-----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, Ob1daXuO/4YnEOVun1YcK0joAYjsr4FxeU6uw57Kh4JDaodmfie4tULB5PDDdHrj tCoTIIuFDpF71NY03kV4XA== 0000849401-03-000006.txt : 20030812 0000849401-03-000006.hdr.sgml : 20030812 20030812161923 ACCESSION NUMBER: 0000849401-03-000006 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030812 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: 03837818 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 q6302003.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 June 30, 2003 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. (Name of Small Business Issuer 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: 50,382,037 shares of Common Stock, $.0005 par value, as of August 8, 2003 1 ADM TRONICS UNLIMITED, INC. INDEX Page Number Part I. Financial Information Item 1. Consolidated Financial Statements: Consolidated Balance Sheets - June 30, 2003 and March 31, 2003 3 Consolidated Statements of Operations - For the three months ended June 30, 2003 and 2002 4 Consolidated Statement of Changes in Stockholders' Equity - For the three months ended June 30, 2003 4 Consolidated Statements of Cash Flows - For the three months ended June 30, 2003 and 2002 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 CERTIFICATION OF PERIODIC REPORT I, Andre' Di Mino, President of ADM Tronics Unlimited, Inc. (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that: (1) the Quarterly Report on Form 10-QSB of the Company for the quarterly period ended June 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: August 12, 2003 /s/ Andre' Di Mino Andre' Di Mino President 2 ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) JUNE MARCH Assets 30, 2003 31, 2002 Current assets: Cash and cash equivalents $ 33,265 $ 49,765 Accounts receivable--trade, less allowance for doubtful accounts of $39,000 100,888 75,622 Inventories: Raw materials and supplies 164,500 201,409 Finished goods 44,697 46,928 Equipment held for sale 389,450 404,771 Other current assets 57,348 57,348 Total current assets 790,148 835,843 Property and equipment, at cost net of Accumulated depreciation of $416,785 and $443,184, respectively 16,543 24,155 Equipment in use and under lease agreements - at cost net of accumulated depreciation of $423,604 and $631,365, respectively 291,930 306,860 Loan receivable from officer, bearing interest at 3% per annum, unsecured 49,188 49,891 Other assets 94,128 95,621 Total assets $1,241,937 $1,312,370 Liabilities and stockholders equity: Current liabilities: Accounts payable-trade $ 195,760 $ 200,631 Accrued expenses 41,507 59,579 Total current liabilities 237,267 260,210 Notes payable - long-term portion 135,000 135,000 Stockholders' equity 869,670 917,160 Total liabilities and stockholders' equity $1,241,937 $1,312,370 See accompanying notes to consolidated financial statements. 3 ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED June 30, 2003 2002 Revenues $ 272,308 $ 253,610 Costs and expenses: Cost of sales 159,253 78,635 Selling, general and administrative 160,632 248,977 Total costs and expenses 319,885 327,612 Operating loss $ (47,577) $ (74,002) Other income: Interest and other income 87 5,893 Net loss $ (47,490) $ (68,109) Weighted average number of common shares outstanding 50,382,037 47,382,037 Net loss per share (0.001) (0.001) ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED JUNE 30, 2003 Preferred Common Shares Shares Capital 5,000,000 150,000,000 in Authorized Authorized excess $.01 Par $.0005 Par of Par Accumulated Value Par Value Value Value Deficit Total Balances - March 31, 2003 - 50,382,037 $25,191 $6,792,118 $(5,900,149) $917,160 Net loss for The period ended June 30, 2003 (47,490) (47,490) Balances - June 30, 2003 - 50,382,037 $25,191 $6,792,118 $(5,947,639) $869,670 See accompanying notes to consolidated financial statements. 4 ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) THREE MONTHS ENDED JUNE 30, 2003 2002 Cash flows from Operating activities: Net loss (47,490) (68,109) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 7,612 46,169 Changes in operating assets and liabilities: Accounts receivable--trade (23,970) 1,834 Inventories 40,021 23,670 Equipment in use or under lease 14,930 - Equipment held for sale 15,321 368 Other assets 2,158 11,272 Accounts payable--trade (10,691) 14,465 Accrued expenses and other (14,391) (34,513) Net cash flows used in operating activities (16,500) (4,844) Cash flows from Investing activities: Repayments of loans by officer - 1,300 Cash flows from Financing activities: - - Net change in cash and cash equivalents (16,500) (3,544) Cash and cash equivalents--beginning of year 49,765 51,565 Cash and cash equivalents--end of period 33,265 48,021 Supplemental disclosures: Interest paid - 3,151 Income taxes paid - 2,266 See accompanying notes to consolidated financial statements. 5 ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES 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, 2003 (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: Three Months Ended June 30, 2003: Chemical Medical Total Revenues from external customers 241,217 31,091 272,308 Segment profit (loss) (23,349) (24,395) (47,490) Three Months Ended June 30, 2002: Revenues from external customers 236,055 17,554 253,610 Segment profit (loss) (8,676) (65,326) (68,109) Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At June 30, 2003 the Company had cash and equivalents of $33,265 as compared to $49,765 at March 31, 2003. This decrease was the result of net cash flows used in operations. Operating Activities Net cash flows used in operating activities were $16,500 for the three months ended June 30, 2003 as compared to net cash flows used in operating activities of $4,844 for the quarter ended June 30, 2002. This increase in cash used was due to the loss of $47,490 and $25,082 in accounts payable and accrued expenses offset by $7,612 in depreciation, $40,021 in inventories and $32,409 in equipment and other assets for the quarter ended June 30, 2003. 6 Investing Activities There were no investing activities for the quarter ended June 30, 2003. Financing Activities There were no financing activities for the quarter ended June 30, 2002 The Company does not have any material external sources of liquidity or unused sources of funds. Results of Operations Quarter Ended June 30, 2003 Revenues Revenues were $272,308 in 2003 as compared to $253,610 in 2002 representing an increase of $18,698 or 7%. Revenues from the Company's medical electronics activities decreased $182,117, primarily due to reductions in contract manufacturing offset by an increase in chemical revenues of $68,501. Gross Profit Gross profit of $113,055 in 2003 was $61,940 or 35% below the gross profit of $174,995 in 2002. Gross profit was 42% of revenues in 2003 as compared with 69% of revenues in 2002. 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 2003 was ($47,577) compared to ($74,002) in 2002. Selling, general and administrative expenses decreased by $88,345 primarily due to a reduction in operating expenditures and reduced overhead costs. Other Income Other income in 2003 was $87 as compared to $5,893 in 2002. The decrease was due to reduced interest income from reduced rates and 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 President Dated: Northvale, New Jersey August 12, 2003 7 -----END PRIVACY-ENHANCED MESSAGE-----