EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm
Exhibit 99.1
 
 
ADM Tronics Reports Second Quarter Financial Results

November 19, 2008, Northvale, NJ – ADM Tronics Unlimited, Inc. (OTCBB: ADMT), a technology-based developer and manufacturer of unique, environmentally-safe, health and life-enhancing technologies, today announced financial results for the six months ended September 30, 2008.

ADMT reported a net loss of $4,407,174, or $.08 net loss per share, and $7,628,702, or $.14 net loss per share, for the three and six months ended September 30, 2008, respectively, an increase of $3,725,826 and $6,374,705 compared to a net loss of $681,348, or $.01 net loss per share, and $1,253,997, or $.02 net loss per share, for the three and six months ended September 30, 2007, respectively.  This increase was primarily the result of decreases in the fair market value of our investment in Ivivi Technologies Inc. (Ivivi) of $4,517,500 and $9,815,000 for the three and six months ended September 30, 2008, respectively, which were offset by recognized deferred tax credits of $277,612 and $2,147,576 for the three and six months ended September 30, 2008, respectively.  Revenues for the three months ended September 30, 2008 were $389,589 as compared to $399,847 for the three months ended September 30, 2007, a decrease of $10,258, or 3%.  Revenues were $990,530 for the six months ended September 30, 2008 as compared to $692,933 for the six months ended September 30, 2007, an increase of $297,597, or 43%.  This increase was mainly the result of greater sales in contract manufacturing for Ivivi.  To date, we have not received any additional orders from Ivivi.

Andre’ DiMino, President of ADMT stated, “Our results show continued growth for our year-over-year periods. We expect to see continued growth and acceptance of our water-based chemical products through expanded sales and marketing activities.”

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited)

   
Three Months Ended
    
Six Months Ended
  
   
September 30,
    
September 30,
  
                         
   
2008
    
2007
    
2008
    
2007
  
                         
Revenues
   $ 389,589     $ 399,847     $ 990,530     $ 692,933  
                                 
Costs and expenses:
                                
Cost of sales
     258,269       249,170       657,480       419,229  
Research and development
     -       1,057       -       3,550  
Selling, general and administrative
     311,913       245,798       600,581       494,517  
                                 
Total operating expenses
     570,182       496,025       1,258,061       917,296  
                                 
Operating loss
     (180,593 )     (96,178 )     (267,531 )     (224,363 )
                                 
Interest income, net
     13,307       25,647       28,641       50,790  
                                 
Change in fair value of investment
                                
in Ivivi
     (4,517,500 )     --       (9,815,000 )     --  
                                 
Equity in net loss of Ivivi
     --       (610,817 )     --       (1,080,424 )
                                 
Net loss before income taxes (credit)
     (4,684,786 )     (681,348 )     (10,053,890 )     (1,253,997 )
                                 
Income taxes (credit)
     (277,612 )     --       (2,425,188 )     --  
                                 
Net loss
   $ (4,407,174 )   $ (681,348 )   $ (7,628,702 )   $ (1,253,997 )
                                 
Net loss per share, basic and diluted
   $ (0.08 )   $ (0.01 )   $ (0.14 )   $ (0.02 )
                                 
Weighted average shares outstanding,
                                
basic and diluted
     53,939,537       53,882,037       53,939,537       53,882,037  

 
ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS


   
SEPTEMBER 30, 2008
    
MARCH 31, 2008
  
   
(Unaudited)
  
 
  
             
ASSETS
            
             
Current assets:
            
Cash and cash equivalents
   $ 1,518,042     $ 2,072,325  
Accounts receivable, net of allowance for doubtful
                
accounts of $1,088 and $1,088, respectively
     83,747       101,270  
Inventories
     365,745       469,403  
Prepaid expenses and other current assets
     8,592       83,731  
Restricted cash
     225,000       -  
                 
Total current assets
     2,201,126       2,726,729  
                 
Property and equipment, net of accumulated depreciation
                
of $21,576 and $17,873, respectively
     66,473       55,288  
                 
Inventory - long term portion
     84,543       78,416  
Investment in Ivivi
     1,560,000       2,154,517  
Advances to related parties
     65,655       74,299  
Other assets
     236,144       28,486  
                 
Total assets
   $ 4,213,941     $ 5,117,735  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
Current liabilities:
                
Accounts payable
   $ 139,349     $ 237,331  
Note payable – Bank
     200,000       --  
Accrued expenses and other current liabilities
     48,165       87,439  
Customer deposits – Ivivi
     108,697       241,828  
Total current liabilities
     496,211       566,598  
                 
Stockholders' equity:
                
Preferred stock, $.01 par value; 5,000,000 shares authorized,
                
no shares issued and outstanding
     --       --  
Common stock, $.0005 par value; 150,000,000 shares
                
authorized, 53,939,537 shares issued and outstanding at
                
September 30, 2008 and March 31, 2008
     26,970       26,970  
Additional paid-in capital
     32,153,597       32,153,597  
Accumulated deficit
     (28,462,838 )     (27,629,430 )
                 
Total stockholders' equity
     3,717,730       4,551,137  
                 
Total liabilities and stockholders' equity
   $ 4,213,941     $ 5,117,735  

 
About ADMT

ADMT is a technology based developer and manufacturer of unique, environmentally safe, health and life enhancing technologies and products. Its core competency is its ability to conceptualize a technology, bring it through development, into manufacturing and commercialization, all in-house. Its diversified product technology areas are environmentally friendly, water based industrial chemicals; therapeutic, non invasive electronic medical devices; and, innovative personal care and topical dermatological products.

Forward-Looking Statements

This press release contains statements, which may constitute "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect management's current knowledge, assumptions, judgment and expectations regarding future performance or events.  Although management believes that the expectations reflected in such statements are reasonable, they give no assurance that such expectations will prove to be correct and you should be aware that actual results could differ materially from those contained in the forward-looking statements.  Forward-looking statements are subject to a number of risks and uncertainties, including, those risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-KSB for the fiscal year ended March 31, 2008.  The Company assumes no obligation to update the information contained in this press release.

Company Contact:
Andre’ DiMino
201-767-6040
  andre@admtronics.com