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 June 30, 2023

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 67,588,492 shares outstanding as of August 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 –June 30, 2023 (unaudited) and March 31, 2023	3
	Condensed Consolidated Statements of Operations for the three months ended June 30, 2023 and 2022 (unaudited)	4
	Condensed Consolidated Statement of Stockholders’ Equity for the three months ended June 30, 2023 and 2022 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2023 and 2022 (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 

	June 30,			March 31,
	2023			2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	844,731		$	1,003,730
Accounts receivable, net of allowance for doubtful accounts of $719,871 and $694,871 at June 30, 2023 and March 31, 2023, respectively		575,545			497,793
Inventories		509,828			443,465
Prepaid expenses and other current assets		31,987			41,251
Total current assets		1,962,091			1,986,239
Other Assets:
Property and equipment, net of accumulated depreciation of $203,560 and $181,289 at March 31, 2022 and March 31, 2021, respectively		-			-
Long-term inventory		188,863			228,451
Operating lease right-of-use asset		461,422			481,535
Loan receivable		215,309			209,809
Due from affiliate		80,090			80,090
Intangible assets, net of accumulated amortization of $23,351 and $22,631 at June 30, 2023 and March 31, 2023, respectively		12,443			13,163
Other assets		90,538			90,538
Total other assets		1,048,665			1,103,586
Total assets	$	3,010,756		$	3,089,825
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	278,714		$	322,639
Bank overdraft		150,728			134,837
Accrued expenses and other current liabilities		108,878			75,659
PPP loan		10,311			11,656
Line of credit		215,116			112,809
Operating lease liability		85,565			82,917
Customer deposits		332,442			359,723
Due to stockholder		6,409			13,626
Total current liabilities		1,188,163			1,113,866
Long-term liabilities
Operating lease liability less current portion		388,337			410,474
Total long-term liabilities		388,337			410,474
Total liabilities		1,576,500			1,524,340
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, 67,588,492 shares issued and outstanding		33,794			33,794
Additional paid-in capital		33,600,548			33,599,516
Accumulated deficit		(32,200,086	)		(32,067,825	)
Total stockholders' equity		1,434,256			1,565,485
Total liabilities and stockholders' equity	$	3,010,756		$	3,089,825

See accompanying notes to the unaudited condensed consolidated financial statements

3

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

	2023			2022
Net revenues	$	762,689		$	921,408
Cost of sales		437,547			538,349
Gross Profit		325,142			383,059
Operating expenses:
Research and development		130,587			123,600
Selling, general and administrative		332,351			294,084
Total operating expenses		462,938			417,684
Loss from operations		(137,796	)		(34,625	)
Other income (expense):
Interest income		8,001			473
Interest and finance expenses		(2,466	)		(4,514	)
Total other income (expense)		5,535			(4,041	)
Loss before provision for taxes		(132,261	)		(38,666	)
Net loss	$	(132,261	)	$	(38,666	)
Basic and diluted loss per common share:	$	(0.00	)	$	(0.00	)
Weighted average shares of common stock outstanding - basic and diluted		67,588,492			67,588,492

See accompanying notes to the unaudited condensed consolidated financial statements

4

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022 

	Common Stock		Common Stock		Additional Paid-in		Accumulated
	Shares		Amount		Capital		Deficit			Total
Balance at April 1, 2022		67,588,492	$	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		67,588,492	$	33,794	$	33,599,516	$	(32,010,169	)	$	1,623,141
Balance at April 1, 2023		67,588,492	$	33,794	$	33,599,516	$	(32,067,825	)	$	1,565,485
Stock based compensation						1,032					1,032
Net income (loss)								(132,261	)		(132,261	)
Balance at June 30, 2023		67,588,492	$	33,794	$	33,600,548	$	(32,200,086	)		1,434,256

See accompanying notes to the unaudited condensed consolidated financial statements

5

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

	2023			2022
Cash flows from operating activities:
Net loss	$	(132,261	)	$	(38,666	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization		720			720
Write-off of inventories		19,404			6,976
Bad debt		25,000			-
Non-cash interest expense		5,981			7,006
Amortization of right-to-use asset		20,114			20,526
Stock based compensation		1,032			35,848
Changes in operating assets and liabilities balances:
Accounts receivable		(102,752	)		(79,796	)
Inventories		(46,179	)		(147,409	)
Prepaid expenses and other current assets		9,264			(40,160	)
Loan receivable		(5,500	)		-
Accounts payable		(43,925	)		146,078
Bank overdraft		15,891			-
Customer deposits		(27,281	)		(20,689	)
Accrued expenses and other current liabilities		33,217			(29,187	)
Payments of operating lease liability		(25,469	)		(25,469	)
Net cash (used in) operating activities		(252,744	)		(164,222	)
Cash flows provided in financing activities:
Due to shareholder		(7,217	)		(10,187	)
Proceeds from line of credit		105,037			48,148
Repayments of line of credit		(2,730	)		(23,346	)
Payments to PPP loan		(1,345	)		(1,345	)
Net cash provided by financing activities		93,745			13,270
Net (decrease) in cash and cash equivalents		(158,999	)		(150,952	)
Cash and cash equivalents - beginning of period		1,003,730			1,038,498
Cash and cash equivalents - end of period	$	844,731		$	887,546
Cash paid for:
Interest	$	2,466		$	4,514

See accompanying notes to the unaudited condensed consolidated financial statements

6

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022 

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, 2023 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 the 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 June 30, 2023 and March 31, 2023, approximately $595,000 and $638,000, respectively, exceeded the FDIC limit.

7

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 $27,000 and $39,000 were recognized as revenues during the three months ended June 30, 2023 and 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. As of June 30, 2023, all fixed assets were fully depreciated.

ADVERTISING COSTS

Advertising costs are expensed as incurred and amounted to $6,184 and $8,796 for the three months ended June 30, 2023 and June 30, 2022, respectively.

8

NET LOSS 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 June 30, 2023 and 2022, respectively.

Per share basic and diluted (loss) amounted to $(0.00) and $(0.00) for the three months ended June 30, 2023 and 2022, respectively.

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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of April 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures.

NOTE 3 - INVENTORIES      

Inventories at June 30, 2023 consisted of the following:
	Current		Long Term		Total
Raw materials	$	411,068	$	182,866	$	593,934
Finished goods		98,760		5,997		104,757
Totals	$	509,828	$	188,863	$	698,691

Inventories at March 31, 2023 consisted of the following:

	Current		Long Term		Total
Raw materials	$	390,792	$	201,317	$	592,109
Finished goods		52,673		27,134		79,807
Totals	$	443,465	$	228,451	$	671,916

9

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.

	June 30, 2023									March 31, 2023
	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	$	(23,351	)	$	12,443	$	35,794		10 - 15	$	(22,631	)	$	13,163

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

For the fiscal years ended March 31,
2024	2,163
2025	2,466
2026	1,980
2027	1,725
2028	1,725
Thereafter	2,384
	12,443

NOTE 5 – CONCENTRATIONS

During the three months ended June 30, 2023, two customers accounted for 40% of our net revenue. During the three months ended June 30, 2022, one customer accounted for 44% of net revenue.

As of June 30, 2023, two customers represented 79% of our gross accounts receivable. As of March 31, 2023, two customers accounted for 40% of our gross accounts receivable.

As of June 30, 2023, three vendors accounted for over 50% of our accounts payable balance.

The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the three months ended June 30, 2023 were $119,034 or 16%.

Net revenues from foreign customers for the three months ended June 30, 2022 were $125,275 or 14%.

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 June 30,
	2023		2022
Net Revenue in the US
Chemical	$	218,971	$	246,900
Electronics		266,163		464,692
Engineering		158,521		84,541
		643,655		796,133
Net Revenue outside the US
Chemical		119,034		125,275
Electronics		-		-
Engineering		-		-
		119,034		125,275
Total Revenues	$	762,689	$	921,408

10

Information about segments is as follows:

	Chemical			Electronics			Engineering		Total
Three months ended June 30, 2023
Revenue from external customers	$	338,005		$	266,163		$	158,521	$	762,689
Segment operating income	$	(79,788	)	$	(73,708	)	$	15,700	$	(137,796	)
Three months ended June 30, 2022
Revenue from external customers	$	372,175		$	464,692		$	84,541	$	921,408
Segment operating income	$	11,393		$	(66,655	)	$	20,637	$	(34,625	)
Total assets at June 30, 2023	$	1,324,733		$	1,053,765		$	632,258	$	3,010,756
Total assets at March 31, 2023	$	1,050,541		$	1,575,811		$	463,473	$	3,089,825

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 June 30, 2023 and March 31, 2023.

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 2024	March 31, 2024		$	80,154
FY 2025	March 31, 2025			106,872
FY 2026	March 31, 2026			106,872
FY 2027	March 31, 2027			106,872
FY 2028	March 31, 2028			106,872
FY 2029	March 31, 2029	ends June 30, 2028		26,718
				534,360
	Less: Amount attributable to imputed interest			(60,458	)
			$	473,902
	Weighted average remaining lease term (in years)			3.0
	Weighted average discount rate			5	%

11

Rent and real estate tax expense for all facilities for the three months ended June 30, 2023 was approximately $34,000.

Rent and real estate tax expense for all facilities for the three months ended June 30, 2022 was approximately $34,000.

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 June 30, 2023, the outstanding balance is $10,311.

NOTE 10 – WARRANTS

On April 11, 2023, warrants to purchase Company stock were issued to two outside consultants. Each consultant was granted 100,000 warrants with a strike price of $0.20. The Warrants vested and were exercisable immediately. The warrants were valued using a Black Scholes model effective April 11, 2023, cumulative volatility was computed at 123.52% and the total valuation was $8,256 which will be amortized over the 24 month life.

		Outstanding and exercisable
				Weighted-		Weighted-
Range of				average		average
exercise		Number		remaining life		exercise		Number
prices		outstanding		in years		price		exercisable
$	0.20		200,000		1.78	$	0.20		200,000	See below
			200,000		1.79	$	0.20		200,000

12

	2023				2022
	# of Shares		Weighted		# of Shares		Weighted
			Average				Average
			Exercise				Exercise
			Price				Price
Outstanding, beginning of year		-	$	-		-	$	-
Issued		200,000		0.20		-		-
Exercised		-		-		-		-
Expired		-		-		-		-
Cancelled		-		-		-		-
Outstanding, end of period		200,000	$	0.20		-	$	-
Exercisable, end of period		200,000	$	0.20		-	$	-

NOTE 11 – 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, 2024, renewing automatically every year. The Company is required to make monthly interest payments, at a rate of 8.87% as of June 30, 2023. Any unpaid principal will be due upon maturity. At June 30, 2023 and March 31, 2023, the outstanding balance was $215,116 and $112,809, respectively.

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. As of June 30, 2023 and March 31, 2023, the amount due was $6,409 and $13,626, respectively.

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 June 30, 2023 and March 31, 2023, there were no claims against us for product liability.

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. 

13

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 MONTHS ENDED JUNE 30, 2023 AS COMPARED TO JUNE 30, 2022.  

For the three months ended June 30, 2023
	Chemical			Electronics			Engineering			Total
Revenue	$	338,005		$	266,163		$	158,521		$	762,689
Cost of Sales		214,101			177,843			45,603			437,547
Gross Profit		123,904			88,320			112,918			325,142
Gross Profit Percentage		37	%		33	%		71	%		43	%
Operating Expenses		203,692			162,029			97,217			462,938
Operating Income (Loss)		(79,788	)		(73,709	)		15,701			(137,796	)
Other income (expenses)		2,435			1,937			1,163			5,535
Income (loss) before provision from income taxes	$	(77,353	)	$	(71,772	)	$	16,864		$	(132,261	)

For the three months ended June 30, 2022
	Chemical			Electronics			Engineering			Total
Revenue	$	372,175		$	464,692		$	84,541		$	921,408
Cost of Sales		189,532			322,505			26,312			538,349
Gross Profit		182,643			142,187			58,229			383,059
Gross Profit Percentage		49	%		31	%		69	%		42	%
Operating Expenses		171,250			208,842			37,592			417,684
Operating Income (Loss)		11,393			(66,655	)		20,637			(34,625	)
Other income (expenses)		(1,657	)		(2,021	)		(363	)		(4,041	)
Income (loss) before provision from income taxes	$	9,736		$	(68,676	)	$	20,274		$	(38,666	)

14

Variance
	Chemical			Electronics			Engineering			Total
Revenue	$	(34,170	)	$	(198,529	)	$	73,980		$	(158,719	)
Cost of Sales		24,569			(144,662	)		19,291			(100,802	)
Gross Profit		(58,739	)		(53,867	)		54,689			(57,917	)
Gross Profit Percentage		-12	%		3	%		2	%		1	%
Operating Expenses		32,442			(46,813	)		59,625			45,254
Operating Income (Loss)		(91,181	)		(7,054	)		(4,936	)		(103,171	)
Other income (expenses)		4,092			3,958			1,526			9,576
Income (loss) before benefit from income taxes	$	(87,089	)	$	(3,096	)	$	(3,410	)	$	(93,595	)

Revenues for the three months ended June 30, 2023 decreased by $158,719. The decrease is a result of decreased sales of $34,170 in the Chemical segment, $198,529 in the Electronics segment offset by an increase of $73,980 in the Engineering segment.

Gross profit for the three months ended June 30, 2023 decreased by $57,917. The decrease in gross profit resulted primarily from decreased sales in Chemical and Electronics segments.

We are highly dependent upon certain customers. During the three months ended June 30, 2023, two customers accounted for 40% of our net revenue. Net revenues from foreign customers for the three months ended June 30, 2023 was $119,034 or 16%.

During the three months ended June 30, 2022, four customers accounted for 82% of our net revenue. Net revenues from foreign customers for the three months ended June 30, 2022 was $125,275 or 14%.

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.

Loss from operations for the three months ended June 30, 2023 was $137,796 compared to loss from operations for the three months ended June 30, 2022 of $34,625.

Other income increased $9,576 for the three months ended June 30, 2023. The increase is mainly attributable to an increase in interest income.

The foregoing resulted in net loss before provision for taxes for the three months ended June 30, 2023 of $132,261. Loss per share were ($0.00) for the three months ended June 30, 2023.

LIQUIDITY AND CAPITAL RESOURCES  

At June 30, 2023, we had cash and cash equivalents of $844,731 as compared to $1,003,730 at March 31, 2023. The $158,999 decrease was primarily the result of cash used in operations during the three-month period in the amount of $252,744 and cash provided in financing activities of $93,745. 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 three-month ending periods indicated:

	June 30, 2023			June 30, 2022
Net cash provided by (used in) operating activities	$	(252,744	)	$	(164,222	)
Net cash provided by (used in) investing activities		-			-
Cash flows provided (used) in financing activities:		93,745			13,270
Net increase (decrease) in cash and cash equivalents		(158,999	)		(150,952	)
Cash and cash equivalents - beginning of period		1,003,730			1,038,498
Cash and cash equivalents - end of period		844,731			887,546

15

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 2024.

Based on current expectations, we believe that our existing cash and cash equivalents of $844,731 as of June 30, 2023, 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 used by operating activities was $252,744 for the three months ended June 30, 2023, as compared to net cash used by operating activities of $164,222 for the three months ended June 30, 2022. The cash used during the three months ended June 30, 2023 was primarily due to a decrease in net operating assets of $181,353 combined with a decrease in net operating liabilities of $22,096,  net loss of $132,261offset by write-off of inventories of $19,404, amortization of $20,834, and stock based compensation of $1,032  and non-cash interest expense of $20,113

INVESTING ACTIVITIES

No cash was provided for or used in investing activities for the three months ended June 30, 2023.

FINANCING ACTIVITIES

For the three months ended June 30,2023, net cash provided by financing activities was $93,745 due to a net borrowing and payments in the line of credit of $102,307, a decrease in due to stockholder of $7,217 and repayments on the PPP loan of $1,345.

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 June 30, 2023, approximately $638,000 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. 

16

The determination that our disclosure controls and procedures were not effective as of June 30, 2023, 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 June 30, 2023, and March 31, 2023 and the related condensed consolidated statements of operations, and cash flows for the three months ended June 30, 2023 and 2022, 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, 2023. 

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 

17

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
	August 14, 2023

18

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: August 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 months ended June 30, 2023, (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: August 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.

XML

Document And Entity Information - shares	3 Months Ended
	Jun. 30, 2023	Aug. 14, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		67,588,492
Entity Central Index Key	0000849401
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 844,731	$ 1,003,730
Inventories	509,828	443,465
Prepaid expenses and other current assets	31,987	41,251
Total current assets	1,962,091	1,986,239
Other Assets:
Property and equipment, net of accumulated depreciation of $203,560 and $181,289 at March 31, 2022 and March 31, 2021, respectively	0	0
Long-term inventory	188,863	228,451
Operating lease right-of-use asset	461,422	481,535
Loan receivable	215,309	209,809
Due from affiliate	80,090	80,090
Intangible assets, net of accumulated amortization of $23,351 and $22,631 at June 30, 2023 and March 31, 2023, respectively	12,443	13,163
Other assets	90,538	90,538
Total other assets	1,048,665	1,103,586
Total assets	3,010,756	3,089,825
Current liabilities:
Accounts payable	278,714	322,639
Bank overdraft	150,728	134,837
Accrued expenses and other current liabilities	108,878	75,659
PPP loan	10,311	11,656
Line of credit	215,116	112,809
Operating lease liability	85,565	82,917
Customer deposits	332,442	359,723
Due to stockholder	6,409	13,626
Total current liabilities	1,188,163	1,113,866
Long-term liabilities
Operating lease liability less current portion	388,337	410,474
Total long-term liabilities	388,337	410,474
Total liabilities	1,576,500	1,524,340
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, 67,588,492 shares issued and outstanding	33,794	33,794
Additional paid-in capital	33,600,548	33,599,516
Accumulated deficit	(32,200,086)	(32,067,825)
Total stockholders' equity	1,434,256	1,565,485
Total liabilities and stockholders' equity	3,010,756	3,089,825
Related Party [Member]
Current assets:
Accounts receivable, net of allowance for doubtful accounts of $719,871 and $694,871 at June 30, 2023 and March 31, 2023, respectively	575,545	497,793
Current liabilities:
Due to stockholder	$ 6,409	$ 13,626

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2023	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021
Accounts Receivable, Allowance for Credit Loss, Current	$ 719,871	$ 694,871
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment			$ 203,560	$ 181,289
Intangible assets, accumulated amortization	23,351	22,631
Intangible assets, accumulated amortization	$ 23,351	$ 22,631
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)		67,588,492	67,588,492
Common Stock, Shares, Outstanding, Ending Balance (in shares)		67,588,492	67,588,492

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ / shares in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Net revenues	$ 762,689	$ 921,408
Cost of sales	437,547	538,349
Gross Profit	325,142	383,059
Operating expenses:
Research and development	130,587	123,600
Selling, general and administrative	332,351	294,084
Total operating expenses	462,938	417,684
Loss from operations	(137,796)	(34,625)
Other income (expense):
Interest income	8,001	473
Interest and finance expenses	(2,466)	(4,514)
Total other income (expense)	5,535	(4,041)
Loss before provision for taxes	(132,261)	(38,666)
Net loss	$ (132,261)	$ (38,666)
Basic and diluted loss per common share: (in dollars per share)	$ 0	$ 0
Weighted average shares of common stock outstanding - basic and diluted (in shares)	67,588,492	67,588,492

XML

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Mar. 31, 2022	67,588,492
Balance at Mar. 31, 2022	$ 33,794	$ 33,311,672	$ (31,971,503)	$ 1,373,963
Stock based compensation		287,844		287,844
Net Income (loss)			(38,666)	(38,666)
Balance (in shares) at Jun. 30, 2022	67,588,492
Balance at Jun. 30, 2022	$ 33,794	33,599,516	(32,010,169)	1,623,141
Balance (in shares) at Mar. 31, 2023	67,588,492
Balance at Mar. 31, 2023	$ 33,794	33,599,516	(32,067,825)	1,565,485
Stock based compensation		1,032
Net Income (loss)			(132,261)	(132,261)
Balance (in shares) at Jun. 30, 2023	67,588,492
Balance at Jun. 30, 2023	$ 33,794	$ 33,600,548	$ (32,200,086)	$ 1,434,256

XML

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net Income (loss)	$ (132,261)	$ (38,666)
Adjustments to reconcile net loss to net cash in operating activities:
Amortization	720	720
Write-off of inventories	19,404	6,976
Bad debt	25,000	0
Non-cash interest expense	5,981	7,006
Amortization of right-to-use asset	20,114	20,526
Stock based compensation	1,032	35,848
Changes in operating assets and liabilities balances:
Accounts receivable	(102,752)	(79,796)
Inventories	(46,179)	(147,409)
Prepaid expenses and other current assets	9,264	(40,160)
Loan receivable	(5,500)	0
Accounts payable	(43,925)	146,078
Bank overdraft	15,891	0
Customer deposits	(27,281)	(20,689)
Accrued expenses and other current liabilities	33,217	(29,187)
Payments of operating lease liability	(25,469)	(25,469)
Net cash (used in) operating activities	(252,744)	(164,222)
Cash flows provided (used) in financing activities:
Due to shareholder	(7,217)	(10,187)
Proceeds from line of credit	105,037	48,148
Repayments of line of credit	(2,730)	(23,346)
Payments to PPP loan	1,345	1,345
Payments to PPP loan	(1,345)	(1,345)
Net cash provided by financing activities	93,745	13,270
Net (decrease) in cash and cash equivalents	(158,999)	(150,952)
Cash and cash equivalents - beginning of period	1,003,730	1,038,498
Cash and cash equivalents - end of period	844,731	887,546
Cash paid for:
Interest	$ 2,466	$ 4,514

XML

Note 1 - Nature of Business

3 Months Ended

Jun. 30, 2023

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

3 Months Ended

Jun. 30, 2023

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, 2023 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 the 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 June 30, 2023 and March 31, 2023, approximately $595,000 and $638,000, 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 $27,000 and $39,000 were recognized as revenues during the three months ended June 30, 2023 and 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. As of June 30, 2023, all fixed assets were fully depreciated.

ADVERTISING COSTS

Advertising costs are expensed as incurred and amounted to $6,184 and $8,796 for the three months ended June 30, 2023 and June 30, 2022, respectively.

NET LOSS 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 June 30, 2023 and 2022, respectively.

Per share basic and diluted (loss) amounted to $(0.00) and $(0.00) for the three months ended June 30, 2023 and 2022, respectively.

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 Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of April 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures.

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Note 3 - Inventories

3 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE 3 - INVENTORIES      

Inventories at June 30, 2023 consisted of the following:
	Current		Long Term		Total
Raw materials	$	411,068	$	182,866	$	593,934
Finished goods		98,760		5,997		104,757
Totals	$	509,828	$	188,863	$	698,691

Inventories at March 31, 2023 consisted of the following:

	Current		Long Term		Total
Raw materials	$	390,792	$	201,317	$	592,109
Finished goods		52,673		27,134		79,807
Totals	$	443,465	$	228,451	$	671,916

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Note 4 - Intangible Assets

3 Months Ended

Jun. 30, 2023

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.

	June 30, 2023									March 31, 2023
	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	$	(23,351	)	$	12,443	$	35,794		10 - 15	$	(22,631	)	$	13,163

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

For the fiscal years ended March 31,
2024	2,163
2025	2,466
2026	1,980
2027	1,725
2028	1,725
Thereafter	2,384
	12,443

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Note 5 - Concentrations

3 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 5 – CONCENTRATIONS

During the three months ended June 30, 2023, two customers accounted for 40% of our net revenue. During the three months ended June 30, 2022, one customer accounted for 44% of net revenue.

As of June 30, 2023, two customers represented 79% of our gross accounts receivable. As of March 31, 2023, two customers accounted for 40% of our gross accounts receivable.

As of June 30, 2023, three vendors accounted for over 50% of our accounts payable balance.

The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the three months ended June 30, 2023 were $119,034 or 16%.

Net revenues from foreign customers for the three months ended June 30, 2022 were $125,275 or 14%.

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Note 6 - Disaggregated Revenues and Segment Information

3 Months Ended

Jun. 30, 2023

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 June 30,
	2023		2022
Net Revenue in the US
Chemical	$	218,971	$	246,900
Electronics		266,163		464,692
Engineering		158,521		84,541
		643,655		796,133
Net Revenue outside the US
Chemical		119,034		125,275
Electronics		-		-
Engineering		-		-
		119,034		125,275
Total Revenues	$	762,689	$	921,408

Information about segments is as follows:

	Chemical			Electronics			Engineering		Total
Three months ended June 30, 2023
Revenue from external customers	$	338,005		$	266,163		$	158,521	$	762,689
Segment operating income	$	(79,788	)	$	(73,708	)	$	15,700	$	(137,796	)
Three months ended June 30, 2022
Revenue from external customers	$	372,175		$	464,692		$	84,541	$	921,408
Segment operating income	$	11,393		$	(66,655	)	$	20,637	$	(34,625	)
Total assets at June 30, 2023	$	1,324,733		$	1,053,765		$	632,258	$	3,010,756
Total assets at March 31, 2023	$	1,050,541		$	1,575,811		$	463,473	$	3,089,825

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Note 7 - Due From Affiliate

3 Months Ended

Jun. 30, 2023

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 June 30, 2023 and March 31, 2023.

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Note 8 - Leases

3 Months Ended

Jun. 30, 2023

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 2024	March 31, 2024		$	80,154
FY 2025	March 31, 2025			106,872
FY 2026	March 31, 2026			106,872
FY 2027	March 31, 2027			106,872
FY 2028	March 31, 2028			106,872
FY 2029	March 31, 2029	ends June 30, 2028		26,718
				534,360
	Less: Amount attributable to imputed interest			(60,458	)
			$	473,902
	Weighted average remaining lease term (in years)			3.0
	Weighted average discount rate			5	%

Rent and real estate tax expense for all facilities for the three months ended June 30, 2023 was approximately $34,000.

Rent and real estate tax expense for all facilities for the three months ended June 30, 2022 was approximately $34,000.

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

3 Months Ended

Jun. 30, 2023

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 June 30, 2023, the outstanding balance is $10,311.

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Note 10 - Warrants

3 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Warrant Liability [Text Block]

NOTE 10 – WARRANTS

On April 11, 2023, warrants to purchase Company stock were issued to two outside consultants. Each consultant was granted 100,000 warrants with a strike price of $0.20. The Warrants vested and were exercisable immediately. The warrants were valued using a Black Scholes model effective April 11, 2023, cumulative volatility was computed at 123.52% and the total valuation was $8,256 which will be amortized over the 24 month life.

		Outstanding and exercisable
				Weighted-		Weighted-
Range of				average		average
exercise		Number		remaining life		exercise		Number
prices		outstanding		in years		price		exercisable
$	0.20		200,000		1.78	$	0.20		200,000	See below
			200,000		1.79	$	0.20		200,000

	2023				2022
	# of Shares		Weighted		# of Shares		Weighted
			Average				Average
			Exercise				Exercise
			Price				Price
Outstanding, beginning of year		-	$	-		-	$	-
Issued		200,000		0.20		-		-
Exercised		-		-		-		-
Expired		-		-		-		-
Cancelled		-		-		-		-
Outstanding, end of period		200,000	$	0.20		-	$	-
Exercisable, end of period		200,000	$	0.20		-	$	-

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Note 11 - Line of Credit

3 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 11 – 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, 2024, renewing automatically every year. The Company is required to make monthly interest payments, at a rate of 8.87% as of June 30, 2023. Any unpaid principal will be due upon maturity. At June 30, 2023 and March 31, 2023, the outstanding balance was $215,116 and $112,809, respectively.

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Note 12 - Due to Stockholder

3 Months Ended

Jun. 30, 2023

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. As of June 30, 2023 and March 31, 2023, the amount due was $6,409 and $13,626, respectively.

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Note 13 - Legal Proceedings

3 Months Ended

Jun. 30, 2023

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

3 Months Ended

Jun. 30, 2023

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 June 30, 2023 and March 31, 2023, there were no claims against us for product liability.

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Significant Accounting Policies (Policies)

3 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

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, 2023 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 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, Policy [Policy Text Block]

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, Policy [Policy Text Block]

FAIR VALUE OF FINANCIAL INSTRUMENTS

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

Cash and Cash Equivalents, Policy [Policy Text Block]

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 June 30, 2023 and March 31, 2023, approximately $595,000 and $638,000, respectively, exceeded the FDIC limit.

Receivable [Policy Text Block]

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 [Policy Text Block]

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 $27,000 and $39,000 were recognized as revenues during the three months ended June 30, 2023 and 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]

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, Plant and Equipment, Policy [Policy Text Block]

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. As of June 30, 2023, all fixed assets were fully depreciated.

Advertising Cost [Policy Text Block]

ADVERTISING COSTS

Advertising costs are expensed as incurred and amounted to $6,184 and $8,796 for the three months ended June 30, 2023 and June 30, 2022, respectively.

Earnings Per Share, Policy [Policy Text Block]

NET LOSS 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 June 30, 2023 and 2022, respectively.

Per share basic and diluted (loss) amounted to $(0.00) and $(0.00) for the three months ended June 30, 2023 and 2022, respectively.

Reclassification, Comparability Adjustment [Policy Text Block]

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 Pronouncements, Policy [Policy Text Block]

NEW ACCOUNTING STANDARDS

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of April 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures.

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Note 3 - Inventories (Tables)

3 Months Ended

Jun. 30, 2023

Notes Tables

Schedule Of Inventory [Table Text Block]

Inventories at June 30, 2023 consisted of the following:
	Current		Long Term		Total
Raw materials	$	411,068	$	182,866	$	593,934
Finished goods		98,760		5,997		104,757
Totals	$	509,828	$	188,863	$	698,691

	Current		Long Term		Total
Raw materials	$	390,792	$	201,317	$	592,109
Finished goods		52,673		27,134		79,807
Totals	$	443,465	$	228,451	$	671,916

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Note 4 - Intangible Assets (Tables)

3 Months Ended

Jun. 30, 2023

Notes Tables

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

	June 30, 2023									March 31, 2023
	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	$	(23,351	)	$	12,443	$	35,794		10 - 15	$	(22,631	)	$	13,163

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

For the fiscal years ended March 31,
2024	2,163
2025	2,466
2026	1,980
2027	1,725
2028	1,725
Thereafter	2,384
	12,443

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Note 6 - Disaggregated Revenues and Segment Information (Tables)

3 Months Ended

Jun. 30, 2023

Notes Tables

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

	Three Months Ended June 30,
	2023		2022
Net Revenue in the US
Chemical	$	218,971	$	246,900
Electronics		266,163		464,692
Engineering		158,521		84,541
		643,655		796,133
Net Revenue outside the US
Chemical		119,034		125,275
Electronics		-		-
Engineering		-		-
		119,034		125,275
Total Revenues	$	762,689	$	921,408

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

	Chemical			Electronics			Engineering		Total
Three months ended June 30, 2023
Revenue from external customers	$	338,005		$	266,163		$	158,521	$	762,689
Segment operating income	$	(79,788	)	$	(73,708	)	$	15,700	$	(137,796	)
Three months ended June 30, 2022
Revenue from external customers	$	372,175		$	464,692		$	84,541	$	921,408
Segment operating income	$	11,393		$	(66,655	)	$	20,637	$	(34,625	)
Total assets at June 30, 2023	$	1,324,733		$	1,053,765		$	632,258	$	3,010,756
Total assets at March 31, 2023	$	1,050,541		$	1,575,811		$	463,473	$	3,089,825

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Note 8 - Leases (Tables)

3 Months Ended

Jun. 30, 2023

Notes Tables

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

	For the fiscal year ended:	Amount
FY 2024	March 31, 2024		$	80,154
FY 2025	March 31, 2025			106,872
FY 2026	March 31, 2026			106,872
FY 2027	March 31, 2027			106,872
FY 2028	March 31, 2028			106,872
FY 2029	March 31, 2029	ends June 30, 2028		26,718
				534,360
	Less: Amount attributable to imputed interest			(60,458	)
			$	473,902
	Weighted average remaining lease term (in years)			3.0
	Weighted average discount rate			5	%

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Note 10 - Warrants (Tables)

3 Months Ended

Jun. 30, 2023

Notes Tables

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

		Outstanding and exercisable
				Weighted-		Weighted-
Range of				average		average
exercise		Number		remaining life		exercise		Number
prices		outstanding		in years		price		exercisable
$	0.20		200,000		1.78	$	0.20		200,000	See below
			200,000		1.79	$	0.20		200,000

	2023				2022
	# of Shares		Weighted		# of Shares		Weighted
			Average				Average
			Exercise				Exercise
			Price				Price
Outstanding, beginning of year		-	$	-		-	$	-
Issued		200,000		0.20		-		-
Exercised		-		-		-		-
Expired		-		-		-		-
Cancelled		-		-		-		-
Outstanding, end of period		200,000	$	0.20		-	$	-
Exercisable, end of period		200,000	$	0.20		-	$	-

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Note 2 - Significant Accounting Policies (Details Textual) - USD ($) shares in Thousands, $ / shares in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023
Cash, Uninsured Amount	$ 595,000		$ 638,000
Contract with Customer, Liability, Revenue Recognized	27,000	$ 39,000
Advertising Expense	$ 6,184	$ 8,796
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0
Earnings Per Share, Basic	$ 0	$ 0
Minimum [Member]
Property, Plant and Equipment, Useful Life	5 years
Maximum [Member]
Property, Plant and Equipment, Useful Life	7 years

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Note 3 - Inventories - Summary of Inventory (Details) - USD ($)	Jun. 30, 2023	Mar. 31, 2023
Inventory, Raw Materials, Gross	$ 593,934	$ 592,109
Inventory, Finished Goods, Gross	104,757	79,807
Raw materials	593,934	592,109
Inventory, Gross	698,691	671,916
Finished goods	104,757	79,807
Totals	698,691	671,916
Current [Member]
Inventory, Raw Materials, Gross	411,068	390,792
Inventory, Finished Goods, Gross	98,760	52,673
Raw materials	411,068	390,792
Inventory, Gross	509,828	443,465
Finished goods	98,760	52,673
Totals	509,828	443,465
Long Term [Member
Inventory, Raw Materials, Gross	182,866	201,317
Inventory, Finished Goods, Gross	5,997	27,134
Raw materials	182,866	201,317
Inventory, Gross	188,863	228,451
Finished goods	5,997	27,134
Totals	$ 188,863	$ 228,451

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Note 4 - Intangible Assets (Details Textual)	Jun. 30, 2023
Finite-Lived Intangible Assets, Remaining Amortization Period (Year)	6 years
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 ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023
Patents & Trademarks	$ (23,351)	$ (22,631)
Intangible assets, net of accumulated amortization of $23,351 and $22,631 at June 30, 2023 and March 31, 2023, respectively	12,443	13,163
Patents And Trademarks [Member]
Patents & Trademarks	35,794	35,794
Patents & Trademarks	(23,351)	(22,631)
Intangible assets, net of accumulated amortization of $23,351 and $22,631 at June 30, 2023 and March 31, 2023, respectively	$ 12,443	$ 13,163
Patents And Trademarks [Member] | Minimum [Member]
Patents & Trademarks (Year)	10 years	10 years
Patents And Trademarks [Member] | Maximum [Member]
Patents & Trademarks (Year)	15 years

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Note 4 - Intangible Assets - Estimated Aggregate Future Amortization Expense (Details) - USD ($)	Jun. 30, 2023	Mar. 31, 2023
2024	$ 2,163
2025	2,466
2026	1,980
2027	1,725
Finite-Lived Intangible Asset, Expected Amortization, Year Four	1,725
Thereafter	2,384
Finite-Lived Intangible Assets, Net	$ 12,443	$ 13,163

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Note 5 - Concentrations (Details Textual)	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)
Revenue from Contract with Customer, Including Assessed Tax	$ 762,689	$ 921,408
Customer Concentration Risk [Member] | Two Customers [Member] | Revenue Benchmark [Member]
Concentration Risk, Number of Customers	2
Concentration Risk, Percentage	79.00%
Customer Concentration Risk [Member] | Three Customers [Member] | Revenue Benchmark [Member]
Concentration Risk, Number of Customers					2
Concentration Risk, Percentage	40.00%				40.00%
Customer Concentration Risk [Member] | One Customer [Member] | Revenue Benchmark [Member]
Concentration Risk, Number of Customers		1
Concentration Risk, Percentage		44.00%
Customer Concentration Risk [Member] | Foreign Customers [Member] | Revenue Benchmark [Member]
Concentration Risk, Percentage				16.00%	14.00%
Revenue from Contract with Customer, Including Assessed Tax				$ 119,034	$ 125,275
Supplier Concentration Risk [Member] | Accounts Payable [Member]
Concentration Risk, Number of Vendors			3
Supplier Concentration Risk [Member] | Accounts Payable [Member] | Three Vendors [Member]
Concentration Risk, Percentage			50.00%

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Note 6 - Disaggregated Revenues and Segment Information - Net Revenue, Classified by Geography (Details) - USD ($)	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer, Including Assessed Tax	$ 762,689	$ 921,408
Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	338,005	372,175
Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	266,163	464,692
Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	158,521	84,541
UNITED STATES
Revenue from Contract with Customer, Including Assessed Tax	643,655	796,133
UNITED STATES | Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	218,971	246,900
UNITED STATES | Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	266,163	464,692
UNITED STATES | Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	158,521	84,541
Non-US [Member]
Revenue from Contract with Customer, Including Assessed Tax	119,034	125,275
Non-US [Member] | Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	119,034	125,275
Non-US [Member] | Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	0	0
Non-US [Member] | Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 0	$ 0

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Note 6 - Disaggregated Revenues and Segment Information - Summary of Segment Information (Details) - USD ($)	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023
Net revenues	$ 762,689	$ 921,408
Segment operating income	(137,796)	(34,625)
Total assets at June 30, 2023	3,010,756		$ 3,089,825
Chemical [Member]
Net revenues	338,005	372,175
Segment operating income	(79,788)	11,393
Total assets at June 30, 2023	1,324,733		1,050,541
Electronics [Member]
Net revenues	266,163	464,692
Segment operating income	(73,708)	(66,655)
Total assets at June 30, 2023	1,053,765		1,575,811
Engineering [Member]
Net revenues	158,521	84,541
Segment operating income	15,700	$ 20,637
Total assets at June 30, 2023	$ 632,258		$ 463,473

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Note 7 - Due From Affiliate (Details Textual)	3 Months Ended
	Jun. 30, 2023 USD ($)
Qol [Member]
Accounts Receivable, Allowance for Credit Loss	$ 250,000
Engineering Services [Member] | Qol [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
	Jun. 30, 2023	Jun. 30, 2022
Operating Lease, Expense	$ 34,000	$ 34,000

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Note 8 - Leases - Future Minimum Lease Payments (Details) - USD ($)	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
FY 2024		$ 80,154
FY 2025		106,872
FY 2026		106,872
FY 2027		106,872
FY 2028		106,872
FY 2029		26,718
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Seven		$ 534,360
Lessee, Operating Lease, Liability, Undiscounted Excess Amount			$ 60,458
Operating Lease, Liability	$ 473,902
Operating Lease, Weighted Average Remaining Lease Term	3 years
Operating Lease, Weighted Average Discount Rate, Percent	500.00%

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Note 9 - Paycheck Protection Program (PPP) Loan (Details Textual) - USD ($)			1 Months Ended		10 Months Ended
	Dec. 21, 2021	Sep. 07, 2021	Feb. 28, 2021	May 30, 2020	Feb. 28, 2021	Jun. 30, 2023
Paycheck Protection Program CARES Act [Member]
Proceeds from Notes Payable, Total			$ 332,542	$ 381,000	$ 713,542
Gain (Loss) on Extinguishment of Debt, Total		$ 361,275
Gain (Loss) on Extinguishment of Debt		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	$ 332,542
PPP Term Loan One [Member]
Loans Payable, Total		$ 19,725				$ 10,311
Debt Instrument, Interest Rate, Stated Percentage		1.00%
Debt Instrument, Maturity Date		May 15, 2025

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Note 10 - Warrants (Details Textual)	Jun. 30, 2023 $ / shares	Apr. 11, 2023 USD ($) $ / shares shares	Mar. 31, 2023 $ / shares	Jun. 30, 2022 $ / shares	Mar. 31, 2022 $ / shares
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.20		$ 0	$ 0	$ 0
Consulting Agreement [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares		100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 0.20
Warrants and Rights Outstanding | $		$ 8,256
Warrants and Rights Outstanding, Term		24 months
Consulting Agreement [Member] | Measurement Input, Price Volatility [Member]
Warrants and Rights Outstanding, Measurement Input		1.2352

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Note 10 - Warrants - Outstanding and Exercisable (Details) - $ / shares	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Range of exercise prices (in dollars per share)	$ 0.20	$ 0
Outstanding, beginning of year, shares (in shares)	0	0
Number outstanding (in shares)	200,000	0
Outstanding, beginning of year, weighted average exercise price (in dollars per share)	$ 0	$ 0
Average remaining life in years (Year)	1 year 9 months 14 days
Number exercisable (in shares)	200,000	0
Issued, shares (in shares)	200,000	0
Issued, weighted average exercise price (in dollars per share)	$ 0.20	$ 0
Exercised, shares (in shares)	0	0
Exercised, weighted average exercise price (in dollars per share)	$ 0	$ 0
Expired, shares (in shares)	0	0
Expired, weighted average exercise price (in dollars per share)	$ 0	$ 0
Cancelled, shares (in shares)	0	0
Cancelled, weighted average exercise price (in dollars per share)	$ 0	$ 0
Outstanding, end of period, shares (in shares)	200,000	0
Outstanding, end of period, weighted average exercise price (in dollars per share)	$ 0.20	$ 0
Exercisable, end of period, weighted average exercise price (in dollars per share)	0.20	$ 0
Warrant One [Member]
Range of exercise prices (in dollars per share)	$ 0.20
Number outstanding (in shares)	200,000
Average remaining life in years (Year)	1 year 9 months 10 days
Number exercisable (in shares)	200,000
Outstanding, end of period, shares (in shares)	200,000
Outstanding, end of period, weighted average exercise price (in dollars per share)	$ 0.20

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Note 11 - Line of Credit (Details Textual) - Revolving Credit Facility [Member] - USD ($)	9 Months Ended
	Dec. 31, 2022	Jun. 30, 2023	Mar. 31, 2023	Jun. 15, 2018
Line of Credit Facility, Maximum Borrowing Capacity				$ 400,000
Line of Credit Facility, Expiration Date	May 15, 2024
Debt Instrument, Interest Rate, Stated Percentage		8.87%
Short-Term Debt, Total		$ 215,116	$ 112,809

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Note 12 - Due to Stockholder (Details Textual) - USD ($)	Jun. 30, 2023	Mar. 31, 2023
Deferred Compensation Liability, Interest Accrued	$ 0
Deferred Compensation Liability, Current	$ 6,409	$ 13,626