SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2003
OR
[ ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File No. 0-17629
ADM TRONICS UNLIMITED, INC.
(Name of Small Business Issuer in its Charter)
Delaware 22-1896032
(State or Other Jurisdiction (I.R.S. Employer Identifi-
of Incorporation or Organization) cation Number)
224-S Pegasus Ave., Northvale, New Jersey 07647
(Address of Principal Executive Offices)
Issuer's Telephone Number, including area code: (201) 767-6040
Check whether the Issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
Such shorter period that the Issuer was required to file such reports),
And (2) has been subject to the filing requirements for the past 90 days:
YES X NO ______
State the number of shares outstanding of each of the Issuer's classes of
common equity, as of the latest practicable date:
50,382,037 shares of Common Stock, $.0005 par value,
as of August 8, 2003
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ADM TRONICS UNLIMITED, INC.
INDEX
Page Number
Part I. Financial Information
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets - June 30, 2003
and March 31, 2003 3
Consolidated Statements of Operations - For the
three months ended June 30, 2003 and 2002 4
Consolidated Statement of Changes in Stockholders'
Equity - For the three months ended June 30, 2003 4
Consolidated Statements of Cash Flows - For the
three months ended June 30, 2003 and 2002 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
CERTIFICATION OF PERIODIC REPORT
I, Andre' Di Mino, President of ADM Tronics Unlimited, Inc. (the
"Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, 18 U.S.C. Section 1350, that:
(1) the Quarterly Report on Form 10-QSB of the Company for the quarterly
period ended June 30, 2003 (the "Report") fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934 (15 U.S.C. 78m or 78o(d)); and
(2) the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
Dated: August 12, 2003
/s/ Andre' Di Mino
Andre' Di Mino
President
2
ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
JUNE MARCH
Assets 30, 2003 31, 2002
Current assets:
Cash and cash equivalents $ 33,265 $ 49,765
Accounts receivable--trade, less allowance
for doubtful accounts of $39,000 100,888 75,622
Inventories:
Raw materials and supplies 164,500 201,409
Finished goods 44,697 46,928
Equipment held for sale 389,450 404,771
Other current assets 57,348 57,348
Total current assets 790,148 835,843
Property and equipment, at cost net of
Accumulated depreciation of $416,785 and
$443,184, respectively 16,543 24,155
Equipment in use and under lease agreements -
at cost net of accumulated depreciation of
$423,604 and $631,365, respectively 291,930 306,860
Loan receivable from officer, bearing
interest at 3% per annum, unsecured 49,188 49,891
Other assets 94,128 95,621
Total assets $1,241,937 $1,312,370
Liabilities and stockholders equity:
Current liabilities:
Accounts payable-trade $ 195,760 $ 200,631
Accrued expenses 41,507 59,579
Total current liabilities 237,267 260,210
Notes payable - long-term portion 135,000 135,000
Stockholders' equity 869,670 917,160
Total liabilities and
stockholders' equity $1,241,937 $1,312,370
See accompanying notes to consolidated financial statements.
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ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED
June 30,
2003 2002
Revenues $ 272,308 $ 253,610
Costs and expenses:
Cost of sales 159,253 78,635
Selling, general and
administrative 160,632 248,977
Total costs and expenses 319,885 327,612
Operating loss $ (47,577) $ (74,002)
Other income:
Interest and other income 87 5,893
Net loss $ (47,490) $ (68,109)
Weighted average number of
common shares outstanding 50,382,037 47,382,037
Net loss per share (0.001) (0.001)
ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED JUNE 30, 2003
Preferred Common
Shares Shares Capital
5,000,000 150,000,000 in
Authorized Authorized excess
$.01 Par $.0005 Par of Par Accumulated
Value Par Value Value Value Deficit Total
Balances -
March 31,
2003 - 50,382,037 $25,191 $6,792,118 $(5,900,149) $917,160
Net loss for
The period
ended
June 30,
2003 (47,490) (47,490)
Balances -
June 30,
2003 - 50,382,037 $25,191 $6,792,118 $(5,947,639) $869,670
See accompanying notes to consolidated financial statements.
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ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
JUNE 30,
2003 2002
Cash flows from Operating activities:
Net loss (47,490) (68,109)
Adjustments to reconcile net loss
to net cash from operating activities:
Depreciation and amortization 7,612 46,169
Changes in operating assets and liabilities:
Accounts receivable--trade (23,970) 1,834
Inventories 40,021 23,670
Equipment in use or under lease 14,930 -
Equipment held for sale 15,321 368
Other assets 2,158 11,272
Accounts payable--trade (10,691) 14,465
Accrued expenses and other (14,391) (34,513)
Net cash flows used in operating activities (16,500) (4,844)
Cash flows from Investing activities:
Repayments of loans by officer - 1,300
Cash flows from Financing activities: - -
Net change in cash and cash equivalents (16,500) (3,544)
Cash and cash equivalents--beginning of year 49,765 51,565
Cash and cash equivalents--end of period 33,265 48,021
Supplemental disclosures:
Interest paid - 3,151
Income taxes paid - 2,266
See accompanying notes to consolidated financial statements.
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ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1-Basis of Presentation:
The consolidated balance sheet at the end of the preceding fiscal year
has been derived from the audited consolidated balance sheet contained in
the Company's annual report on Form 10-KSB for the fiscal year ended March 31,
2003 (the "Form 10-KSB") and is presented for comparative purposes. All
other financial statements are unaudited. In the opinion of management, all
adjustments which include only normal recurring adjustments necessary to
present fairly the financial position, results of operations and changes in
financial positions for all periods presented have been made. The results
of operations for interim periods are not necessarily indicative of the
operating results for the full year.
Footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been omitted in
accordance with the published rules and regulations of the Securities and
Exchange Commission. These consolidated financial statements should be read
in conjunction with the financial statements and notes thereto included in
the Form 10-KSB.
Note 2. Segment Information
Information about segment information is as follows:
Three Months Ended June 30, 2003: Chemical Medical Total
Revenues from external customers 241,217 31,091 272,308
Segment profit (loss) (23,349) (24,395) (47,490)
Three Months Ended June 30, 2002:
Revenues from external customers 236,055 17,554 253,610
Segment profit (loss) (8,676) (65,326) (68,109)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
At June 30, 2003 the Company had cash and equivalents of $33,265 as compared
to $49,765 at March 31, 2003. This decrease was the result of net cash flows
used in operations.
Operating Activities
Net cash flows used in operating activities were $16,500 for the three months
ended June 30, 2003 as compared to net cash flows used in operating activities
of $4,844 for the quarter ended June 30, 2002. This increase in cash used
was due to the loss of $47,490 and $25,082 in accounts payable and accrued
expenses offset by $7,612 in depreciation, $40,021 in inventories and $32,409
in equipment and other assets for the quarter ended June 30, 2003.
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Investing Activities
There were no investing activities for the quarter ended June 30, 2003.
Financing Activities
There were no financing activities for the quarter ended June 30, 2002
The Company does not have any material external sources of liquidity or unused
sources of funds.
Results of Operations
Quarter Ended June 30, 2003
Revenues
Revenues were $272,308 in 2003 as compared to $253,610 in 2002 representing an
increase of $18,698 or 7%. Revenues from the Company's medical electronics
activities decreased $182,117, primarily due to reductions in contract
manufacturing offset by an increase in chemical revenues of $68,501.
Gross Profit
Gross profit of $113,055 in 2003 was $61,940 or 35% below the gross profit of
$174,995 in 2002. Gross profit was 42% of revenues in 2003 as compared with
69% of revenues in 2002. The decrease in gross profit margin was primarily
due to the product mix of sales with higher sales of products with a lower
gross margin.
Operating Loss
Operating loss in 2003 was ($47,577) compared to ($74,002) in 2002. Selling,
general and administrative expenses decreased by $88,345 primarily due to a
reduction in operating expenditures and reduced overhead costs.
Other Income
Other income in 2003 was $87 as compared to $5,893 in 2002. The decrease
was due to reduced interest income from reduced rates and reduced
amounts invested.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ADM Tronics Unlimited, Inc.
By:\s\ Andre' DiMino
Andre' DiMino
President
Dated: Northvale, New Jersey
August 12, 2003
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