,833 Equipment in use and under lease agreements, net of accumulated depreciation of $61,953 and $60,164 respectively 78,412 82,415 Equipment held for sale 303,633 302,218 Loan receivable from officers 71,877 59,502 Other Assets 593,250 523,309 Total Assets $ 2,622,206 $2,833,648 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable--trade 144,437 397,338 Accrued expenses and other 93,325 46,139 Notes payable - current 104,629 110,842 Total Current Liabilities 342,391 554,319 Notes payable non-current 41,412 48,676 Stockholders' Equity 2,238,403 2,230,653 Total Liabilities & Stockholders' Equity $2,622,206 $2,833,648 See accompanying notes to consolidated financial statements 2 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, 1998 1997 Revenues: Net sales $ 555,822 $ 277,061 Costs And Expenses: Cost of sales 275,870 127,873 Selling, general and 377,803 290,749 administrative Total cost and expenses 653,673 418,622 Operating Income (Loss) ($ 97,851) ($141,561) Other Income: Interest, net of expense and 11,101 10,237 other income Net income (loss) ($ 86,750) ($131,324) Net Income (loss) per ( .002) ( 0.003) common share See accompanying notes to consolidated financial statements. 3 ADMTRONICS UNLIMITED, INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED JUNE 30, 1998 (Unaudited) Common Capital In Stock Par Excess Of Accumulated Shares Value Par Value Deficit Total Balance, March 31, 1998 43,724,907 21,862 5,137,176 (2,928,385) 2,230,653 Issuance of common stock 252,000 126 94,374 94,500 Net income(loss) Three months ended June 30, 1998 ( 86,750) ( 86,750) Balance June 30, 1998 43,976,907 21,988 5,231,550 (3,015,135) 2,238,403 See accompanying notes to consolidated financial statements 4 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) Three Months Ended June 30, 1998 1997 Cash Flows From Operating Activities: Net income (loss) ($ 86,750) ($ 131,324) Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization 16,100 5,804 Stock issued for services 26,495 - Changes in operating assets and liabilities Accounts receivable--trade (7,910) 58,356 Inventories 59,380 22,310 Other current assets (11,794) 3,940 Equipment in use or under lease 1,714 184 Equipment held for sale (1,415) - Net change in other assets (78,677) (48,818) Accounts payable--trade (252,901) (70,394) Accrued expenses pre payments 47,186 (75,029) from customers Net cash flows provided by (used in) operating activities (288,572) (234,971) Cash Flows From Investing Activities: Purchase of property and equipment (8,395) (2,763) Loan to officer, net of repayments (12,375) 2,000 Net change in certificates of deposit - 107,000 Net cash flows provided by (used in) investing activities (20,770) 106,237 Cash Flows From Financing Activities: Additional borrowings of notes payable, net (13,477) - Net change in cash and cash equivalents (322,819) (128,734) Cash--Beginning of period 1,127,847 1,174,965 Cash--End of period 805,028 1,046,231 Supplemental disclosure of cash flow activities: Interest paid 2,463 - Non-cash investing and financing activities: Common stock issued in connection with consulting agreement 94,500 - 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, 1998 (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, 1998 the Company had cash of $805,028 as compared to $1,127,847 at March 31, 1998. This decrease was principally the result of cash used in operating activities. Operating Activities Net cash decreased $288,572 for the period as compared to a decrease of $234,971 in 1997. Net loss accounted for a decrease of $86,750 in 1998 as compared to a decrease of $131,324 attributable to net loss in 1997. Accounts receivable decreased in 1998 by $7,910 while inventories increased by $59,380. Investing Activities Capital expenditures consisted of $8,395 for the purchase of office equipment. Loans to officers increased by $12,375 net of repayments. Financing Activities The Company had additional net borrowings of notes payable of $13,477. The Company does not have any material external sources of liquidity or unused sources of funds. 6 Results of Operations Quarter Ended June 30, 1998 Revenues Revenues were $555,822 in 1998 as compared to $277,061 in 1997 representing an increase of $278,761 or 101%. Chemical revenues increased $1,425 and revenues from the Company's medical activities increased by $277,336 primarily due to an acquisition of a medical device manufacturing facility. Gross Profit Gross profit of $279,952 in 1998 was 87% above the gross profit in 1997. Gross profit was 50% of revenues in 1998 as compared with 54% of revenues in 1997. The decrease in gross profit was the result of the product mix of sales which consisted of a modest increase in sales of the Company's chemical products with a higher gross profit margin coupled with an increase in medical segment sales with a lower gross profit margin. Operating Income (Loss) Operating loss of $86,750 in 1998 was $44,574 less than the operating loss of $131,324 in 1997. There was 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 a change in the product mix of sales for the period. This was offset by an increase in revenues from the acquisition of a medical device manufacturing company. Other Income (Loss) Other income of $11,101 in 1998 increased $864, from $10,237 in 1997. This marginal increase was related to the timing of amounts invested at comparable interest 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 February 18, 1999 -----END PRIVACY-ENHANCED MESSAGE-----