10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2022

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 (State or Other Jurisdiction of Incorporation or or organization) 22-1896032 (I.R.S. Employer Identification Number)

224-S Pegasus Ave., Northvale, New Jersey 07647
(Address of Principal Executive Offices)

Registrant's Telephone Number, including area code: (201) 767-6040

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

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 such filing requirements for the past 90 days:  Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer  ☐
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

State the number of shares outstanding of each of the Issuer's classes of common equity, as of the latest practicable date:

The Company has 67,588,504 shares outstanding as of February 14, 2023. 

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

INDEX

		Page Number
Part I - Financial Information
Item 1.	Condensed Consolidated Financial Statements (unaudited):
	Condensed Consolidated Balance Sheets –December 31, 2022 (unaudited) and March 31, 2022	3
	Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2022 and 2021 (unaudited)	4
	Condensed Consolidated Statement of Stockholders’ Equity for the three and nine months ended December 31, 2022 and 2021 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2022 and 2021 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	18
Item 4.	Controls and Procedures	18
Part II - Other Information
Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	19
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3.	Defaults Upon Senior Securities	19
Item 4.	Mine Safety Disclosures	19
Item 5.	Other Information	19
Item 6.	Exhibits	19

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS 

	December 31,			March 31,
	2022 Unaudited			2022
ASSETS
Current assets:
Cash and cash equivalents	$	997,685		$	1,038,498
Accounts receivable, net of allowance for doubtful accounts of $675,000 at December 31, 2022 and March 31, 2022, respectively		558,285			729,721
Inventories		423,355			288,076
Prepaid expenses and other current assets		82,492			57,741
Total current assets		2,061,817			2,114,036
Other Assets:
Operating lease right-of-use asset		451,561			513,138
Loan receivable		201,203			128,322
Due from affiliate		80,090			80,090
Inventories - long-term portion		183,730			183,730
Intangible assets, net of accumulated amortization of $21,911 and $19,751 at December 31, 2022 and March 31, 2022, respectively		13,883			16,043
Other assets		90,538			90,538
Deferred tax asset		125,000			125,000
Total other assets		1,146,005			1,136,861
Total assets	$	3,207,822		$	3,250,897
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		263,339			329,554
Accrued expenses and other current liabilities		108,718			133,053
PPP loan		13,001			5,335
Line of credit		111,973			334,760
Warrant liability		-			182,161
Operating lease liability		80,649			75,254
Customer deposits		362,184			263,619
Due to stockholder		21,129			50,233
Total current liabilities		960,993			1,373,969
Long-term liabilities
PPP loan less current portion		-			11,700
Operating lease liability less current portion		429,874			491,265
Total long-term liabilities		429,874			502,965
Total liabilities		1,390,867			1,876,934
Stockholders' equity:
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding		-			-
Common stock, $0.0005 par value; 150,000,000 shares authorized, 67,588,504 shares issued and outstanding		33,794			33,794
Additional paid-in capital		33,599,516			33,311,672
Accumulated deficit		(31,816,355	)		(31,971,503	)
Total stockholders' equity		1,816,955			1,373,963
Total liabilities and stockholders' equity	$	3,207,822		$	3,250,897

See accompanying notes to the unaudited condensed consolidated financial statements

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2022 AND 2021 

	Three months ended						Nine months ended
	December 31,						December 31,
	2022			2021			2022			2021
Net revenues	$	983,162		$	749,654		$	3,044,838		$	2,322,871
Cost of sales		507,684			423,541			1,628,268			1,332,112
Gross Profit		475,478			326,113			1,416,570			990,759
Operating expenses:
Research and development		140,192			181,224			399,894			475,365
Selling, general and administrative		242,533			561,061			855,656			1,527,137
Total operating expenses		382,725			742,285			1,255,550			2,002,502
Income (loss) from operations		92,753			(416,172	)		161,020			(1,011,743	)
Other income (expense):
Forgiveness of Payroll Protection Program		-			332,542			-			693,817
Interest income		3,676			655			4,670			2,474
Interest and finance expenses		(2,658	)		(2,418	)		(10,542	)		(7,587	)
Total other income (expense)		1,018			330,779			(5,872	)		688,704
Income (loss) before provision for income taxes		93,771			(85,393	)		155,148			(323,039	)
Provision for (benefit) income taxes:
Current		-			-			-			(19,818	)
Deferred		-			(13,000	)		-			(163,000	)
Total provision (benefit) for income taxes		-			(13,000	)		-			(182,818	)
Net income (loss)	$	93,771		$	(72,393	)	$	155,148		$	(140,221	)
Basic and diluted per common share:	$	0.00		$	(0.00	)	$	0.00		$	(0.00	)
Weighted average shares of common stock outstanding - basic and diluted		67,588,504			67,588,504			67,588,504			67,588,504

See accompanying notes to the unaudited condensed consolidated financial statements

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE NINE MONTHS ENDED December 31, 2022 AND 2021 

	Common Stock		Common Stock		Additional Paid-in		Accumulated
	Shares		Amount		Capital		Deficit			Total
Balance at April 1, 2021		67,588,504	$	33,794	$	33,311,672	$	(30,587,240	)	$	2,758,226
Net (loss)								(30,672	)		(30,672	)
Balance at June 30, 2021		67,588,504	$	33,794	$	33,311,672	$	(30,617,912	)	$	2,727,554
Net (loss)								(37,156	)		(37,156	)
Balance at September 30, 2021		67,588,504	$	33,794	$	33,311,672	$	(30,655,068	)	$	2,690,398
Net (loss)								(72,393	)		(72,393	)
Balance at December 31, 2021		67,588,504	$	33,794	$	33,311,672	$	(30,727,461	)	$	2,618,005
Balance at April 1, 2022		67,588,504	$	33,794	$	33,311,672	$	(31,971,503	)	$	1,373,963
Stock based compensation						287,844					287,844
Net (loss)								(38,666	)		(38,666	)
Balance at June 30, 2022		67,588,504	$	33,794	$	33,599,516	$	(32,010,169	)	$	1,623,141
Net income								100,043			100,043
Balance at September 30, 2022		67,588,504	$	33,794	$	33,599,516	$	(31,910,126	)	$	1,723,184
Net income								93,771			93,771
Balance at December 31, 2022		67,588,504	$	33,794	$	33,599,516	$	(31,816,355	)	$	1,816,955

See accompanying notes to the unaudited condensed consolidated financial statements

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED DECEMBER 31, 2022 AND 2021

	2022			2021
Cash flows from operating activities:
Net income (loss)	$	155,148		$	(140,221	)
Adjustments to reconcile net income (loss) to net cash (used in) operating activities:
Depreciation and amortization		2,160			84,836
Write-off of inventories		54,692			26,726
Bad debt		-			625,000
Deferred taxes		-			(163,000	)
Non-cash interest expense		20,320			23,049
Amortization of right-to-use asset		61,577			-
Stock based compensation		33,310			-
Forgiveness of Paycheck Protection Program loan		-			(693,817	)
Warrant liability		-			182,161
Changes in operating assets and liabilities balances:
Accounts receivable		171,436			(9,681	)
Inventories		(189,971	)		(153,528	)
Prepaid expenses and other current assets		47,622			(44,616	)
Loan receivable		(72,881	)		-
Accounts payable		(66,215	)		(6,845	)
Customer deposits		98,565			(10,634	)
Accrued expenses and other current liabilities		(24,335	)		(17,966	)
Payments of operating lease liability		(76,406	)		(76,406	)
Net cash provided by (used in) operating activities		215,022			(374,942	)
Cash flows provided (used) in financing activities:
Due to shareholder		(29,104	)		(24,755	)
Proceeds from line of credit		85,067			187,000
Repayments of line of credit		(307,764	)		(159,910	)
Proceeds (payments) from/to PPP loan		(4,034	)		(1,666	)
Net cash provided by (used in) financing activities		(255,835	)		669
Net increase (decrease) in cash and cash equivalents		(40,813	)		(374,273	)
Cash and cash equivalents - beginning of period		1,038,498			1,546,950
Cash and cash equivalents - end of period	$	997,685		$	1,172,677
Cash paid for:
Interest	$	7,884		$	7,583
Taxes	$	-		$	-
Non-cash activities:
Reclass of Warrant Liability to Additional Paid in Capital	$	(182,161	)	$	-
Initial recognition of prepaid warrant expense	$	(105,683	)	$	-

See accompanying notes to the unaudited condensed consolidated financial statements

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

FOR THE THREE AND NINE MONTHS ENDED December 31, 2022 AND 2021 

NOTE 1 - NATURE OF BUSINESS

ADM Tronics Unlimited, Inc. (“we”, “us”, the “Company” or “ADM”), was incorporated under the laws of the state of Delaware on  November 24, 1969. We are a manufacturing and engineering concern whose principal lines of business are the design, manufacture, and sale of electronics of our own products or on a contract manufacturing basis; the production and sale of chemical and antistatic products; and, research, development and engineering services.

Electronic equipment is manufactured in accordance with customer specifications on a contract basis. Our electronic device product line consists principally of proprietary devices used in diagnostics and therapeutics of humans and animals and electronic controllers for spas and hot tubs. These products are sold to customers located principally in the United States. We are registered with the FDA as a contract manufacturing facility and we manufacture medical devices for customers in accordance with their designs and specifications. Our chemical product line is principally comprised of water-based chemical products used in the food packaging and converting industries, and anti-static conductive paints, coatings and other products. These products are sold to customers located in the United States, Australia, Asia and Europe. We also provide research, development, regulatory, and engineering services to customers. Our Sonotron Medical Systems, Inc. subsidiary (“Sonotron”) is involved in medical electronic therapeutic technology. 

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) including Form 10-Q and Regulation S-X. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the condensed financial position and operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and explanatory notes for the year ended March 31, 2022 as disclosed in our annual report on Form 10-K for that year. Unaudited interim results are not necessarily indicative of the results for the full fiscal year ending March 31, 2023. The consolidated balance sheet as of March 31, 2022 was derived from the audited consolidated financial statements as of and for the year then ended.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary, Sonotron (the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

USE OF ESTIMATES

These unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and, accordingly, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our deferred tax assets and related valuation allowance, write down of inventory, impairment of long-lived assets, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.

FAIR VALUE OF FINANCIAL INSTRUMENTS

For certain of our financial instruments, including accounts receivable, accounts payable, and accrued expenses, the carrying amounts approximate fair value due to their relatively short maturities.

CASH AND CASH EQUIVALENTS

Cash equivalents are comprised of highly liquid investments with original maturities of three months or less when purchased. We maintain our cash in bank deposit accounts, which at times, may exceed federally insured limits. We have not experienced any losses to date as a result of this policy. Cash and cash equivalents held in these accounts are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At December 31, 2022 and March 31, 2022, approximately $820,000 and $887,000, respectively, exceeded the FDIC limit.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The carrying amounts of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed the due date and estimates the portion, if any, of the balance that will be collected. Management provides for probable uncollectible amounts through a charge to expenses and a credit to a valuation allowance, based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

REVENUE RECOGNITION

ELECTRONICS:

We recognize revenue from the sale of our electronic products when they are shipped to the purchaser. We offer a limited 90-day warranty on our electronics products and contract manufacturing, and a limited 5-year warranty on our electronic controllers for spas and hot tubs. Historically, the amount of warranty expense included in sales of our electronic products have been de minimis. We have no other post shipment obligations. For contract manufacturing, revenues are recognized after shipments of the completed products.

Amounts received from customers in advance of our satisfaction of applicable performance obligations are recorded as customer deposits. Such amounts are recognized as revenues when the related performance obligations are satisfied. Customer deposits of approximately $120,000 and $209,000 as of March 31, 2022 were recognized as revenues during the three and nine months ended December 31, 2022, respectively.

CHEMICAL PRODUCTS:

Revenues are recognized when products are shipped to end users. Shipments to distributors are recognized as revenue when no right of return exists.

ENGINEERING SERVICES:

We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services over time as the applicable performance obligations are satisfied.

All revenue is recognized net of discounts.

INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Inventories that are expected to be sold within one operating cycle (1 year) are classified as a current asset. Inventories that are not expected to be sold within 1 year, based on historical trends, are classified as Inventories - long term portion. Obsolete inventory is written off based on prior and expected future usage.

Long-Term Inventory: Due to recent shortages of materials relating to supply chain and COVID issues, when an item the Company believes will be used in the future, even beyond the current fiscal year, becomes available, it will purchase as many items as management deems necessary to fulfill future orders.

PROPERTY AND EQUIPMENT

We record our property and equipment at historical cost. We expense maintenance and repairs as incurred. Depreciation is provided for by the straight-line method over five to seven years, the estimated useful lives of the property and equipment.

ADVERTISING COSTS

Advertising costs are expensed as incurred and amounted to $6,184 and $21,216 for the three and nine months ended December 31, 2022 and $7,604 and $22,392 for the three and nine months ended December 31, 2021, respectively.

NET EARNINGS PER SHARE

We compute basic earnings per share by dividing net income/loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive. Common equivalent shares are excluded from the computation of net earnings per share if their effect is anti-dilutive.

There were no anti-dilutive instruments in force during the periods ended December 31, 2022 and 2021, respectively.

Per share basic and diluted (loss) amounted to $0.00 and $(0.00) and $0.00 and $(0.00) for the three and nine months ended December 31, 2022 and 2021, respectively.

LEASES

In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changed financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of April 1, 2019, using the modified retrospective approach which allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases.

The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term. The Company defines a short-term lease as a lease that, at the commencement date, has a lease term of twelve months or less and does not contain an option to purchase the underlying asset that the lease is reasonably certain to exercise. Related variable lease payments are recognized in the period in which the obligation is incurred.

The Company's lease agreement contains related non-lease components (e.g. taxes, etc.). The Company separates lease components and non-lease components for all underlying asset classes.

RECLASSIFICATION

Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net loss.

NEW ACCOUNTING STANDARDS

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — ASU 2016-13”). The new standard adjusts the accounting for assets held at amortized cost basis, including marketable securities accounted for as available for sale, and trade receivables. The standard eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For public entities except smaller reporting companies, the guidance is effective for annual reporting periods beginning after December 15, 2019 and for interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, which deferred the effective date for non-public entities and smaller reporting companies to annual reporting periods beginning after December 15, 2022, including interim periods within those fiscal years. Early application is allowed. The Company expects to adopt this guidance effective April 1, 2023, and it is currently evaluating the impact on its condensed consolidated financial statements and related disclosures.

The Company is assessing this guidance to determine what modifications to existing credit estimation processes may be required. The new guidance is complex and management is evaluating preliminary output from models that have been developed during this evaluative phase. In addition, future levels of allowances will also reflect new requirements to include estimated credit losses on investment securities classified as held-to-maturity, if any. It has been generally assumed that the conversion from the incurred loss model, required under current GAAP, to the current expected credit loss (CECL) methodology (as required upon implementation of this Update) will, more likely than not, result in increases to the allowances for credit losses. However, the amount of any change in the allowance for credit losses resulting from the new guidance will ultimately be impacted by the provisions of this guidance as well as by loan and trade receivable composition and asset quality at the adoption date, and economic conditions and forecasts at the time of adoption. The cumulative impact of the economic effects of the COVID-19 pandemic on the changes to the allowance for loan and trade receivable losses, that will be required upon the implementation of the CECL methodology, cannot be estimated at this time.

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that the Company adopts as of the specified effective date. The Company does not believe that the impact of recently issued standards that are not yet effective will have a material impact on the Company’s financial position or results of operations upon adoption.

NOTE 3 - INVENTORIES     

Inventories at December 31, 2022 consisted of the following:

	Current		Long Term		Total
Raw materials	$	368,624	$	181,416	$	550,040
Finished goods		54,731		2,314		57,045
Totals	$	423,355	$	183,730	$	607,085

Inventories at March 31, 2022 consisted of the following:

	Current		Long Term		Total
Raw materials	$	240,163	$	181,416	$	421,579
Finished goods		47,913		2,314		50,227
Totals	$	288,076	$	183,730	$	471,806

NOTE 4 - INTANGIBLE ASSETS

Intangible assets are being amortized using the straight-line method over periods ranging from 10-15 years with a weighted average remaining life of approximately 6 years.

	December 31, 2022											March 31, 2022
	Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount		Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount
Patents & Trademarks	$	35,794		10	-	15	$	(21,911	)	$	13,883	$	35,794		10	-	15	$	(19,751	)	$	16,043

Estimated aggregate future amortization expense related to intangible assets is as follows:

For the fiscal years ended March 31,
2023		721
2024		2,883
2025		2,466
2026		1,980
2027		1,725
Thereafter		4,108
	$	13,883

NOTE 5 – CONCENTRATIONS

During the three months ended December 31, 2022, two customers accounted for 50% of our net revenue. During the three months ended December 31, 2021, two customers accounted for 66% of net revenue.

During the nine months ended December 31, 2022, two customers accounted for 45% of our net revenue. During the nine months ended December 31, 2021, two customers accounted for 54% of net revenue.

As of December 31, 2022, two customers represented 54% of our gross accounts receivable. As of March 31, 2022, three customers accounted for 75% of our gross accounts receivable. 

The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the three and nine months ended December 31, 2022 were $80,465 or 8% and $292,036 or 10%, respectively.  

Net revenues from foreign customers for the three and nine months ended December 31, 2021 were $80,358 or 11% and $237,852 or 10%, respectively.

NOTE 6 - DISAGGREGATED REVENUES AND SEGMENT INFORMATION

The following tables show the Company's revenues disaggregated by reportable segment and by product and service type:

	Three months Ended December 31,
	2022		2021
Net Revenue in the US
Chemical	$	245,582	$	251,454
Electronics		485,454		347,911
Engineering		165,830		69,931
		896,866		669,296
Net Revenue outside the US
Chemical		86,296		80,358
Electronics		-		-
Engineering		-		-
		86,296		80,358
Total Revenues	$	983,162	$	749,654

	Nine Months Ended December 31,
	2022		2021
Net Revenue in the US
Chemical	$	811,596	$	805,378
Electronics		1,584,003		911,569
Engineering		411,387		393,407
		2,806,986		2,110,354
Net Revenue outside the US
Chemical		237,852		212,517
Electronics		-		-
Engineering		-		-
		237,852		212,517
Total Revenues	$	3,044,838	$	2,322,871

	Chemical			Electronics			Engineering			Total
Three months ended December 31, 2022
Revenue from external customers	$	331,878		$	485,454		$	165,830		$	983,162
Segment operating income (loss)	$	23,137		$	18,034		$	51,582		$	92,753
Nine months ended December 31, 2022
Revenue from external customers	$	1,049,448		$	1,584,003		$	411,387		$	3,044,838
Segment operating income	$	35,548		$	(5,395	)	$	130,867		$	161,020
Three months ended December 31, 2021
Revenue from external customers	$	331,812		$	347,911		$	69,931		$	749,654
Segment operating income		(183,385	)		(188,273	)		(44,514	)	$	(416,172	)
Nine months ended December 31, 2021
Revenue from external customers	$	1,017,895		$	911,569		$	393,407		$	2,322,871
Segment operating income	$	(425,348	)	$	(531,888	)	$	(54,507	)	$	(1,011,743	)
Total assets at December 31, 2022	$	1,090,659		$	1,668,068		$	449,095		$	3,207,822
Total assets at March 31, 2022	$	1,332,867		$	1,430,395		$	487,635		$	3,250,897

NOTE 7 – DUE FROM AFFILIATE 

The Company has a $75,000 investment for 23.2% of Qol Devices Inc. (Qol). It was determined that the Company does not hold a significant influence which results in us carrying this asset at cost and reported as a component of other assets in the accompanying consolidated balance sheets.

The Company provided $330,090 in engineering services to Qol during the year  March 31, 2018.  This amount is shown net of a $250,000 allowance for doubtful accounts on the consolidated balance sheets as of December 31, 2022 and  March 31, 2022.

NOTE 8 – LEASES

We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on June 30, 2028. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of December 31, 2022:

	For the fiscal year ended:	Amount
FY 2023	March 31, 2023	$	25,469
FY 2024	March 31, 2024		105,625
FY 2025	March 31, 2025		106,875
FY 2026	March 31, 2026		106,875
FY 2027	March 31, 2027		106,875
FY 2028	March 31, 2028		106,875
FY 2029	March 31, 2029 ends June 30, 2028		26,719
			585,312
Less: Amount attributable to imputed interest			(74,790	)
		$	510,523
Weighted average remaining lease term (in years)			3.0
Weighted average discount rate			5	%
Present Value of future payments		$	18,730

Rent and real estate tax expense for all facilities for the three and nine months ended December 31, 2022 was approximately was approximately $34,000 and $102,000, respectively.

Rent and real estate tax expense for all facilities for the three and nine months ended December 31, 2021 was approximately was approximately $34,000 and $103,000, respectively.

These are reported as a component of cost of sales and selling, general and administrative expenses in the accompanying consolidated statements of operations.

NOTE 9 – PAYCHECK PROTECTION PROGRAM (PPP) LOAN

In   May 2020, the Company obtained funding through the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) of $381,000.  In   February 2021, a second PPP loan was obtained in the amount of $332,542, for a total of $713,542.  The loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities, with at least 60% being used for payroll.  The Company did use the funds for these expenses during the year ended   March 31, 2021. The Company applied for loan forgiveness of both PPP loans. On  September 7, 2021, the Company received approval from the SBA for $361,275 of PPP loan forgiveness. On December 21, 2021, the Company received approval from the Bank for $332,542. This amount was recorded as Forgiveness of Paycheck Protection loan in the accompanying condensed Consolidated Statements of Operations during the fiscal year ended March 31, 2022.

The unforgiven portion of the first PPP loan is $19,725, which was converted to a term loan payable in equal installments of principal plus interest at 1% with a maturity date of  May 15, 2025.  No collateral or personal guarantees is required for the loan. At December 31, 2022, the outstanding balance is $13,001.

NOTE 10 – LINE OF CREDIT

On June 15, 2018, the Company obtained an unsecured revolving line of credit, with a limit of $400,000. The line expires May 15, 2023, renewing automatically every year.  The Company is required to make monthly interest payments, at a rate of 3.87% as of June 30, 2022. Any unpaid principal will be due upon maturity.  At December 31, 2022 and March 31, 2022, the outstanding balance was $111,973 and $334,760, respectively.  

NOTE 11 – WARRANT LIABILITY

On July 2, 2021, ADM entered into a consulting agreement. The agreement granted a consultant a warrant to purchase up to 3,500,000 shares of the Company's par value common stock at an exercise price of $0.17 per share for the first twelve months of the agreement and $0.20 per share for the second twelve months of the agreement.

During the preparation of our consolidated financial statements for the three months ended June 30, 2022, we identified an error relating to the accounting treatment of the initial warrant liability in July of 2021 that was originally valued at approximately $288,000 and was subsequently revalued at March 31, 2022 for a value of approximately $182,000. The error caused additional paid in capital to be understated by approximately $288,000, warrant liability to be overstated by approximately $182,000, prepaid expenses to be understated by approximately $181,000, and net loss to be overstated by approximately $75,000 as of and for the year ended March 31, 2022.

We concluded the impact on the interim financial statements was immaterial and corrected the balances as of June 30, 2022.

NOTE 12 – DUE TO STOCKHOLDER

The Company’s President and a stockholder, has been deferring his salary and bonuses periodically to assist the Company’s cash flow. There are no repayment terms or interest accruing on this liability.

NOTE 13 – LEGAL PROCEEDINGS

We are involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. There are no pending material legal proceedings or environmental investigations to which we are a party or to which our property is subject. 

NOTE 14 – CONTRACTURAL OBLIGATIONS AND OTHER COMMITMENTS

Legal Contingencies

We are involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. There are no pending material legal proceedings or environmental investigations to which we are a party or to which our property is subject.

Product Liability

As of December 31, 2022 and March 31, 2022, there were no claims against us for product liability.

COVID-19 Pandemic

The Company had reduced revenues in the electronic and chemical segments as a result of the Covid pandemic. In the electronic segment certain orders of medical devices manufactured by the Company were reduced or delayed due to the cessation of elective surgeries during the pandemic and generally reduced activities by customers. In the chemical segment certain of the Company’s water-based industrial coatings and adhesives orders were reduced due to some customers having shutdowns or reduced activities during the pandemic. We intend to continue to evaluate and may, in certain circumstances, take preemptive actions to preserve liquidity during the COVID-19 pandemic. As the circumstances around the COVID-19 pandemic remain uncertain, we continue to actively monitor the pandemic's impact on us, including our financial position, liquidity, results of operations, and cash flows.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our operations and financial condition should be read in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. 

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the "safe harbor" provisions under section 21E of the Securities and Exchange Act of 1934 and the Private Securities Litigation Act of 1995. We use forward-looking statements in our description of our plans and objectives for future operations and assumptions underlying these plans and objectives. Forward-looking terminology includes the words "may", "expects", "believes", "anticipates", "intends", "forecasts", "projects", or similar terms, variations of such terms or the negative of such terms. These forward-looking statements are based on management's current expectations and are subject to factors and uncertainties which could cause actual results to differ materially from those described in such forward-looking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this Form 10-Q to reflect any change in our expectations or any changes in events, conditions or circumstances on which any forward-looking statement is based. Factors which could cause such results to differ materially from those described in the forward-looking statements include those set forth under "Item. 1 Description of Business – Risk Factors" and elsewhere in or incorporated by reference into our Annual Report on Form 10-K for the year ended March 31, 2022.

BUSINESS OVERVIEW

The Company is a technology-based developer and manufacturer of diversified lines of products and derives revenue from the production and sale of electronics for medical devices and other applications; environmentally safe chemical products for industrial, medical and cosmetic uses; and, research, development, regulatory and engineering services. The Company has increased internal research and development by utilizing their engineering resources to advance their own proprietary medical device technologies.

The Company is a corporation that was organized under the laws of the State of Delaware on November 24, 1969. Our operations are conducted through ADM and its subsidiary Sonotron.  

RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2022 AS COMPARED TO DECEMBER 31, 2021.  

For the three months ended December 31, 2022
	Chemical			Electronics			Engineering			Total
Revenue	$	331,878		$	485,454		$	165,830		$	983,162
Cost of Sales		187,341			277,133			43,210			507,684
Gross Profit		144,537			208,321			122,620			475,478
Gross Profit Percentage		44	%		43	%		74	%		48	%
Operating Expenses		121,400			190,287			71,038			382,725
Operating Income (Loss)		23,137			18,034			51,582			92,753
Other income (expenses)		415			598			5			1,018
Income (loss) before benefit from income taxes	$	23,552		$	18,632		$	51,587		$	93,771

For the three months ended December 31, 2021
	Chemical			Electronics			Engineering			Total
Revenue	$	331,812		$	347,911		$	69,931		$	749,654
Cost of Sales		183,678			206,725			33,138			423,541
Gross Profit		148,134			141,186			36,793			326,113
Gross Profit Percentage		45	%		41	%		53	%		44	%
Operating Expenses		331,519			329,459			81,307			742,285
Operating Income (Loss)		(183,385	)		(188,273	)		(44,514	)		(416,172	)
Other income (expenses)		149,123			139,742			41,914			330,779
Income (loss) before benefit from income taxes	$	(34,262	)	$	(48,531	)	$	(2,600	)	$	(85,393	)

Variance
	Chemical			Electronics			Engineering			Total
Revenue	$	66		$	137,543		$	95,899		$	233,508
Cost of Sales		3,663			70,408			10,072			84,143
Gross Profit		(3,597	)		67,135			85,827			149,365
Gross Profit Percentage		-1	%		2	%		21	%		5	%
Operating Expenses		(210,119	)		(139,172	)		(10,269	)		(359,560	)
Operating Income (Loss)		206,522			206,307			96,096			508,925
Other income (expenses)		(148,708	)		(139,144	)		(41,909	)		(329,761	)
Income (loss) before benefit from income taxes	$	57,814		$	67,163		$	54,187		$	179,164

For the nine months ended December 31, 2022
	Chemical			Electronics			Engineering			Total
Revenue	$	1,049,448		$	1,584,003		$	411,387		$	3,044,838
Cost of Sales		587,012			936,513			104,743			1,628,268
Gross Profit		462,436			647,490			306,644			1,416,570
Gross Profit Percentage		44	%		41	%		75	%		47	%
Operating Expenses		426,888			652,885			175,777			1,255,550
Operating Income (Loss)		35,548			(5,395	)		130,867			161,020
Other income (expenses)		(1,996	)		(3,054	)		(822	)		(5,872	)
Income before provision for income taxes	$	33,552		$	(8,449	)	$	130,045		$	155,148

For the nine months ended December 31, 2021
	Chemical			Electronics			Engineering			Total
Revenue	$	1,017,895		$	911,569		$	393,407		$	2,322,871
Cost of Sales		562,141			662,483			107,488			1,332,112
Gross Profit		455,754			249,086			285,919			990,759
Gross Profit Percentage		45	%		27	%		73	%		43	%
Operating Expenses		881,102			780,974			340,426			2,002,502
Operating Income (Loss)		(425,348	)		(531,888	)		(54,507	)		(1,011,743	)
Other income (expenses)		303,031			268,595			117,078			688,704
Income before provision for income taxes	$	(122,317	)	$	(263,293	)	$	62,571		$	(323,039	)

Variance
	Chemical			Electronics			Engineering			Total
Revenue	$	31,553		$	672,434		$	17,980		$	721,967
Cost of Sales		24,871			274,030			(2,745	)		296,156
Gross Profit		6,682			398,404			20,725			425,811
Gross Profit Percentage		-1	%		14	%		2	%		4	%
Operating Expenses		(454,214	)		(128,089	)		(164,649	)		(746,952	)
Operating Income (Loss)		460,896			526,493			185,374			1,172,763
Other income (expenses)		(305,027	)		(271,649	)		(117,900	)		(694,576	)
Income (loss) before benefit from income taxes	$	155,869		$	254,844		$	67,474		$	478,187

Revenues for the three months ended December 31, 2022 increased by $233,508. The increase is a result of increased sales of $95,899 in the Engineering segment, $137,543 in the Electronics segment and $66 in the Chemical segment.

Gross profit for the three months ended December 31, 2022 increased by $149,365. The increase in gross profit resulted primarily from increased sales in Electronics and Engineering sales.

Revenues for the nine months ended December 31, 2022 increased by $721,967. The increase is a result of increased sales of $31,553 in the Chemical segment, $672,434 in the Electronics segment and $17,980 in the Engineering segment.

Gross profit for the nine months ended December 31, 2022 increased by $425,811. The increase in gross profit resulted primarily from increased sales in Electronics and Chemical sales.

We are highly dependent upon certain customers. During the three months ended December 31, 2022, two customers accounted for 50% of our net revenue. Net revenues from foreign customers for the three months ended December 31, 2022 was $80,465 or 8%.

During the three months ended December 31, 2021, two customers accounted for 66% of our net revenue. Net revenues from foreign customers for the three months ended December 31, 2021 was $80,358 or 11%.

During the nine months ended December 31, 2022, two customers accounted for 45% of our net revenue. Net revenues from foreign customers for the nine months ended December 31, 2022 was $292,036 or 10%.

The complete loss of or significant reduction in business from, or a material adverse change in the financial condition of any of our customers could cause a material and adverse change in our revenues and operating results.

Income from operations for the three months ended December 31, 2022 was $92,753 compared to loss from operations for the three months ended December 31, 2021 of ($416,172).

Other income decreased $329,761 for the three months ended December 31, 2022. The decrease is mainly attributable to the PPP forgiveness of $361,275 in 2021.

Other income decreased $694,576 for the nine months ended December 31, 2022. The decrease is mainly attributable to the PPP forgiveness of $361,275 in 2021.

The foregoing resulted in net income before provision for income taxes for the three and nine months ended December 31, 2022 of $93,771 and $155,148 respectively. Earnings per share were $0.00 for the three and nine months ended December 31, 2022.

LIQUIDITY AND CAPITAL RESOURCES  

At December 31, 2022, we had cash and cash equivalents of $997,685 as compared to $1,038,498 at March 31, 2022. The $40,813 decrease was primarily the result of cash provided in operations during the nine-month period in the amount of $215,022 and cash used in financing activities of $255,835. Our cash will continue to be used for increased marketing costs, and increased production labor costs all in an attempt to increase our revenue, as well as increased expenditures for our internal R&D.  We expect to have enough cash to fund operations for the next twelve months.    

Below is a summary of our cash flow for the nine-month ending periods indicated:

	December 31, 2022			December 31, 2021
Net cash provided by (used in) operating activities	$	215,022		$	(374,942	)
Net cash provided by (used in) investing activities		-			-
Cash flows provided (used) in financing activities:		(255,835	)		669
Net increase (decrease) in cash and cash equivalents		(40,813	)		(374,273	)
Cash and cash equivalents - beginning of period		1,038,498			1,546,950
Cash and cash equivalents - end of period		997,685			1,172,677

Future Sources of Liquidity:

We expect that growth with profitable customers and continued focus on new customers will enable us to generate cash flows from operating activities during fiscal 2023.

Based on current expectations, we believe that our existing cash and cash equivalents of $997,685 as of December 31, 2022, and other potential sources of cash will be sufficient to meet our cash requirements. Our ability to meet these requirements will depend on our ability to generate cash in the future, which is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.

OPERATING ACTIVITIES 

Net cash provided by operating activities was $215,022 for the nine months ended December 31, 2022, as compared to net cash used by operating activities of $374,942 for the nine months ended December 31, 2021. The cash provided during the nine months ended December 31, 2022 was primarily due to a decrease in net operating assets of $43,794, offset by a decrease in net operating liabilities of $68,391, offset by net income of $155,148 write-off of inventories of $54,692, depreciation and amortization of $63,737, and stock based compensation of $33,310 (see Note 12 Warrant Liability), and non-cash interest expense of $20,320.

INVESTING ACTIVITIES

No cash was provided for or used in investing activities for the nine months ended December 31, 2022.

FINANCING ACTIVITIES

For the nine months ended December 31, 2022, net cash used by financing activities was $255,835 due to a net borrowing and payments in the line of credit of $222,697, a decrease in due to stockholder of $29,104 and repayments on the PPP loan of $4,034.

OFF BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements that have had or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Concentration of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable.

Cash and cash equivalents – For financial statement purposes, the Company considers as cash equivalents all highly liquid investments with an original maturity of three months or less at inception. The Company deposits cash and cash equivalents with high credit quality financial institutions and believes that any amounts in excess of insurance limitations to be at minimal risk. Cash and cash equivalents held at these accounts are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At December 31, 2022, approximately $748,000 exceeded the FDIC limit.

Our sales are materially dependent on a small group of customers, as noted in Note 6 of our condensed consolidated financial statements. We monitor our credit risk associated with our receivables on a routine basis. We also maintain credit controls for evaluating and granting customer credit. 

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

The Company's management, including the Company's principal executive officer and principal financial officer, have evaluated the effectiveness of the Company's "disclosure controls and procedures," as such term is defined in Ru1e 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended, (the "Exchange Act"). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company's disclosure controls and procedures were not effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the "SEC") (1) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and (2) is accumulated and communicated to the Company's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. During the quarterly and year to date period ended December 31, 2022, there were no changes in the Company's internal control over financial reporting which materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting. 

The determination that our disclosure controls and procedures were not effective as of December 31, 2022, is a result of:

a. Deficiencies in Internal Control Structure Environment. During the current year, the Company’s focus was on expanding their customer base to initiate revenue production.  

b. Inadequate staffing and supervision within the accounting operations of our company. The relatively small number of employees who are responsible for accounting functions prevents the Company from segregating duties within its internal control system. The inadequate segregation of duties is a weakness because it could lead to the untimely identification and resolution of accounting and disclosure matters or could lead to a failure to perform timely and effective reviews.  The Company’s plan is to expand its accounting operations as the business of the Company expands. 

The Company believes that the financial statements present fairly, in all material respects, the Company’s condensed consolidated balance sheets as of December 31, 2022, and March 31, 2022 and the related condensed consolidated statements of operations, and cash flows for the three and nine months ended December 31, 2022 and 2021, in conformity with generally accepted accounting principles, notwithstanding the material weaknesses we identified. 

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors contained in our Annual Report on Form 10-K for the year ended March 31, 2022. 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None 

ITEM 4. MINE SAFETY DISCLOSURES

None

ITEM 5. OTHER INFORMATION

None 

ITEM 6. EXHIBITS.

(a) Exhibit No.

21.1	Subsidiaries of the Company
31.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS**	Inline XBRL Instance
101.SCH**	Inline XBRL Taxonomy Extension Schema
101.CAL**	Inline XBRL Taxonomy Extension Calculation
101.DEF**	Inline XBRL Taxonomy Extension Definition
101.LAB**	Inline XBRL Taxonomy Extension Labels
101.PRE**	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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.
(Registrant)
By:	/s/ Andre' DiMino
	Andre' DiMino, Chief Executive
	Officer and Chief Financial Officer

Dated:	Northvale, New Jersey
	February 14, 2023

EX-21.1

EXHIBIT 21.1

SUBSIDIARIES OF ADM TRONICS UNLIMITED, INC.
 

Sonotron Medical Systems, Inc.

EX-31.1

EXHIBIT 31.1

CERTIFICATION
PURSUANT TO SECTION 302 OF THE SARBANES - OXLEY ACT OF 2002 AND

SECURITIES AND EXCHANGE COMMISSION RELEASE 34-46427

I, Andre' DiMino, certify that:

1. I have reviewed this quarterly report on Form 10-Q of ADM Tronics Unlimited, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am the registrant's only certifying officer and am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 14, 2023	/s/ Andre' DiMino
	Andre' DiMino
	Chief Executive Officer and Chief Financial Officer

A signed original of this written statement required by Section 302 has been provided to ADM Tronics Unlimited, Inc. and will be retained by ADM Tronics Unlimited, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual Report of ADM Tronics Unlimited, Inc. (the "Company") on Form 10-Q for the three and nine months ended December 31, 2022, (the "Report"), filed with the Securities and Exchange Commission, Andre' DiMino, Chief Executive Officer and Chief Financial Officer, of the Company hereby certifies pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition of the Company as of the dates presented and the result of operations of the Company for the periods presented. 

Date: February 14, 2023	/s/ Andre' DiMino
	Chief Executive Officer and
	Chief Financial Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the Form 10-K or as a separate disclosure document.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to ADM Tronics Unlimited, Inc. and will be retained by ADM Tronics Unlimited, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Document And Entity Information - shares	9 Months Ended
	Dec. 31, 2022	Feb. 14, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Entity File Number	0-17629
Entity Registrant Name	ADM TRONICS UNLIMITED, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-1896032
Entity Address, Address Line One	224-S Pegasus Ave.,
Entity Address, City or Town	Northvale
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07647
City Area Code	201
Local Phone Number	767-6040
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Non-accelerated filer ☐	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		67,588,504
Entity Central Index Key	0000849401
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

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Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Dec. 31, 2022	Mar. 31, 2022
Current assets:
Cash and cash equivalents	$ 997,685	$ 1,038,498
Accounts receivable, net of allowance for doubtful accounts of $675,000 at December 31, 2022 and March 31, 2022, respectively	558,285	729,721
Inventories	423,355	288,076
Prepaid expenses and other current assets	82,492	57,741
Total current assets	2,061,817	2,114,036
Other Assets:
Operating lease right-of-use asset	451,561	513,138
Loan receivable	201,203	128,322
Due from affiliate	80,090	80,090
Inventories - long-term portion	183,730	183,730
Intangible assets, net of accumulated amortization of $21,911 and $19,751 at December 31, 2022 and March 31, 2022, respectively	13,883	16,043
Other assets	90,538	90,538
Deferred tax asset	125,000	125,000
Total other assets	1,146,005	1,136,861
Total assets	3,207,822	3,250,897
Current liabilities:
Accounts payable	263,339	329,554
Accrued expenses and other current liabilities	108,718	133,053
PPP loan	13,001	5,335
Line of credit	111,973	334,760
Warrant liability	0	182,161
Operating lease liability	80,649	75,254
Customer deposits	362,184	263,619
Due to stockholder	21,129	50,233
Total current liabilities	960,993	1,373,969
Long-term liabilities
PPP loan less current portion	0	11,700
Operating lease liability less current portion	429,874	491,265
Total long-term liabilities	429,874	502,965
Total liabilities	1,390,867	1,876,934
Stockholders' equity:
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.0005 par value; 150,000,000 shares authorized, 67,588,504 shares issued and outstanding	33,794	33,794
Additional paid-in capital	33,599,516	33,311,672
Accumulated deficit	(31,816,355)	(31,971,503)
Total stockholders' equity	1,816,955	1,373,963
Total liabilities and stockholders' equity	$ 3,207,822	$ 3,250,897

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Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Dec. 31, 2022	Mar. 31, 2022
Accounts Receivable, Allowance for Credit Loss, Current	$ 675,000	$ 675,000
Intangible assets, accumulated amortization	21,911	19,751
Intangible assets, accumulated amortization	$ 21,911	$ 19,751
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized (in shares)	5,000,000	5,000,000
Preferred Stock, Shares Issued (in shares)	0	0
Preferred Stock, Shares Outstanding, Ending Balance (in shares)	0	0
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0005	$ 0.0005
Common Stock, Shares Authorized (in shares)	150,000,000	150,000,000
Common Stock, Shares, Issued (in shares)	67,588,504	67,588,504
Common Stock, Shares, Outstanding, Ending Balance (in shares)	67,588,504	67,588,504

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ / shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Net revenues	$ 983,162	$ 749,654	$ 3,044,838	$ 2,322,871
Cost of sales	507,684	423,541	1,628,268	1,332,112
Gross Profit	475,478	326,113	1,416,570	990,759
Operating expenses:
Research and development	140,192	181,224	399,894	475,365
Selling, general and administrative	242,533	561,061	855,656	1,527,137
Total operating expenses	382,725	742,285	1,255,550	2,002,502
Income (loss) from operations	92,753	(416,172)	161,020	(1,011,743)
Other income (expense):
Forgiveness of Payroll Protection Program	0	332,542	0	693,817
Interest income	3,676	655	4,670	2,474
Interest and finance expenses	(2,658)	(2,418)	(10,542)	(7,587)
Total other income (expense)	1,018	330,779	(5,872)	688,704
Income (loss) before provision for income taxes	93,771	(85,393)	155,148	(323,039)
Provision for (benefit) income taxes:
Current	0	0	0	(19,818)
Deferred	0	(13,000)	0	(163,000)
Total provision (benefit) for income taxes	0	(13,000)	0	(182,818)
Net income (loss)	$ 93,771	$ (72,393)	$ 155,148	$ (140,221)
Basic and diluted per common share: (in dollars per share)	$ 0	$ (0)	$ 0	$ (0)
Weighted average shares of common stock outstanding - basic and diluted (in shares)	67,588,504	67,588,504	67,588,504	67,588,504

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Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance	$ 33,794	$ 33,311,672	$ (30,587,240)	$ 2,758,226
Balance (in shares) at Mar. 31, 2021	67,588,504
Balance at Mar. 31, 2021	$ 33,794	33,311,672	(30,587,240)	2,758,226
Net (loss)			(30,672)	(30,672)
Balance (in shares) at Jun. 30, 2021	67,588,504
Balance at Jun. 30, 2021	$ 33,794	33,311,672	(30,617,912)	2,727,554
Net income			(30,672)	(30,672)
Balance (in shares) at Mar. 31, 2021	67,588,504
Balance at Mar. 31, 2021	$ 33,794	33,311,672	(30,587,240)	2,758,226
Net (loss)				(140,221)
Balance (in shares) at Dec. 31, 2021	67,588,504
Balance at Dec. 31, 2021	$ 33,794	33,311,672	(30,727,461)	2,618,005
Net income				(140,221)
Balance (in shares) at Mar. 31, 2021	67,588,504
Balance at Mar. 31, 2021	$ 33,794	33,311,672	(30,587,240)	2,758,226
Balance (in shares) at Mar. 31, 2022	67,588,504
Balance at Mar. 31, 2022	$ 33,794	33,311,672	(31,971,503)	1,373,963
Balance	$ 33,794	33,311,672	(30,617,912)	2,727,554
Balance (in shares) at Jun. 30, 2021	67,588,504
Balance at Jun. 30, 2021	$ 33,794	33,311,672	(30,617,912)	2,727,554
Net (loss)			(37,156)	(37,156)
Balance (in shares) at Sep. 30, 2021	67,588,504
Balance at Sep. 30, 2021	$ 33,794	33,311,672	(30,655,068)	2,690,398
Net income			(37,156)	(37,156)
Balance	$ 33,794	33,311,672	(30,655,068)	2,690,398
Net (loss)			(72,393)	(72,393)
Balance (in shares) at Dec. 31, 2021	67,588,504
Balance at Dec. 31, 2021	$ 33,794	33,311,672	(30,727,461)	2,618,005
Net income			(72,393)	(72,393)
Balance	33,794	33,311,672	(30,727,461)	2,618,005
Balance	$ 33,794	33,311,672	(31,971,503)	1,373,963
Balance (in shares) at Mar. 31, 2022	67,588,504
Balance at Mar. 31, 2022	$ 33,794	33,311,672	(31,971,503)	1,373,963
Net (loss)			(38,666)	(38,666)
Balance (in shares) at Jun. 30, 2022	67,588,504
Balance at Jun. 30, 2022	$ 33,794	33,599,516	(32,010,169)	1,623,141
Stock based compensation		287,844
Net income			(38,666)	(38,666)
Balance (in shares) at Mar. 31, 2022	67,588,504
Balance at Mar. 31, 2022	$ 33,794	33,311,672	(31,971,503)	1,373,963
Net (loss)				155,148
Balance (in shares) at Dec. 31, 2022	67,588,504
Balance at Dec. 31, 2022	$ 33,794	33,599,516	(31,816,355)	1,816,955
Net income				155,148
Balance	$ 33,794	33,599,516	(32,010,169)	1,623,141
Balance (in shares) at Jun. 30, 2022	67,588,504
Balance at Jun. 30, 2022	$ 33,794	33,599,516	(32,010,169)	1,623,141
Net (loss)			100,043	100,043
Balance (in shares) at Sep. 30, 2022	67,588,504
Balance at Sep. 30, 2022	$ 33,794	33,599,516	(31,910,126)	1,723,184
Net income			100,043	100,043
Balance	$ 33,794	33,599,516	(31,910,126)	1,723,184
Net (loss)			93,771	93,771
Balance (in shares) at Dec. 31, 2022	67,588,504
Balance at Dec. 31, 2022	$ 33,794	33,599,516	(31,816,355)	1,816,955
Net income			93,771	93,771
Balance	$ 33,794	$ 33,599,516	$ (31,816,355)	$ 1,816,955

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Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 93,771	$ (38,666)	$ (72,393)	$ (30,672)	$ 155,148	$ (140,221)
Adjustments to reconcile net income (loss) to net cash (used in) operating activities:
Depreciation and amortization					2,160	84,836
Write-off of inventories					54,692	26,726
Bad debt					0	625,000
Deferred taxes					0	(163,000)
Non-cash interest expense					20,320	23,049
Amortization of right-to-use asset					61,577	0
Stock based compensation					33,310	0
Forgiveness of Paycheck Protection Program loan	0		(332,542)		0	(693,817)
Warrant liability					0	182,161
Changes in operating assets and liabilities balances:
Accounts receivable					171,436	(9,681)
Inventories					(189,971)	(153,528)
Prepaid expenses and other current assets					47,622	(44,616)
Loan receivable					(72,881)	0
Accounts payable					(66,215)	(6,845)
Customer deposits					98,565	(10,634)
Accrued expenses and other current liabilities					(24,335)	(17,966)
Payments of operating lease liability					(76,406)	(76,406)
Net cash provided by (used in) operating activities					215,022	(374,942)
Cash flows provided (used) in financing activities:
Due to shareholder					(29,104)	(24,755)
Proceeds from line of credit					85,067	187,000
Repayments of line of credit					(307,764)	(159,910)
Proceeds (payments) from/to PPP loan					(4,034)	(1,666)
Net cash provided by (used in) financing activities					(255,835)	669
Net increase (decrease) in cash and cash equivalents					(40,813)	(374,273)
Cash and cash equivalents - beginning of period		$ 1,038,498		$ 1,546,950	1,038,498	1,546,950	$ 1,546,950
Cash and cash equivalents - end of period	$ 997,685		$ 1,172,677		997,685	1,172,677	$ 1,038,498
Cash paid for:
Interest					7,884	7,583
Taxes					0	0
Non-cash activities:
Reclass of Warrant Liability to Additional Paid in Capital					(182,161)	0
Initial recognition of prepaid warrant expense					$ (105,683)	$ 0

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Note 1 - Nature of Business

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 - NATURE OF BUSINESS

ADM Tronics Unlimited, Inc. (“we”, “us”, the “Company” or “ADM”), was incorporated under the laws of the state of Delaware on  November 24, 1969. We are a manufacturing and engineering concern whose principal lines of business are the design, manufacture, and sale of electronics of our own products or on a contract manufacturing basis; the production and sale of chemical and antistatic products; and, research, development and engineering services.

Electronic equipment is manufactured in accordance with customer specifications on a contract basis. Our electronic device product line consists principally of proprietary devices used in diagnostics and therapeutics of humans and animals and electronic controllers for spas and hot tubs. These products are sold to customers located principally in the United States. We are registered with the FDA as a contract manufacturing facility and we manufacture medical devices for customers in accordance with their designs and specifications. Our chemical product line is principally comprised of water-based chemical products used in the food packaging and converting industries, and anti-static conductive paints, coatings and other products. These products are sold to customers located in the United States, Australia, Asia and Europe. We also provide research, development, regulatory, and engineering services to customers. Our Sonotron Medical Systems, Inc. subsidiary (“Sonotron”) is involved in medical electronic therapeutic technology. 

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Note 2 - Significant Accounting Policies

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Significant Accounting Policies [Text Block]

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) including Form 10-Q and Regulation S-X. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the condensed financial position and operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and explanatory notes for the year ended March 31, 2022 as disclosed in our annual report on Form 10-K for that year. Unaudited interim results are not necessarily indicative of the results for the full fiscal year ending March 31, 2023. The consolidated balance sheet as of March 31, 2022 was derived from the audited consolidated financial statements as of and for the year then ended.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary, Sonotron (the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

USE OF ESTIMATES

These unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and, accordingly, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our deferred tax assets and related valuation allowance, write down of inventory, impairment of long-lived assets, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.

FAIR VALUE OF FINANCIAL INSTRUMENTS

For certain of our financial instruments, including accounts receivable, accounts payable, and accrued expenses, the carrying amounts approximate fair value due to their relatively short maturities.

CASH AND CASH EQUIVALENTS

Cash equivalents are comprised of highly liquid investments with original maturities of three months or less when purchased. We maintain our cash in bank deposit accounts, which at times, may exceed federally insured limits. We have not experienced any losses to date as a result of this policy. Cash and cash equivalents held in these accounts are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At December 31, 2022 and March 31, 2022, approximately $820,000 and $887,000, respectively, exceeded the FDIC limit.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The carrying amounts of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed the due date and estimates the portion, if any, of the balance that will be collected. Management provides for probable uncollectible amounts through a charge to expenses and a credit to a valuation allowance, based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

REVENUE RECOGNITION

ELECTRONICS:

We recognize revenue from the sale of our electronic products when they are shipped to the purchaser. We offer a limited 90-day warranty on our electronics products and contract manufacturing, and a limited 5-year warranty on our electronic controllers for spas and hot tubs. Historically, the amount of warranty expense included in sales of our electronic products have been de minimis. We have no other post shipment obligations. For contract manufacturing, revenues are recognized after shipments of the completed products.

Amounts received from customers in advance of our satisfaction of applicable performance obligations are recorded as customer deposits. Such amounts are recognized as revenues when the related performance obligations are satisfied. Customer deposits of approximately $120,000 and $209,000 as of March 31, 2022 were recognized as revenues during the three and nine months ended December 31, 2022, respectively.

CHEMICAL PRODUCTS:

Revenues are recognized when products are shipped to end users. Shipments to distributors are recognized as revenue when no right of return exists.

ENGINEERING SERVICES:

We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services over time as the applicable performance obligations are satisfied.

All revenue is recognized net of discounts.

INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Inventories that are expected to be sold within one operating cycle (1 year) are classified as a current asset. Inventories that are not expected to be sold within 1 year, based on historical trends, are classified as Inventories - long term portion. Obsolete inventory is written off based on prior and expected future usage.

Long-Term Inventory: Due to recent shortages of materials relating to supply chain and COVID issues, when an item the Company believes will be used in the future, even beyond the current fiscal year, becomes available, it will purchase as many items as management deems necessary to fulfill future orders.

PROPERTY AND EQUIPMENT

We record our property and equipment at historical cost. We expense maintenance and repairs as incurred. Depreciation is provided for by the straight-line method over five to seven years, the estimated useful lives of the property and equipment.

ADVERTISING COSTS

Advertising costs are expensed as incurred and amounted to $6,184 and $21,216 for the three and nine months ended December 31, 2022 and $7,604 and $22,392 for the three and nine months ended December 31, 2021, respectively.

NET EARNINGS PER SHARE

We compute basic earnings per share by dividing net income/loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive. Common equivalent shares are excluded from the computation of net earnings per share if their effect is anti-dilutive.

There were no anti-dilutive instruments in force during the periods ended December 31, 2022 and 2021, respectively.

Per share basic and diluted (loss) amounted to $0.00 and $(0.00) and $0.00 and $(0.00) for the three and nine months ended December 31, 2022 and 2021, respectively.

LEASES

In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changed financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of April 1, 2019, using the modified retrospective approach which allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases.

The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term. The Company defines a short-term lease as a lease that, at the commencement date, has a lease term of twelve months or less and does not contain an option to purchase the underlying asset that the lease is reasonably certain to exercise. Related variable lease payments are recognized in the period in which the obligation is incurred.

The Company's lease agreement contains related non-lease components (e.g. taxes, etc.). The Company separates lease components and non-lease components for all underlying asset classes.

RECLASSIFICATION

Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net loss.

NEW ACCOUNTING STANDARDS

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — ASU 2016-13”). The new standard adjusts the accounting for assets held at amortized cost basis, including marketable securities accounted for as available for sale, and trade receivables. The standard eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For public entities except smaller reporting companies, the guidance is effective for annual reporting periods beginning after December 15, 2019 and for interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, which deferred the effective date for non-public entities and smaller reporting companies to annual reporting periods beginning after December 15, 2022, including interim periods within those fiscal years. Early application is allowed. The Company expects to adopt this guidance effective April 1, 2023, and it is currently evaluating the impact on its condensed consolidated financial statements and related disclosures.

The Company is assessing this guidance to determine what modifications to existing credit estimation processes may be required. The new guidance is complex and management is evaluating preliminary output from models that have been developed during this evaluative phase. In addition, future levels of allowances will also reflect new requirements to include estimated credit losses on investment securities classified as held-to-maturity, if any. It has been generally assumed that the conversion from the incurred loss model, required under current GAAP, to the current expected credit loss (CECL) methodology (as required upon implementation of this Update) will, more likely than not, result in increases to the allowances for credit losses. However, the amount of any change in the allowance for credit losses resulting from the new guidance will ultimately be impacted by the provisions of this guidance as well as by loan and trade receivable composition and asset quality at the adoption date, and economic conditions and forecasts at the time of adoption. The cumulative impact of the economic effects of the COVID-19 pandemic on the changes to the allowance for loan and trade receivable losses, that will be required upon the implementation of the CECL methodology, cannot be estimated at this time.

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that the Company adopts as of the specified effective date. The Company does not believe that the impact of recently issued standards that are not yet effective will have a material impact on the Company’s financial position or results of operations upon adoption.

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Note 3 - Inventories

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE 3 - INVENTORIES     

Inventories at December 31, 2022 consisted of the following:

	Current		Long Term		Total
Raw materials	$	368,624	$	181,416	$	550,040
Finished goods		54,731		2,314		57,045
Totals	$	423,355	$	183,730	$	607,085

Inventories at March 31, 2022 consisted of the following:

	Current		Long Term		Total
Raw materials	$	240,163	$	181,416	$	421,579
Finished goods		47,913		2,314		50,227
Totals	$	288,076	$	183,730	$	471,806

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Note 4 - Intangible Assets

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 4 - INTANGIBLE ASSETS

Intangible assets are being amortized using the straight-line method over periods ranging from 10-15 years with a weighted average remaining life of approximately 6 years.

	December 31, 2022											March 31, 2022
	Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount		Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount
Patents & Trademarks	$	35,794		10	-	15	$	(21,911	)	$	13,883	$	35,794		10	-	15	$	(19,751	)	$	16,043

Estimated aggregate future amortization expense related to intangible assets is as follows:

For the fiscal years ended March 31,
2023		721
2024		2,883
2025		2,466
2026		1,980
2027		1,725
Thereafter		4,108
	$	13,883

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Note 5 - Concentrations

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 5 – CONCENTRATIONS

During the three months ended December 31, 2022, two customers accounted for 50% of our net revenue. During the three months ended December 31, 2021, two customers accounted for 66% of net revenue.

During the nine months ended December 31, 2022, two customers accounted for 45% of our net revenue. During the nine months ended December 31, 2021, two customers accounted for 54% of net revenue.

As of December 31, 2022, two customers represented 54% of our gross accounts receivable. As of March 31, 2022, three customers accounted for 75% of our gross accounts receivable. 

The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the three and nine months ended December 31, 2022 were $80,465 or 8% and $292,036 or 10%, respectively.  

Net revenues from foreign customers for the three and nine months ended December 31, 2021 were $80,358 or 11% and $237,852 or 10%, respectively.

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Note 6 - Disaggregated Revenues and Segment Information

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 6 - DISAGGREGATED REVENUES AND SEGMENT INFORMATION

The following tables show the Company's revenues disaggregated by reportable segment and by product and service type:

	Three months Ended December 31,
	2022		2021
Net Revenue in the US
Chemical	$	245,582	$	251,454
Electronics		485,454		347,911
Engineering		165,830		69,931
		896,866		669,296
Net Revenue outside the US
Chemical		86,296		80,358
Electronics		-		-
Engineering		-		-
		86,296		80,358
Total Revenues	$	983,162	$	749,654

	Nine Months Ended December 31,
	2022		2021
Net Revenue in the US
Chemical	$	811,596	$	805,378
Electronics		1,584,003		911,569
Engineering		411,387		393,407
		2,806,986		2,110,354
Net Revenue outside the US
Chemical		237,852		212,517
Electronics		-		-
Engineering		-		-
		237,852		212,517
Total Revenues	$	3,044,838	$	2,322,871

	Chemical			Electronics			Engineering			Total
Three months ended December 31, 2022
Revenue from external customers	$	331,878		$	485,454		$	165,830		$	983,162
Segment operating income (loss)	$	23,137		$	18,034		$	51,582		$	92,753
Nine months ended December 31, 2022
Revenue from external customers	$	1,049,448		$	1,584,003		$	411,387		$	3,044,838
Segment operating income	$	35,548		$	(5,395	)	$	130,867		$	161,020
Three months ended December 31, 2021
Revenue from external customers	$	331,812		$	347,911		$	69,931		$	749,654
Segment operating income		(183,385	)		(188,273	)		(44,514	)	$	(416,172	)
Nine months ended December 31, 2021
Revenue from external customers	$	1,017,895		$	911,569		$	393,407		$	2,322,871
Segment operating income	$	(425,348	)	$	(531,888	)	$	(54,507	)	$	(1,011,743	)
Total assets at December 31, 2022	$	1,090,659		$	1,668,068		$	449,095		$	3,207,822
Total assets at March 31, 2022	$	1,332,867		$	1,430,395		$	487,635		$	3,250,897

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Note 7 - Due From Affiliate

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE 7 – DUE FROM AFFILIATE 

The Company has a $75,000 investment for 23.2% of Qol Devices Inc. (Qol). It was determined that the Company does not hold a significant influence which results in us carrying this asset at cost and reported as a component of other assets in the accompanying consolidated balance sheets.

The Company provided $330,090 in engineering services to Qol during the year  March 31, 2018.  This amount is shown net of a $250,000 allowance for doubtful accounts on the consolidated balance sheets as of December 31, 2022 and  March 31, 2022.

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Note 8 - Leases

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

NOTE 8 – LEASES

We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on June 30, 2028. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of December 31, 2022:

	For the fiscal year ended:	Amount
FY 2023	March 31, 2023	$	25,469
FY 2024	March 31, 2024		105,625
FY 2025	March 31, 2025		106,875
FY 2026	March 31, 2026		106,875
FY 2027	March 31, 2027		106,875
FY 2028	March 31, 2028		106,875
FY 2029	March 31, 2029 ends June 30, 2028		26,719
			585,312
Less: Amount attributable to imputed interest			(74,790	)
		$	510,523
Weighted average remaining lease term (in years)			3.0
Weighted average discount rate			5	%
Present Value of future payments		$	18,730

Rent and real estate tax expense for all facilities for the three and nine months ended December 31, 2022 was approximately was approximately $34,000 and $102,000, respectively.

Rent and real estate tax expense for all facilities for the three and nine months ended December 31, 2021 was approximately was approximately $34,000 and $103,000, respectively.

These are reported as a component of cost of sales and selling, general and administrative expenses in the accompanying consolidated statements of operations.

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Note 9 - Paycheck Protection Program (PPP) Loan

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Long-Term Debt [Text Block]

NOTE 9 – PAYCHECK PROTECTION PROGRAM (PPP) LOAN

In   May 2020, the Company obtained funding through the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) of $381,000.  In   February 2021, a second PPP loan was obtained in the amount of $332,542, for a total of $713,542.  The loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities, with at least 60% being used for payroll.  The Company did use the funds for these expenses during the year ended   March 31, 2021. The Company applied for loan forgiveness of both PPP loans. On  September 7, 2021, the Company received approval from the SBA for $361,275 of PPP loan forgiveness. On December 21, 2021, the Company received approval from the Bank for $332,542. This amount was recorded as Forgiveness of Paycheck Protection loan in the accompanying condensed Consolidated Statements of Operations during the fiscal year ended March 31, 2022.

The unforgiven portion of the first PPP loan is $19,725, which was converted to a term loan payable in equal installments of principal plus interest at 1% with a maturity date of  May 15, 2025.  No collateral or personal guarantees is required for the loan. At December 31, 2022, the outstanding balance is $13,001.

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Note 10 - Line of Credit

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 10 – LINE OF CREDIT

On June 15, 2018, the Company obtained an unsecured revolving line of credit, with a limit of $400,000. The line expires May 15, 2023, renewing automatically every year.  The Company is required to make monthly interest payments, at a rate of 3.87% as of June 30, 2022. Any unpaid principal will be due upon maturity.  At December 31, 2022 and March 31, 2022, the outstanding balance was $111,973 and $334,760, respectively.  

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Note 11 - Warrant Liability

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Warrant Liability [Text Block]

NOTE 11 – WARRANT LIABILITY

On July 2, 2021, ADM entered into a consulting agreement. The agreement granted a consultant a warrant to purchase up to 3,500,000 shares of the Company's par value common stock at an exercise price of $0.17 per share for the first twelve months of the agreement and $0.20 per share for the second twelve months of the agreement.

During the preparation of our consolidated financial statements for the three months ended June 30, 2022, we identified an error relating to the accounting treatment of the initial warrant liability in July of 2021 that was originally valued at approximately $288,000 and was subsequently revalued at March 31, 2022 for a value of approximately $182,000. The error caused additional paid in capital to be understated by approximately $288,000, warrant liability to be overstated by approximately $182,000, prepaid expenses to be understated by approximately $181,000, and net loss to be overstated by approximately $75,000 as of and for the year ended March 31, 2022.

We concluded the impact on the interim financial statements was immaterial and corrected the balances as of June 30, 2022.

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Note 12 - Due to Stockholder

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Compensation Related Costs, General [Text Block]

NOTE 12 – DUE TO STOCKHOLDER

The Company’s President and a stockholder, has been deferring his salary and bonuses periodically to assist the Company’s cash flow. There are no repayment terms or interest accruing on this liability.

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Note 13 - Legal Proceedings

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

NOTE 13 – LEGAL PROCEEDINGS

We are involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. There are no pending material legal proceedings or environmental investigations to which we are a party or to which our property is subject. 

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Note 14 - Contractual Obligations and Other Commitments

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Commitments Disclosure [Text Block]

NOTE 14 – CONTRACTURAL OBLIGATIONS AND OTHER COMMITMENTS

Legal Contingencies

We are involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. There are no pending material legal proceedings or environmental investigations to which we are a party or to which our property is subject.

Product Liability

As of December 31, 2022 and March 31, 2022, there were no claims against us for product liability.

COVID-19 Pandemic

The Company had reduced revenues in the electronic and chemical segments as a result of the Covid pandemic. In the electronic segment certain orders of medical devices manufactured by the Company were reduced or delayed due to the cessation of elective surgeries during the pandemic and generally reduced activities by customers. In the chemical segment certain of the Company’s water-based industrial coatings and adhesives orders were reduced due to some customers having shutdowns or reduced activities during the pandemic. We intend to continue to evaluate and may, in certain circumstances, take preemptive actions to preserve liquidity during the COVID-19 pandemic. As the circumstances around the COVID-19 pandemic remain uncertain, we continue to actively monitor the pandemic's impact on us, including our financial position, liquidity, results of operations, and cash flows.

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Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	BASIS OF PRESENTATIONThe accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) including Form 10-Q and Regulation S-X. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the condensed financial position and operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and explanatory notes for the year ended March 31, 2022 as disclosed in our annual report on Form 10-K for that year. Unaudited interim results are not necessarily indicative of the results for the full fiscal year ending March 31, 2023. The consolidated balance sheet as of March 31, 2022 was derived from the audited consolidated financial statements as of and for the year then ended.
Consolidation, Policy [Policy Text Block]	PRINCIPLES OF CONSOLIDATIONThe condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary, Sonotron (the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	USE OF ESTIMATESThese unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and, accordingly, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our deferred tax assets and related valuation allowance, write down of inventory, impairment of long-lived assets, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.
Fair Value of Financial Instruments, Policy [Policy Text Block]	FAIR VALUE OF FINANCIAL INSTRUMENTSFor certain of our financial instruments, including accounts receivable, accounts payable, and accrued expenses, the carrying amounts approximate fair value due to their relatively short maturities.
Cash and Cash Equivalents, Policy [Policy Text Block]	CASH AND CASH EQUIVALENTSCash equivalents are comprised of highly liquid investments with original maturities of three months or less when purchased. We maintain our cash in bank deposit accounts, which at times, may exceed federally insured limits. We have not experienced any losses to date as a result of this policy. Cash and cash equivalents held in these accounts are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At December 31, 2022 and March 31, 2022, approximately $820,000 and $887,000, respectively, exceeded the FDIC limit.
Receivable [Policy Text Block]	ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTSAccounts receivable are stated at the amount management expects to collect from outstanding balances. The carrying amounts of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed the due date and estimates the portion, if any, of the balance that will be collected. Management provides for probable uncollectible amounts through a charge to expenses and a credit to a valuation allowance, based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.
Revenue [Policy Text Block]	REVENUE RECOGNITIONELECTRONICS:We recognize revenue from the sale of our electronic products when they are shipped to the purchaser. We offer a limited 90-day warranty on our electronics products and contract manufacturing, and a limited 5-year warranty on our electronic controllers for spas and hot tubs. Historically, the amount of warranty expense included in sales of our electronic products have been de minimis. We have no other post shipment obligations. For contract manufacturing, revenues are recognized after shipments of the completed products.Amounts received from customers in advance of our satisfaction of applicable performance obligations are recorded as customer deposits. Such amounts are recognized as revenues when the related performance obligations are satisfied. Customer deposits of approximately $120,000 and $209,000 as of March 31, 2022 were recognized as revenues during the three and nine months ended December 31, 2022, respectively.CHEMICAL PRODUCTS:Revenues are recognized when products are shipped to end users. Shipments to distributors are recognized as revenue when no right of return exists.ENGINEERING SERVICES:We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services over time as the applicable performance obligations are satisfied.All revenue is recognized net of discounts.
Inventory, Policy [Policy Text Block]	INVENTORIESInventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Inventories that are expected to be sold within one operating cycle (1 year) are classified as a current asset. Inventories that are not expected to be sold within 1 year, based on historical trends, are classified as Inventories - long term portion. Obsolete inventory is written off based on prior and expected future usage.Long-Term Inventory: Due to recent shortages of materials relating to supply chain and COVID issues, when an item the Company believes will be used in the future, even beyond the current fiscal year, becomes available, it will purchase as many items as management deems necessary to fulfill future orders.
Property, Plant and Equipment, Policy [Policy Text Block]	PROPERTY AND EQUIPMENTWe record our property and equipment at historical cost. We expense maintenance and repairs as incurred. Depreciation is provided for by the straight-line method over five to seven years, the estimated useful lives of the property and equipment.
Advertising Cost [Policy Text Block]	ADVERTISING COSTSAdvertising costs are expensed as incurred and amounted to $6,184 and $21,216 for the three and nine months ended December 31, 2022 and $7,604 and $22,392 for the three and nine months ended December 31, 2021, respectively.
Earnings Per Share, Policy [Policy Text Block]	NET EARNINGS PER SHAREWe compute basic earnings per share by dividing net income/loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive. Common equivalent shares are excluded from the computation of net earnings per share if their effect is anti-dilutive.There were no anti-dilutive instruments in force during the periods ended December 31, 2022 and 2021, respectively.Per share basic and diluted (loss) amounted to $0.00 and $(0.00) and $0.00 and $(0.00) for the three and nine months ended December 31, 2022 and 2021, respectively.
Lessee, Leases [Policy Text Block]	LEASESIn February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changed financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of April 1, 2019, using the modified retrospective approach which allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases.The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term. The Company defines a short-term lease as a lease that, at the commencement date, has a lease term of twelve months or less and does not contain an option to purchase the underlying asset that the lease is reasonably certain to exercise. Related variable lease payments are recognized in the period in which the obligation is incurred.The Company's lease agreement contains related non-lease components (e.g. taxes, etc.). The Company separates lease components and non-lease components for all underlying asset classes.
Reclassification, Comparability Adjustment [Policy Text Block]	RECLASSIFICATIONCertain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net loss.
New Accounting Pronouncements, Policy [Policy Text Block]	NEW ACCOUNTING STANDARDSIn June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — ASU 2016-13”). The new standard adjusts the accounting for assets held at amortized cost basis, including marketable securities accounted for as available for sale, and trade receivables. The standard eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For public entities except smaller reporting companies, the guidance is effective for annual reporting periods beginning after December 15, 2019 and for interim periods within those fiscal years. In November 2019, the FASB issued ASU No. 2019-10, which deferred the effective date for non-public entities and smaller reporting companies to annual reporting periods beginning after December 15, 2022, including interim periods within those fiscal years. Early application is allowed. The Company expects to adopt this guidance effective April 1, 2023, and it is currently evaluating the impact on its condensed consolidated financial statements and related disclosures.The Company is assessing this guidance to determine what modifications to existing credit estimation processes may be required. The new guidance is complex and management is evaluating preliminary output from models that have been developed during this evaluative phase. In addition, future levels of allowances will also reflect new requirements to include estimated credit losses on investment securities classified as held-to-maturity, if any. It has been generally assumed that the conversion from the incurred loss model, required under current GAAP, to the current expected credit loss (CECL) methodology (as required upon implementation of this Update) will, more likely than not, result in increases to the allowances for credit losses. However, the amount of any change in the allowance for credit losses resulting from the new guidance will ultimately be impacted by the provisions of this guidance as well as by loan and trade receivable composition and asset quality at the adoption date, and economic conditions and forecasts at the time of adoption. The cumulative impact of the economic effects of the COVID-19 pandemic on the changes to the allowance for loan and trade receivable losses, that will be required upon the implementation of the CECL methodology, cannot be estimated at this time.From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that the Company adopts as of the specified effective date. The Company does not believe that the impact of recently issued standards that are not yet effective will have a material impact on the Company’s financial position or results of operations upon adoption.

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Note 3 - Inventories (Tables)

9 Months Ended

Dec. 31, 2022

Notes Tables

Schedule Of Inventory [Table Text Block]

	Current		Long Term		Total
Raw materials	$	368,624	$	181,416	$	550,040
Finished goods		54,731		2,314		57,045
Totals	$	423,355	$	183,730	$	607,085

	Current		Long Term		Total
Raw materials	$	240,163	$	181,416	$	421,579
Finished goods		47,913		2,314		50,227
Totals	$	288,076	$	183,730	$	471,806

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Note 4 - Intangible Assets (Tables)

9 Months Ended

Dec. 31, 2022

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	December 31, 2022											March 31, 2022
	Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount		Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount
Patents & Trademarks	$	35,794		10	-	15	$	(21,911	)	$	13,883	$	35,794		10	-	15	$	(19,751	)	$	16,043

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

For the fiscal years ended March 31,
2023		721
2024		2,883
2025		2,466
2026		1,980
2027		1,725
Thereafter		4,108
	$	13,883

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Note 6 - Disaggregated Revenues and Segment Information (Tables)

9 Months Ended

Dec. 31, 2022

Notes Tables

Revenue from External Customers by Geographic Areas [Table Text Block]

	Three months Ended December 31,
	2022		2021
Net Revenue in the US
Chemical	$	245,582	$	251,454
Electronics		485,454		347,911
Engineering		165,830		69,931
		896,866		669,296
Net Revenue outside the US
Chemical		86,296		80,358
Electronics		-		-
Engineering		-		-
		86,296		80,358
Total Revenues	$	983,162	$	749,654

	Nine Months Ended December 31,
	2022		2021
Net Revenue in the US
Chemical	$	811,596	$	805,378
Electronics		1,584,003		911,569
Engineering		411,387		393,407
		2,806,986		2,110,354
Net Revenue outside the US
Chemical		237,852		212,517
Electronics		-		-
Engineering		-		-
		237,852		212,517
Total Revenues	$	3,044,838	$	2,322,871

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Chemical			Electronics			Engineering			Total
Three months ended December 31, 2022
Revenue from external customers	$	331,878		$	485,454		$	165,830		$	983,162
Segment operating income (loss)	$	23,137		$	18,034		$	51,582		$	92,753
Nine months ended December 31, 2022
Revenue from external customers	$	1,049,448		$	1,584,003		$	411,387		$	3,044,838
Segment operating income	$	35,548		$	(5,395	)	$	130,867		$	161,020
Three months ended December 31, 2021
Revenue from external customers	$	331,812		$	347,911		$	69,931		$	749,654
Segment operating income		(183,385	)		(188,273	)		(44,514	)	$	(416,172	)
Nine months ended December 31, 2021
Revenue from external customers	$	1,017,895		$	911,569		$	393,407		$	2,322,871
Segment operating income	$	(425,348	)	$	(531,888	)	$	(54,507	)	$	(1,011,743	)
Total assets at December 31, 2022	$	1,090,659		$	1,668,068		$	449,095		$	3,207,822
Total assets at March 31, 2022	$	1,332,867		$	1,430,395		$	487,635		$	3,250,897

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Note 8 - Leases (Tables)

9 Months Ended

Dec. 31, 2022

Notes Tables

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

	For the fiscal year ended:	Amount
FY 2023	March 31, 2023	$	25,469
FY 2024	March 31, 2024		105,625
FY 2025	March 31, 2025		106,875
FY 2026	March 31, 2026		106,875
FY 2027	March 31, 2027		106,875
FY 2028	March 31, 2028		106,875
FY 2029	March 31, 2029 ends June 30, 2028		26,719
			585,312
Less: Amount attributable to imputed interest			(74,790	)
		$	510,523
Weighted average remaining lease term (in years)			3.0
Weighted average discount rate			5	%
Present Value of future payments		$	18,730

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Note 2 - Significant Accounting Policies (Details Textual) - USD ($) shares in Thousands, $ / shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Cash, Uninsured Amount	$ 820,000		$ 820,000		$ 887,000
Contract with Customer, Liability, Revenue Recognized	120,000		209,000
Advertising Expense	$ 6,184	$ 7,604	$ 21,216	$ 22,392
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)			0	0
Earnings Per Share, Basic (in dollars per share)	$ 0	$ (0)	$ 0	$ (0)
Minimum [Member]
Property, Plant and Equipment, Useful Life (Year)			5 years
Maximum [Member]
Property, Plant and Equipment, Useful Life (Year)			7 years
Electronic Products [Member]
Warranty Term (Year)			90 years

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Note 3 - Inventories - Summary of Inventory (Details) - USD ($)	Dec. 31, 2022	Mar. 31, 2022
Raw materials	$ 550,040	$ 421,579
Finished goods	57,045	50,227
Totals	607,085	471,806
Current [Member]
Raw materials	368,624	240,163
Finished goods	54,731	47,913
Totals	423,355	288,076
Long Term [Member
Raw materials	181,416	181,416
Finished goods	2,314	2,314
Totals	$ 183,730	$ 183,730

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Note 4 - Intangible Assets (Details Textual)	9 Months Ended
	Dec. 31, 2022
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	10 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	15 years

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Note 4 - Intangible Assets - Intangible Assets (Details) - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2022
Patents & Trademarks	$ (21,911)	$ (19,751)
Intangible assets, net of accumulated amortization of $21,911 and $19,751 at December 31, 2022 and March 31, 2022, respectively	13,883	16,043
Patents & Trademarks	13,883	16,043
Patents And Trademarks [Member]
Patents & Trademarks	35,794	35,794
Patents & Trademarks	(21,911)	(19,751)
Intangible assets, net of accumulated amortization of $21,911 and $19,751 at December 31, 2022 and March 31, 2022, respectively	13,883	16,043
Patents & Trademarks	$ 13,883	$ 16,043
Patents And Trademarks [Member] | Minimum [Member]
Patents & Trademarks (Year)	10 years	10 years
Patents And Trademarks [Member] | Maximum [Member]
Patents & Trademarks (Year)	15 years	15 years

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Note 4 - Intangible Assets - Estimated Aggregate Future Amortization Expense (Details) - USD ($)	Dec. 31, 2022	Mar. 31, 2022
2023	$ 721
2024	2,883
2025	2,466
2026	1,980
2027	1,725
Thereafter	4,108
Finite-Lived Intangible Assets, Net, Ending Balance	$ 13,883	$ 16,043

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Note 5 - Concentrations (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2022
Revenue from Contract with Customer, Including Assessed Tax	$ 983,162	$ 749,654	$ 3,044,838	$ 2,322,871
Customer Concentration Risk [Member] | Two Customers [Member] | Revenue Benchmark [Member]
Concentration Risk, Number of Customers	2	2	2	2
Concentration Risk, Percentage		66.00%	45.00%	54.00%
Customer Concentration Risk [Member] | Two Customers [Member] | Accounts Receivable [Member]
Concentration Risk, Number of Customers			2
Concentration Risk, Percentage			54.00%
Customer Concentration Risk [Member] | Three Customers [Member] | Revenue Benchmark [Member]
Concentration Risk, Percentage	50.00%
Customer Concentration Risk [Member] | Three Customers [Member] | Accounts Receivable [Member]
Concentration Risk, Number of Customers					3
Concentration Risk, Percentage					75.00%
Customer Concentration Risk [Member] | Foreign Customers [Member] | Revenue Benchmark [Member]
Concentration Risk, Percentage	8.00%	11.00%	10.00%	10.00%
Revenue from Contract with Customer, Including Assessed Tax	$ 80,465	$ 80,358	$ 292,036	$ 237,852

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Note 6 - Disaggregated Revenues and Segment Information - Net Revenue, Classified by Geography (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer, Including Assessed Tax	$ 983,162	$ 749,654	$ 3,044,838	$ 2,322,871
Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	331,878	331,812	1,049,448	1,017,895
Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	485,454	347,911	1,584,003	911,569
Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	165,830	69,931	411,387	393,407
UNITED STATES
Revenue from Contract with Customer, Including Assessed Tax	896,866	669,296	2,806,986	2,110,354
UNITED STATES | Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	245,582	251,454	811,596	805,378
UNITED STATES | Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	485,454	347,911	1,584,003	911,569
UNITED STATES | Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	165,830	69,931	411,387	393,407
Non-US [Member]
Revenue from Contract with Customer, Including Assessed Tax	86,296	80,358	237,852	212,517
Non-US [Member] | Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	86,296	80,358	237,852	212,517
Non-US [Member] | Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0	0
Non-US [Member] | Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 0	$ 0	$ 0	$ 0

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Note 6 - Disaggregated Revenues and Segment Information - Summary of Segment Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022
Revenue from Contract with Customer, Including Assessed Tax	$ 983,162	$ 749,654	$ 3,044,838	$ 2,322,871
Segment operating income (loss)	92,753	(416,172)	161,020	(1,011,743)
Total assets at December 31, 2022	3,207,822		3,207,822		$ 3,250,897
Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	331,878	331,812	1,049,448	1,017,895
Segment operating income (loss)	23,137	(183,385)	35,548	(425,348)
Total assets at December 31, 2022	1,090,659		1,090,659		1,332,867
Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	485,454	347,911	1,584,003	911,569
Segment operating income (loss)	18,034	(188,273)	(5,395)	(531,888)
Total assets at December 31, 2022	1,668,068		1,668,068		1,430,395
Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	165,830	69,931	411,387	393,407
Segment operating income (loss)	51,582	$ (44,514)	130,867	$ (54,507)
Total assets at December 31, 2022	$ 449,095		$ 449,095		$ 487,635

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Note 7 - Due From Affiliate (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2022	Mar. 31, 2022
Qol [Member]
Accounts Receivable, Allowance for Credit Loss, Ending Balance		$ 250,000	$ 250,000
Qol [Member] | Engineering Services [Member]
Related Party Transaction, Amounts of Transaction	$ 330,090
Qol [Member]
Equity Method Investments		$ 75,000
Equity Method Investment, Ownership Percentage		23.20%

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Note 8 - Leases (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Operating Lease, Expense	$ 34,000	$ 34,000	$ 102,000	$ 103,000

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Note 8 - Leases - Future Minimum Lease Payments (Details)	Dec. 31, 2022 USD ($)
FY 2023	$ 25,469
FY 2024	105,625
FY 2025	106,875
FY 2026	106,875
FY 2027	106,875
FY 2028	106,875
FY 2029	26,719
Lessee, Operating Lease, Liability, to be Paid, Total	585,312
Less: Amount attributable to imputed interest	(74,790)
Operating Lease, Liability, Total	$ 510,523
Weighted average remaining lease term (in years) (Year)	3 years
Weighted average discount rate	5.00%
Present Value of future payments	$ 18,730

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Note 9 - Paycheck Protection Program (PPP) Loan (Details Textual) - USD ($)			1 Months Ended	3 Months Ended		9 Months Ended		10 Months Ended	217 Months Ended
	Dec. 21, 2021	Sep. 07, 2021	Feb. 28, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Feb. 28, 2021	May 30, 2020
Gain (Loss) on Extinguishment of Debt, Total				$ 0	$ 332,542	$ 0	$ 693,817
Gain (Loss) on Extinguishment of Debt, Total				0	$ 332,542	0	$ 693,817
Paycheck Protection Program CARES Act [Member]
Proceeds from Notes Payable, Total			$ 332,542					$ 713,542	$ 381,000
Gain (Loss) on Extinguishment of Debt, Total		$ 361,275
Gain (Loss) on Extinguishment of Debt, Total		361,275
Paycheck Protection Program CARES Act [Member] | Loans Payable [Member]
Gain (Loss) on Extinguishment of Debt, Total	$ 332,542
Gain (Loss) on Extinguishment of Debt, Total	$ 332,542
PPP Term Loan One [Member]
Loans Payable, Total		$ 19,725		$ 13,001		$ 13,001
Debt Instrument, Interest Rate, Stated Percentage		1.00%
Debt Instrument, Maturity Date		May 15, 2025

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Note 10 - Line of Credit (Details Textual) - Revolving Credit Facility [Member] - USD ($)	9 Months Ended
	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 15, 2018
Line of Credit Facility, Maximum Borrowing Capacity				$ 400,000
Line of Credit Facility, Expiration Date	May 15, 2023
Debt Instrument, Interest Rate, Stated Percentage		3.87%
Short-Term Debt, Total	$ 111,973		$ 334,760

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Note 11 - Warrant Liability (Details Textual) - USD ($)	3 Months Ended						9 Months Ended		12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 31, 2022	Jul. 02, 2022	Jul. 31, 2021	Jul. 02, 2021
Warrant Liability, Current	$ 0						$ 0		$ 182,161
Warrant Liability, Current	0						0		(182,161)
Net Income (Loss) Attributable to Parent, Total	$ (93,771)	$ (100,043)	$ 38,666	$ 72,393	$ 37,156	$ 30,672	$ (155,148)	$ 140,221
Revision of Prior Period, Error Correction, Adjustment [Member]
Warrant Liability, Current									(182,000)
Additional Paid in Capital, Total									288,000
Warrant Liability, Current									182,000
Prepaid Expense, Current, Total									181,000
Net Income (Loss) Attributable to Parent, Total									75,000
Consulting Agreement [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)												3,500,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)										$ 0.20		$ 0.17
Class of Warrant or Right, Exercisable Period (Month)										12 months		12 months
Warrant Liability, Current									182,000		$ 288,000
Warrant Liability, Current									$ (182,000)		$ (288,000)

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Note 12 - Due to Stockholder (Details Textual) $ in Thousands	Dec. 31, 2022 USD ($)
Deferred Compensation Liability, Interest Accrued	$ 0