10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2023

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 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 ☒ 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 ☒ 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 ☒
	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 ☒

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

The Company has 67,588,504 shares outstanding as of February 14, 2024. 

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

INDEX

		Page Number
Part I - Financial Information
Item 1.	Condensed Consolidated Financial Statements (unaudited):
	Condensed Consolidated Balance Sheets –December 31, 2023 (unaudited) and March 31, 2023	3
	Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2023 and 2022 (unaudited)	4
	Condensed Consolidated Statement of Stockholders’ Equity for the three and nine months ended December 31, 2023 and 2022 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2023 and 2022 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	19
Item 4.	Controls and Procedures	19
Part II - Other Information
Item 1.	Legal Proceedings	20
Item 1A.	Risk Factors	20
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3.	Defaults Upon Senior Securities	20
Item 4.	Mine Safety Disclosures	20
Item 5.	Other Information	20
Item 6.	Exhibits	20

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS 

	December 31,			March 31,
	2023			2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	661,985		$	1,003,730
Accounts receivable, net of allowance for credit losses of $429,972 and $694,871 at December 31, 2023 and March 31, 2023, respectively		780,882			497,793
Inventories		487,431			443,465
Prepaid expenses and other current assets		8,082			41,251
Total current assets		1,938,380			1,986,239
Other Assets:
Long-term inventory	$	141,696		$	228,451
Operating lease right-of-use asset		420,421			481,535
Loan receivable,		-			209,809
Due from affiliate		-			80,090
Intangible assets, net of accumulated amortization of $26,001 and $22,631 at December 31, 2023 and March 31, 2023, respectively		24,308			13,163
Other assets		90,538			90,538
Deferred tax asset		-			-
Total other assets		676,963			1,103,586
Total assets	$	2,615,343		$	3,089,825
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	293,497		$	322,639
Bank overdraft		145,115			134,837
Accrued expenses and other current liabilities		100,531			75,659
PPP loan		7,621			11,656
Line of credit		298,378			112,809
Operating lease liability		87,727			82,917
Customer deposits		235,348			359,723
Due to stockholder		-			13,626
Total current liabilities		1,168,217			1,113,866
Long-term liabilities
PPP loan less current portion		-			-
Operating lease liability less current portion		343,926			410,474
Total long-term liabilities		343,926			410,474
Total liabilities		1,512,143			1,524,340
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		33,602,612			33,599,516
Accumulated deficit		(32,533,206	)		(32,067,825	)
Total stockholders' equity		1,103,200			1,565,485
Total liabilities and stockholders' equity	$	2,615,343		$	3,089,825

See accompanying notes to the unaudited condensed consolidated financial statements

3

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2023 AND 2022 

	Three months ended						Nine months ended
	December 31,						December 31,
	2023			2022			2023			2022
Net revenues	$	696,496		$	983,162		$	2,213,317		$	3,044,838
Cost of sales		375,075			507,684			1,360,602			1,628,268
Gross Profit		321,421			475,478			852,715			1,416,570
Operating expenses:
Research and development		177,502			140,192			439,832			399,894
Selling, general and administrative		249,306			242,533			883,716			855,656
Total operating expenses		426,808			382,725			1,323,548			1,255,550
Income (loss) from operations		(105,387	)		92,753			(470,833	)		161,020
Other income (expense):
Interest income		5,663			3,676			20,256			4,670
Interest and finance expenses		(5,291	)		(2,658	)		(14,804	)		(10,542	)
Total other income (expense)		372			1,018			5,452			(5,872	)
Income (loss) before provision for income taxes		(105,015	)		93,771			(465,381	)		155,148
Total provision (benefit) for income taxes		-			-			-			-
Net income (loss)	$	(105,015	)	$	93,771		$	(465,381	)	$	155,148
Basic and diluted per common share:	$	(0.00	)	$	0.00		$	(0.01	)	$	0.00
Weighted average shares of common stock outstanding - basic and diluted		67,588,492			67,588,492			67,588,492			67,588,492

See accompanying notes to the unaudited condensed consolidated financial statements

4

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE NINE MONTHS ENDED December 31, 2023 AND 2022 

	Common Stock		Common Stock		Additional Paid-in		Accumulated
	Shares		Amount		Capital		Deficit			Total
Balance at April 1, 2022		67,588,492	$	33,794	$	33,311,672	$	(31,971,503	)	$	1,373,963
Stock based compensation						287,844					287,844
Net (loss)							$	(38,666	)		(38,666	)
Balance at June 30, 2022		67,588,492	$	33,794	$	33,599,516	$	(32,010,169	)	$	1,623,141
Net income							$	100,043			100,043
Balance at September 30, 2022		67,588,492	$	33,794	$	33,599,516	$	(31,910,126	)	$	1,723,184
Net income							$	93,771			93,771
Balance at December 31, 2022		67,588,492	$	33,794	$	33,599,516	$	(31,816,355	)	$	1,816,955
Balance at April 1, 2023		67,588,492	$	33,794	$	33,599,516	$	(32,067,825	)	$	1,565,485
Stock based compensation						1,032					1,032
Net income (loss)								(132,261	)		(132,261	)
Balance at June 30, 2023		67,588,492	$	33,794	$	33,600,548	$	(32,200,086	)	$	1,434,256
Stock based compensation						1,032					1,032
Net (loss)								(228,105	)		(228,105	)
Balance at September 30, 2023		67,588,492	$	33,794	$	33,601,580	$	(32,428,191	)	$	1,207,183
Stock based compensation						1,032					1,032
Net (loss)								(105,015	)		(105,015	)
Balance at December 31, 2023		67,588,492	$	33,794	$	33,602,612	$	(32,533,206	)	$	1,103,200

See accompanying notes to the unaudited condensed consolidated financial statements

5

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED DECEMBER 31, 2023 AND 2022

	2023			2022
Cash flows from operating activities:
Net income (loss)	$	(465,381	)	$	155,148
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization		3,370			2,160
Write-off of inventories		33,945			54,692
Change in allowance for credit losses		(305,090	)
Loan impairment		209,809
Non-cash interest expense		17,168			20,320
Amortization of right-to-use asset		61,114			61,577
Stock based compensation		3,096			33,310
Changes in operating assets and liabilities balances:
Accounts receivable		102,091			171,436
Inventories		8,844			(189,971	)
Prepaid expenses and other current assets		33,169			47,622
Loan receivable		-			(72,881	)
Accounts payable		(29,142	)		(66,215	)
Bank overdraft		10,278			-
Customer deposits		(124,375	)		98,565
Accrued expenses and other current liabilities		24,873			(24,335	)
Payments of operating lease liability		(78,906	)		(76,406	)
Net cash provided by (used in) operating activities		(495,137	)		215,022
Cash flows from investing activities:
Purchase of software		(14,515	)		-
Net cash (used in) investing activities		(14,515	)		-
Cash flows provided (used) in financing activities:
Due to shareholder		(13,626	)		(29,104	)
Proceeds from line of credit		233,328			85,067
Repayments of line of credit		(47,760	)		(307,764	)
Proceeds (payments) from/to PPP loan		(4,035	)		(4,034	)
Net cash provided by (used in) financing activities		167,907			(255,835	)
Net (decrease) in cash and cash equivalents		(341,745	)		(40,813	)
Cash and cash equivalents - beginning of period		1,003,730			1,038,498
Cash and cash equivalents - end of period	$	661,985		$	997,685
Cash paid for:
Interest	$	20,256		$	7,884
Non-cash activities:
Reclass of Warrant Liability to Additional Paid in Capital	$	-		$	(182,161	)
Initial recognition of prepaid warrant expense	$	-		$	(105,683	)

See accompanying notes to the unaudited condensed consolidated financial statements

6

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

FOR THE THREE AND NINE MONTHS ENDED December 31, 2023 AND 2022 

NOTE 1  - NATURE OF BUSINESS

ADM Tronics Unlimited, Inc. (“we”, “us”, the “Company” or “ADM”), was incorporated under the laws of the state of Delaware on November 24, 1969. We are a manufacturing and engineering concern whose principal lines of business are the design, manufacture, and sale of electronics of our own products or on a contract manufacturing basis; the production and sale of chemical and antistatic products; and, research, development and engineering services.

Electronic equipment is manufactured in accordance with customer specifications on a contract basis. Our electronic device product line consists principally of proprietary devices used in diagnostics and therapeutics of humans and animals and electronic controllers for spas and hot tubs. These products are sold to customers located principally in the United States. We are registered with the FDA as a contract manufacturing facility and we manufacture medical devices for customers in accordance with their designs and specifications. Our chemical product line is principally comprised of water-based chemical products used in the food packaging and converting industries, and anti-static conductive paints, coatings and other products. These products are sold to customers located in the United States, Australia, Asia and Europe. We also provide research, development, regulatory, and engineering services to customers. Our Sonotron Medical Systems, Inc. subsidiary (“Sonotron”) is involved in medical electronic therapeutic technology.

NOTE 2  - SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to accounting principles generally accepted in the United States of America (“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 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, 2023 as disclosed in our annual report on Form 10-K for that year. Unaudited interim results are not necessarily indicative of the results for the full fiscal year ending March 31, 2024. The consolidated balance sheet as of March 31, 2023 was derived from the audited consolidated financial statements as of and for the year then ended.

PRINCIPLES OF CONSOLIDATION

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

7

USE OF ESTIMATES

These unaudited condensed consolidated financial statements have been prepared in accordance with 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 deferred tax assets and related valuation allowance, write down of inventory, impairment of long-lived assets, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.

FAIR VALUE OF FINANCIAL INSTRUMENTS

For certain of our financial instruments, including accounts receivable, accounts payable, and accrued expenses, the carrying amounts approximate fair value due to their relatively short maturities.

CASH AND CASH EQUIVALENTS

Cash equivalents are comprised of highly liquid investments with original maturities of three months or less when purchased. We maintain our cash in bank deposit accounts, which at times, may exceed federally insured limits. We have not experienced any losses to date as a result of this policy. Cash and cash equivalents held in these accounts are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At December 31, 2023 and March 31, 2023, approximately $412,000 and $754,000, respectively, exceeded the FDIC limit.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The carrying amounts of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed the due date and estimates the portion, if any, of the balance that will be collected. Management provides for probable uncollectible amounts through a charge to expenses and a credit to a valuation allowance, based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

REVENUE RECOGNITION

ELECTRONICS:

We recognize revenue from the sale of our electronic products when they are shipped to the purchaser. We offer a limited 90-day warranty on our electronics products and contract manufacturing, and a limited 5-year warranty on our electronic controllers for spas and hot tubs. Historically, the amount of warranty expense included in sales of our electronic products have been de minimis. We have no other post shipment obligations. For contract manufacturing, revenues are recognized after shipments 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 $128,000 and $212,000 as of March 31, 2023 were recognized as revenues during the three and nine months ended December 31, 2023, respectively.

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 and $209,000 as of March 31, 2022 were recognized as revenues during the three and nine months ended December 31, 2022, respectively.

CHEMICAL PRODUCTS:

Revenues are recognized when products are shipped to end users. Shipments to distributors are recognized as revenue when no right of return exists.

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 over time as the applicable performance obligations are satisfied.

All revenue is recognized net of discounts.

8

INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Inventories that are expected to be sold within one operating cycle (1 year) are classified as a current asset. Inventories that are not expected to be sold within 1 year, based on historical trends, are classified as Inventories - long term portion. Obsolete inventory is written off based on prior and expected future usage.

Long-Term Inventory: Due to recent shortages of materials relating to supply chain and COVID issues, when an item the Company believes will be used in the future, even beyond the current fiscal year, becomes available, it will purchase as many items as management deems necessary to fulfill future orders.

PROPERTY AND EQUIPMENT

We record our property and equipment at historical cost. We expense maintenance and repairs as incurred. Depreciation is provided for by the straight-line method over five to seven years, the estimated useful lives of the property and equipment. As of December 31, 2023 and March 31, 2023, all fixed assets were fully depreciated.

ADVERTISING COSTS

Advertising costs are expensed as incurred and amounted to $5,908 and $17,041 for the three and nine months ended December 31, 2023 and $6,184 and $21,216 for the three and nine months ended December 31, 2022 , respectively.

NET EARNINGS PER SHARE

We compute basic earnings per share by dividing net income/loss by the weighted average number of common shares outstanding. 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. Common equivalent shares are excluded from the computation of net earnings per share if their effect is anti-dilutive.

There were 200,000 and -0- anti-dilutive instruments in force during the periods ended December 31, 2023 and 2022, respectively.

Per share basic and diluted (loss) amounted to $(0.00) and $(0.01) and $0.00 and $0.00 for the three and nine months ended December 31, 2023 and 2022, respectively.

LEASES

In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changed financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of April 1, 2019, using the modified retrospective approach which allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases.

The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term. The Company defines a short-term lease as a lease that, at the commencement date, has a lease term of twelve months or less and does not contain an option to purchase the underlying asset that the lease is reasonably certain to exercise. Related variable lease payments are recognized in the period in which the obligation is incurred.

The Company's lease agreement contains related non-lease components (e.g. taxes, etc.). The Company separates lease components and non-lease components for all underlying asset classes.

RECLASSIFICATION

Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net loss.

NEW ACCOUNTING STANDARDS

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of April 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures.

9

NOTE 3 - INVENTORIES     

Inventories at December 31, 2023 consisted of the following:

	Current		Long Term		Total
Raw materials	$	426,480	$	135,698	$	562,178
Finished goods		60,951		5,998		66,949
Totals	$	487,431	$	141,696	$	629,127

Inventories at March 31, 2023 consisted of the following:   

	Current		Long Term		Total
Raw materials	$	390,792	$	201,317	$	592,109
Finished goods		52,673		27,134		79,807
Totals	$	443,465	$	228,451	$	671,916

NOTE 4 - INTANGIBLE ASSETS

Intangible assets are being amortized using the straight-line method over periods ranging from 10-15 years with a weighted average remaining life of approximately 6 years.

	December 31, 2023											March 31, 2023
	Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount		Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount
Patents & Trademarks	$	35,794		10	-	15	$	(24,791	)	$	11,003	$	35,794		10	-	15	$	(22,631	)	$	13,163
Software	$	14,515			3		$	(1,210	)	$	13,305	$	-					$	-		$	-
	$	50,309					$	(26,001	)	$	24,308	$	35,794					$	(22,631	)	$	13,163

10

Estimated aggregate future amortization expense related to intangible assets is as follows:

For the fiscal years ended March 31,
2024	$	3,862
2025		7,115
2026		6,716
2027		2,931
2028		1,726
Thereafter		1,958
	$	24,308

NOTE 5 – CONCENTRATIONS

During the three months ended December 31, 2023, two customers accounted for 53% of our net revenue. During the three months ended December 31, 2022, two customers accounted for 50% of our net revenue.

During the nine months ended December 31, 2023, two customers accounted for 44% of our net revenue. During the nine months ended December 31, 2022, two customers accounted for 45% of our net revenue.

As of December 31, 2023, four customers represented 91% of our gross accounts receivable. As of March 31, 2023, two customers accounted for 75% of our gross accounts receivable.

As of December 31, 2023, three vendors accounted for 36% of our accounts payable balance. As of March 31, 2023 three vendors accounted for 45% of our accounts payable.

The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the three and nine months ended December 31, 2023 were $40,029 or 6% and $238,170 or 11%, respectively.

Net revenues from foreign customers for the three and nine months ended December 31, 2022 were $86,296 or 8% and $237,852 or 8%, respectively.

NOTE 6 - 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 December 31,
	2023		2022
Net Revenue in the US
Chemical	$	175,402	$	245,582
Electronics		423,593		485,454
Engineering		57,472		165,830
		656,467		896,866
Net Revenue outside the US
Chemical		40,029		86,296
Electronics		-		-
Engineering		-		-
		40,029		86,296
Total Revenues	$	696,496	$	983,162

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	Nine Months Ended December 31,
	2023		2022
Net Revenue in the US
Chemical	$	598,176	$	811,596
Electronics		1,082,634		1,584,003
Engineering		294,337		411,387
		1,975,147		2,806,986
Net Revenue outside the US
Chemical		238,170		237,852
Electronics		-		-
Engineering		-		-
		238,170		237,852
Total Revenues	$	2,213,317	$	3,044,838

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NOTE 7 – DUE FROM AFFILIATE 

The Company has a $75,000 investment for 23.2% of Qol Devices Inc. (Qol). It was determined that the Company does not hold a significant influence which results in us carrying this asset at cost and reported as a component of other assets in the accompanying consolidated balance sheets.

The Company provided $330,090 in engineering services to Qol during the year March 31, 2018. This amount is shown net of a $330,090 and $250,000 allowance for credit losses on the consolidated balance sheets as of December 31, 2023 and March 31, 2023.

NOTE 8 – LEASES

We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on June 30, 2028. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of December 31, 2022:

	For the fiscal year ended:	Amount
FY 2024	March 31, 2024		$	26,718
FY 2025	March 31, 2025			106,872
FY 2026	March 31, 2026			106,872
FY 2027	March 31, 2027			106,872
FY 2028	March 31, 2028			106,872
FY 2029	March 31, 2029	ends June 30, 2028		26,718
				480,924
	Less: Amount attributable to imputed interest			(49,271	)
			$	431,653
	Weighted average remaining lease term (in years)			2.7

Rent and real estate tax expense for all facilities for the three and nine months ended December 31, 2023 was approximately was approximately $35,000 and $104,000, respectively.

Rent and real estate tax expense for all facilities for the three and nine months ended December 31, 2022 was approximately was approximately $34,000 and $102,000, respectively.

These are reported as a component of cost of sales and selling, general and administrative expenses in the accompanying consolidated statements of operations.

NOTE 9 – PAYCHECK PROTECTION PROGRAM (PPP) LOAN

In May 2020, the Company obtained funding through the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) of $381,000. In February 2021, a second PPP loan was obtained in the amount of $332,542, for a total of $713,542. The loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities, with at least 60% being used for payroll. The Company did use the funds for these expenses during the year ended March 31, 2021. The Company applied for loan forgiveness of both PPP loans. On September 7, 2021, the Company received approval from the SBA for $361,275 of PPP loan forgiveness. On December 21, 2021, the Company received approval from the Bank for $332,542. This amount was recorded as Forgiveness of Paycheck Protection loan in the accompanying condensed Consolidated Statements of Operations during the fiscal year ended March 31, 2022.

The unforgiven portion of the first PPP loan is $19,725, which was converted to a term loan payable in equal installments of principal plus interest at 1% with a maturity date of May 15, 2025. No collateral or personal guarantees is required for the loan. At December 31, 2023, the outstanding balance is $7,621.

13

NOTE 10 – 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 15, 2024, renewing automatically every year. The Company is required to make monthly interest payments, at a rate of 8.87% as of June 30, 2023. Any unpaid principal will be due upon maturity. At December 31, 2023 and March 31, 2023, the outstanding balance was $298,378 and $112,809, respectively.

NOTE 11  – WARRANTS

On April 11, 2023, warrants to purchase Company stock were issued to two outside consultants. Each consultant was granted 100,000 warrants with a strike price of $0.20. The Warrants vested and were exercisable immediately. The warrants were valued using a Black Scholes model effective April 11, 2023, cumulative volatility was computed at 123.52% and the total valuation was $8,256 which will be amortized over the 24-month life.

		Outstanding and exercisable
Range of Exercise prices		Number outstanding		Weighted average remaining life in years		Weighted Average Exercise Price		Exercisable
$	0.20		200,000		1.28	$	0.20		200,000

	2023				2022
	# of Shares		Weighted Average Exercise Price		# of Shares		Weighted Average Exercise Price
Outstanding, beginning of year		-		-		-		-
Issued		200,000	$	0.20		-		-
Exercised		-		-		-		-
Expired		-		-		-		-
Cancelled		-		-		-		-
Outstanding, end of period		200,000	$	0.20		-		-
Exercisable, end of period		200,000	$	0.20		-		-

NOTE 12 – LEGAL PROCEEDINGS

We are involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. There are no pending material legal proceedings or environmental investigations to which we are a party or to which our property is subject.

14

NOTE 13 – CONTRACTURAL OBLIGATIONS AND OTHER COMMITMENTS

Legal Contingencies

We are involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. There are no pending material legal proceedings or environmental investigations to which we are a party or to which our property is subject.

Product Liability

As of December 31, 2023 and March 31, 2023, there were no claims against us for product liability.

COVID-19 Pandemic

The Company had reduced revenues in the electronic and chemical segments as a result of the Covid pandemic. In the electronic segment certain orders of medical devices manufactured by the Company were reduced or delayed due to the cessation of elective surgeries during the pandemic and generally reduced activities by customers. In the chemical segment certain of the Company’s water-based industrial coatings and adhesives orders were reduced due to some customers having shutdowns or reduced activities during the pandemic. We intend to continue to evaluate and may, in certain circumstances, take preemptive actions to preserve liquidity during the COVID-19 pandemic. As the circumstances around the COVID-19 pandemic remain uncertain, we continue to actively monitor the pandemic's impact on us, including our financial position, liquidity, results of operations, and cash flows.

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, 2023.

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 and its subsidiary Sonotron.  

RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2023 AS COMPARED TO DECEMBER 31, 2022.  

For the three months ended December 31, 2023
	Chemical			Electronics			Engineering			Total
Revenue	$	215,431		$	423,593		$	57,472		$	696,496
Cost of Sales		148,519			215,508			11,048			375,075
Gross Profit		66,912			208,085			46,424			321,421
Gross Profit Percentage		31	%		49	%		81	%		46	%
Operating Expenses		135,290			245,006			46,512			426,808
Operating Income (Loss)		(68,378	)		(36,921	)		(88	)		(105,387	)
Other income (expenses)		(61	)		436			(3	)		372
Income (loss) before benefit from income taxes	$	(68,439	)	$	(36,485	)	$	(91	)	$	(105,015	)

15

For the three months ended December 31, 2022
	Chemical			Electronics			Engineering			Total
Revenue	$	331,878		$	485,454		$	165,830		$	983,162
Cost of Sales		187,341			277,133			43,210			507,684
Gross Profit		144,537			208,321			122,620			475,478
Gross Profit Percentage		44	%		43	%		74	%		48	%
Operating Expenses		121,400			190,287			71,038			382,725
Operating Income (Loss)		23,137			18,034			51,582			92,753
Other income (expenses)		415			598			5			1,018
Income (loss) before benefit from income taxes	$	23,552		$	18,632		$	51,587		$	93,771

Variance
	Chemical			Electronics			Engineering			Total
Revenue	$	(116,447	)	$	(61,861	)	$	(108,358	)	$	(286,666	)
Cost of Sales		(38,822	)		(61,625	)		(32,162	)		(132,609	)
Gross Profit		(77,625	)		(236	)		(76,196	)		(154,057	)
Gross Profit Percentage		-12	%		6	%		7	%		-2	%
Operating Expenses		13,890			54,719			(24,526	)		44,083
Operating Income (Loss)		(91,515	)		(54,955	)		(51,670	)		(198,140	)
Other income (expenses)		(476	)		(162	)		(8	)		(646	)
Income (loss) before benefit from income taxes	$	(91,991	)	$	(55,117	)	$	(51,678	)	$	(198,786	)

For the nine months ended December 31, 2023
	Chemical			Electronics			Engineering			Total
Revenue	$	836,346		$	1,082,634		$	294,337		$	2,213,317
Cost of Sales		597,128			646,795			116,679			1,360,602
Gross Profit		239,218			435,839			177,658			852,715
Gross Profit Percentage		29	%		40	%		60	%		39	%
Operating Expenses		502,951			648,539			172,058			1,323,548
Operating Income (Loss)		(263,733	)		(212,700	)		5,600			(470,833	)
Other income (expenses)		2,072			2,672			708			5,452
Income before provision for income taxes	$	(261,661	)	$	(210,028	)	$	6,308		$	(465,381	)

For the nine months ended December 31, 2022
	Chemical			Electronics			Engineering			Total
Revenue	$	1,049,448		$	1,584,003		$	411,387		$	3,044,838
Cost of Sales		587,012			936,513			104,743			1,628,268
Gross Profit		462,436			647,490			306,644			1,416,570
Gross Profit Percentage		44	%		41	%		75	%		47	%
Operating Expenses		426,888			652,885			175,777			1,255,550
Operating Income (Loss)		35,548			(5,395	)		130,867			161,020
Other income (expenses)		(1,996	)		(3,054	)		(822	)		(5,872	)
Income before provision for income taxes	$	33,552		$	(8,449	)	$	130,045		$	155,148

16

Variance
	Chemical			Electronics			Engineering			Total
Revenue	$	(213,102	)	$	(501,369	)	$	(117,050	)	$	(831,521	)
Cost of Sales		10,116			(289,718	)		11,936			(267,666	)
Gross Profit		(223,218	)		(211,651	)		(128,986	)		(563,855	)
Gross Profit Percentage		-15	%		-1	%		-14	%		-8	%
Operating Expenses		76,063			(4,346	)		(3,719	)		67,998
Operating Income (Loss)		(299,281	)		(207,305	)		(125,267	)		(631,853	)
Other income (expenses)		4,068			5,726			1,530			11,324
Income (loss) before benefit from income taxes	$	(295,213	)	$	(201,579	)	$	(123,737	)	$	(620,529	)

Revenues for the three months ended December 31, 2023 decreased by $286,666. The decrease is a result of decreased sales of $108,358 in the Engineering segment, $61,861 in the Electronics segment and $116,447 in the Chemical segment.

Gross profit for the three months ended December 31, 2023 decreased by $154,057. The decrease in gross profit resulted primarily from decreased sales in all segments.

Revenues for the nine months ended December 31, 2023 decreased by $831,521. The decrease is a result of decreased sales of $213,102 in the Chemical segment, $501,369 in the Electronics segment and $117,050 in the Engineering segment.

Gross profit for the nine months ended December 31, 2023 decreased by $563,855. The decrease in gross profit resulted primarily from decreased sales in all segments.

We are highly dependent upon certain customers. During the three months ended December 31, 2023, two customers accounted for 53% of our net revenue. Net revenues from foreign customers for the three months ended December 31, 2023 was $40,029 or 6%.

Revenues for the three months ended December 31, 2022 increased by $233,508. The increase is a result of increased sales of $95,899 in the Engineering segment, $137,543 in the Electronics segment and $66 in the Chemical segment.

Gross profit for the three months ended December 31, 2022 increased by $149,365. The increase in gross profit resulted primarily from increased sales in Electronics and Engineering sales.

Revenues for the nine months ended December 31, 2022 increased by $721,967. The increase is a result of increased sales of $31,553 in the Chemical segment, $672,434 in the Electronics segment and $17,980 in the Engineering segment.

Gross profit for the nine months ended December 31, 2022 increased by $425,811. The increase in gross profit resulted primarily from increased sales in Electronics and Chemical sales.

We are highly dependent upon certain customers. During the three months ended December 31, 2022, two customers accounted for 50% of our net revenue. Net revenues from foreign customers for the three months ended December 31, 2022 was $80,465 or 8%.

Loss from operations for the three months ended December 31, 2023 was $105,387 compared to income from operations for the three months ended December 31, 2022 of $92,753.

Other income decreased $827 for the three months ended December 31, 2023.

Other income increased $11,324 for the nine months ended December 31, 2023. The increase is mainly attributable reduced interest and finance costs.

The foregoing resulted in net loss before provision for income taxes for the three and nine months ended December 31, 2023 of $(105,015) and $(465,381) respectively. Earnings per share were $(0.00) and $(0.01) for the three and nine months ended December 31, 2023, respectively.

17

LIQUIDITY AND CAPITAL RESOURCES  

At December 31, 2023, we had cash and cash equivalents of $661,985 as compared to $1,003,730 at March 31, 2023. The $341,745 decrease was primarily the result of cash used in operations during the nine-month period in the amount of $495,138, cash used in investing activities in the amount of $14,515 offset by cash provided in financing activities of $167,908. 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.    

Below is a summary of our cash flow for the nine-month ending periods indicated:

	December 31, 2023			December 31, 2022
Net cash provided by (used in) operating activities	$	(495,137	)	$	215,022
Net cash provided by (used in) investing activities		(14,515	)		-
Cash flows provided (used) in financing activities:		167,907			(255,835	)
Net increase (decrease) in cash and cash equivalents	$	(341,745	)	$	(40,813	)
Cash and cash equivalents - beginning of period	$	1,003,730		$	1,038,498
Cash and cash equivalents - end of period	$	661,985		$	997,685

Future Sources of Liquidity:

We expect that growth with profitable customers and continued focus on new customers will enable us to generate cash flows from operating activities during fiscal 2024.

Based on current expectations, we believe that our existing cash and cash equivalents of $661,985 as of December 31, 2023, 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.

OPERATING ACTIVITIES 

Net cash used by operating activities was $(495,137) for the nine months ended December 31, 2023, as compared to net cash provided by operating activities of $215,022 for the nine months ended December 31, 2022. The cash used during the nine months ended December 31, 2023 was primarily due to a net loss of $465,381, an increase in net operating assets of $144,104, offset by a decrease in net operating liabilities of $197,273, write-off of inventories of $33,945, depreciation and amortization of $3,370, and stock based compensation of $3,096 (see Note 11 Warrant Liability), and non-cash interest expense of $17,167.

INVESTING ACTIVITIES

Cash used in investing activities for the nine months ended December 31, 2023 was $14,515 for the purchase of an intangible asset.

FINANCING ACTIVITIES

For the nine months ended December 31, 2023, net cash provided by financing activities was $167,907 due to a net borrowing and payments in the line of credit of $185,569, a decrease in due to stockholder of $13,626 and repayments on the PPP loan of $4,035.

18

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 currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At December 31, 2023, approximately $412,000 exceeded the FDIC limit.

Our sales are materially dependent on a small group of customers, as noted in Note 6 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 and year to date period ended December 31, 2022, 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. 

The determination that our disclosure controls and procedures were not effective as of December 31, 2023, 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 December 31, 2023, and March 31, 2023 and the related condensed consolidated statements of operations, and cash flows for the three and nine months ended December 31, 2023 and 2022, 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.

19

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None

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, 2022. 

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

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None 

ITEM 4. MINE SAFETY DISCLOSURES

None

ITEM 5. OTHER INFORMATION

None 

ITEM 6. EXHIBITS.

(a) Exhibit No.

21.1	Subsidiaries of the Company
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**	Inline XBRL Instance
101.SCH**	Inline XBRL Taxonomy Extension Schema
101.CAL**	Inline XBRL Taxonomy Extension Calculation
101.DEF**	Inline XBRL Taxonomy Extension Definition
101.LAB**	Inline XBRL Taxonomy Extension Labels
101.PRE**	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

** 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
	February 20, 2024

20

EX-21.1

EXHIBIT 21.1

SUBSIDIARIES OF ADM TRONICS UNLIMITED, INC.

                     Sonotron Medical Systems, Inc.

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: February 20, 2024	/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 annual Report of ADM Tronics Unlimited, Inc. (the "Company") on Form 10-Q for the three and nine months ended December 31, 2023, (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: February 20, 2024	By:	/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

Document And Entity Information - shares	9 Months Ended
	Dec. 31, 2023	Feb. 14, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	0-17629
Entity Registrant Name	ADM TRONICS UNLIMITED, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-1896032
Entity Address, Address Line One	224-S Pegasus Ave.
Entity Address, City or Town	Northvale
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07647
City Area Code	201
Local Phone Number	767-6040
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		67,588,504
Entity Central Index Key	0000849401
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 661,985	$ 1,003,730
Inventories	487,431	443,465
Prepaid expenses and other current assets	8,082	41,251
Total current assets	1,938,380	1,986,239
Other Assets:
Long-term inventory	141,696	228,451
Operating lease right-of-use asset	420,421	481,535
Loan receivable	0	209,809
Due from affiliate	0	80,090
Intangible assets, net of accumulated amortization of $24,071 and $22,631 at September 30, 2023 and March 31, 2023, respectively	24,308	13,163
Other assets	90,538	90,538
Deferred tax asset	0	0
Total other assets	676,963	1,103,586
Total assets	2,615,343	3,089,825
Current liabilities:
Accounts payable	293,497	322,639
Bank overdraft	145,115	134,837
Accrued expenses and other current liabilities	100,531	75,659
PPP loan	7,621	11,656
Line of credit	298,378	112,809
Operating lease liability	87,727	82,917
Customer deposits	235,348	359,723
Total current liabilities	1,168,217	1,113,866
Long-term liabilities
PPP loan less current portion	0	0
Operating lease liability less current portion	343,926	410,474
Total long-term liabilities	343,926	410,474
Total liabilities	1,512,143	1,524,340
Stockholders' equity:
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding	0	0
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	33,602,612	33,599,516
Accumulated deficit	(32,533,206)	(32,067,825)
Total stockholders' equity	1,103,200	1,565,485
Total liabilities and stockholders' equity	2,615,343	3,089,825
Related Party [Member]
Current assets:
Accounts receivable, net of allowance for credit losses of $429,872 and $694,871 at September 30, 2023 and March 31, 2023, respectively	780,882	497,793
Current liabilities:
Due to stockholder	$ 0	$ 13,626

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Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Accounts Receivable, Allowance for Credit Loss, Current	$ 429,972	$ 694,871
Intangible assets, accumulated amortization	26,001	22,631
Intangible assets, accumulated amortization	$ 26,001	$ 22,631
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized (in shares)	5,000,000	5,000,000
Preferred Stock, Shares Issued (in shares)	0	0
Preferred Stock, Shares Outstanding, Ending Balance (in shares)	0	0
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0005	$ 0.0005
Common Stock, Shares Authorized (in shares)	150,000,000	150,000,000
Common Stock, Shares, Issued (in shares)	67,588,492	67,588,492
Common Stock, Shares, Outstanding, Ending Balance (in shares)	67,588,492	67,588,492

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Net revenues	$ 696,496	$ 983,162	$ 2,213,317	$ 3,044,838
Cost of sales	375,075	507,684	1,360,602	1,628,268
Gross Profit	321,421	475,478	852,715	1,416,570
Operating expenses:
Research and development	177,502	140,192	439,832	399,894
Selling, general and administrative	249,306	242,533	883,716	855,656
Total operating expenses	426,808	382,725	1,323,548	1,255,550
Income (loss) from operations	(105,387)	92,753	(470,833)	161,020
Other income (expense):
Interest income	5,663	3,676	20,256	4,670
Interest and finance expenses	(5,291)	(2,658)	(14,804)	(10,542)
Total other income (expense)	372	1,018	5,452	(5,872)
Income (loss) before provision for income taxes	(105,015)	93,771	(465,381)	155,148
Total provision (benefit) for income taxes	0	0	0	0
Net income (loss)	$ (105,015)	$ 93,771	$ (465,381)	$ 155,148
Basic and diluted per common share: (in dollars per share)	$ (0)	$ 0	$ (0.01)	$ 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

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Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Mar. 31, 2022	67,588,492
Balance at Mar. 31, 2022	$ 33,794	$ 33,311,672	$ (31,971,503)	$ 1,373,963
Stock based compensation		287,844		287,844
Net Income (loss)			(38,666)	(38,666)
Net (loss)			(38,666)	(38,666)
Stock based compensation		287,844		287,844
Balance (in shares) at Jun. 30, 2022	67,588,492
Balance at Jun. 30, 2022	$ 33,794	33,599,516	(32,010,169)	1,623,141
Balance (in shares) at Mar. 31, 2022	67,588,492
Balance at Mar. 31, 2022	$ 33,794	33,311,672	(31,971,503)	1,373,963
Net Income (loss)				155,148
Net (loss)				155,148
Balance (in shares) at Dec. 31, 2022	67,588,492
Balance at Dec. 31, 2022	$ 33,794	33,599,516	(31,816,355)	1,816,955
Balance (in shares) at Jun. 30, 2022	67,588,492
Balance at Jun. 30, 2022	$ 33,794	33,599,516	(32,010,169)	1,623,141
Net Income (loss)			100,043	100,043
Net (loss)			100,043	100,043
Balance (in shares) at Sep. 30, 2022	67,588,492
Balance at Sep. 30, 2022	$ 33,794	33,599,516	(31,910,126)	1,723,184
Net Income (loss)			93,771	93,771
Net (loss)			93,771	93,771
Balance (in shares) at Dec. 31, 2022	67,588,492
Balance at Dec. 31, 2022	$ 33,794	33,599,516	(31,816,355)	1,816,955
Balance (in shares) at Mar. 31, 2023	67,588,492
Balance at Mar. 31, 2023	$ 33,794	33,599,516	(32,067,825)	1,565,485
Stock based compensation		1,032		1,032
Net Income (loss)			(132,261)	(132,261)
Net (loss)			(132,261)	(132,261)
Stock based compensation		1,032		1,032
Balance (in shares) at Jun. 30, 2023	67,588,492
Balance at Jun. 30, 2023	$ 33,794	33,600,548	(32,200,086)	1,434,256
Balance (in shares) at Mar. 31, 2023	67,588,492
Balance at Mar. 31, 2023	$ 33,794	33,599,516	(32,067,825)	1,565,485
Net Income (loss)				(465,381)
Net (loss)				(465,381)
Balance (in shares) at Dec. 31, 2023	67,588,492
Balance at Dec. 31, 2023	$ 33,794	33,602,612	(32,533,206)	1,103,200
Balance (in shares) at Jun. 30, 2023	67,588,492
Balance at Jun. 30, 2023	$ 33,794	33,600,548	(32,200,086)	1,434,256
Stock based compensation		1,032
Net Income (loss)			(228,105)	(228,105)
Net (loss)			(228,105)	(228,105)
Stock based compensation		1,032
Balance (in shares) at Sep. 30, 2023	67,588,492
Balance at Sep. 30, 2023	$ 33,794	33,601,580	(32,428,191)	1,207,183
Stock based compensation		1,032		1,032
Net Income (loss)			(105,015)	(105,015)
Net (loss)			(105,015)	(105,015)
Stock based compensation		1,032		1,032
Balance (in shares) at Dec. 31, 2023	67,588,492
Balance at Dec. 31, 2023	$ 33,794	$ 33,602,612	$ (32,533,206)	$ 1,103,200

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Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net Income (loss)	$ (465,381)	$ 155,148
Amortization	3,370	2,160
Write-off of inventories	33,945	54,692
Change in allowance for credit losses	(305,090)
Loan impairment	209,809
Non-cash interest expense	17,168	20,320
Amortization of right-to-use asset	61,114	61,577
Stock based compensation	3,096	33,310
Changes in operating assets and liabilities balances:
Accounts receivable	102,091	171,436
Inventories	8,844	(189,971)
Prepaid expenses and other current assets	33,169	47,622
Loan receivable	0	(72,881)
Accounts payable	(29,142)	(66,215)
Bank overdraft	10,278	0
Customer deposits	(124,375)	98,565
Accrued expenses and other current liabilities	24,873	(24,335)
Payments of operating lease liability	(78,906)	(76,406)
Net cash provided by (used in) operating activities	(495,137)	215,022
Cash flows from investing activities:
Purchase of software	(14,515)	0
Net cash provided by (used in) investing activities	(14,515)	0
Cash flows provided (used) in financing activities:
Due to shareholder	(13,626)	(29,104)
Proceeds from line of credit	233,328	85,067
Repayments of line of credit	(47,760)	(307,764)
Proceeds (payments) from/to PPP loan	(4,035)	(4,034)
Net cash provided by (used in) financing activities	167,907	(255,835)
Net decrease in cash and cash equivalents	(341,745)	(40,813)
Cash and cash equivalents - beginning of period	1,003,730	1,038,498
Cash and cash equivalents - end of period	661,985	997,685
Cash paid for:
Interest	20,256	7,884
Non-cash activities:
Reclass of Warrant Liability to Additional Paid in Capital	0	(182,161)
Initial recognition of prepaid warrant expense	$ 0	$ (105,683)

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Note 1 - Nature of Business

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

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

NOTE 1  - NATURE OF BUSINESS

ADM Tronics Unlimited, Inc. (“we”, “us”, the “Company” or “ADM”), was incorporated under the laws of the state of Delaware on November 24, 1969. We are a manufacturing and engineering concern whose principal lines of business are the design, manufacture, and sale of electronics of our own products or on a contract manufacturing basis; the production and sale of chemical and antistatic products; and, research, development and engineering services.

Electronic equipment is manufactured in accordance with customer specifications on a contract basis. Our electronic device product line consists principally of proprietary devices used in diagnostics and therapeutics of humans and animals and electronic controllers for spas and hot tubs. These products are sold to customers located principally in the United States. We are registered with the FDA as a contract manufacturing facility and we manufacture medical devices for customers in accordance with their designs and specifications. Our chemical product line is principally comprised of water-based chemical products used in the food packaging and converting industries, and anti-static conductive paints, coatings and other products. These products are sold to customers located in the United States, Australia, Asia and Europe. We also provide research, development, regulatory, and engineering services to customers. Our Sonotron Medical Systems, Inc. subsidiary (“Sonotron”) is involved in medical electronic therapeutic technology.

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Note 2 - Significant Accounting Policies

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Significant Accounting Policies [Text Block]

NOTE 2  - SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to accounting principles generally accepted in the United States of America (“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 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, 2023 as disclosed in our annual report on Form 10-K for that year. Unaudited interim results are not necessarily indicative of the results for the full fiscal year ending March 31, 2024. The consolidated balance sheet as of March 31, 2023 was derived from the audited consolidated financial statements as of and for the year then ended.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary, Sonotron (the “Company”). 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 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 deferred tax assets and related valuation allowance, write down of inventory, impairment of long-lived assets, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.

FAIR VALUE OF FINANCIAL INSTRUMENTS

For certain of our financial instruments, including accounts receivable, accounts payable, and accrued expenses, the carrying amounts approximate fair value due to their relatively short maturities.

CASH AND CASH EQUIVALENTS

Cash equivalents are comprised of highly liquid investments with original maturities of three months or less when purchased. We maintain our cash in bank deposit accounts, which at times, may exceed federally insured limits. We have not experienced any losses to date as a result of this policy. Cash and cash equivalents held in these accounts are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At December 31, 2023 and March 31, 2023, approximately $412,000 and $754,000, respectively, exceeded the FDIC limit.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The carrying amounts of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed the due date and estimates the portion, if any, of the balance that will be collected. Management provides for probable uncollectible amounts through a charge to expenses and a credit to a valuation allowance, based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

REVENUE RECOGNITION

ELECTRONICS:

We recognize revenue from the sale of our electronic products when they are shipped to the purchaser. We offer a limited 90-day warranty on our electronics products and contract manufacturing, and a limited 5-year warranty on our electronic controllers for spas and hot tubs. Historically, the amount of warranty expense included in sales of our electronic products have been de minimis. We have no other post shipment obligations. For contract manufacturing, revenues are recognized after shipments 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 $128,000 and $212,000 as of March 31, 2023 were recognized as revenues during the three and nine months ended December 31, 2023, respectively.

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 and $209,000 as of March 31, 2022 were recognized as revenues during the three and nine months ended December 31, 2022, respectively.

CHEMICAL PRODUCTS:

Revenues are recognized when products are shipped to end users. Shipments to distributors are recognized as revenue when no right of return exists.

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 over time as the applicable performance obligations are satisfied.

All revenue is recognized net of discounts.

INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Inventories that are expected to be sold within one operating cycle (1 year) are classified as a current asset. Inventories that are not expected to be sold within 1 year, based on historical trends, are classified as Inventories - long term portion. Obsolete inventory is written off based on prior and expected future usage.

Long-Term Inventory: Due to recent shortages of materials relating to supply chain and COVID issues, when an item the Company believes will be used in the future, even beyond the current fiscal year, becomes available, it will purchase as many items as management deems necessary to fulfill future orders.

PROPERTY AND EQUIPMENT

We record our property and equipment at historical cost. We expense maintenance and repairs as incurred. Depreciation is provided for by the straight-line method over five to seven years, the estimated useful lives of the property and equipment. As of December 31, 2023 and March 31, 2023, all fixed assets were fully depreciated.

ADVERTISING COSTS

Advertising costs are expensed as incurred and amounted to $5,908 and $17,041 for the three and nine months ended December 31, 2023 and $6,184 and $21,216 for the three and nine months ended December 31, 2022 , respectively.

NET EARNINGS PER SHARE

We compute basic earnings per share by dividing net income/loss by the weighted average number of common shares outstanding. 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. Common equivalent shares are excluded from the computation of net earnings per share if their effect is anti-dilutive.

There were 200,000 and -0- anti-dilutive instruments in force during the periods ended December 31, 2023 and 2022, respectively.

Per share basic and diluted (loss) amounted to $(0.00) and $(0.01) and $0.00 and $0.00 for the three and nine months ended December 31, 2023 and 2022, respectively.

LEASES

In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changed financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of April 1, 2019, using the modified retrospective approach which allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases.

The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term. The Company defines a short-term lease as a lease that, at the commencement date, has a lease term of twelve months or less and does not contain an option to purchase the underlying asset that the lease is reasonably certain to exercise. Related variable lease payments are recognized in the period in which the obligation is incurred.

The Company's lease agreement contains related non-lease components (e.g. taxes, etc.). The Company separates lease components and non-lease components for all underlying asset classes.

RECLASSIFICATION

Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net loss.

NEW ACCOUNTING STANDARDS

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of April 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures.

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Note 3 - Inventories

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE 3 - INVENTORIES     

Inventories at December 31, 2023 consisted of the following:

	Current		Long Term		Total
Raw materials	$	426,480	$	135,698	$	562,178
Finished goods		60,951		5,998		66,949
Totals	$	487,431	$	141,696	$	629,127

Inventories at March 31, 2023 consisted of the following:   

	Current		Long Term		Total
Raw materials	$	390,792	$	201,317	$	592,109
Finished goods		52,673		27,134		79,807
Totals	$	443,465	$	228,451	$	671,916

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Note 4 - Intangible Assets

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 4 - INTANGIBLE ASSETS

Intangible assets are being amortized using the straight-line method over periods ranging from 10-15 years with a weighted average remaining life of approximately 6 years.

	December 31, 2023											March 31, 2023
	Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount		Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount
Patents & Trademarks	$	35,794		10	-	15	$	(24,791	)	$	11,003	$	35,794		10	-	15	$	(22,631	)	$	13,163
Software	$	14,515			3		$	(1,210	)	$	13,305	$	-					$	-		$	-
	$	50,309					$	(26,001	)	$	24,308	$	35,794					$	(22,631	)	$	13,163

Estimated aggregate future amortization expense related to intangible assets is as follows:

For the fiscal years ended March 31,
2024	$	3,862
2025		7,115
2026		6,716
2027		2,931
2028		1,726
Thereafter		1,958
	$	24,308

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Note 5 - Concentrations

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 5 – CONCENTRATIONS

During the three months ended December 31, 2023, two customers accounted for 53% of our net revenue. During the three months ended December 31, 2022, two customers accounted for 50% of our net revenue.

During the nine months ended December 31, 2023, two customers accounted for 44% of our net revenue. During the nine months ended December 31, 2022, two customers accounted for 45% of our net revenue.

As of December 31, 2023, four customers represented 91% of our gross accounts receivable. As of March 31, 2023, two customers accounted for 75% of our gross accounts receivable.

As of December 31, 2023, three vendors accounted for 36% of our accounts payable balance. As of March 31, 2023 three vendors accounted for 45% of our accounts payable.

The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the three and nine months ended December 31, 2023 were $40,029 or 6% and $238,170 or 11%, respectively.

Net revenues from foreign customers for the three and nine months ended December 31, 2022 were $86,296 or 8% and $237,852 or 8%, respectively.

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Note 6 - Disaggregated Revenues and Segment Information

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 6 - 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 December 31,
	2023		2022
Net Revenue in the US
Chemical	$	175,402	$	245,582
Electronics		423,593		485,454
Engineering		57,472		165,830
		656,467		896,866
Net Revenue outside the US
Chemical		40,029		86,296
Electronics		-		-
Engineering		-		-
		40,029		86,296
Total Revenues	$	696,496	$	983,162

	Nine Months Ended December 31,
	2023		2022
Net Revenue in the US
Chemical	$	598,176	$	811,596
Electronics		1,082,634		1,584,003
Engineering		294,337		411,387
		1,975,147		2,806,986
Net Revenue outside the US
Chemical		238,170		237,852
Electronics		-		-
Engineering		-		-
		238,170		237,852
Total Revenues	$	2,213,317	$	3,044,838

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Note 7 - Due From Affiliate

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE 7 – DUE FROM AFFILIATE 

The Company has a $75,000 investment for 23.2% of Qol Devices Inc. (Qol). It was determined that the Company does not hold a significant influence which results in us carrying this asset at cost and reported as a component of other assets in the accompanying consolidated balance sheets.

The Company provided $330,090 in engineering services to Qol during the year March 31, 2018. This amount is shown net of a $330,090 and $250,000 allowance for credit losses on the consolidated balance sheets as of December 31, 2023 and March 31, 2023.

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Note 8 - Leases

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

NOTE 8 – LEASES

We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on June 30, 2028. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of December 31, 2022:

	For the fiscal year ended:	Amount
FY 2024	March 31, 2024		$	26,718
FY 2025	March 31, 2025			106,872
FY 2026	March 31, 2026			106,872
FY 2027	March 31, 2027			106,872
FY 2028	March 31, 2028			106,872
FY 2029	March 31, 2029	ends June 30, 2028		26,718
				480,924
	Less: Amount attributable to imputed interest			(49,271	)
			$	431,653
	Weighted average remaining lease term (in years)			2.7

Rent and real estate tax expense for all facilities for the three and nine months ended December 31, 2023 was approximately was approximately $35,000 and $104,000, respectively.

Rent and real estate tax expense for all facilities for the three and nine months ended December 31, 2022 was approximately was approximately $34,000 and $102,000, respectively.

These are reported as a component of cost of sales and selling, general and administrative expenses in the accompanying consolidated statements of operations.

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Note 9 - Paycheck Protection Program (PPP) Loan

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Long-Term Debt [Text Block]

NOTE 9 – PAYCHECK PROTECTION PROGRAM (PPP) LOAN

In May 2020, the Company obtained funding through the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) of $381,000. In February 2021, a second PPP loan was obtained in the amount of $332,542, for a total of $713,542. The loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities, with at least 60% being used for payroll. The Company did use the funds for these expenses during the year ended March 31, 2021. The Company applied for loan forgiveness of both PPP loans. On September 7, 2021, the Company received approval from the SBA for $361,275 of PPP loan forgiveness. On December 21, 2021, the Company received approval from the Bank for $332,542. This amount was recorded as Forgiveness of Paycheck Protection loan in the accompanying condensed Consolidated Statements of Operations during the fiscal year ended March 31, 2022.

The unforgiven portion of the first PPP loan is $19,725, which was converted to a term loan payable in equal installments of principal plus interest at 1% with a maturity date of May 15, 2025. No collateral or personal guarantees is required for the loan. At December 31, 2023, the outstanding balance is $7,621.

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Note 10 - Line of Credit

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 10 – 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 15, 2024, renewing automatically every year. The Company is required to make monthly interest payments, at a rate of 8.87% as of June 30, 2023. Any unpaid principal will be due upon maturity. At December 31, 2023 and March 31, 2023, the outstanding balance was $298,378 and $112,809, respectively.

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Note 11 - Warrants

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Warrant Liability [Text Block]

NOTE 11  – WARRANTS

On April 11, 2023, warrants to purchase Company stock were issued to two outside consultants. Each consultant was granted 100,000 warrants with a strike price of $0.20. The Warrants vested and were exercisable immediately. The warrants were valued using a Black Scholes model effective April 11, 2023, cumulative volatility was computed at 123.52% and the total valuation was $8,256 which will be amortized over the 24-month life.

		Outstanding and exercisable
Range of Exercise prices		Number outstanding		Weighted average remaining life in years		Weighted Average Exercise Price		Exercisable
$	0.20		200,000		1.28	$	0.20		200,000

	2023				2022
	# of Shares		Weighted Average Exercise Price		# of Shares		Weighted Average Exercise Price
Outstanding, beginning of year		-		-		-		-
Issued		200,000	$	0.20		-		-
Exercised		-		-		-		-
Expired		-		-		-		-
Cancelled		-		-		-		-
Outstanding, end of period		200,000	$	0.20		-		-
Exercisable, end of period		200,000	$	0.20		-		-

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Note 12 - Legal Proceedings

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

NOTE 12 – LEGAL PROCEEDINGS

We are involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. There are no pending material legal proceedings or environmental investigations to which we are a party or to which our property is subject.

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Note 13 - Contractual Obligations and Other Commitments

9 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Commitments Disclosure [Text Block]

NOTE 13 – CONTRACTURAL OBLIGATIONS AND OTHER COMMITMENTS

Legal Contingencies

We are involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. There are no pending material legal proceedings or environmental investigations to which we are a party or to which our property is subject.

Product Liability

As of December 31, 2023 and March 31, 2023, there were no claims against us for product liability.

COVID-19 Pandemic

The Company had reduced revenues in the electronic and chemical segments as a result of the Covid pandemic. In the electronic segment certain orders of medical devices manufactured by the Company were reduced or delayed due to the cessation of elective surgeries during the pandemic and generally reduced activities by customers. In the chemical segment certain of the Company’s water-based industrial coatings and adhesives orders were reduced due to some customers having shutdowns or reduced activities during the pandemic. We intend to continue to evaluate and may, in certain circumstances, take preemptive actions to preserve liquidity during the COVID-19 pandemic. As the circumstances around the COVID-19 pandemic remain uncertain, we continue to actively monitor the pandemic's impact on us, including our financial position, liquidity, results of operations, and cash flows.

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Significant Accounting Policies (Policies)

9 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to accounting principles generally accepted in the United States of America (“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 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, 2023 as disclosed in our annual report on Form 10-K for that year. Unaudited interim results are not necessarily indicative of the results for the full fiscal year ending March 31, 2024. The consolidated balance sheet as of March 31, 2023 was derived from the audited consolidated financial statements as of and for the year then ended.

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 (the “Company”). 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 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 deferred tax assets and related valuation allowance, write down of inventory, impairment of long-lived assets, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.

Fair Value of Financial Instruments, Policy [Policy Text Block]

FAIR VALUE OF FINANCIAL INSTRUMENTS

For certain of our financial instruments, including accounts receivable, accounts payable, and accrued expenses, the carrying amounts approximate fair value due to their relatively short maturities.

Cash and Cash Equivalents, Policy [Policy Text Block]

CASH AND CASH EQUIVALENTS

Cash equivalents are comprised of highly liquid investments with original maturities of three months or less when purchased. We maintain our cash in bank deposit accounts, which at times, may exceed federally insured limits. We have not experienced any losses to date as a result of this policy. Cash and cash equivalents held in these accounts are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At December 31, 2023 and March 31, 2023, approximately $412,000 and $754,000, respectively, exceeded the FDIC limit.

Receivable [Policy Text Block]

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The carrying amounts of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management individually reviews all accounts receivable balances that exceed the due date and estimates the portion, if any, of the balance that will be collected. Management provides for probable uncollectible amounts through a charge to expenses and a credit to a valuation allowance, based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

Revenue [Policy Text Block]

REVENUE RECOGNITION

ELECTRONICS:

We recognize revenue from the sale of our electronic products when they are shipped to the purchaser. We offer a limited 90-day warranty on our electronics products and contract manufacturing, and a limited 5-year warranty on our electronic controllers for spas and hot tubs. Historically, the amount of warranty expense included in sales of our electronic products have been de minimis. We have no other post shipment obligations. For contract manufacturing, revenues are recognized after shipments 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 $128,000 and $212,000 as of March 31, 2023 were recognized as revenues during the three and nine months ended December 31, 2023, respectively.

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 and $209,000 as of March 31, 2022 were recognized as revenues during the three and nine months ended December 31, 2022, respectively.

CHEMICAL PRODUCTS:

Revenues are recognized when products are shipped to end users. Shipments to distributors are recognized as revenue when no right of return exists.

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 over time as the applicable performance obligations are satisfied.

All revenue is recognized net of discounts.

Inventory, Policy [Policy Text Block]

INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out method) and net realizable value. Inventories that are expected to be sold within one operating cycle (1 year) are classified as a current asset. Inventories that are not expected to be sold within 1 year, based on historical trends, are classified as Inventories - long term portion. Obsolete inventory is written off based on prior and expected future usage.

Long-Term Inventory: Due to recent shortages of materials relating to supply chain and COVID issues, when an item the Company believes will be used in the future, even beyond the current fiscal year, becomes available, it will purchase as many items as management deems necessary to fulfill future orders.

Property, Plant and Equipment, Policy [Policy Text Block]

PROPERTY AND EQUIPMENT

We record our property and equipment at historical cost. We expense maintenance and repairs as incurred. Depreciation is provided for by the straight-line method over five to seven years, the estimated useful lives of the property and equipment. As of December 31, 2023 and March 31, 2023, all fixed assets were fully depreciated.

Advertising Cost [Policy Text Block]

ADVERTISING COSTS

Advertising costs are expensed as incurred and amounted to $5,908 and $17,041 for the three and nine months ended December 31, 2023 and $6,184 and $21,216 for the three and nine months ended December 31, 2022 , respectively.

Earnings Per Share, Policy [Policy Text Block]

NET EARNINGS PER SHARE

We compute basic earnings per share by dividing net income/loss by the weighted average number of common shares outstanding. 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. Common equivalent shares are excluded from the computation of net earnings per share if their effect is anti-dilutive.

There were 200,000 and -0- anti-dilutive instruments in force during the periods ended December 31, 2023 and 2022, respectively.

Per share basic and diluted (loss) amounted to $(0.00) and $(0.01) and $0.00 and $0.00 for the three and nine months ended December 31, 2023 and 2022, respectively.

Lessee, Leases [Policy Text Block]

LEASES

In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changed financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of April 1, 2019, using the modified retrospective approach which allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases.

The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term. The Company defines a short-term lease as a lease that, at the commencement date, has a lease term of twelve months or less and does not contain an option to purchase the underlying asset that the lease is reasonably certain to exercise. Related variable lease payments are recognized in the period in which the obligation is incurred.

The Company's lease agreement contains related non-lease components (e.g. taxes, etc.). The Company separates lease components and non-lease components for all underlying asset classes.

Reclassification, Comparability Adjustment [Policy Text Block]

RECLASSIFICATION

Certain amounts in the prior periods presented have been reclassified to conform to the current period financial statement presentation. These reclassifications have no effect on previously reported net loss.

New Accounting Pronouncements, Policy [Policy Text Block]

NEW ACCOUNTING STANDARDS

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of April 1, 2023. These standards replace the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measure at amortized cost to be presented at the net amount expected to be collected. The Company determined that this change does not have a material impact to the financial statements or financial statement disclosures.

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Note 3 - Inventories (Tables)

9 Months Ended

Dec. 31, 2023

Notes Tables

Schedule Of Inventory [Table Text Block]

	Current		Long Term		Total
Raw materials	$	426,480	$	135,698	$	562,178
Finished goods		60,951		5,998		66,949
Totals	$	487,431	$	141,696	$	629,127

	Current		Long Term		Total
Raw materials	$	390,792	$	201,317	$	592,109
Finished goods		52,673		27,134		79,807
Totals	$	443,465	$	228,451	$	671,916

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Note 4 - Intangible Assets (Tables)

9 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	December 31, 2023											March 31, 2023
	Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount		Cost		Weighted Average Amortization Period (Years)				Accumulated Amortization			Net Carrying Amount
Patents & Trademarks	$	35,794		10	-	15	$	(24,791	)	$	11,003	$	35,794		10	-	15	$	(22,631	)	$	13,163
Software	$	14,515			3		$	(1,210	)	$	13,305	$	-					$	-		$	-
	$	50,309					$	(26,001	)	$	24,308	$	35,794					$	(22,631	)	$	13,163

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

For the fiscal years ended March 31,
2024	$	3,862
2025		7,115
2026		6,716
2027		2,931
2028		1,726
Thereafter		1,958
	$	24,308

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Note 6 - Disaggregated Revenues and Segment Information (Tables)

9 Months Ended

Dec. 31, 2023

Notes Tables

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

	Three months Ended December 31,
	2023		2022
Net Revenue in the US
Chemical	$	175,402	$	245,582
Electronics		423,593		485,454
Engineering		57,472		165,830
		656,467		896,866
Net Revenue outside the US
Chemical		40,029		86,296
Electronics		-		-
Engineering		-		-
		40,029		86,296
Total Revenues	$	696,496	$	983,162

	Nine Months Ended December 31,
	2023		2022
Net Revenue in the US
Chemical	$	598,176	$	811,596
Electronics		1,082,634		1,584,003
Engineering		294,337		411,387
		1,975,147		2,806,986
Net Revenue outside the US
Chemical		238,170		237,852
Electronics		-		-
Engineering		-		-
		238,170		237,852
Total Revenues	$	2,213,317	$	3,044,838

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Note 8 - Leases (Tables)

9 Months Ended

Dec. 31, 2023

Notes Tables

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

	For the fiscal year ended:	Amount
FY 2024	March 31, 2024		$	26,718
FY 2025	March 31, 2025			106,872
FY 2026	March 31, 2026			106,872
FY 2027	March 31, 2027			106,872
FY 2028	March 31, 2028			106,872
FY 2029	March 31, 2029	ends June 30, 2028		26,718
				480,924
	Less: Amount attributable to imputed interest			(49,271	)
			$	431,653
	Weighted average remaining lease term (in years)			2.7

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Note 11 - Warrants (Tables)

9 Months Ended

Dec. 31, 2023

Notes Tables

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

		Outstanding and exercisable
Range of Exercise prices		Number outstanding		Weighted average remaining life in years		Weighted Average Exercise Price		Exercisable
$	0.20		200,000		1.28	$	0.20		200,000

	2023				2022
	# of Shares		Weighted Average Exercise Price		# of Shares		Weighted Average Exercise Price
Outstanding, beginning of year		-		-		-		-
Issued		200,000	$	0.20		-		-
Exercised		-		-		-		-
Expired		-		-		-		-
Cancelled		-		-		-		-
Outstanding, end of period		200,000	$	0.20		-		-
Exercisable, end of period		200,000	$	0.20		-		-

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Note 2 - Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Cash, Uninsured Amount	$ 412,000		$ 412,000		$ 754,000
Contract with Customer, Liability, Revenue Recognized	128,000	$ 120,000	212,000	$ 209,000
Advertising Expense	$ 5,908	$ 6,184	$ 17,041	$ 21,216
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			200,000	0
Earnings Per Share, Basic	$ (0)	$ 0	$ (0.01)	$ 0
Minimum [Member]
Property, Plant and Equipment, Useful Life	5 years		5 years
Maximum [Member]
Property, Plant and Equipment, Useful Life	7 years		7 years

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Note 3 - Inventories - Summary of Inventory (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Raw materials	$ 562,178	$ 592,109
Raw materials	562,178	592,109
Finished goods	66,949	79,807
Finished goods	66,949	79,807
Totals	629,127	671,916
Totals	629,127	671,916
Current [Member]
Raw materials	426,480	390,792
Raw materials	426,480	390,792
Finished goods	60,951	52,673
Finished goods	60,951	52,673
Totals	487,431	443,465
Totals	487,431	443,465
Long Term [Member
Raw materials	135,698	201,317
Raw materials	135,698	201,317
Finished goods	5,998	27,134
Finished goods	5,998	27,134
Totals	141,696	228,451
Totals	$ 141,696	$ 228,451

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Note 4 - Intangible Assets (Details Textual)	Sep. 30, 2023
Finite-Lived Intangible Assets, Remaining Amortization Period (Year)	6 years
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	10 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	15 years

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Note 4 - Intangible Assets - Intangible Assets (Details) - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2023	Mar. 31, 2023	Sep. 30, 2023
Cost	$ 50,309	$ 35,794
Accumulated amortization	(26,001)	(22,631)
Net carrying amount	24,308	13,163	$ 24,308
Intangible assets, accumulated amortization	26,001	22,631
Intangible assets, net of accumulated amortization of $24,071 and $22,631 at September 30, 2023 and March 31, 2023, respectively	24,308	13,163	$ 24,308
Patents And Trademarks [Member]
Cost	35,794	35,794
Accumulated amortization	(24,791)	(22,631)
Net carrying amount		13,163
Intangible assets, accumulated amortization	$ 24,791	22,631
Intangible assets, net of accumulated amortization of $24,071 and $22,631 at September 30, 2023 and March 31, 2023, respectively		$ 13,163
Patents And Trademarks [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year)	10 years	10 years
Net carrying amount	$ 11,003
Intangible assets, net of accumulated amortization of $24,071 and $22,631 at September 30, 2023 and March 31, 2023, respectively	11,003
Patents And Trademarks [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year)		15 years
Software [Member]
Cost	$ 14,515	$ 0
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year)	3 years
Accumulated amortization	$ 1,210	0
Net carrying amount	13,305	0
Intangible assets, accumulated amortization	(1,210)	0
Intangible assets, net of accumulated amortization of $24,071 and $22,631 at September 30, 2023 and March 31, 2023, respectively	$ 13,305	$ 0

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Note 4 - Intangible Assets - Estimated Aggregate Future Amortization Expense (Details) - USD ($)	Dec. 31, 2023	Sep. 30, 2023	Mar. 31, 2023
2024		$ 3,862
2025		7,115
2026		6,716
2027		2,931
2028		1,726
Thereafter		1,958
Finite-Lived Intangible Assets, Net	$ 24,308	$ 24,308	$ 13,163

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Note 5 - Concentrations (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2023
Revenue from Contract with Customer, Including Assessed Tax	$ 696,496	$ 983,162	$ 2,213,317	$ 3,044,838
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customers [Member]
Concentration Risk, Percentage	53.00%	50.00%	44.00%	45.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Foreign Customers [Member]
Concentration Risk, Percentage	6.00%	8.00%	11.00%	8.00%
Revenue from Contract with Customer, Including Assessed Tax	$ 40,029	$ 86,296	$ 238,170	$ 237,852
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member]
Concentration Risk, Percentage			75.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Four Customers [Member]
Concentration Risk, Percentage			91.00%
Accounts Payable Balance [Member] | Vendor Concentration Risk [Member]
Number of Vendors					3
Accounts Payable Balance [Member] | Vendor Concentration Risk [Member] | Three Vendors [Member]
Concentration Risk, Percentage			36.00%		45.00%

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Note 6 - Disaggregated Revenues and Segment Information - Net Revenue, Classified by Geography (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer, Including Assessed Tax	$ 696,496	$ 983,162	$ 2,213,317	$ 3,044,838
UNITED STATES
Revenue from Contract with Customer, Including Assessed Tax	656,467	896,866	1,975,147	2,806,986
UNITED STATES | Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	175,402	245,582	598,176	811,596
UNITED STATES | Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	423,593	485,454	1,082,634	1,584,003
UNITED STATES | Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	57,472	165,830	294,337	411,387
Non-US [Member]
Revenue from Contract with Customer, Including Assessed Tax	40,029	86,296	238,170	237,852
Non-US [Member] | Chemical [Member]
Revenue from Contract with Customer, Including Assessed Tax	40,029	86,296	238,170	237,852
Non-US [Member] | Electronics [Member]
Revenue from Contract with Customer, Including Assessed Tax	0	0	0	0
Non-US [Member] | Engineering [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 0	$ 0	$ 0	$ 0

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Note 7 - Due From Affiliate (Details Textual) - USD ($)	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2023	Mar. 31, 2023
Engineering Services [Member] | Qol [Member]
Related Party Transaction, Amounts of Transaction	$ 330,090
Accounts Receivable, Allowance for Credit Loss		$ 330,090	$ 250,000
Qol [Member]
Equity Method Investments		$ 75,000
Equity Method Investment, Ownership Percentage		23.20%

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Note 8 - Leases (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Operating Lease, Expense	$ 35,000	$ 34,000	$ 104,000	$ 102,000

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Note 8 - Leases - Future Minimum Lease Payments (Details)	Dec. 31, 2022 USD ($)
FY 2024	$ 26,718
FY 2025	106,872
FY 2026	106,872
FY 2027	106,872
FY 2028	106,872
FY 2029	26,718
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Seven	480,924
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	49,271
Operating Lease, Liability	$ 431,653
Operating Lease, Weighted Average Remaining Lease Term	2 years 8 months 12 days

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Note 9 - Paycheck Protection Program (PPP) Loan (Details Textual) - USD ($)			1 Months Ended		10 Months Ended
	Dec. 21, 2021	Sep. 07, 2021	Feb. 28, 2021	May 30, 2020	Feb. 28, 2021	Dec. 31, 2023
Paycheck Protection Program CARES Act [Member]
Proceeds from Notes Payable, Total			$ 332,542	$ 381,000	$ 713,542
Gain (Loss) on Extinguishment of Debt, Total		$ 361,275
Gain (Loss) on Extinguishment of Debt		361,275
Paycheck Protection Program CARES Act [Member] | Loans Payable [Member]
Gain (Loss) on Extinguishment of Debt, Total	$ 332,542
Gain (Loss) on Extinguishment of Debt	$ 332,542
PPP Term Loan One [Member]
Loans Payable, Total		$ 19,725				$ 7,621
Debt Instrument, Interest Rate, Stated Percentage		1.00%
Debt Instrument, Maturity Date		May 15, 2025

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Note 10 - Line of Credit (Details Textual) - Revolving Credit Facility [Member] - USD ($)	Sep. 07, 2021	Dec. 31, 2023	Sep. 30, 2023	Mar. 31, 2023	Jun. 15, 2018
Line of Credit Facility, Maximum Borrowing Capacity					$ 400,000
Line of Credit Facility, Expiration Date	May 15, 2024
Debt Instrument, Interest Rate, Stated Percentage			8.87%
Short-Term Debt, Total		$ 298,378		$ 112,809

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Note 11 - Warrants (Details Textual)	Dec. 31, 2023 $ / shares	Apr. 11, 2023 USD ($) $ / shares shares	Mar. 31, 2023 $ / shares	Dec. 31, 2022 $ / shares	Mar. 31, 2022 $ / shares
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.2		$ 0	$ 0	$ 0
Consulting Agreement [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares		100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 0.2
Warrants and Rights Outstanding | $		$ 8,256
Warrants and Rights Outstanding, Term		24 months
Consulting Agreement [Member] | Measurement Input, Price Volatility [Member]
Warrants and Rights Outstanding, Measurement Input		1.2352

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Note 11 - Warrants - Outstanding and Exercisable (Details) - $ / shares	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.2	$ 0
Outstanding, beginning of year, shares (in shares)	0	0
Class of Warrant or Right, Outstanding	200,000	0
Outstanding, beginning of year, weighted average exercise price (in dollars per share)	$ 0	$ 0
Class of Warrant or Right, Exercisable	200,000	0
Issued, shares (in shares)	200,000	0
Issued, weighted average exercise price (in dollars per share)	$ 0.2	$ 0
Exercised, shares (in shares)	0	0
Exercised, weighted average exercise price (in dollars per share)	$ 0	$ 0
Expired, shares (in shares)	0	0
Expired, weighted average exercise price (in dollars per share)	$ 0	$ 0
Cancelled, shares (in shares)	0	0
Cancelled, weighted average exercise price (in dollars per share)	$ 0	$ 0
Outstanding, end of period, shares (in shares)	200,000	0
Outstanding, end of period, weighted average exercise price (in dollars per share)	$ 0.2	$ 0
Exercisable, end of period, weighted average exercise price (in dollars per share)	0.2	$ 0
Warrant One [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.2
Class of Warrant or Right, Outstanding	200,000
Class of Warrant or Right, Outstanding, Weighted Average Remaining Contractual Life	1 year 3 months 10 days
Class of Warrant or Right, Exercisable	200,000
Outstanding, end of period, shares (in shares)	200,000
Outstanding, end of period, weighted average exercise price (in dollars per share)	$ 0.2