-----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, SpbyzALa+1mbOHJVKtuaXu/Zxdg6kZ5BRrkCddrLqZfoqGhSRrt1KSjJOAcgtYk6 vbZThEU0BUMEl3Qc94EKCQ== 0000849401-01-500012.txt : 20020411 0000849401-01-500012.hdr.sgml : 20020411 ACCESSION NUMBER: 0000849401-01-500012 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010930 FILED AS OF DATE: 20011119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADM TRONICS UNLIMITED INC/DE CENTRAL INDEX KEY: 0000849401 STANDARD INDUSTRIAL CLASSIFICATION: ADHESIVES & SEALANTS [2891] IRS NUMBER: 221896032 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-17629 FILM NUMBER: 1794857 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 q9302001.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, 2001 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 12, 2001 ADM TRONICS UNLIMITED, INC. INDEX Page Number Part I. Financial Information Item 1. Consolidated Financial Statements: Consolidated Balance Sheets - September 30, 2001 and March 31, 2001 2 Consolidated Statements of Operations - For the three months and six months ended September 30, 2001 and 2000 3 Consolidated Statement of Changes in Stockholders' Equity - For the six months ended September 30, 2001 3 Consolidated Statements of Cash Flows - For the six months ended September 30, 2001 and 2000 4 Notes to Consolidated Financial Statements 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6-7 1 ADM TRONICS UNLIMITED, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) SEPTEMBER MARCH ASSETS 30, 2001 31, 2001 Current assets: Cash and equivalents $ 42,657 $ 113,458 Accounts receivable--trade, less allowance for doubtful accounts of $89,000 259,762 211,134 Inventories: Raw materials and supplies 474,780 186,550 Finished goods 29,333 43,478 Equipment held for sale 428,097 792,244 Other current assets 48,558 38,492 Total current assets 1,283,187 1,385,356 Property and equipment 86,536 101,143 Equipment in use and under lease agreements, net of accumulated depreciation of $485,610 and $391,272 respectively 455,255 581,782 Loan receivable from officer, bearing interest at 3% per annum, unsecured 56,391 58,991 Other assets 155,834 163,821 Total assets 2,037,203 2,501,593 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable-trade 330,991 186,118 Accrued expenses and other 30,677 102,706 Notes payable 147,325 73,229 Total current liabilities 508,993 362,053 Stockholders' equity 1,528,210 1,844,040 Total liabilities and stockholders' equity $2,037,203 $2,501,593 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED SIX MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2001 2000 2001 2000 Revenues $448,586 $484,861 $834,511 $1,061,486 Costs and expenses: Cost of sales 327,802 302,522 536,046 498,282 Selling, general and administrative 272,236 326,674 617,851 775,669 Total costs and expenses 600,038 639,196 1,153,897 1,273,951 Operating income (loss) (151,452) (154,335) (319,386) (212,465) Other income: Interest and other income 1,500 6,505 3,556 11,843 Income (loss) before income taxes (149,952) (147,830) (315,830) (200,622) Income taxes -0- -0- -0- -0- Net income (loss) (149,952) (147,830) (315,830) (200,622) Net income (loss) per common share $(0.003) $(0.003) $(0.007) $(0.004) ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2001 (UNAUDITED) CAPITAL IN EXCESS OF PAR PAR ACCUMULATED SHARES VALUE VALUE DEFICIT TOTAL Balance, March 31, 2001 47,382,037 $23,691 $6,763,618 $(4,943,269) $1,844,040 Net (loss)--For the six months ended September 30, 2001 (315,830) (315,830) Balance, September 30, 2001 47,382,037 $23,691 $6,763,618 $(5,259,099) $1,528,210 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) SIX MONTHS ENDED SEPTEMBER 30, 2001 2000 Cash flows from Operating activities: Net income (loss) $(315,830) $(200,622) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation and amortization 94,338 125,553 Common stock options issued as compensation - 800 Changes in operating assets and liabilities: Accounts receivable--trade (48,628) 117,767 Inventories (274,085) (66,379) Other current assets (10,066) 8,039 Equipment in use or under lease 105,527 4,042 Equipment held for sale 320,027 42,011 Other assets 7,987 6,155 Accounts payable--trade 144,873 124,056 Accrued expenses and other (72,033) 57,559 Total adjustments 267,940 419,603 Net cash flows provided by (used in) operating activities (47,890) 218,981 Cash flows from Investing activities: Purchases of property and equipment (14,607) (2,310) Repayments of loan to officer 2,600 2,600 Net cash flows provided by (used in) investing activities (12,007) 290 Cash flows from Financing activities: Borrowings on notes payable 10,000 - Payments on notes payable (20,904) (96,555) Net cash flows provided by (used in) financing activities 10,904 (96,555) Net change in cash and cash equivalents $(70,801) $122,716 Cash and cash equivalents--beginning of year $113,458 $322,208 Cash and cash equivalents--end of period $ 42,657 $444,924 Supplemental disclosure of cash flow activities: Interest paid $ 1,546 $ 19,950 4 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, 2001 (the "Form 10-KSB") and is presented for comparative purposes. All other financial statements are unaudited. In the opinion of management, all adjustments which include only normal recurring adjustments necessary to present fairly the financial position, results of operations and changes in financial positions for all periods presented have been made. The results of operations for interim periods are not necessarily indicative of the operating results for the full year. Footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted in accordance with the published rules and regulations of the Securities and Exchange Commission. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Form 10-KSB. Note 2. Segment Information Information about segment information is as follows: Six Months Ended September 30, 2001: CHEMICAL MEDICAL TOTAL Revenues from external customers 368,915 465,596 834,511 Segment profit (loss) (158,816) (149,196) (308,012) Six Months Ended September 30, 2000: Revenues from external customers 390,648 670,838 1,061,486 Segment profit (loss) (204,908) 4,286 (200,622) Three Months Ended September 30, 2001: Revenues from external customers 196,199 252,387 448,586 Segment profit (loss) (123,776) (16,302) (140,078) 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) 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At September 30, 2001 the Company had cash and equivalents of $42,657 as compared to $113,458 at March 31, 2001. This decrease was the result of net cash flows used in operations primarily as a result of the net loss for the period coupled with cash flows used in investing and financing activities. Operating Activities Net cash flows used in operating activities increased $266,871 to $47,890 for the six months ended September 30, 2001 as compared to net cash flows of $218,981 for the six months ended September 30, 2000. This increase was primarily the result of the increased net loss for the six months ended September 30, 2001 and a net decrease in operating assets and depreciation. Investing Activities Cash flows used in investing activities consisted of cash expenditures of $14,607 for the purchase of equipment offset by cash receipts from repayments of an officer loan of $2,600. Financing Activities Cash flows used in financing activities primarily consisted of $20,904 payments of notes payable offset by an increase in notes payable of $10,000. The Company does not have any material external sources of liquidity or unused sources of funds. Results of Operations Quarter Ended September 30, 2001 Revenues Revenues were $448,586 in 2001 as compared to $484,681 in 2000 representing a decrease of $36,095 or 7%. Revenues from the Company's medical electronics activities decreased $16,000 and chemical revenues decreased $20,000. Gross Profit Gross profit of $120,784 in 2001 as compared to $182,339 in 2000 was $61,555 or 34% below the gross profit in 2000. Gross profit was 27% of revenues in 2001 as compared with 38% of revenues in 2000. The decrease in gross profit margin was primarily due to the product mix of sales with higher sales of products with a lower gross margin. Operating Loss Operating loss in 2001 was $151,452 compared to $154,335 in 2000. Selling, general and administrative expenses decreased by $54,438 primarily due to a reduction in personnel and consolidation of operations. 6 Other Income Other income in 2001 was $1,500 as compared to $6,505 in 2000. The decrease was primarily due to a decrease in interest income from reduced amounts invested. Results of Operations Six Months Ended September 30, 2001 Revenues Revenues were $834,511 in 2001 as compared to $1,061,486 in 2000 representing a decrease of $226,975 or 21%. Revenues from the Company's medical electronics activities decreased $205,242 and chemical revenues decreased $21,733. Gross Profit Gross profit of $298,465 in 2001 as compared to $563,204 in 2000 was $264,739 or 47% lower than the gross profit in 2000. Gross profit was 36% of revenues in 2001 and 54% in 2000. The decrease in gross profit margin is due to the mix in product sales with higher sales of products with a lower gross margin. Operating Income (Loss) Operating loss was ($167,934) in 2001 compared to ($212,465) in 2000. Selling, general and administrative expenses decreased by $157,818 due to a reduction in personnel and consolidation of operations. Other Income Other income of $3,556 in 2001 decreased $8,287 from $11,843 in 2000, due to a reduction in interest income from reduced amounts invested. 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\ Andre' DiMino Andre' DiMino Principal Financial Officer Dated: Northvale, New Jersey November 19, 2001 7 -----END PRIVACY-ENHANCED MESSAGE-----