-----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, F+sbpW6hmKno7F7k1xO6wImOWoyvnARLMfNb/MIgY5GhsPby/T/KYI7bQ86tiXi9 GBP+JdLvJc6k8MXDbqoSmQ== 0000849401-01-000001.txt : 20010223 0000849401-01-000001.hdr.sgml : 20010223 ACCESSION NUMBER: 0000849401-01-000001 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010214 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: 1544830 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 December 31, 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 February 13, 2001 ADM TRONICS UNLIMITED, INC. INDEX Page Number Part I. Financial Information Item 1. Consolidated Financial Statements: Consolidated Balance Sheets - December 31, 2000 and March 31, 2000 2 Consolidated Statements of Operations - For the three months and nine months ended December 31, 2000 and 1999 3 Consolidated Statement of Changes in Stockholders' Equity - For the nine months ended December 31, 2000 4 Consolidated Statements of Cash Flows - For the nine months ended December 31, 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) DECEMBER MARCH ASSETS 31, 2000 31, 2000 Current assets: Cash and equivalents 458,956 322,208 Accounts receivable--trade, less allowance for doubtful accounts of $95,000 173,730 259,938 Inventories: Raw materials and supplies 248,506 321,004 Finished goods 48,093 21,541 Other current assets 28,330 36,329 Total current assets 957,615 961,020 Property and equipment, net of accumulated depreciation and ammortization of $357,811 and $320,571, respectively 112,779 147,709 Equipment in use and under lease agreements, net of accumulated depreciation of $372,918 and $255,623 respectively 632,733 723,110 Equipment held for sale 790,310 848,626 Loan receivable from officer, bearing interest at 3% per annum, unsecured 59,391 63,191 Other assets 176,575 213,719 Total assets 2,729,403 2,957,375 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable-trade 207,412 136,181 Accrued expenses and other 264,395 38,016 Notes payable 220,477 341,250 Total current liabilities 692,284 515,447 Stockholders' equity 2,037,119 2,441,928 Total liabilities and stockholders' equity 2,729,403 2,957,375 2 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED NINE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2000 1999 2000 1999 Revenues 428,701 647,480 1,490,187 2,018,168 Costs and expenses: Cost of sales 283,757 450,212 782,039 1,077,296 Selling, general and administrative 356,351 419,387 1,132,020 1,270,732 Total costs and expenses 640,108 869,599 1,914,059 2,348,028 Operating loss (211,407)(222,119) (423,872) (329,860) Other income: Interest and other income 6,020 3,957 17,863 31,306 Loss before income taxes (205,387)(218,162) (406,009) (298,554) Income taxes -0- -0- -0- -0- Net loss (205,387)(218,162) (406,009) (298,554) Net loss per common share - basic and diluted (0.00) (0.01) (0.01) (0.01) 3 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 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 1,200 1,200 Net loss -- For the nine months ended December 31, 2000 (406,009) (406,009) Balance, December 31, 2000 47,382,037 23,691 6,763,218 (4,749,790) 2,037,119 4 ADM TRONICS UNLIMITED, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) NINE MONTHS ENDED DECEMBER 31, 2000 1999 Cash flows from Operating activities: Net loss (406,009) (298,554) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 187,761 182,091 Loss on disposal equipment -0- 1,181 Common stock options issued as compensation 1,200 -0- Changes in operating assets and liabilities: Accounts receivable--trade 86,208 (84,610) Inventories 45,946 (193,195) Other current assets 7,999 78,449 Equipment in use or under lease (13,937) (27,600) Equipment held for sale 58,316 37,292 Other assets (8,063) (15,998) Accounts payable--trade 71,231 13,584 Accrued expenses and other 226,379 (27,241) Net cash flows provided by (used in) operating activities 256,031 (334,601) Cash flows from Investing activities: Purchases of property and equipment (2,310) (14,339) Cash consideration paid for company acquired -0- (48,820) Loan to officer, net of repayments 3,800 700 Net cash flows provided by (used in) investing activities 1,490 (62,459) Cash flows from Financing activities: (Payments) Borrowings on notes payable (120,773) 200,313 Net change in cash and cash equivalents 136,748 (196,747) Cash and cash equivalents--beginning of year 322,208 496,405 Cash and cash equivalents--end of period 458,956 299,658 Supplemental disclosure of cash flow activities: Interest paid 26,272 14,315 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: Nine Months Ended December 31, 2000: CHEMICAL MEDICAL TOTAL Revenues from external customers 574,582 915,605 1,490,187 Segment loss (45,897) (360,112) (406,009) Nine Months Ended December 31, 1999: Revenues from external customers 716,911 1,301,257 2,018,168 Segment profit (loss) (346,953) 48,399 (298,554) Three Months Ended December 31, 2000: Revenues from external customers 183,934 244,767 428,701 Segment profit (loss) 159,011 (364,398) (205,387) Three Months Ended December 31, 1999: Revenues from external customers 251,184 396,296 647,480 Segment profit (loss) (133,723) (84,439) (218,162) 6 ADM TRONICS UNLIMITED, INC. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At December 31, 2000 the Company had cash and equivalents of $458,956 as compared to $322,208 at March 31, 2000. The 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 $590,632 to $256,031 for the nine months ended December 31, 2000 as compared to net cash flows of ($334,601) for the nine months ended December 31, 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 nine months ended December 31, 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, $3,043 pay down of an equipment loan and $12,730 net pay down of a note payable as part 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 December 31, 2000 Revenues Revenues were $428,701 in 2000 as compared to $647,480 in 1999 representing a decrease of $218,779 or 34%. Revenues from the Company's medical electronics activities decreased $151,529 and chemical revenues decreased $67,250. Gross Profit Gross profit of $144,944 in 2000 as compared to $197,268 in 1999 was $52,324 below the gross profit in 1999. Gross profit was 34% of revenues in 2000 as compared with 30% of revenues in 1999. The increase in gross profit margin was primarily due to the product mix of sales with 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 ($211,407) compared to ($222,119) in 1999. Selling, general and administrative expenses decreased by $63,036 primarily due to a reduction in personnel and consulting expenses. Other Income Other income in 2000 was $6,020 as compared to $3,957 in 1999. The in- crease was primarily due to an increase in interest income from additional amounts invested. Results of Operations Nine Months Ended December 31, 2000 Revenues Revenues were $1,490,187 as compared to $2,018,168 in 1999 representing a decrease of $527,981 or 26%. Revenues from the Company's medical elec- tronics activities decreased $385,652 and chemical revenues decreased $142,329. Gross Profit Gross profit of $708,148 in 2000 as compared to $940,872 in 1999 was $232,724 lower than the gross profit in 1999. Gross profit was 48% of revenues in 2000 and 47% in 1999. Operating Loss Operating loss was ($423,872) in 2000 compared to ($329,860) in 1999. Selling, general and administrative expenses decreased by $138,712 due to a reduction in personnel and consulting expenses. Other Income Other income of $17,863 in 2000 decreased $13,443 from $31,306 in 1999, primarily due to a decrease in rental income from a sub-tenant. 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 February 13, 2001 -----END PRIVACY-ENHANCED MESSAGE-----