-----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, DqX2vAd0wfXw+G6fOvZonWIGq0duQD/N4BRwZ5E0oWGMohCzWpQZV4zPqMfP10HJ CJKgPkpc1GxH8vCFuyNKDQ== 0000849401-98-000001.txt : 19980218 0000849401-98-000001.hdr.sgml : 19980218 ACCESSION NUMBER: 0000849401-98-000001 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980213 SROS: NASD 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: SEC FILE NUMBER: 000-17629 FILM NUMBER: 98537258 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: MORTHVALE STATE: NJ ZIP: 07647 10QSB 1 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 December 31, 1997 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 Small Business Issuer as specified in its Charter) Delaware 22-1896032 (State or Other Jurisd- (I.R.S. Employer Identifi- iction of Incorporation cation Number) or organization) 224-S Pegasus Avenue, Northvale, New Jersey 07647 (Address of Principal Executive Offices) Issuer's Telephone Number: (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 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 X NO______ State the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date: 42,474,907 shares of Common Stock, $.0005 par value, as of February 9, 1998 ADM TRONICS UNLIMITED, INC. INDEX Part I. Financial Information Page Number Item 1. Consolidated Financial Statements: Consolidated Balance Sheets - December 31, 1997 and March 31, 1997 2 Consolidated Statements of Operations - For The Three Months Ended December 31, 1997 and 1996 3 Consolidated Statements of Operations - For The Nine Months Ended December 31, 1997 and 1996 3 Consolidated Statement of Changes in Stockholders' Equity - For The Nine Months Ended December 31, 1997 4 Consolidated Statements of Cash Flows - For The Nine Months Ended December 31, 1997 and 1996 5 Notes To Consolidated Financial Statements 6 Item 2. Management's Discussion And Analysis of Financial Condition and Results of Operations 6 Part II. Other Information 8 1 ADM TRONICS UNLIMITED, INC. CONSOLIDATED BALANCE SHEETS December 31, March 31, 1997 1997 (Unaudited) ASSETS CURRENT ASSETS: Cash $ 786,890 1,174,965 Certificates of Deposit 100,183 107,000 Accounts receivable--trade less allowance for doubtful accounts of $20,500 357,002 315,164 Inventories: Raw materials and supplies 310,838 130,543 Finished goods--chemicals 53,449 73,634 Other current assets 28,641 35,526 Total Current Assets 1,637,003 1,836,832 Property and Equipment 74,364 54,831 Equipment held for sale or lease, net of accumulated depreciation of $52,076 and $51,014, respectively 328,450 321,823 Notes Receivable 82,307 82,306 Loan receivable from officers, bearing interest at 3% per annum 59,452 66,652 Other Assets 630,561 506,864 Total Assets $ 2,812,137 $2,869,308 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable--trade 228,650 142,394 Accrued expenses and other 28,352 22,556 Notes Payable 65,694 0 Prepayments from Customer 86,032 69,293 Total Current Liabilities 408,728 234,243 Long-term liabilities: Note payable 47,500 0 Stockholders' Equity 2,355,909 2,635,065 Total Liabilities & Stockholders' Equity $2,812,137 $2,869,308 See accompanying notes to consolidated financial statements 2 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended December 31, December 31, 1997 1996 1997 1996 Revenues: Net sales $ 358,580 $ 274,315 $ 927,689 $1,181,547 Costs And Expenses: Cost of sales 184,527 118,058 432,334 450,669 Selling, general and 223,533 201,686 811,958 666,268 administrative Total cost and expenses 408,060 319,744 1,244,292 1,116,937 Operating Income (Loss) ($49,480) ($45,429) ($ 316,603) $ 64,610 Other Income: Interest net of expenses and 13,302 14,556 37,447 41,998 other income Income before unrealized loss on equity securities available for (36,178) (30,873) (279,156) 106,608 sale and income tax benefit Unrealized loss on equity securities available for sale 0 0 0 0 Income (loss) before income tax benefit ($36,178) ($30,873) ($279,156) $106,608 Income tax benefit 0 0 0 0 Net Income (loss) ($36,178) ($30,873) ($279,156) $106,608 Net Income (loss) per (0.001) (0.001) (0.007) 0.003 common share See accompanying notes to consolidated financial statements. 3 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 1997 (Unaudited) Common Capital In Stock Par Excess Of Accumulated Shares Value Par Value Deficit Total Balance, March 31, 1997 42,474,907 21,237 4,819,436 (2,205,608) 2,635,065 Net income (loss) nine months ended December 31,1997 (279,156) (279,156) Balance December 31,1997 42,474,907 21,237 4,819,436 (2,484,764) 2,355,909 See accompanying notes to consolidated financial statements 4 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) Nine Months Ended December 31, 1997 1996 Cash Flows From Operating Activities: Net income(loss) ($ 279,156) $ 106,608 Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization 18,155 14,683 Changes in operating assets and liabilities: Accounts receivable--trade 16,168 (34,892) Inventories 48,547 (50,686) Other current assets 6,885 ( 5,971) Equipment held for sale or lease (7,689) 91,501 Net change in other assets (49,696) (42,339) Accounts payable--trade (42,951) 19,499 Accrued expenses and prepayments from customers (64,320) (67,608) Net cash flows provided by (used in) operating activities (354,057) 30,795 Cash Flows From Investing Activities: Investment in treasury notes 0 (100,531) Maturities of treasury notes 0 100,297 Cash paid for company acquisition (53,000) 0 Cash balance of company acquired 8,851 0 Purchase of property and equipment (5,958) (10,284) Principal payments on notes receivable 0 (3,000) Repayment of loans to officer 7,200 0 Net changes in certificates of deposit 6,817 (1,610) Net cash flows provided by (used in) investing activities (36,090) (15,128) Cash Flows From Financing Activities: Additional borrowings of notes payable, net 2,072 0 Net change in cash and cash equivalents (388,075) 15,667 Cash and cash equivalents -Beginning of year 1,174,965 1,113,626 Cash and cash equivalents -End of period 786,890 1,129,293 Supplemental statment of non-cash investing and financing activities: Fair value of assets received in connection 309,272 0 with company acquisition Fair value of liabilities assumed in connection with company acquisition 327,184 0 See accompanying notes to consolidated financial statements. 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, 1997 (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. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At December 31, 1997 the Company had cash and certificates of deposit of $887,073 as compared to $1,281,965 at March 31, 1997. This decrease was principally due to cash flows used in operating activities and cash used for an acquisition. Operating Activities Net cash flows decreased $403,742 to ($388,075) for the nine months ended December 31, 1997 as compared to net cash flows of $15,667 for the nine months ended December 31, 1996. This decrease was primarily due to cash used in operating activities of $354,057 and cash used in investing activities of $36,090. Investing Activities Investing activities consisted of cash used for an acquisition of $53,000 and purchases of property and equipment of $5,958 offset by cash received in the acquisition of $8,851; repayments of loans to officers of $7,200 and changes in certificates of deposits of $6,817. Financing Activities The Company received $2,072 from additional borrowings. The Company does not have any material external sources of liquidity or unused sources of funds. 6 Results of Operations Quarter Ended December 31, 1997 Revenues Revenues were $358,580 in 1997 as compared to $274,315 in 1996 representing an increase of $84,265 or 30.7%. Revenues from the Company's Sonotron medical activities increased by $36,748 coupled with an increase in chemical revenues of $47,517. Gross Profit Gross profit of $174,053 in 1997 was $17,796, or 11.4%, above the gross profit in 1996. Gross profit was 48.5% of revenues in 1997 as compared with 57% of revenues in 1996. The lower gross profit percentage was due to the product mix of sales with higher sales volume of products with a lower gross profit margin. Operating Income (Loss) Operating loss of $49,480 in 1997 was $4,051 above the operating loss of $45,429 in 1996. Selling general and administrative expenses increased by $21,847. Other Income Other income of $13,302 in 1997 decreased by $1,254, or 8.6%, from $14,556 in 1996, principally due to a decrease in interest income from reduced amounts invested. Results of Operations Nine Months Ended December 31, 1997 Revenues Revenues were $927,689 in 1997 as compared to $1,181,547 in 1996 representing a decrease of $253,858 or 21%. Revenues from the Company's Sonotron medical activities decreased by $214,540 and chemical revenues decreased by $39,318. Gross Profit Gross profit of $495,355 in 1997 was $235,523 or 32% below the gross profit in 1996. Gross profit was 53% of revenues in 1997 as compared with 62% of revenues in 1996. The lower gross profit percentage was due to the product mix of sales with higher sales volume of products with a lower gross profit margin. Operating Income (Loss) Operating loss of $316,603 in 1997 was $381,213 below the operating income of $64,610 in 1996. Selling, general and administrative expenses increased by $145,690. 7 Other Income Other income of $37,447 in 1997 decreased $4,551 from $41,998 in 1996, due to a decrease in interest income from reduced amounts invested. Part II: Other Information Item 6 Exhibits and reports on Form 8-K (a) Exhibits 27. Financial Data Schedule (b) Not applicable 8 SIGNATURES In accordance with the requirements of the Exchange Act, the Registrant 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 February 13, 1998 EX-27 2
5 9-MOS MAR-31-1998 DEC-31-1997 887,073 0 357,002 20,500 364,287 1,637,003 74,364 52,076 2,812,137 408,728 0 21,237 0 0 2,355,909 2,812,137 927,689 965,136 432,334 1,244,292 0 0 0 (279,156) 0 (279,156) 0 0 0 (279,156) (.001) (.001)
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