10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(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, 2019

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 (State or Other Jurisdiction of Incorporation or organization) 22-1896032 (I.R.S. Employer Identification Number)

224-S Pegasus Ave., Northvale, New Jersey 07647
(Address of Principal Executive Offices)

Registrant's Telephone Number, including area code: (201) 767-6040

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 [  ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

YES [X] NO [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]	Accelerated filer  [  ]
Non-accelerated filer [  ]	Smaller reporting company [X]
	Emerging growth company [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES [  ] NO [X]

State the number of shares outstanding of each of the Issuer's classes of common equity, as of the latest practicable date:

67,588,492 shares of Common Stock, $.0005 par value, as of November 19, 2019.

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY 

INDEX

		Page Number
Part I - Financial Information
Item 1.	Condensed Consolidated Financial Statements:
	Condensed Consolidated Balance Sheets – September 30, 2019 (unaudited) and March 31, 2019 (audited)	3
	Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2019 and 2018 (unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2019 and 2018 (unaudited)	5
	Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	14
Item 4.	Controls and Procedures	14
Part II - Other Information
Item 1.	Legal Proceedings	15
Item 1A.	Risk Factors	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	15
Item 4.	Mine Safety Disclosures	16
Item 5.	Other Information	16
Item 6.	Exhibits	16

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,			March 31,
	2019			2019
				(Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,627,203		$	1,555,687
Accounts receivable, net of allowance for doubtful accounts of $160,000 for each period		1,007,707			916,844
Inventories		372,674			326,308
Prepaid expenses and other current assets		115,225			28,582
Total current assets		3,122,809			2,827,421
Other Assets:
Property and equipment, net of accumulated depreciation of $126,850 and $108,099 at September 30, 2019 and March 31, 2019, respectively		76,710			95,461
Operating lease asset		916,406			-
Accounts receivable-related party		330,090			330,090
Inventories - long-term portion		85,457			85,457
Intangible assets, net of accumulated amortization of $12,733 and $12,035 at September 30, 2019 and March 31, 2019, respectively		8,201			8,899
Other assets		90,764			90,764
Deferred tax asset		1,097,000			1,107,000
Total other assets		2,604,628			1,717,671
Total assets	$	5,727,437		$	4,545,092
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Finance lease payable	$	31,196		$	31,196
Line of credit		-			169,885
Accounts payable		336,835			275,591
Accrued expenses and other current liabilities		158,881			150,549
Customer deposits		671,528			321,441
Due to stockholder		146,217			139,322
Total current liabilities		1,344,657			1,087,984
Long-term liabilities
Finance lease payable, net of current portion		6,356			22,450
Operating lease liability		916,406			-
Total long-term liabilities		922,762			22,450
Total liabilities		2,267,419			1,110,434
Stockholders' equity:
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding		-			-
Common stock, $0.0005 par value; 150,000,000 shares authorized, 67,588,492 shares issued and outstanding		33,794			33,794
Additional paid-in capital		33,294,069			33,294,069
Accumulated deficit		(29,867,845	)		(29,893,205	)
Total stockholders' equity		3,460,018			3,434,658
Total liabilities and stockholders' equity	$	5,727,437		$	4,545,092

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 3019 AND 2018

(Unaudited) 

	Three months ended						Six months ended
	September 30,						September 30,
	2019			2018			2019			2018
Net revenues	$	956,791		$	854,696		$	1,787,612		$	1,611,663
Cost of sales		544,448			332,617			940,457			637,038
Gross Profit		412,343			522,079			847,155			974,625
Operating expenses:
Research and development		148,751			106,715			294,517			216,583
Selling, general and administrative		301,835			328,909			516,090			654,491
Depreciation and amortization		5,505			-			11,011			-
Total operating expenses		456,091			435,624			821,618			871,074
Income (loss) from operations		(43,748	)		86,455			25,537			103,551
Other income (expense):
Interest income		6,541			7,197			13,694			13,446
Interest and finance expenses		(1,202	)		(1,245	)		(2,871	)		(1,973	)
Total other income (expense)		5,339			5,952			10,823			11,473
Income (loss) before provision for income taxes		(38,409	)		92,407			36,360			115,024
Provision (benefit) for income taxes:
Current		-			6,000			1,000			6,000
Deferred		(11,000	)		(32,000	)		10,000			(32,000	)
Total provision (benefit) for income taxes		(11,000	)		(26,000	)		11,000			(26,000	)
Net income (loss)	$	(27,409	)	$	118,407		$	25,360		$	141,024
Basic and diluted per common share:	$	(0.00	)	$	0.00		$	0.00		$	0.00
Weighted average shares of common stock outstanding - basic and diluted		67,588,492			67,588,492			67,588,492			67,588,492

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019 AND 2018

(Unaudited)

	2019			2018
Cash flows from operating activities:
Net income	$	25,360		$	141,024
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		19,449			19,605
Write-off of inventories		46,715			-
Deferred taxes		10,000			(32,000	)
Changes in operating assets and liabilities balances:
Accounts receivable		(90,863	)		(13,452	)
Inventories		(93,081	)		(179,307	)
Prepaid expenses and other current assets		(86,643	)		(29,038	)
Operating lease asset		(916,406	)		-
Accounts payable		61,244			(41,194	)
Customer deposits		350,087			11,406
Accrued expenses and other current liabilities		8,332			58,851
Due to shareholder		6,895			3,465
Operating lease liability		916,406			-
Net cash provided by (used in) operating activities		257,495			(60,640	)
Cash flows provided (used) in financing activities:
Proceeds from line of credit		115,000			80,518
Repayments of line of credit		(284,885	)		(25,413	)
Repayments on capital lease payable		(16,094	)		(16,093	)
Net cash provided by (used in) financing activities		(185,979	)		39,012
Net increase (decrease) in cash and cash equivalents		71,516			(21,628	)
Cash and cash equivalents - beginning of period		1,555,687			1,693,532
Cash and cash equivalents - end of period	$	1,627,203		$	1,671,904
Cash paid for:
Interest	$	2,871		$	1,973

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

SEPTEMBER 30, 2019 AND MARCH 31, 2019

NOTE 1 - NATURE OF BUSINESS

ADM Tronics Unlimited, Inc., incorporated under the laws of the state of Delaware on November 24, 1969, and subsidiary (collectively, “we”, “us”, the “Company” or “ADM”), is a technology-based developer and manufacturer of diversified lines of products and derives revenues from the production and sale of electronics for medical devices and other applications; environmentally safe chemical products for industrial, medical and cosmetic uses; and, research, development, regulatory and engineering services. The Company's customer base is comprised of foreign and domestic entities with diverse demographics.

The accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to accounting principles generally accepted in the United States (“US GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) including Form 10-Q and Regulation S-X. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the condensed financial position and operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with US GAAP have been omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and explanatory notes for the year ended March 31, 2019 as disclosed in our annual report on Form 10-K for that year. The operating results and cash flows for the three and six months ended September 30, 2019 (unaudited) are not necessarily indicative of the results to be expected for the pending full year ending March 31, 2020.  

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary, Sonotron Medical Systems, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

USE OF ESTIMATES

These unaudited condensed consolidated financial statements have been prepared in accordance with US GAAP and, accordingly, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our medical devices, reserves, deferred tax assets, valuation allowance, impairment of long lived assets, fair value of equity instruments issued to consultants for services and fair value of equity instruments issued to others, option and warrant expenses related to compensation to employees and directors, consultants and investment banks, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.  

Credit risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and our investment in ITI. We have no control over the market value of our investment in ITI.

Cash and cash equivalents

For financial statement purposes, the Company considers as cash equivalents all highly liquid investments with an original maturity of three months or less at inception. The Company deposits cash and cash equivalents with high credit quality financial institutions and believes that any amounts in excess of insurance limitations to be at minimal risk. Cash and cash equivalents held at these accounts are current insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At September 30, 2019, approximately $1,298,000 exceeded the FDIC limit.

REVENUE RECOGNITION 

ADM extends credit terms to our customers based on their credit worthiness. As such, we record accounts receivable at the time of shipment, when our right to the consideration becomes unconditional. Accounts receivable from our customers are typically due within 30 days of invoicing. An allowance for doubtful accounts is provided based on a periodic analysis of individual account balances, including an evaluation of days outstanding, payment history, recent payment trends, and our assessment of our customers' creditworthiness.

CHEMICAL PRODUCTS:

Revenues are recognized upon shipment to a customer because that is when the customer obtains control of the promised good.

6

ELECTRONICS: 

We recognize revenue from the sale of our electronic products upon shipment to a customer because that is when the customer obtains control of the promised good. We offer a limited 90-day warranty on our electronics products. We have no other post shipment obligations. Based on prior experience, no amounts have been accrued for potential warranty costs and actual costs were less than $2,000, for the three and six months ended September 30, 2019 and 2018. For contract manufacturing, revenues are recognized after shipment of the completed products. 

Amounts received from customers in advance of our satisfaction of applicable performance obligations are recorded as customer deposits. Such amounts are recognized as revenues when the related performance obligations are satisfied. Customer deposits of approximately $120,000 were recognized as revenues during the six months ended September 30, 2019.

ENGINEERING SERVICES: 

We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services as the services are provided.  

EARNINGS PER SHARE

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive.

Per share basic and diluted earnings amounted to $0.00 for the three and six months ended September 30, 2019 and September 30, 2018, respectively.

RECENT ACCOUNTING PRONOUNCEMENTS

Effective April 1, 2019, the Company adopted ASU 2016-02, “Leases”, which is intended to improve financial reporting for lease transactions. This ASU requires organizations that lease assets, such as real estate and manufacturing equipment, to recognize both assets and liabilities on their balance sheet for the rights to use those assets for the lease term and obligations to make the lease payments created by those leases that have terms of greater than 12 months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily depends on its classification as a finance or operating lease. This ASU also requires disclosures to help investors and other financial statement users better understand the amount and timing of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. Under the new standard, the most significant change is the requirement of balance sheet recognition of right of use assets and lease liabilities by lessees for those leases classified as operating leases. We adopted the new accounting standard utilizing the modified retrospective method using a simplified transition approach, and, therefore, no adjustments were made to our prior period financial statements. We have elected the package of practical expedients for transition which are permitted in the new standard. Accordingly, we did not reassess whether (i) any expired or existing contracts are or contain leases under the new standard, (ii) classification of leases as operating leases or capital leases would be different under the new standard, or (iii) any initial direct costs would have met the definition of initial direct costs under the new standard.

In June 2016, the FASB issued ASU-2016-13 “Financial Instruments – Credit Losses”. This guidance affects organizations that hold financial assets and net investments in leases that are not accounted for at fair value with changes in fair value reported in net income. The guidance requires organizations to measure all expected credit losses for financial instruments at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. It is effective for fiscal years beginning after December 15, 2019. The Company is evaluating the potential impact on the Company’s consolidated financial statements.

Management does not believe that any other recently issued, but not yet effective accounting pronouncement, if adopted, would have a material effect on the accompanying consolidated financial statements.

7

NOTE 3 - INVENTORIES       

	Current		Long Term		Total
Raw materials	$	335,374	$	84,721	$	420,095
Finished goods		37,300		736		38,036
Totals	$	372,674	$	85,457	$	458,131

Inventories at March 31, 2019 consisted of the following:

	Current		Long Term		Total
Raw materials	$	273,039	$	84,721	$	357,760
Finished goods		53,269		736		54,005
Totals	$	326,308	$	85,457	$	411,765

The Company values its inventories at the lower of cost and net realizable value using the first in, first out (“FIFO”) method. 

NOTE 4 – CONCENTRATIONS

During the three months ended September 30, 2019, one customer accounted for 47% of our net revenue. During the six months ended September 30, 2019, one customer accounted for 47% of our net revenue.

During the three months ended September 30, 2018, one customer accounted for 39% of our net revenue. During the six months ended  September 30, 2018, two customers accounted for 49% of our net revenue.

As of September 30, 2019, two customers represented 80% of our gross accounts receivable.

As of March 31, 2019, two customers represented 88% of our gross accounts receivable.

Net revenues from foreign customers for the three and six months ended September 30, 2019 was $116,910 or 12% and $242,282 or 14%, respectively.

Net revenues from foreign customers for the three and six months ended September 30, 2018 was $144,977 or 17% and $247,539 or 15%, respectively.

At September 30, 2019 and March 31, 2019, accounts receivable included $35,730 and $405, respectively, from foreign customers.

8

NOTE 5 - DISAGGREGATED REVENUES AND SEGMENT INFORMATION

The following tables show the Company's revenues disaggregated by reportable segment and by product and service type:

	Three months Ended September 30,
	2019		2018
Net Revenue from US customers
Chemical	$	295,739	$	307,708
Electronics		281,210		74,752
Engineering		262,932		327,259
		839,881		709,719
Net Revenue from foreign customers
Chemical		116,910		119,989
Electronics		-		24,988
Engineering		-		-
		116,910		144,977
Total Revenues	$	956,791	$	854,696

	Six Months Ended September 30,
	2019		2018
Net Revenue from US customers
Chemical	$	557,999	$	564,317
Electronics		435,977		223,718
Engineering		551,354		576,089
		1,545,330		1,364,124
Net Revenue from foreign customers
Chemical		242,282		222,551
Electronics		-		24,988
Engineering		-		-
		242,282		247,539
Total Revenues	$	1,787,612	$	1,611,663

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Information about segments is as follows:

	Chemical			Electronics			Engineering		Total
Three months ended September 30, 2019
Revenue from external customers	$	412,649		$	281,210		$	262,932	$	956,791
Segment operating income (loss)	$	(42,634	)	$	(29,524	)	$	28,410	$	(43,748	)
Six months ended September 30, 2019
Revenue from external customers	$	800,281		$	435,977		$	551,354	$	1,787,612
Segment operating income (loss)	$	32,267		$	(86,384	)	$	79,654	$	25,537
Three months ended September 30, 2018
Revenue from external customers	$	427,697		$	99,740		$	327,259	$	854,696
Segment operating income (loss)	$	119,155		$	(84,067	)	$	51,367	$	86,455
Six months ended September 30, 2018
Revenue from external customers	$	786,868		$	248,706		$	576,089	$	1,611,663
Segment operating income (loss)	$	159,730		$	(146,909	)	$	90,730	$	103,551
Total assets at September 30, 2019	$	2,577,346		$	1,317,311		$	1,832,780	$	5,727,437
Total assets at March 31, 2019	$	1,985,501		$	1,099,983		$	1,459,608	$	4,545,092

NOTE 6 – LEASES

We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on June 30, 2028. The Company’s future minimum lease payments at September 30, 2019 is as follows: 

For the twelve-month period ending September 30,	Amount
2020	$	101,875
2021		101,875
2022		101,875
2023		103,125
2024		106,875
Thereafter		400,781
	$	916,406

Rent and real estate tax expense for all facilities for the three and six months ended September 30, 2019 and 2018 was approximately $19,000 and $19,000 and $37,000 and $32,000, respectively. 

NOTE 7 – FINANCE LEASES

During September 2016, the Company leased equipment with a cost of approximately $129,000 under provisions of various long-term leases whereby the minimum lease payments have been capitalized. Accumulated depreciation at September 30, 2019 is approximately $75,000. The leases expire over various years through 2021. Depreciation of the leased assets is included in depreciation and amortization expense. The lease obligations are secured by the leased assets.

10

Future minimum lease payments under the above capital leases, as of September 30, 2019, are approximately as follows:

For the twelve-month period ending September 30,
2020	$	35,000
2021		3,000
		38,000
Less: Amount attributable to imputed interest		500
Present value of minimum lease payments		37,500
Less: Current maturities		31,000
	$	6,500

NOTE 8 – LINE OF CREDIT

On June 15, 2018, the Company obtained an unsecured revolving line of credit, with a limit of $400,000.  The line expires May 16, 2020, renewing automatically every year.  The Company is required to make monthly interest payments, at a rate of 6.2% as of September 30, 2019.  Any unpaid principal will be due upon maturity.  At September 30, 2019, the outstanding balance was $-0-.

NOTE 9 - INCOME TAXES

At  September 30, 2019, the Company had federal net operating loss carry-forwards ("NOL")'s of approximately $2,200,000. These NOLs may be used to offset future taxable income and thereby reduce or eliminate our federal income taxes otherwise payable. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Ultimate utilization of such NOLs and research and development credits is dependent upon the Company's ability to generate taxable income in future periods and may be significantly curtailed if a significant change in ownership occurs.

During the six months ended September 30, 2019, the Company utilized approximately $36,000 of the net operating losses, and expects to utilize the entire $2,191,000 before expiration.

The effective rates were approximately 30% and (23%) for the six months ended September 30, 2019 and 2018, respectively. 

NOTE 10 – DUE TO STOCKHOLDER

The Company’s President has been deferring his salary and bonuses periodically to assist the Company’s cash flow. There are no repayment terms or interest accruing on this liability. 

NOTE 11 – SUBSEQUENT EVENTS

We evaluated all subsequent events from the date of the condensed consolidated balance sheet through the issuance date and determined that there are no events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the condensed consolidated financial statements. 

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our operations and financial condition should be read in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. 

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the "safe harbor" provisions under section 21E of the Securities and Exchange Act of 1934 and the Private Securities Litigation Act of 1995. We use forward-looking statements in our description of our plans and objectives for future operations and assumptions underlying these plans and objectives. Forward-looking terminology includes the words "may", "expects", "believes", "anticipates", "intends", "forecasts", "projects", or similar terms, variations of such terms or the negative of such terms. These forward-looking statements are based on management's current expectations and are subject to factors and uncertainties which could cause actual results to differ materially from those described in such forward-looking statements. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this Form 10-Q to reflect any change in our expectations or any changes in events, conditions or circumstances on which any forward-looking statement is based. Factors which could cause such results to differ materially from those described in the forward-looking statements include those set forth under "Item. 1 Description of Business – Risk Factors" and elsewhere in or incorporated by reference into our Annual Report on Form 10-K for the year ended March 31, 2019.   

CRITICAL ACCOUNTING POLICIES

REVENUE RECOGNITION

We recognize revenue from engineering services on a project or monthly basis and contract manufacturing revenues are recognized after shipment of completed products. For the sale of our electronic products, revenues are recognized when they are shipped to the purchaser. Shipping and handling charges and costs are de minimis. We offer a limited 90-day warranty on our electronics products and a limited 5-year warranty on our electronic controllers for spas and hot tubs. Historically, the amount of warranty revenue included in the sales of our electronic products have been de minimis. We have no other post shipment obligations and sales returns have been de minimis. 

Revenues from sales of chemical products are recognized when products are shipped to end users.  Shipments to distributors are recognized as sales where no right of return exists.

USE OF ESTIMATES

Our discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to reserves, deferred tax assets and valuation allowance, impairment of long-lived assets, fair value of equity instruments issued to consultants for services and fair value of equity instruments issued to others. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions; however, we believe that our estimates, including those for the above described items, are reasonable.

BUSINESS OVERVIEW

The Company is a technology-based developer and manufacturer of diversified lines of products and derives revenue from the production and sale of electronics for medical devices and other applications; environmentally safe chemical products for industrial, medical and cosmetic uses; and, research, development, regulatory and engineering services. The Company has increased internal research and development by utilizing their engineering resources to advance their own proprietary medical device technologies.

The Company is a corporation that was organized under the laws of the State of Delaware on November 24, 1969. Our operations are conducted through ADM Tronics Unlimited, Inc. ("ADM") and its subsidiary Sonotron Medical Systems, Inc. ("SMI").  

12

RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2019 AS COMPARED TO SEPTEMBER 30, 2018  

Revenues for the three months ended September 30, 2019 increased by $102,095. The increase is a result of increased sales of $181,469 in the electronics segment offset by reductions of $15,048 and $64,326 in the Chemical and Engineering segments, respectively.

Gross profit for the three months ended September 30, 2019 decreased by $109,736. The decrease in gross profit resulted primarily from increased labor costs and associated payroll taxes.

We are highly dependent upon certain customers. During the three months ended September 30, 2019, one customers accounted for 47% of our net revenue. Net revenues from foreign customers for the three months ended September 30, 2019 was $116,910 or 12%.

During the six months ended September 30, 2019 one customer accounted for 48% of our net revenue. Net revenues from foreign customers for the six months ended September 30, 2019 was $247,539 or 15%.

During the three months ended  September 30, 2018, one customer accounted for 39% of our net revenue. During the six months ended September 30, 2018, two customers accounted for 49% of our net revenue

The complete loss of or significant reduction in business from, or a material adverse change in the financial condition of any of our customers could cause a material and adverse change in our revenues and operating results.

Income from operations for the three months ended September 30, 2019 decreased by $130,203. The decrease in operating income for the three-month period is from an increase of the following expenses: approximately $18,000 in accounting fees, $17,000 in administrative salary, $30,000 in health insurance, and $41,000 in research and development.

Income from operations for the six months ended September 30, 2019 decreased by $78,014. The decrease in operating income for the six-month period is primarily from an increase of the following expenses: approximately $18,000 in accounting fees, $22,000 in health insurance, and $78,000 in research and development offset by decreases in consulting fees of $45,000.

Interest income decreased $656 for the three months ended September 30, 2019. The decrease is due to decreased funds invested in a money market account. Interest expense increased $43.

Interest income increased $248 for the six months ended September 30, 2019. Interest expense increased $898. primarily due to increase in the interest rate.

The foregoing resulted in a net loss before provision for income taxes for the three months ended September 30, 2019 of $28,409 and net income of $25,360 for the six months ended September 30, 2019 . Earnings per share were $0.00 for the three and six months ended September 30, 2019 and 2018, respectively.

LIQUIDITY AND CAPITAL RESOURCES   

At September 30, 2019, we had cash and cash equivalents of $1,627,203 as compared to $1,555,687 at March 31, 2019. The $71,516 increase was primarily the result of cash provided by operations during the six-month period in the amount of $257,495, offset with cash used in financing activities of $185,979. Our cash will continue to be used for increased marketing costs, and increased production labor costs all in an attempt to increase our revenue, as well as increased expenditures for our internal R&D.  We expect to have enough cash to fund operations for the next twelve months.    

Future Sources of Liquidity:

We expect that growth with profitable customers and continued focus on new customers will enable us to continue to generate cash flows from operating activities during fiscal 2020. 

Based on current expectations, we believe that our existing cash and cash equivalents of $1,627,203 as of September 30, 2019, and other potential sources of cash will be sufficient to meet our cash requirements. Our ability to meet these requirements will depend on our ability to generate cash in the future, which is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.

13

OPERATING ACTIVITIES 

Net cash provided by operating activities was $257,495 for the six months ended September 30, 2019, as compared to net cash used in operating activities of $60,640 for the six months ended September 30, 2018.  The cash provided during the six months ended September 30, 2019 was primarily due to net income of $25,360 plus depreciation and amortization of $19,449 coupled with an increase in net operating liabilities of $1,342,964, coupled with a decrease in net operating assets of $1,186,993.

INVESTING ACTIVITIES

No cash was provided for or used in investing activities for the six months ended September 30, 2019.

FINANCING ACTIVITIES

For the six months ended September 30, 2019, net cash used by financing activities was $185,979 due to repayments on capital lease obligations and the line of credit. 

OFF BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements that have had or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Concentration of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable.

Cash and cash equivalents – For financial statement purposes, the Company considers as cash equivalents all highly liquid investments with an original maturity of three months or less at inception. The Company deposits cash and cash equivalents with high credit quality financial institutions and believes that any amounts in excess of insurance limitations to be at minimal risk. Cash and cash equivalents held at these accounts are current insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At September 30, 2019, approximately $1,298,000 exceeded the FDIC limit.

Our sales are materially dependent on a small group of customers, as noted in Note 4 of our condensed consolidated financial statements. We monitor our credit risk associated with our receivables on a routine basis. We also maintain credit controls for evaluating and granting customer credit. 

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

The Company's management, including the Company's principal executive officer and principal financial officer, have evaluated the effectiveness of the Company's "disclosure controls and procedures," as such term is defined in Ru1e 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended, (the "Exchange Act"). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company's disclosure controls and procedures were not effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the "SEC") (1) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and (2) is accumulated and communicated to the Company's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. During the quarterly period ended September 30, 2019, there were no changes in the Company's internal control over financial reporting which materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting. 

14

The determination that our disclosure controls and procedures were not effective as of September 30, 2019, is a result of:

a. Deficiencies in Internal Control Structure Environment. During the current year, the Company’s focus was on expanding their customer base to initiate revenue production.  

b. Inadequate staffing and supervision within the accounting operations of our company. The relatively small number of employees who are responsible for accounting functions prevents the Company from segregating duties within its internal control system. The inadequate segregation of duties is a weakness because it could lead to the untimely identification and resolution of accounting and disclosure matters or could lead to a failure to perform timely and effective reviews.  The Company’s plan is to expand its accounting operations as the business of the Company expands. 

The Company believes that the financial statements present fairly, in all material respects, the Company’s condensed consolidated balance sheets as of September 30, 2019, and March 31, 2019 and the related condensed consolidated statements of income, and cash flows for the three and six months ended September 30, 2019 and 2018, in conformity with generally accepted accounting principles, notwithstanding the material weaknesses we identified. 

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In July 2018, the Company filed a complaint for damages, attorney's fees, costs and a declaratory judgement against Securities Transfer Corporation (STC) to compel STC to release the Company's stock transfer records to a new transfer agent.  STC refused to do so unless a termination fee of $10,578.76 was paid by the Company, although the agreement between STC and the Company provides for a termination fee of $500.  STC filed a counterclaim for damages in the above amount plus approximately $4,000 in unpaid fees.  The Company believed the counterclaim was without merit.  On November 30, 2018, the declamatory judgement was decided in favor of the Company and STC released the Company’s stock transfer records to the new transfer agent in December 2018. The lawsuit was settled on September 30, 2019 with a $5,000 settlement fee paid to STC.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors contained in our Annual Report on Form 10-K for the year ended March 31, 2019. 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None 

15

ITEM 4. MINE SAFETY DISCLOSURES

None

ITEM 5. OTHER INFORMATION

None 

ITEM 6. EXHIBITS.

(a) Exhibit No.

31.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS**	XBRL Instance
101.SCH**	XBRL Taxonomy Extension Schema
101.CAL**	XBRL Taxonomy Extension Calculation
101.DEF**	XBRL Taxonomy Extension Definition
101.LAB**	XBRL Taxonomy Extension Labels
101.PRE**	XBRL Taxonomy Extension Presentation

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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.
(Registrant)
By:	/s/ Andre' DiMino
	Andre' DiMino, Chief Executive
	Officer and Chief Financial Officer

Dated:	Northvale, New Jersey
	November 19, 2019

16

EX-31.1

EXHIBIT 31.1

CERTIFICATION
PURSUANT TO SECTION 302 OF THE SARBANES - OXLEY ACT OF 2002 AND

SECURITIES AND EXCHANGE COMMISSION RELEASE 34-46427

I, Andre' DiMino, certify that:

1. I have reviewed this quarterly report on Form 10-Q of ADM Tronics Unlimited, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am the registrant's only certifying officer and am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 19, 2019	/s/ Andre' DiMino
	Andre' DiMino
	Chief Executive Officer and Chief Financial Officer

A signed original of this written statement required by Section 302 has been provided to ADM Tronics Unlimited, Inc. and will be retained by ADM Tronics Unlimited, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly Report of ADM Tronics Unlimited, Inc. (the "Company") on Form 10-Q for the three and six months ended September 30, 2019, (the "Report"), filed with the Securities and Exchange Commission, Andre' DiMino, Chief Executive Officer and Chief Financial Officer, of the Company hereby certifies pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition of the Company as of the dates presented and the result of operations of the Company for the periods presented. 

Date: November 19, 2019	/s/ Andre' DiMino
	Chief Executive Officer and
	Chief Financial Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the Form 10-K or as a separate disclosure document.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to ADM Tronics Unlimited, Inc. and will be retained by ADM Tronics Unlimited, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Note 8 - Line of Credit (Details Textual) - Revolving Credit Facility [Member] - USD ($)	Jun. 15, 2018	Sep. 30, 2019
Line of Credit Facility, Maximum Borrowing Capacity	$ 400,000
Debt Instrument, Interest Rate, Stated Percentage	6.20%
Short-term Debt, Total		$ 0
Line of Credit Facility, Expiration Date	May 16, 2020

XML

Note 7 - Finance Leases

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Lessee, Finance Leases [Text Block]

NOTE

7

 – FINANCE LEASES

During

September 2016,

the Company leased equipment with a cost of approximately

$129,000

under provisions of various long-term leases whereby the minimum lease payments have been capitalized. Accumulated depreciation at

September 30, 2019

is approximately

$75,000.

The leases expire over various years through

2021.

Depreciation of the leased assets is included in depreciation and amortization expense. The lease obligations are secured by the leased assets.

Future minimum lease payments under the above capital leases, as of

September 30, 2019,

are approximately as follows:

For the twelve-month period ending September 30,
2020	$	35,000
2021		3,000
		38,000
Less: Amount attributable to imputed interest		500
Present value of minimum lease payments		37,500
Less: Current maturities		31,000
	$	6,500

XML

Note 11 - Subsequent Events

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 

11

 – SUBSEQUENT EVENTS

We evaluated all subsequent events from the date of the condensed consolidated balance sheet through the issuance date and determined that there are 

no

 events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the condensed consolidated financial statements. 

XML

Note 1 - Nature of Business

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 

1

 - NATURE OF BUSINESS

ADM Tronics Unlimited, Inc., incorporated under the laws of the state of Delaware on 

November 24, 1969,

and subsidiary (collectively, “we”, “us”, the “Company” or “ADM”), is a technology-based developer and manufacturer of diversified lines of products and derives revenues from the production and sale of electronics for medical devices and other applications; environmentally safe chemical products for industrial, medical and cosmetic uses; and, research, development, regulatory and engineering services. The Company's customer base is comprised of foreign and domestic entities with diverse demographics.

The accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to accounting principles generally accepted in the United States (“US GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) including Form 

10

-Q and Regulation S-

X.

 The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the condensed financial position and operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with US GAAP have been omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and explanatory notes for the year ended 

March 31, 2019 

as disclosed in our annual report on Form 

10

-K for that year. The operating results and cash flows for the

three

and

six

months ended 

September 30, 2019 (

unaudited) are 

not

 necessarily indicative of the results to be expected for the pending full year ending 

March 31, 2020.  

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 1,627,203	$ 1,555,687
Accounts receivable, net of allowance for doubtful accounts of $160,000 for each period	1,007,707	916,844
Inventories	372,674	326,308
Prepaid expenses and other current assets	115,225	28,582
Total current assets	3,122,809	2,827,421
Property and equipment, net of accumulated depreciation of $126,850 and $108,099 at September 30, 2019 and March 31, 2019, respectively	76,710	95,461
Operating lease asset	916,406
Accounts receivable-related party	330,090	330,090
Inventories - long-term portion	85,457	85,457
Intangible assets, net of accumulated amortization of $12,733 and $12,035 at September 30, 2019 and March 31, 2019, respectively	8,201	8,899
Other assets	90,764	90,764
Deferred tax asset	1,097,000	1,107,000
Total other assets	2,604,628	1,717,671
Total assets	5,727,437	4,545,092
Current liabilities:
Finance lease payable	31,196	31,196
Line of credit		169,885
Accounts payable	336,835	275,591
Accrued expenses and other current liabilities	158,881	150,549
Customer deposits	671,528	321,441
Due to stockholder	146,217	139,322
Total current liabilities	1,344,657	1,087,984
Long-term liabilities
Finance lease payable, net of current portion	6,356	22,450
Operating lease liability	916,406
Total long-term liabilities	922,762	22,450
Total liabilities	2,267,419	1,110,434
Stockholders' equity:
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0005 par value; 150,000,000 shares authorized, 67,588,492 shares issued and outstanding	33,794	33,794
Additional paid-in capital	33,294,069	33,294,069
Accumulated deficit	(29,867,845)	(29,893,205)
Total stockholders' equity	3,460,018	3,434,658
Total liabilities and stockholders' equity	$ 5,727,437	$ 4,545,092

XML

Note 6 - Leases - Future Minimum Lease Payments (Details)	Sep. 30, 2019 USD ($)
2020	$ 101,875
2021	101,875
2022	101,875
2023	103,125
2024	106,875
Thereafter	400,781
	$ 916,406

XML

Note 6 - Leases (Tables)

6 Months Ended

Sep. 30, 2019

Notes Tables

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

For the twelve-month period ending September 30,	Amount
2020	$	101,875
2021		101,875
2022		101,875
2023		103,125
2024		106,875
Thereafter		400,781
	$	916,406

XML

Note 4 - Concentrations (Details Textual)	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Mar. 31, 2019 USD ($)
Revenue from Contract with Customer, Including Assessed Tax	$ 956,791	$ 854,696	$ 1,787,612	$ 1,611,663
Foreign Customers [Member]
Accounts Receivable, after Allowance for Credit Loss, Total	$ 35,730		$ 35,730		$ 405
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | One Customer [Member]
Concentration Risk, Number of Customers	1	1	1
Concentration Risk, Percentage	47.00%	39.00%	47.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member]
Concentration Risk, Number of Customers				2
Concentration Risk, Percentage				49.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Foreign Customers [Member]
Concentration Risk, Percentage	12.00%	17.00%	14.00%	15.00%
Revenue from Contract with Customer, Including Assessed Tax	$ 116,910	$ 144,977	$ 242,282	$ 247,539
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member]
Concentration Risk, Number of Customers			2		2
Concentration Risk, Percentage			80.00%		88.00%

XML

Note 7 - Finance Leases (Tables)

6 Months Ended

Sep. 30, 2019

Notes Tables

Finance Lease, Liability, Maturity [Table Text Block]

For the twelve-month period ending September 30,
2020	$	35,000
2021		3,000
		38,000
Less: Amount attributable to imputed interest		500
Present value of minimum lease payments		37,500
Less: Current maturities		31,000
	$	6,500

XML

Note 5 - Disaggregated Revenues and Segment Information - Net Revenue, Classified by Geography (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net revenues	$ 956,791	$ 854,696	$ 1,787,612	$ 1,611,663
Chemical [Member]
Net revenues	412,649	427,697	800,281	786,868
Electronics [Member]
Net revenues	281,210	99,740	435,977	248,706
Engineering [Member]
Net revenues	262,932	327,259	551,354	576,089
UNITED STATES
Net revenues	839,881	709,719	1,545,330	1,364,124
UNITED STATES | Chemical [Member]
Net revenues	295,739	307,708	557,999	564,317
UNITED STATES | Electronics [Member]
Net revenues	281,210	74,752	435,977	223,718
UNITED STATES | Engineering [Member]
Net revenues	262,932	327,259	551,354	576,089
Non-US [Member]
Net revenues	116,910	144,977	242,282	247,539
Non-US [Member] | Chemical [Member]
Net revenues	116,910	119,989	242,282	222,551
Non-US [Member] | Electronics [Member]
Net revenues		24,988		24,988
Non-US [Member] | Engineering [Member]
Net revenues

XML

Note 7 - Finance Leases (Details Textual) - USD ($)	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2016
Finance Lease, Right-of-Use Asset			$ 129,000
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance	$ 126,850	$ 108,099
Leaseholds and Leasehold Improvements [Member]
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance	$ 75,000

XML

Note 7 - Finance Leases - Future Minimum Lease Payments (Details) - USD ($)	Sep. 30, 2019	Mar. 31, 2019
2020	$ 35,000
2021	3,000
	38,000
Less: Amount attributable to imputed interest	500
Present value of minimum lease payments	37,500
Less: Current maturities	31,196	$ 31,196
	$ 6,356	$ 22,450

XML

Note 8 - Line of Credit

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

8

 – LINE OF CREDIT

On

June 15, 2018,

the Company obtained an unsecured revolving line of credit, with a limit of

$400,000.

  The line expires

May 16, 2020,

renewing automatically every year.  The Company is required to make monthly interest payments, at a rate of

6.2%

as of

September 30, 2019. 

Any unpaid principal will be due upon maturity.  At

September 30, 2019,

the outstanding balance was $-

0

-.

XML

Significant Accounting Policies (Policies)

6 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary, Sonotron Medical Systems, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]

USE OF ESTIMATES

These unaudited condensed consolidated financial statements have been prepared in accordance with US GAAP and, accordingly, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our medical devices, reserves, deferred tax assets, valuation allowance, impairment of long lived assets, fair value of equity instruments issued to consultants for services and fair value of equity instruments issued to others, option and warrant expenses related to compensation to employees and directors, consultants and investment banks, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.  

Concentration Risk, Credit Risk, Policy [Policy Text Block]

C

redit risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and our investment in ITI. We have

no

control over the market value of our investment in ITI.

Cash and Cash Equivalents, Policy [Policy Text Block]

C

ash and cash equivalents

For financial statement purposes, the Company considers as cash equivalents all highly liquid investments with an original maturity of

three

months or less at inception. The Company deposits cash and cash equivalents with high credit quality financial institutions and believes that any amounts in excess of insurance limitations to be at minimal risk. Cash and cash equivalents held at these accounts are current insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of

$250,000.

At

September 30, 2019,

approximately

$1,298,000

exceeded the FDIC limit.

Revenue [Policy Text Block]

REVENUE RECOGNITION 

ADM extends credit terms to our customers based on their credit worthiness. As such, we record accounts receivable at the time of shipment, when our right to the consideration becomes unconditional. Accounts receivable from our customers are typically due within

30

days of invoicing. An allowance for doubtful accounts is provided based on a periodic analysis of individual account balances, including an evaluation of days outstanding, payment history, recent payment trends, and our assessment of our customers' creditworthiness.

CHEMICAL PRODUCTS:

Revenues are recognized upon shipment to a customer because that is when the customer obtains control of the promised good.

ELECTRONICS: 

We recognize revenue from the sale of our electronic products upon shipment to a customer because that is when the customer obtains control of the promised good. We offer a limited 

90

-day warranty on our electronics products. We have 

no

 other post shipment obligations. Based on prior experience, 

no

 amounts have been accrued for potential warranty costs and actual costs were less than 

$2,000,

 for the

three

and

six

months ended

September 30, 2019

and

2018.

 For contract manufacturing, revenues are recognized after shipment of the completed products. 

Amounts received from customers in advance of our satisfaction of applicable performance obligations are recorded as customer deposits. Such amounts are recognized as revenues when the related performance obligations are satisfied. Customer deposits of approximately

$120,000

were recognized as revenues during the

six

months ended

September 30, 2019.

ENGINEERING SERVICES: 

We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services as the services are provided.  

Earnings Per Share, Policy [Policy Text Block]

EARNINGS PER SHARE

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive.

Per share basic and diluted earnings amounted to 

$0.00

 for the 

three

and

six

months ended 

September 30, 2019

and

September 30, 2018, 

respectively.

New Accounting Pronouncements, Policy [Policy Text Block]

RECENT ACCOUNTING PRONOUNCEMENTS

Effective

April 1, 2019,

the Company adopted ASU

2016

-

02,

“Leases”, which is intended to improve financial reporting for lease transactions. This ASU requires organizations that lease assets, such as real estate and manufacturing equipment, to recognize both assets and liabilities on their balance sheet for the rights to use those assets for the lease term and obligations to make the lease payments created by those leases that have terms of greater than

12

months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily depends on its classification as a finance or operating lease. This ASU also requires disclosures to help investors and other financial statement users better understand the amount and timing of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. Under the new standard, the most significant change is the requirement of balance sheet recognition of right of use assets and lease liabilities by lessees for those leases classified as operating leases. We adopted the new accounting standard utilizing the modified retrospective method using a simplified transition approach, and, therefore,

no

adjustments were made to our prior period financial statements. We have elected the package of practical expedients for transition which are permitted in the new standard. Accordingly, we did

not

reassess whether (i) any expired or existing contracts are or contain leases under the new standard, (ii) classification of leases as operating leases or capital leases would be different under the new standard, or (iii) any initial direct costs would have met the definition of initial direct costs under the new standard.

In

June 2016,

the FASB issued ASU-

2016

-

13

“Financial Instruments – Credit Losses”. This guidance affects organizations that hold financial assets and net investments in leases that are

not

accounted for at fair value with changes in fair value reported in net income. The guidance requires organizations to measure all expected credit losses for financial instruments at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. It is effective for fiscal years beginning after

December 15, 2019.

The Company is evaluating the potential impact on the Company’s consolidated financial statements.

Management does

not

believe that any other recently issued, but

not

yet effective accounting pronouncement, if adopted, would have a material effect on the accompanying consolidated financial statements.

XML

Note 2 - Significant Accounting Policies

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Significant Accounting Policies [Text Block]

NOTE 

2

 - SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary, Sonotron Medical Systems, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

USE OF ESTIMATES

These unaudited condensed consolidated financial statements have been prepared in accordance with US GAAP and, accordingly, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our medical devices, reserves, deferred tax assets, valuation allowance, impairment of long lived assets, fair value of equity instruments issued to consultants for services and fair value of equity instruments issued to others, option and warrant expenses related to compensation to employees and directors, consultants and investment banks, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.  

C

redit risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and our investment in ITI. We have

no

control over the market value of our investment in ITI.

C

ash and cash equivalents

For financial statement purposes, the Company considers as cash equivalents all highly liquid investments with an original maturity of

three

months or less at inception. The Company deposits cash and cash equivalents with high credit quality financial institutions and believes that any amounts in excess of insurance limitations to be at minimal risk. Cash and cash equivalents held at these accounts are current insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of

$250,000.

At

September 30, 2019,

approximately

$1,298,000

exceeded the FDIC limit.

REVENUE RECOGNITION 

ADM extends credit terms to our customers based on their credit worthiness. As such, we record accounts receivable at the time of shipment, when our right to the consideration becomes unconditional. Accounts receivable from our customers are typically due within

30

days of invoicing. An allowance for doubtful accounts is provided based on a periodic analysis of individual account balances, including an evaluation of days outstanding, payment history, recent payment trends, and our assessment of our customers' creditworthiness.

CHEMICAL PRODUCTS:

Revenues are recognized upon shipment to a customer because that is when the customer obtains control of the promised good.

ELECTRONICS: 

We recognize revenue from the sale of our electronic products upon shipment to a customer because that is when the customer obtains control of the promised good. We offer a limited 

90

-day warranty on our electronics products. We have 

no

 other post shipment obligations. Based on prior experience, 

no

 amounts have been accrued for potential warranty costs and actual costs were less than 

$2,000,

 for the

three

and

six

months ended

September 30, 2019

and

2018.

 For contract manufacturing, revenues are recognized after shipment of the completed products. 

Amounts received from customers in advance of our satisfaction of applicable performance obligations are recorded as customer deposits. Such amounts are recognized as revenues when the related performance obligations are satisfied. Customer deposits of approximately

$120,000

were recognized as revenues during the

six

months ended

September 30, 2019.

ENGINEERING SERVICES: 

We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services as the services are provided.  

EARNINGS PER SHARE

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive.

Per share basic and diluted earnings amounted to 

$0.00

 for the 

three

and

six

months ended 

September 30, 2019

and

September 30, 2018, 

respectively.

RECENT ACCOUNTING PRONOUNCEMENTS

Effective

April 1, 2019,

the Company adopted ASU

2016

-

02,

“Leases”, which is intended to improve financial reporting for lease transactions. This ASU requires organizations that lease assets, such as real estate and manufacturing equipment, to recognize both assets and liabilities on their balance sheet for the rights to use those assets for the lease term and obligations to make the lease payments created by those leases that have terms of greater than

12

months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily depends on its classification as a finance or operating lease. This ASU also requires disclosures to help investors and other financial statement users better understand the amount and timing of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. Under the new standard, the most significant change is the requirement of balance sheet recognition of right of use assets and lease liabilities by lessees for those leases classified as operating leases. We adopted the new accounting standard utilizing the modified retrospective method using a simplified transition approach, and, therefore,

no

adjustments were made to our prior period financial statements. We have elected the package of practical expedients for transition which are permitted in the new standard. Accordingly, we did

not

reassess whether (i) any expired or existing contracts are or contain leases under the new standard, (ii) classification of leases as operating leases or capital leases would be different under the new standard, or (iii) any initial direct costs would have met the definition of initial direct costs under the new standard.

In

June 2016,

the FASB issued ASU-

2016

-

13

“Financial Instruments – Credit Losses”. This guidance affects organizations that hold financial assets and net investments in leases that are

not

accounted for at fair value with changes in fair value reported in net income. The guidance requires organizations to measure all expected credit losses for financial instruments at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. It is effective for fiscal years beginning after

December 15, 2019.

The Company is evaluating the potential impact on the Company’s consolidated financial statements.

Management does

not

believe that any other recently issued, but

not

yet effective accounting pronouncement, if adopted, would have a material effect on the accompanying consolidated financial statements.

XML

Note 3 - Inventories - Summary of Inventory (Details) - USD ($)	Sep. 30, 2019	Mar. 31, 2019
Raw materials	$ 420,095	$ 357,760
Finished goods	38,036	54,005
Totals	458,131	411,765
Current [Member]
Raw materials	335,374	273,039
Finished goods	37,300	53,269
Totals	372,674	326,308
Long Term [Member
Raw materials	84,721	84,721
Finished goods	736	736
Totals	$ 85,457	$ 85,457

XML

Note 6 - Leases (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating Lease, Expense	$ 19,000	$ 19,000	$ 37,000	$ 32,000

XML

Note 5 - Disaggregated Revenues and Segment Information (Tables)

6 Months Ended

Sep. 30, 2019

Notes Tables

Revenue from External Customers by Geographic Areas [Table Text Block]

	Three months Ended September 30,
	2019		2018
Net Revenue from US customers
Chemical	$	295,739	$	307,708
Electronics		281,210		74,752
Engineering		262,932		327,259
		839,881		709,719
Net Revenue from foreign customers
Chemical		116,910		119,989
Electronics		-		24,988
Engineering		-		-
		116,910		144,977
Total Revenues	$	956,791	$	854,696

	Six Months Ended September 30,
	2019		2018
Net Revenue from US customers
Chemical	$	557,999	$	564,317
Electronics		435,977		223,718
Engineering		551,354		576,089
		1,545,330		1,364,124
Net Revenue from foreign customers
Chemical		242,282		222,551
Electronics		-		24,988
Engineering		-		-
		242,282		247,539
Total Revenues	$	1,787,612	$	1,611,663

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Chemical			Electronics			Engineering		Total
Three months ended September 30, 2019
Revenue from external customers	$	412,649		$	281,210		$	262,932	$	956,791
Segment operating income (loss)	$	(42,634	)	$	(29,524	)	$	28,410	$	(43,748	)
Six months ended September 30, 2019
Revenue from external customers	$	800,281		$	435,977		$	551,354	$	1,787,612
Segment operating income (loss)	$	32,267		$	(86,384	)	$	79,654	$	25,537
Three months ended September 30, 2018
Revenue from external customers	$	427,697		$	99,740		$	327,259	$	854,696
Segment operating income (loss)	$	119,155		$	(84,067	)	$	51,367	$	86,455
Six months ended September 30, 2018
Revenue from external customers	$	786,868		$	248,706		$	576,089	$	1,611,663
Segment operating income (loss)	$	159,730		$	(146,909	)	$	90,730	$	103,551
Total assets at September 30, 2019	$	2,577,346		$	1,317,311		$	1,832,780	$	5,727,437
Total assets at March 31, 2019	$	1,985,501		$	1,099,983		$	1,459,608	$	4,545,092

XML

Note 6 - Leases

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE

6

 – LEASES

We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on 

June 30, 

2028.

 The Company’s future minimum lease payments at 

September 30, 2019 

is as follows: 

For the twelve-month period ending September 30,	Amount
2020	$	101,875
2021		101,875
2022		101,875
2023		103,125
2024		106,875
Thereafter		400,781
	$	916,406

Rent and real estate tax expense for all facilities for the 

three

and

six

months ended

September 30, 2019

and

2018

 was approximately

$19,000

and

$19,000

and 

$37,000

and

$32,000,

respectively. 

XML

Note 10 - Due to Stockholder

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Compensation Related Costs, General [Text Block]

NOTE 

10

 – DUE TO STOCKHOLDER

The Company’s President has been deferring his salary and bonuses periodically to assist the Company’s cash flow. There are 

no

 repayment terms or interest accruing on this liability. 

XML

Note 9 - Income Taxes (Details Textual) - USD ($)	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating Loss Carryforwards, Total	$ 2,200,000
Operating Loss Carry-Forward, Amount Utilized	36,000
Operating Loss Carry-Forward, Expected Utilization Amount	$ 2,191,000
Effective Income Tax Rate Reconciliation, Percent, Total	30.00%	(23.00%)

XML

Note 4 - Concentrations

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 

4

 – CONCENTRATIONS

During the 

three

 months ended 

September 30, 2019,

one

customer accounted for

47%

 of our net revenue. During the

six

months ended

September 30, 2019,

one

customer accounted for

47%

of our net revenue.

During the 

three

 months ended 

September 30, 2018, 

one

 customer accounted for 

39%

 of our net revenue. During the 

six

 months ended  

September 30, 2018, 

two

 customers accounted for 

49%

 of our net revenue.

As of 

September 30, 2019, 

two

 customers represented 

80%

 of our gross accounts receivable.

As of 

March 31, 2019, 

two

 customers represented 

88%

 of our gross accounts receivable.

Net revenues from foreign customers for the

three

and

six

months ended

September 30, 2019

was

$116,910

or

12%

and

$242,282

or

14%,

respectively.

Net revenues from foreign customers for the

three

and

six

months ended

September 30, 2018

was

$144,977

or

17%

and

$247,539

or

15%,

respectively.

At

September 30, 2019

and

March 31, 2019,

accounts receivable included

$35,730

and

$405,

respectively, from foreign customers.

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 25,360	$ 141,024
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	19,449	19,605
Write-off of inventories	46,715
Deferred taxes	10,000	(32,000)
Changes in operating assets and liabilities balances:
Accounts receivable	(90,863)	(13,452)
Inventories	(93,081)	(179,307)
Prepaid expenses and other current assets	(86,643)	(29,038)
Operating lease asset	(916,406)
Accounts payable	61,244	(41,194)
Customer deposits	350,087	11,406
Accrued expenses and other current liabilities	8,332	58,851
Due to shareholder	6,895	3,465
Operating lease liability	916,406
Net cash provided by (used in) operating activities	257,495	(60,640)
Cash flows provided (used) in financing activities:
Proceeds from line of credit	115,000	80,518
Repayments of line of credit	(284,885)	(25,413)
Repayments on capital lease payable	(16,094)	(16,093)
Net cash provided by (used in) financing activities	(185,979)	39,012
Net increase (decrease) in cash and cash equivalents	71,516	(21,628)
Cash and cash equivalents - beginning of period	1,555,687	1,693,532
Cash and cash equivalents - end of period	1,627,203	1,671,904
Cash paid for:
Interest	$ 2,871	$ 1,973

XML

Document And Entity Information - shares	6 Months Ended
	Sep. 30, 2019	Nov. 19, 2019
Document Information [Line Items]
Entity Registrant Name	ADM TRONICS UNLIMITED, INC.
Entity Central Index Key	0000849401
Current Fiscal Year End Date	--03-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		67,588,492
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Note 5 - Disaggregated Revenues and Segment Information

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 

5

 - DISAGGREGATED REVENUES AND SEGMENT INFORMATION

The following tables show the Company's revenues disaggregated by reportable segment and by product and service type:

	Three months Ended September 30,
	2019		2018
Net Revenue from US customers
Chemical	$	295,739	$	307,708
Electronics		281,210		74,752
Engineering		262,932		327,259
		839,881		709,719
Net Revenue from foreign customers
Chemical		116,910		119,989
Electronics		-		24,988
Engineering		-		-
		116,910		144,977
Total Revenues	$	956,791	$	854,696

	Six Months Ended September 30,
	2019		2018
Net Revenue from US customers
Chemical	$	557,999	$	564,317
Electronics		435,977		223,718
Engineering		551,354		576,089
		1,545,330		1,364,124
Net Revenue from foreign customers
Chemical		242,282		222,551
Electronics		-		24,988
Engineering		-		-
		242,282		247,539
Total Revenues	$	1,787,612	$	1,611,663

Information about segments is as follows:

	Chemical			Electronics			Engineering		Total
Three months ended September 30, 2019
Revenue from external customers	$	412,649		$	281,210		$	262,932	$	956,791
Segment operating income (loss)	$	(42,634	)	$	(29,524	)	$	28,410	$	(43,748	)
Six months ended September 30, 2019
Revenue from external customers	$	800,281		$	435,977		$	551,354	$	1,787,612
Segment operating income (loss)	$	32,267		$	(86,384	)	$	79,654	$	25,537
Three months ended September 30, 2018
Revenue from external customers	$	427,697		$	99,740		$	327,259	$	854,696
Segment operating income (loss)	$	119,155		$	(84,067	)	$	51,367	$	86,455
Six months ended September 30, 2018
Revenue from external customers	$	786,868		$	248,706		$	576,089	$	1,611,663
Segment operating income (loss)	$	159,730		$	(146,909	)	$	90,730	$	103,551
Total assets at September 30, 2019	$	2,577,346		$	1,317,311		$	1,832,780	$	5,727,437
Total assets at March 31, 2019	$	1,985,501		$	1,099,983		$	1,459,608	$	4,545,092

XML

Note 9 - Income Taxes

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

9

 - INCOME TAXES

At  

September 30, 2019, 

the Company had federal net operating loss carry-forwards ("NOL")'s of approximately 

$2,200,000.

These NOLs 

may 

be used to offset future taxable income and thereby reduce or eliminate our federal income taxes otherwise payable. A valuation allowance is provided when it is more likely than 

not

 that some portion or all of the deferred tax assets will 

not

 be realized. Ultimate utilization of such NOLs and research and development credits is dependent upon the Company's ability to generate taxable income in future periods and 

may 

be significantly curtailed if a significant change inownership occurs.

During the 

six

months ended 

September 30, 2019, 

the Company utilized approximately

$36,000

of the net operating losses, and expects to utilize the entire 

$2,191,000

 before expiration.

The effective rates were approximately 

30%

 and (

23%

) for the 

six

months ended

September 30, 2019

and

2018,

 respectively. 

XML

Note 3 - Inventories (Tables)

6 Months Ended

Sep. 30, 2019

Notes Tables

Schedule Of Inventory [Table Text Block]

	Current		Long Term		Total
Raw materials	$	335,374	$	84,721	$	420,095
Finished goods		37,300		736		38,036
Totals	$	372,674	$	85,457	$	458,131

	Current		Long Term		Total
Raw materials	$	273,039	$	84,721	$	357,760
Finished goods		53,269		736		54,005
Totals	$	326,308	$	85,457	$	411,765

XML

Note 10 - Due to Stockholder (Details Textual) $ in Thousands	Sep. 30, 2019 USD ($)
Deferred Compensation Liability, Interest Accrued	$ 0

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net revenues	$ 956,791	$ 854,696	$ 1,787,612	$ 1,611,663
Cost of sales	544,448	332,617	940,457	637,038
Gross Profit	412,343	522,079	847,155	974,625
Operating expenses:
Research and development	148,751	106,715	294,517	216,583
Selling, general and administrative	301,835	328,909	516,090	654,491
Depreciation and amortization	5,505		11,011
Total operating expenses	456,091	435,624	821,618	871,074
Income (loss) from operations	(43,748)	86,455	25,537	103,551
Other income (expense):
Interest income	6,541	7,197	13,694	13,446
Interest and finance expenses	(1,202)	(1,245)	(2,871)	(1,973)
Total other income (expense)	5,339	5,952	10,823	11,473
Income (loss) before provision for income taxes	(38,409)	92,407	36,360	115,024
Provision (benefit) for income taxes:
Current		6,000	1,000	6,000
Deferred	(11,000)	(32,000)	10,000	(32,000)
Total provision (benefit) for income taxes	(11,000)	(26,000)	11,000	(26,000)
Net income (loss)	$ (27,409)	$ 118,407	$ 25,360	$ 141,024
Basic and diluted per common share: (in dollars per share)	$ 0	$ 0	$ 0	$ 0
Weighted average shares of common stock outstanding - basic and diluted (in shares)	67,588,492	67,588,492	67,588,492	67,588,492

XML

Note 3 - Inventories

6 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE 

3

 - INVENTORIES

       

	Current		Long Term		Total
Raw materials	$	335,374	$	84,721	$	420,095
Finished goods		37,300		736		38,036
Totals	$	372,674	$	85,457	$	458,131

Inventories at

March 31, 2019

consisted of the following:

	Current		Long Term		Total
Raw materials	$	273,039	$	84,721	$	357,760
Finished goods		53,269		736		54,005
Totals	$	326,308	$	85,457	$	411,765

The Company values its inventories at the lower of cost and net realizable value using the 

first

 in, 

first

 out (“FIFO”) method. 

XML

Note 2 - Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Cash, Uninsured Amount	$ 1,298,000		$ 1,298,000
Contract with Customer, Liability, Revenue Recognized	$ 0		$ 120,000
Earnings Per Share, Basic and Diluted, Total	$ 0	$ 0	$ 0	$ 0
Maximum [Member]
Product Warranty Expense	$ 2,000	$ 2,000	$ 2,000	$ 2,000
Electronic Products [Member]
Warranty Term			90 days

XML

Note 5 - Disaggregated Revenues and Segment Information - Summary of Segment Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2019
Revenue from Contract with Customer, Including Assessed Tax	$ 956,791	$ 854,696	$ 1,787,612	$ 1,611,663
Segment operating income (loss)	(43,748)	86,455	25,537	103,551
Total assets	5,727,437		5,727,437		$ 4,545,092
Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	412,649	427,697	800,281	786,868
Segment operating income (loss)	(42,634)	119,155	32,267	159,730
Total assets	2,577,346		2,577,346		1,985,501
Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	281,210	99,740	435,977	248,706
Segment operating income (loss)	(29,524)	(84,067)	(86,384)	(146,909)
Total assets	1,317,311		1,317,311		1,099,983
Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	262,932	327,259	551,354	576,089
Segment operating income (loss)	28,410	$ 51,367	79,654	$ 90,730
Total assets	$ 1,832,780		$ 1,832,780		$ 1,459,608