-----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, P7DaH4RQiV0KLjt8s0itWk6a/1LIVMEB60Yr6Qb8XxLgTwJ4U6bbXXFvgLdnHxCZ LYfmoZkJuaCEXdH7kfDmcA== 0000849401-97-000005.txt : 19970222 0000849401-97-000005.hdr.sgml : 19970222 ACCESSION NUMBER: 0000849401-97-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970213 SROS: NASD 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: 97529547 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 1 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 December 31, 1996 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) Registrant's Telephone Number, including Area Code: (201) 767-6040 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to the filing requirements for at least the past 90 days: YES X NO______ Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date: 42,474,907 shares of Common Stock, $.0005 par value, as of February 5, 1996 ADM TRONICS UNLIMITED, INC. INDEX Part I. Financial Information Page Number Item 1. Consolidated Financial Statements: Consolidated Balance Sheets - December 31, 1996 and March 31, 1996 2 Consolidated Statements of Operations - For The Three Months Ended December 31, 1996 and 1995 3 Consolidated Statements of Operations - For The Nine Months Ended December 31, 1996 and 1995 3 Consolidated Statement of Changes in Stockholders' Equity - For The Nine Months Ended December 31, 1996 4 Consolidated Statements of Cash Flows - For The Nine Months Ended December 31, 1996 and 1995 5 Notes To Consolidated Financial Statements 6 Item 2. Management's Discussion And Analysis of Financial Condition and Results of Operations 6 1 ADM TRONICS UNLIMITED, INC. CONSOLIDATED BALANCE SHEETS December 31, March 31, 1996 1996 (Unaudited) ASSETS CURRENT ASSETS: Cash $ 1,129,293 1,113,626 Certificates of Deposit 107,000 105,390 Securities held to maturity 100,531 100,297 Accounts receivable--trade less allowance for doubtful accounts of $20,500 235,650 200,758 Inventories: Raw materials and supplies 154,069 129,809 Finished goods--chemicals 86,520 60,094 Other current assets 178,253 172,282 Total Current Assets 1,991,316 1,882,256 Property and Equipment 54,418 48,629 Equipment held for sale or lease, net of accumulated depreciation of $50,660 and $49,599, respectively 361,809 463,500 Notes Receivable 85,307 82,306 Equity securities available for sale 20,000 20,000 Loan receivable from officers, bearing interest at 3% per annum 68,252 68,252 Other Assets 382,369 340,030 Total Assets $ 2,963,471 $2,904,973 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable--trade 77,925 58,426 Accrued expenses and other 15,673 27,431 Prepayments from Customer 69,093 124,943 Total Current Liabilities 162,691 210,800 Deferred Sales Revenue 65,860 65,860 Stockholders' Equity 2,734,920 2,628,313 Total Liabilities & Stockholders' Equity $2,963,471 $2,904,973 See accompanying notes to consolidated financial statements 2 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended December 31, December 31, 1996 1995 1996 1995 Revenues: Net sales $ 274,315 $ 368,543 $ 1,181,547 $1,487,681 Costs And Expenses: Cost of sales 118,058 101,654 450,669 512,310 Selling, general and 201,686 172,346 666,268 658,971 administrative Total cost and expenses 319,744 274,000 1,116,937 1,171,281 Operating Income (Loss) ($45,429) $94,543 $64,610 $316,400 Other Income: Interest net of expenses and 14,556 22,015 41,998 63,604 other income Income (loss) before income tax benefit ($30,873) $116,558 $106,608 $380,004 Income tax benefit 0 0 0 0 Net Income (loss) ($30,873) $116,558 $106,608 $380,004 Net Income (loss) per (0.001) 0.003 0.003 0.009 common share See accompanying notes to consolidated financial statements. 3 ADMTRONICS UNLIMITED, INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 1996 (Unaudited) Common Capital In Stock Par Excess Of Accumulated Shares Value Par Value Deficit Total Balance, March 31, 1996 42,474,907 21,237 4,819,436 (2,212,360) 2,628,313 Net income (loss) nine months ended December 31,1996 106,608 106,608 Balance December 31,1996 42,474,907 21,237 4,819,436 (2,105,752) 2,734,921 See accompanying notes to consolidated financial statements 4 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) Nine Months Ended December 31, 1996 1995 Cash Flows From Operating Activities: Net income $ 106,608 $ 380,004 Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization 14,683 27,182 Changes in operating assets and liabilities: Accounts receivable--trade (34,892) (83,984) Inventories (50,686) 1,573 Other current assets (5,971) 6,995 Other assets (42,339) (40,755) Equipment held for sale or lease 91,501 (207,991) Accounts payable--trade 19,499 93,922 Customer deposits payable (55,850) 158,039 Accrued expenses and other (11,758) (13,950) Net cash flows provided by (used in) operating activities 30,795 321,035 Cash Flows From Investing Activities: Investment in treasury notes (100,531) 0 Maturities of treasury notes 100,297 0 Purchase of property and equipment (10,284) (3,337) Principal payments on notes receivable (3,000) 287,285 Net changes in certificates of deposit (1,610) (297,779) Net cash flows provided by (used in) investing activities (15,128) (13,831) Cash Flows From Financing Activities: Repayments of notes and leases payable 0 (1,897) Net change in cash and cash equivalents 15,667 305,307 Cash--Beginning of year 1,113,626 286,546 Cash--End of period 1,129,293 591,853 Supplemental cash flow information: Interest paid 567 1,486 Income taxes paid 500 2,866 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, 1995 (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 December 31, 1996 the Company had cash, certificates of deposit and investment securities of $1,336,824 as compared to $1,319,313 at March 31, 1996. This increase was principally due to cash flows from operating activities. Operating Activities Net cash flows have decreased $289,640 to $15,667 for the nine months ended December 31, 1996 as compared to net cash flows of $305,307 for the nine months ended December 31, 1995. This decrease was the result of reduced net income and reduced receipts of customer deposits. Investing Activities Investing activities consisting of capital expenditures of $10,284 for the purchase of property and equipment and $3,000 in principal payments on notes receivable. Treasury notes of $100,297 were redeemed offset by an investment in treasury notes of $100,531. Financing Activities The Company did not have any cash flows related to financing activities during the period. The Company does not have any material external sources of liquidity or unused sources of funds. 6 Results of Operations Quarter Ended December 31, 1996 Revenues Revenues were $274,315 in 1996 as compared to $368,543 in 1995 representing a decrease of $94,228 or 25%. Revenues from the Company's Sonotron medical activities decreased by $39,214 coupled with a decrease in chemical revenues of $55,014. Gross Profit Gross profit of $156,257 in 1996 was $110,632, or 41%, below the gross profit in 1995. Gross profit was 57% of revenues in 1996 as compared with 72% of revenues in 1995. Operating Income (Loss) Operating loss of $30,873 in 1996 was $147,431 below the operating income of $94,543 in 1995. Selling general and administrative expenses increased by $29,340. Other Income Other income of $64,481 in 1996 increased by $30,918, or 34%, from $22,015 in 1995, principally due to a decrease in interest income from reduced rates. Results of Operations Nine Months Ended December 31, 1996 Revenues Revenues were $1,181,547 in 1996 as compared to $1,487,681 in 1995 representing a decrease of $306,134 or 20%. Revenues from the Company's Sonotron medical activities decreased by $319,425 offset by chemical revenues which increased by $13,291. Gross Profit Gross profit of $730,878 in 1996 was $244,493, or 25% below the gross profit in 1995. Gross profit was 62% of revenues in 1996 as compared with 66% of revenues in 1995. Operating Income Operating income of $64,610 in 1996 was $251,790, or a 79% decrease from the operating income of $316,400 in 1995. Selling, general and administrative expenses increased by $7,297. Other Income Other income of $41,998 in 1996 decreased $21,606 from $63,604 in 1995, due to a decrease in interest income from reduced rates. 7 PART II - OTHER INFORMATION Item 4 - Submission of Alternate to a Vote of Security Holders (a) A special meeting of shareholders was held on October 16, 1996. (b) The meeting did not involve the election of directors. (c) The only matter voted upon at the meeting was a proposed amendment to the Company's Certificate of Incorporation to change the Company's authorized number of shares to 150,000,000 shares of Common Stock, $.0005 par value, and 5,000,000 shares of preferred stock, $.01 par value, which Preferred Stock may be designated and issued in such series and upon such terms and conditions as the Board of Directors may from time to time determine. 22,559,550 shares were cast in favor of the amendment, 180,175 shares were cast against and 47,800 shares abstained. (d) Not applicable. 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 6, 1997 EX-27 2
5 9-MOS MAR-31-1997 DEC-31-1996 1,129,293 100,531 256,150 20,500 240,589 1,991,316 54,418 50,660 2,963,471 162,691 0 21,237 0 0 2,734,920 2,963,471 274,315 257,998 118,058 319,744 0 0 0 (30,873) 0 (30,873) 0 0 0 (30,873) (.001) (.001)
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