-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T4eARCaHAhS4amYC62OuyRNHxpdF4/2N8d40os6Ie1Gkh3s2LyplzDBNIK3Kuux2 0O47ZBEFB5dCNFGihVhM6w== /in/edgar/work/0000849401-00-000007/0000849401-00-000007.txt : 20001115 0000849401-00-000007.hdr.sgml : 20001115 ACCESSION NUMBER: 0000849401-00-000007 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADM TRONICS UNLIMITED INC/DE CENTRAL INDEX KEY: 0000849401 STANDARD INDUSTRIAL CLASSIFICATION: [2891 ] IRS NUMBER: 221896032 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-17629 FILM NUMBER: 767143 BUSINESS ADDRESS: STREET 1: 224 S PEGASUS AVE CITY: NORTHVALE STATE: NJ ZIP: 07647 BUSINESS PHONE: 2017676040 MAIL ADDRESS: STREET 1: 224 S PEGASUS AVE CITY: NORTHVALE STATE: NJ ZIP: 07647 10QSB 1 0001.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2000 OR [] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File No. 0-17629 ADM TRONICS UNLIMITED, INC. (Exact name of registrant as specified in its Charter) Delaware 22-1896032 (State or Other Jurisdiction (I.R.S. Employer Identifi- of Incorporation or organization) cation Number) 224-S Pegasus Ave., Northvale, New Jersey 07647 (Address of Principal Executive Offices) Issuer's Telephone Number, including area code: (201) 767-6040 Check whether the Issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for Such shorter period that the Issuer was required to file such reports), And (2) has been subject to the filing requirements for the past 90 days: YES X NO ______ State the number of shares outstanding of each of the Issuer's classes of common equity, as of the latest practicable date: 47,382,037 shares of Common Stock, $.0005 par value, as of November 7, 2000 ADM TRONICS UNLIMITED, INC. INDEX Page Number Part I. Financial Information Item 1. Consolidated Financial Statements: Consolidated Balance Sheets - September 30, 2000 and March 31, 2000 2 Consolidated Statements of Operations - For the three months and six months ended September 30, 2000 and 1999 3 Consolidated Statement of Changes in Stockholders' Equity - For the six months ended September 30, 2000 4 Consolidated Statements of Cash Flows - For the six months ended September 30, 2000 and 1999 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7-8 1 ADM TRONICS UNLIMITED, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) SEPTEMBER MARCH ASSETS 30, 2000 31, 2000 Current assets: Cash and equivalents 444,924 322,208 Accounts receivable--trade, less allowance for doubtful accounts of $95,000 142,171 259,938 Inventories: Raw materials and supplies 364,750 321,004 Finished goods 44,174 21,541 Other current assets 28,290 36,329 Total current assets 1,024,309 961,020 Property and equipment 125,560 147,709 Equipment in use and under lease agreements, net of accumulated depreciation of $352,972 and $255,623 respectively 648,969 723,110 Equipment held for sale 806,615 848,626 Loan receivable from officer, bearing interest at 3% per annum, unsecured 60,591 63,191 Other assets 176,569 213,719 Total assets 2,842,613 2,957,375 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable-trade 260,237 136,181 Accrued expenses and other 95,575 38,016 Notes payable 244,695 341,250 Total current liabilities 600,507 515,447 Notes payable-non-current -0- -0- Commitments and contingencies -0- -0- Stockholders' equity 2,242,106 2,441,928 Total liabilities and stockholders' equity 2,842,613 2,957,375 2 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED SIX MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2000 1999 2000 1999 Revenues 484,861 794,215 1,061,486 1,370,688 Costs and expenses: Cost of sales 302,522 499,513 498,282 627,084 Selling, general and administrative 326,674 428,662 775,669 851,345 Total costs and expenses 639,196 928,175 1,273,951 1,478,429 Operating income (loss) (154,335)(133,960) (212,465) (107,741) Other income: Interest and other income 6,505 13,869 11,843 27,349 Income (loss) before income taxes (147,830)(120,091) (200,622) (80,392) Income taxes -0- -0- -0- -0- Net income (loss) (147,830)(120,091) (200,622) (80,392) Net income (loss) per common share (0.003) (0.003) (0.004) (0.002) 3 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED) CAPITAL IN EXCESS OF PAR PAR ACCUMULATED SHARES VALUE VALUE DEFICIT TOTAL Balance, March 31, 2000 47,382,037 23,691 6,762,018 (4,343,781) 2,441,928 Common stock options issued for consulting services 800 800 Net income (loss)--For the six months ended September 30, 2000 (200,622) (200,622) Balance, September 30, 2000 47,382,037 23,691 6,762,818 (4,544,403) 2,242,106 4 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) SIX MONTHS ENDED SEPTEMBER 30, 2000 1999 Cash flows from Operating activities: Net income (loss) (200,622) (80,392) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation and amortization 125,553 121,393 Loss on disposal equipment -0- 1,181 Provision for loss on note receivable -0- -0- Common stock options issued as compensation 800 -0- Changes in operating assets and liabilities: Accounts receivable--trade 117,767 (189,636) Inventories (66,379) (296,889) Other current assets 8,039 78,514 Equipment in use or under lease 4,042 33,951 Equipment held for sale 42,011 (24,024) Other assets 6,155 (9,849) Accounts payable--trade 124,056 224,940 Accrued expenses and other 57,559 52,850 Net cash flows provided by (used in) operating activities 218,981 (87,961) Cash flows from Investing activities: Purchases of property and equipment (2,310) (7,256) Cash consideration paid for company acquired -0- (48,820) Loan to officer, net of repayments 2,600 600 Net cash flows provided by (used in) investing activities 290 (55,476) Cash flows from Financing activities: Payments on notes payable (96,555) 38,827 Net change in cash and cash equivalents 122,716 (104,610) Cash and cash equivalents--beginning of year 322,208 496,405 Cash and cash equivalents--end of period 444,924 391,795 Supplemental disclosure of cash flow activities: Interest paid 19,950 7,265 Non-cash investing and financing activities: Common stock options issued in connection with acquisition of Needleeater business -0- 20,000 Fair value of assets acquired relating to Needleeater business -0- 68,820 5 ADM TRONICS UNLIMITED, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1-Basis of Presentation: The consolidated balance sheet at the end of the preceding fiscal year has been derived from the audited consolidated balance sheet contained in the Company's annual report on Form 10-KSB for the fiscal year ended March 31, 2000 (the "Form 10-KSB") and is presented for comparative purposes. All other financial statements are unaudited. In the opinion of management, all adjustments which include only normal recurring adjustments necessary to present fairly the financial position, results of operations and for all periods presented have been made. The results of operations for interim periods are not necessarily indicative of the operating results for the full year. Footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted in accordance with the published rules and regulations of the Securities and Exchange Commission. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Form 10-KSB. Note 2. Segment Information Information about segment information is as follows: Six Months Ended September 30, 2000: CHEMICAL MEDICAL TOTAL Revenues from external customers 390,648 670,838 1,061,486 Segment profit (loss) (204,908) 4,286 (200,622) Six Months Ended September 30, 1999: Revenues from external customers 465,727 904,961 1,370,688 Segment profit (loss) (213,230) 132,838 (80,392) Three Months Ended September 30, 2000: Revenues from external customers 216,722 268,139 484,861 Segment profit (loss) (112,232) (35,598) (147,830) Three Months Ended September 30, 1999: Revenues from external customers 244,417 549,798 794,215 Segment profit (loss) (98,554) (21,537) (120,091) 6 ADM TRONICS UNLIMITED, INC. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At September 30, 2000 the Company had cash and equivalents of $444,924 as compared to $322,208 at March 31, 2000. This increase was the result of net cash flows provided by operations and investing activities offset by net cash flows used in financing activities. Operating Activities Net cash flows provided by operating activities increased $306,942 to $218,981 for the six months ended September 30, 2000 as compared to net cash flows of ($87,961) for the six months ended September 30, 1999. This increase was primarily the result of a net decrease in operating assets and an increase in operating liabilities and depreciation offset by the loss for the six months ended September 30, 2000. Investing Activities Cash flows provided by investing activities consisted of repayments of the officer loan offset by cash expenditures of $2,310 for the purchase of equip- ment. Financing Activities Cash flows used in financing activities primarily consisted of $105,000 pay-down of a line of credit offset by an increase in notes payable as the result of the settlement of a legal dispute with a subsidiary's prior landlord and owner. The Company does not have any material external sources of liquidity or unused sources of funds. Results of Operations Quarter Ended September 30, 2000 Revenues Revenues were $484,861 in 2000 as compared to $794,215 in 1999 representing a decrease of $309,354 or 39%. Revenues from the Company's medical electronics activities decreased $281,659 and chemical revenues decreased $27,695. Gross Profit Gross profit of $182,339 in 2000 as compared to $294,702 in 1999 was $112,363 or 38% below the gross profit in 1999. Gross profit was 38% of revenues in 2000 as compared with 37% of revenues in 1999. The increase in gross profit margin was primarily due to the product mix of sales with higher sales of products with a higher gross margin. 7 ADM TRONICS UNLIMITED, INC. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Operating Income (Loss) Operating loss in 2000 was ($154,335) compared to ($133,960) in 1999. Selling, general and administrative expenses decreased by $101,988 primarily due to a reduction in personnel and consulting expenses. Other Income Other income in 2000 was $6,505 as compared to $13,869 in 1999. The de- crease was primarily due to a decrease in rental income from a sub-tenant and a decrease in interest income from reduced amounts invested. Results of Operations Six Months Ended September 30, 2000 Revenues Revenues were $1,061,486 as compared to $1,370,688 in 1999 representing a decrease of $309,202 or 23%. Revenues from the Company's medical elec- tronics activities decreased $234,123 and chemical revenues decreased $75,079. Gross Profit Gross profit of $563,204 in 2000 as compared to $743,604 in 1999 was $180,400 or 24% lower than the gross profit in 1999. Gross profit was 53% of revenues in 2000 and 54% in 1999. The decrease in gross profit margin is due to the mix in product sales with lower sales of products with a lower gross margin. Operating Income (Loss) Operating loss was ($212,465) in 2000 compared to ($107,741) in 1999. Selling, general and administrative expenses decreased by $75,676 due to a reduction in personnel and consulting expenses. Other Income Other income of $11,843 in 2000 decreased $15,506 from $27,349 in 1999, primarily due to a decrease in rental income from a sub-tenant and a reduction in interest income from reduced amounts invested. 8 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ADM Tronics Unlimited, Inc. By:\s\Alfonso DiMino Dr. Alfonso DiMino President And By:\s\ Andre' DiMino Andre' DiMino Principal Financial Officer Dated: Northvale, New Jersey November 14, 2000 -----END PRIVACY-ENHANCED MESSAGE-----