-----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, B0HQZHBSXpllYtebaxGbtcLdTnuySC0KWHR7YJvWQkTiso/CI5n+8ojFX377dANi sd+sB4s+EuTS1t0ayps4bA== 0000849401-02-000004.txt : 20020814 0000849401-02-000004.hdr.sgml : 20020814 20020814110740 ACCESSION NUMBER: 0000849401-02-000004 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020630 FILED AS OF DATE: 20020814 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 SEC ACT: 1934 Act SEC FILE NUMBER: 000-17629 FILM NUMBER: 02732434 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: NORTHVALE STATE: NJ ZIP: 07647 10QSB 1 q06302002.txt JUNE 30, 2002 10-QSB 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, 2002 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 August 9, 2002 ADM TRONICS UNLIMITED, INC. INDEX Page Number Part I. Financial Information Item 1. Consolidated Financial Statements: Consolidated Balance Sheets - June 30, 2002 and March 31, 2002 2 Consolidated Statements of Operations - For the three months ended June 30, 2002 and 2001 3 Consolidated Statement of Changes in Stockholders' Equity - For the three months ended June 30, 2002 3 Consolidated Statements of Cash Flows - For the three months ended June 30, 2002 and 2001 4 Notes to Consolidated Financial Statements 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 1 ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) JUNE MARCH Assets 30, 2002 31, 2002 Current assets: Cash and cash equivalents $ 48,021 $ 51,565 Accounts receivable--trade, less allowance for doubtful accounts of $4,594 213,668 215,502 Inventories: Raw materials and supplies 280,052 303,202 Finished goods 35,107 35,628 Equipment held for sale 680,786 681,154 Other current assets 33,796 30,504 Total current assets 1,291,430 1,317,555 Property and equipment, at cost net of Accumulated depreciation of $416,785 and $406,668, respectively 50,554 60,671 Equipment in use and under lease agreements, net of accumulated depreciation of $423,604 and $391,272, respectively 399,715 432,047 Loan receivable from officer, bearing interest at 3% per annum, unsecured 52,491 53,791 Other assets 125,668 143,952 Total assets $1,919,858 $2,008,016 Liabilities and stockholders equity: Current liabilities: Accounts payable-trade $ 266,942 $ 252,478 Accrued expenses 44,960 79,473 Notes payable 125,000 110,000 Total current liabilities 421,902 441,951 Notes payable - long-term portion 10,000 25,000 Stockholders' equity 1,472,956 1,541,065 Total liabilities and stockholders' equity $1,919,858 $2,008,016 See accompanying notes to consolidated financial statements. 2 ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED June 30, 2002 2001 Revenues $ 253,610 $ 385,925 Costs and expenses: Cost of sales 78,635 208,244 Selling, general and administrative 248,977 345,615 Total costs and expenses 327,612 553,859 Operating loss $ (74,002) $(167,934) Other income: Interest and other income 5,893 2,056 Net loss $ (68,109) $(165,878) Weighted average number of common shares outstanding 47,382,037 47,382,037 Net loss per share (0.001) (0.004) See accompanying notes to consolidated financial statements. ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED JUNE 30, 2002 Preferred Common Shares Shares Capital 5,000,000 150,000,000 in Authorized Authorized excess $.01 Par $.0005 Par of Par Accumulated Value Par Value Value Value Deficit Total Balances - March 31, 2002 - 47,382,037 $23,691 $6,763,618 $(5,246,244) $1,541,065 Net loss for the period ended June 30, 2002 (68,109) (68,109) Balances - June 30, 2002 - 47,382,037 $23,691 $6,763,618 $(5,314,353) $1,472,956 See accompanying notes to consolidated financial statements. 3 ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) THREE MONTHS ENDED JUNE 30, 2002 2001 Cash flows from Operating activities: Net loss (68,109) (165,878) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 46,169 48,734 Changes in operating assets and liabilities: Accounts receivable--trade 1,834 64,052 Inventories 23,670 (151,517) Other current assets - (15,605) Equipment in use or under lease - (47,716) Equipment held for sale 368 204,181 Other assets 11,272 (30,326) Accounts payable--trade 14,465 23,352 Accrued expenses and other (34,513) (55,639) Net cash flows used in operating activities (4,844) (125,162) Cash flows from Investing activities: Purchases of property and equipment - 2,062 Repayments of loans by officer 1,300 1,400 Net cash flows provided by investing activities 1,300 3,462 Cash flows from Financing activities: Payments on notes payable - 64,096 Net change in cash and cash equivalents (3,544) (57,604) Cash and cash equivalents--beginning of year 51,565 113,458 Cash and cash equivalents--end of period 48,021 55,854 Supplemental disclosures: Interest paid 3,151 1,357 Income taxes paid 2,266 - See accompanying notes to consolidated financial statements. 4 ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES 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, 2002 (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. Note 2. Segment Information Information about segment information is as follows: Three Months Ended June 30, 2002: Chemical Medical Total Revenues from external customers 236,055 17,554 253,610 Segment profit (loss) (8,676) (65,326) (74,002) Three Months Ended June 30, 2001: Revenues from external customers 172,716 213,209 385,925 Segment profit (loss) (35,040) (132,894) (167,934) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At June 30, 2002 the Company had cash and equivalents of $48,021 as compared to $51,565 at March 31, 2002. This decrease was the result of net cash flows used in operations and financing activities offset by cash flows provided by investing activities. Operating Activities Net cash flows used in operating activities were $4,844 for the three months ended June 30, 2002 as compared to net cash flows used in operating activities of $125,162 for the quarter ended June 30, 2001. This decrease in cash used was primarily due to cash from inventories, and other assets offset by the loss for the three months ended June 30, 2002. Investing Activities Cash flows provided by investing activities consisted of repayments of officer loan. Financing Activities There were no financing activities for the quarter ended June 30, 2002 The Company does not have any material external sources of liquidity or unused sources of funds. Results of Operations Quarter Ended June 30, 2002 Revenues Revenues were $253,610 in 2002 as compared to $385,925 in 2001 representing a decrease of $132,316 or 41%. Revenues from the Company's medical electronics activities decreased $195,655, primarily due to reductions in contract manufacturing offset by an increase in chemical revenues of $63,339. Gross Profit Gross profit of $174,975 in 2002 was $2,706 or 2% below the gross profit of $177,681 in 2001. Gross profit was 69% of revenues in 2002 as compared with 46% of revenues in 2001. 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. Operating Loss Operating loss in 2002 was ($74,002) compared to ($167,934) in 2001. Selling, general and administrative expenses decreased by $96,638 primarily due to a reduction in operating expenditures and reduced overhead costs. Other Income Other income in 2002 was $5,893 as compared to $2,056 in 2001. The increase was due to increased revenues from rental income coupled with interest income and income from a joint venture. 6 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\ Andre' DiMino Andre' DiMino President Dated: Northvale, New Jersey August 13, 2002 7 -----END PRIVACY-ENHANCED MESSAGE-----