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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 June 30, 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 67,588,492 shares outstanding as of August 14, 2023.

 

 

 

 

 

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

 

INDEX

 

 

Page

Number

Part I - Financial Information

 
     

Item 1.

Condensed Consolidated Financial Statements (unaudited):

 
     
 

Condensed Consolidated Balance Sheets –June 30, 2023 (unaudited) and March 31, 2023

3

     
 

Condensed Consolidated Statements of Operations for the three months ended June 30, 2023 and 2022 (unaudited)

4

     
 

Condensed Consolidated Statement of Stockholders’ Equity for the three months ended June 30, 2023 and 2022 (unaudited)

5

     
 

Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 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

14

     

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

18

     

Item 4.

Controls and Procedures

18

     

Part II - Other Information

 
     

Item 1.

Legal Proceedings

18

     

Item 1A.

Risk Factors

19

     

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

19

     

Item 3.

Defaults Upon Senior Securities

19

     

Item 4.

Mine Safety Disclosures

19

     

Item 5.

Other Information

19

     

Item 6.

Exhibits

19

 

 

 

 

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS 

 

 

   

June 30,

   

March 31,

 
   

2023

    2023  
   

(Unaudited)

         

ASSETS

               
                 
Current assets:                

Cash and cash equivalents

  $ 844,731     $ 1,003,730  

Accounts receivable, net of allowance for doubtful accounts of $719,871 and $694,871 at June 30, 2023 and March 31, 2023, respectively

    575,545       497,793  

Inventories

    509,828       443,465  

Prepaid expenses and other current assets

    31,987       41,251  
                 
Total current assets     1,962,091       1,986,239  
                 

Other Assets:

               

Property and equipment, net of accumulated depreciation of $203,560 and $181,289 at March 31, 2022 and March 31, 2021, respectively

    -       -  
Long-term inventory     188,863       228,451  

Operating lease right-of-use asset

    461,422       481,535  

Loan receivable

    215,309       209,809  

Due from affiliate

    80,090       80,090  

Intangible assets, net of accumulated amortization of $23,351 and $22,631 at June 30, 2023 and March 31, 2023, respectively

    12,443       13,163  

Other assets

    90,538       90,538  
                 

Total other assets

    1,048,665       1,103,586  
                 

Total assets

  $ 3,010,756     $ 3,089,825  
                 

LIABILITIES AND STOCKHOLDERS' EQUITY

               
                 
Current liabilities:                

Accounts payable

  $ 278,714     $ 322,639  
Bank overdraft     150,728       134,837  

Accrued expenses and other current liabilities

    108,878       75,659  

PPP loan

    10,311       11,656  

Line of credit

    215,116       112,809  

Operating lease liability

    85,565       82,917  

Customer deposits

    332,442       359,723  

Due to stockholder

    6,409       13,626  

Total current liabilities

    1,188,163       1,113,866  
                 
Long-term liabilities                

Operating lease liability less current portion

    388,337       410,474  

Total long-term liabilities

    388,337       410,474  
                 

Total liabilities

    1,576,500       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

    33,600,548       33,599,516  

Accumulated deficit

    (32,200,086 )     (32,067,825 )

Total stockholders' equity

    1,434,256       1,565,485  
                 

Total liabilities and stockholders' equity

  $ 3,010,756     $ 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

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

 

   

2023

   

2022

 
                 

Net revenues

  $ 762,689     $ 921,408  
                 

Cost of sales

    437,547       538,349  
                 

Gross Profit

    325,142       383,059  
                 
Operating expenses:                

Research and development

    130,587       123,600  

Selling, general and administrative

    332,351       294,084  
                 

Total operating expenses

    462,938       417,684  
                 
Loss from operations     (137,796 )     (34,625 )
                 

Other income (expense):

               

Interest income

    8,001       473  

Interest and finance expenses

    (2,466 )     (4,514 )
                 

Total other income (expense)

    5,535       (4,041 )
                 
Loss before provision for taxes     (132,261 )     (38,666 )
                 

Net loss

  $ (132,261 )   $ (38,666 )
                 

Basic and diluted loss per common share:

  $ (0.00 )   $ (0.00 )
                 

Weighted average shares of common stock outstanding - basic and diluted

    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 THREE MONTHS ENDED JUNE 30, 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  
                                         
                                         
                                         
                                         

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  

 

See accompanying notes to the unaudited condensed consolidated financial statements

 

5

 

 

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

 

   

2023

   

2022

 
Cash flows from operating activities:                

Net loss

  $ (132,261 )   $ (38,666 )
Adjustments to reconcile net loss to net cash used in operating activities:                

Amortization

    720       720  

Write-off of inventories

    19,404       6,976  

Bad debt

    25,000       -  

Non-cash interest expense

    5,981       7,006  

Amortization of right-to-use asset

    20,114       20,526  

Stock based compensation

    1,032       35,848  

Changes in operating assets and liabilities balances:

               

Accounts receivable

    (102,752 )     (79,796 )
Inventories     (46,179 )     (147,409 )

Prepaid expenses and other current assets

    9,264       (40,160 )

Loan receivable

    (5,500 )     -  

Accounts payable

    (43,925 )     146,078  

Bank overdraft

    15,891       -  

Customer deposits

    (27,281 )     (20,689 )

Accrued expenses and other current liabilities

    33,217       (29,187 )
Payments of operating lease liability     (25,469 )     (25,469 )

Net cash (used in) operating activities

    (252,744 )     (164,222 )
                 
                 

Cash flows provided in financing activities:

               

Due to shareholder

    (7,217 )     (10,187 )

Proceeds from line of credit

    105,037       48,148  
Repayments of line of credit     (2,730 )     (23,346 )

Payments to PPP loan

    (1,345 )     (1,345 )
                 

Net cash provided by financing activities

    93,745       13,270  
                 

Net (decrease) in cash and cash equivalents

    (158,999 )     (150,952 )
                 

Cash and cash equivalents - beginning of period

    1,003,730       1,038,498  
                 

Cash and cash equivalents - end of period

  $ 844,731     $ 887,546  
                 
                 

Cash paid for:

               

Interest

  $ 2,466     $ 4,514  

 

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 MONTHS ENDED JUNE 30, 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, 2023. The consolidated balance sheet as of March 31, 2022 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 the 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 June 30, 2023 and March 31, 2023, approximately $595,000 and $638,000, respectively, exceeded the FDIC limit.

 

7

 

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

 

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 $27,000 and $39,000 were recognized as revenues during the three months ended June 30, 2023 and 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 June 30, 2023, all fixed assets were fully depreciated.

 

ADVERTISING COSTS

 

Advertising costs are expensed as incurred and amounted to $6,184 and $8,796 for the three months ended June 30, 2023 and June 30, 2022, respectively.

 

8

 

NET LOSS 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 no anti-dilutive instruments in force during the periods ended June 30, 2023 and 2022, respectively.

 

Per share basic and diluted (loss) amounted to $(0.00) and $(0.00) for the three months ended June 30, 2023 and 2022, respectively.

 

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”) 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.

 

 

NOTE 3 - INVENTORIES      

 

Inventories at June 30, 2023 consisted of the following:

                 
   

Current

    Long Term     Total  

Raw materials

  $ 411,068     $ 182,866     $ 593,934  

Finished goods

    98,760       5,997       104,757  

Totals

  $ 509,828     $ 188,863     $ 698,691  

 

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  

 

9

 

 

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.

 

   

June 30, 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     $ (23,351 )   $ 12,443     $ 35,794       10 - 15     $ (22,631 )   $ 13,163  

 

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

     

 

For the fiscal years ended March 31,

       

2024

    2,163  

2025

    2,466  

2026

    1,980  

2027

    1,725  

2028

    1,725  

Thereafter

    2,384  
      12,443  

 

 

NOTE 5 CONCENTRATIONS

 

During the three months ended June 30, 2023, two customers accounted for 40% of our net revenue. During the three months ended June 30, 2022, one customer accounted for 44% of net revenue.

 

As of June 30, 2023, two customers represented 79% of our gross accounts receivable. As of March 31, 2023, two customers accounted for 40% of our gross accounts receivable.

 

As of June 30, 2023, three vendors accounted for over 50% of our accounts payable balance.

 

The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the three months ended June 30, 2023 were $119,034 or 16%.

 

Net revenues from foreign customers for the three months ended June 30, 2022 were $125,275 or 14%.

 

 

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 June 30,

 
   

2023

   

2022

 
Net Revenue in the US                

Chemical

  $ 218,971     $ 246,900  

Electronics

    266,163       464,692  

Engineering

    158,521       84,541  
      643,655       796,133  
                 
Net Revenue outside the US                

Chemical

    119,034       125,275  

Electronics

    -       -  

Engineering

    -       -  
      119,034       125,275  
                 

Total Revenues

  $ 762,689     $ 921,408  

 

10

 

Information about segments is as follows:

       

 

   

Chemical

   

Electronics

   

Engineering

   

Total

 

Three months ended June 30, 2023

                               

Revenue from external customers

  $ 338,005     $ 266,163     $ 158,521     $ 762,689  

Segment operating income

  $ (79,788 )   $ (73,708 )   $ 15,700     $ (137,796 )
                                 

Three months ended June 30, 2022

                               

Revenue from external customers

  $ 372,175     $ 464,692     $ 84,541     $ 921,408  

Segment operating income

  $ 11,393     $ (66,655 )   $ 20,637     $ (34,625 )
                                 
                                 

Total assets at June 30, 2023

  $ 1,324,733     $ 1,053,765     $ 632,258     $ 3,010,756  
                                 

Total assets at March 31, 2023

  $ 1,050,541     $ 1,575,811     $ 463,473     $ 3,089,825  

 

 

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 $250,000 allowance for doubtful accounts on the consolidated balance sheets as of June 30, 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

    $ 80,154  

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  
          534,360  
 

Less: Amount attributable to imputed interest

    (60,458 )
        $ 473,902  
             
             
 

Weighted average remaining lease term (in years)

    3.0  
 

Weighted average discount rate

    5 %

 

11

 

Rent and real estate tax expense for all facilities for the three months ended June 30, 2023 was approximately $34,000.

 

Rent and real estate tax expense for all facilities for the three months ended June 30, 2022 was approximately $34,000.

 

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,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 June 30, 2023, the outstanding balance is $10,311.

 

 

NOTE 10 – 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

   
               

Weighted-

   

Weighted-

           

Range of

           

average

   

average

           

exercise

   

Number

   

remaining life

   

exercise

   

Number

   

prices

   

outstanding

   

in years

   

price

   

exercisable

   
                                       
$ 0.20       200,000       1.78     $ 0.20       200,000  

See below

                                       
          200,000       1.79     $ 0.20       200,000    

 

12

 

   

2023

   

2022

 
   

# of Shares

   

Weighted

   

# of Shares

   

Weighted

 
           

Average

           

Average

 
           

Exercise

           

Exercise

 
           

Price

           

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 11 – 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 June 30, 2023 and March 31, 2023, the outstanding balance was $215,116 and $112,809, respectively.

 

 

NOTE 12 DUE TO STOCKHOLDER

 

The Company’s President and a stockholder, has been deferring his salary and bonuses periodically to assist the Company’s cash flow. There are no repayment terms or interest accruing on this liability. As of June 30, 2023 and March 31, 2023, the amount due was $6,409 and $13,626, respectively.

 

 

NOTE 13 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.

 

 

NOTE 14 – 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 June 30, 2023 and March 31, 2023, there were no claims against us for product liability.

 

 

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. 

 

13

 

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, 2022.

 

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 MONTHS ENDED JUNE 30, 2023 AS COMPARED TO JUNE 30, 2022.  

 

For the three months ended June 30, 2023

                         
   

Chemical

   

Electronics

   

Engineering

   

Total

 

Revenue

  $ 338,005     $ 266,163     $ 158,521     $ 762,689  

Cost of Sales

    214,101       177,843       45,603       437,547  

Gross Profit

    123,904       88,320       112,918       325,142  

Gross Profit Percentage

    37 %     33 %     71 %     43 %
                                 

Operating Expenses

    203,692       162,029       97,217       462,938  

Operating Income (Loss)

    (79,788 )     (73,709 )     15,701       (137,796 )

Other income (expenses)

    2,435       1,937       1,163       5,535  

Income (loss) before provision from income taxes

  $ (77,353 )   $ (71,772 )   $ 16,864     $ (132,261 )

 

For the three months ended June 30, 2022

                         
   

Chemical

   

Electronics

   

Engineering

   

Total

 

Revenue

  $ 372,175     $ 464,692     $ 84,541     $ 921,408  

Cost of Sales

    189,532       322,505       26,312       538,349  

Gross Profit

    182,643       142,187       58,229       383,059  

Gross Profit Percentage

    49 %     31 %     69 %     42 %
                                 

Operating Expenses

    171,250       208,842       37,592       417,684  

Operating Income (Loss)

    11,393       (66,655 )     20,637       (34,625 )

Other income (expenses)

    (1,657 )     (2,021 )     (363 )     (4,041 )

Income (loss) before provision from income taxes

  $ 9,736     $ (68,676 )   $ 20,274     $ (38,666 )

 

14

 

Variance

                               
   

Chemical

   

Electronics

   

Engineering

   

Total

 

Revenue

  $ (34,170 )   $ (198,529 )   $ 73,980     $ (158,719 )

Cost of Sales

    24,569       (144,662 )     19,291       (100,802 )

Gross Profit

    (58,739 )     (53,867 )     54,689       (57,917 )

Gross Profit Percentage

    -12 %     3 %     2 %     1 %
                                 

Operating Expenses

    32,442       (46,813 )     59,625       45,254  

Operating Income (Loss)

    (91,181 )     (7,054 )     (4,936 )     (103,171 )

Other income (expenses)

    4,092       3,958       1,526       9,576  

Income (loss) before benefit from income taxes

  $ (87,089 )   $ (3,096 )   $ (3,410 )   $ (93,595 )

 

Revenues for the three months ended June 30, 2023 decreased by $158,719. The decrease is a result of decreased sales of $34,170 in the Chemical segment, $198,529 in the Electronics segment offset by an increase of $73,980 in the Engineering segment.

 

Gross profit for the three months ended June 30, 2023 decreased by $57,917. The decrease in gross profit resulted primarily from decreased sales in Chemical and Electronics segments.

 

We are highly dependent upon certain customers. During the three months ended June 30, 2023, two customers accounted for 40% of our net revenue. Net revenues from foreign customers for the three months ended June 30, 2023 was $119,034 or 16%.

 

During the three months ended June 30, 2022, four customers accounted for 82% of our net revenue. Net revenues from foreign customers for the three months ended June 30, 2022 was $125,275 or 14%.

 

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

 

Loss from operations for the three months ended June 30, 2023 was $137,796 compared to loss from operations for the three months ended June 30, 2022 of $34,625.

 

Other income increased $9,576 for the three months ended June 30, 2023. The increase is mainly attributable to an increase in interest income.

 

The foregoing resulted in net loss before provision for taxes for the three months ended June 30, 2023 of $132,261. Loss per share were ($0.00) for the three months ended June 30, 2023.

 

LIQUIDITY AND CAPITAL RESOURCES  

 

At June 30, 2023, we had cash and cash equivalents of $844,731 as compared to $1,003,730 at March 31, 2023. The $158,999 decrease was primarily the result of cash used in operations during the three-month period in the amount of $252,744 and cash provided in financing activities of $93,745. 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 three-month ending periods indicated:

 

   

June 30, 2023

   

June 30, 2022

 

Net cash provided by (used in) operating activities

  $ (252,744 )   $ (164,222 )

Net cash provided by (used in) investing activities

    -       -  

Cash flows provided (used) in financing activities:

    93,745       13,270  

Net increase (decrease) in cash and cash equivalents

    (158,999 )     (150,952 )

Cash and cash equivalents - beginning of period

    1,003,730       1,038,498  

Cash and cash equivalents - end of period

    844,731       887,546  

 

15

 

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 $844,731 as of June 30, 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 $252,744 for the three months ended June 30, 2023, as compared to net cash used by operating activities of $164,222 for the three months ended June 30, 2022. The cash used during the three months ended June 30, 2023 was primarily due to a decrease in net operating assets of $181,353 combined with a decrease in net operating liabilities of $22,096,  net loss of $132,261offset by write-off of inventories of $19,404, amortization of $20,834, and stock based compensation of $1,032  and non-cash interest expense of $20,113

 

INVESTING ACTIVITIES

 

No cash was provided for or used in investing activities for the three months ended June 30, 2023.

 

FINANCING ACTIVITIES

 

For the three months ended June 30,2023, net cash provided by financing activities was $93,745 due to a net borrowing and payments in the line of credit of $102,307, a decrease in due to stockholder of $7,217 and repayments on the PPP loan of $1,345.

 

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 June 30, 2023, approximately $638,000 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. 

 

16

 

The determination that our disclosure controls and procedures were not effective as of June 30, 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 June 30, 2023, and March 31, 2023 and the related condensed consolidated statements of operations, and cash flows for the three months ended June 30, 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.

 

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, 2023. 

 

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 

 

17

 

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

 

August 14, 2023

 

 

 

18

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: August 14, 2023

 

/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.

 

 

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 months ended June 30, 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: August 14, 2023

 

/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.

 

 

 

 
v3.23.2
Document And Entity Information - shares
3 Months Ended
Jun. 30, 2023
Aug. 14, 2023
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 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)   67,588,492
Entity Central Index Key 0000849401  
Current Fiscal Year End Date --03-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.23.2
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
Jun. 30, 2023
Mar. 31, 2023
Current assets:    
Cash and cash equivalents $ 844,731 $ 1,003,730
Inventories 509,828 443,465
Prepaid expenses and other current assets 31,987 41,251
Total current assets 1,962,091 1,986,239
Other Assets:    
Property and equipment, net of accumulated depreciation of $203,560 and $181,289 at March 31, 2022 and March 31, 2021, respectively 0 0
Long-term inventory 188,863 228,451
Operating lease right-of-use asset 461,422 481,535
Loan receivable 215,309 209,809
Due from affiliate 80,090 80,090
Intangible assets, net of accumulated amortization of $23,351 and $22,631 at June 30, 2023 and March 31, 2023, respectively 12,443 13,163
Other assets 90,538 90,538
Total other assets 1,048,665 1,103,586
Total assets 3,010,756 3,089,825
Current liabilities:    
Accounts payable 278,714 322,639
Bank overdraft 150,728 134,837
Accrued expenses and other current liabilities 108,878 75,659
PPP loan 10,311 11,656
Line of credit 215,116 112,809
Operating lease liability 85,565 82,917
Customer deposits 332,442 359,723
Due to stockholder 6,409 13,626
Total current liabilities 1,188,163 1,113,866
Long-term liabilities    
Operating lease liability less current portion 388,337 410,474
Total long-term liabilities 388,337 410,474
Total liabilities 1,576,500 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 33,600,548 33,599,516
Accumulated deficit (32,200,086) (32,067,825)
Total stockholders' equity 1,434,256 1,565,485
Total liabilities and stockholders' equity 3,010,756 3,089,825
Related Party [Member]    
Current assets:    
Accounts receivable, net of allowance for doubtful accounts of $719,871 and $694,871 at June 30, 2023 and March 31, 2023, respectively 575,545 497,793
Current liabilities:    
Due to stockholder $ 6,409 $ 13,626
v3.23.2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
Jun. 30, 2023
Mar. 31, 2023
Mar. 31, 2022
Mar. 31, 2021
Accounts Receivable, Allowance for Credit Loss, Current $ 719,871 $ 694,871    
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment     $ 203,560 $ 181,289
Intangible assets, accumulated amortization 23,351 22,631    
Intangible assets, accumulated amortization $ 23,351 $ 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  
v3.23.2
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ / shares in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Net revenues $ 762,689 $ 921,408
Cost of sales 437,547 538,349
Gross Profit 325,142 383,059
Operating expenses:    
Research and development 130,587 123,600
Selling, general and administrative 332,351 294,084
Total operating expenses 462,938 417,684
Loss from operations (137,796) (34,625)
Other income (expense):    
Interest income 8,001 473
Interest and finance expenses (2,466) (4,514)
Total other income (expense) 5,535 (4,041)
Loss before provision for taxes (132,261) (38,666)
Net loss $ (132,261) $ (38,666)
Basic and diluted loss per common share: (in dollars per share) $ 0 $ 0
Weighted average shares of common stock outstanding - basic and diluted (in shares) 67,588,492 67,588,492
v3.23.2
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)
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, 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    
Net Income (loss)     (132,261) (132,261)
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
v3.23.2
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities:    
Net Income (loss) $ (132,261) $ (38,666)
Adjustments to reconcile net loss to net cash in operating activities:    
Amortization 720 720
Write-off of inventories 19,404 6,976
Bad debt 25,000 0
Non-cash interest expense 5,981 7,006
Amortization of right-to-use asset 20,114 20,526
Stock based compensation 1,032 35,848
Changes in operating assets and liabilities balances:    
Accounts receivable (102,752) (79,796)
Inventories (46,179) (147,409)
Prepaid expenses and other current assets 9,264 (40,160)
Loan receivable (5,500) 0
Accounts payable (43,925) 146,078
Bank overdraft 15,891 0
Customer deposits (27,281) (20,689)
Accrued expenses and other current liabilities 33,217 (29,187)
Payments of operating lease liability (25,469) (25,469)
Net cash (used in) operating activities (252,744) (164,222)
Cash flows provided (used) in financing activities:    
Due to shareholder (7,217) (10,187)
Proceeds from line of credit 105,037 48,148
Repayments of line of credit (2,730) (23,346)
Payments to PPP loan 1,345 1,345
Payments to PPP loan (1,345) (1,345)
Net cash provided by financing activities 93,745 13,270
Net (decrease) in cash and cash equivalents (158,999) (150,952)
Cash and cash equivalents - beginning of period 1,003,730 1,038,498
Cash and cash equivalents - end of period 844,731 887,546
Cash paid for:    
Interest $ 2,466 $ 4,514
v3.23.2
Note 1 - Nature of Business
3 Months Ended
Jun. 30, 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.

v3.23.2
Note 2 - Significant Accounting Policies
3 Months Ended
Jun. 30, 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, 2023. The consolidated balance sheet as of March 31, 2022 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 the 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 June 30, 2023 and March 31, 2023, approximately $595,000 and $638,000, respectively, exceeded the FDIC limit.

 

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

 

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 $27,000 and $39,000 were recognized as revenues during the three months ended June 30, 2023 and 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 June 30, 2023, all fixed assets were fully depreciated.

 

ADVERTISING COSTS

 

Advertising costs are expensed as incurred and amounted to $6,184 and $8,796 for the three months ended June 30, 2023 and June 30, 2022, respectively.

 

NET LOSS 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 no anti-dilutive instruments in force during the periods ended June 30, 2023 and 2022, respectively.

 

Per share basic and diluted (loss) amounted to $(0.00) and $(0.00) for the three months ended June 30, 2023 and 2022, respectively.

 

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”) 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.

v3.23.2
Note 3 - Inventories
3 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Inventory Disclosure [Text Block]

NOTE 3 - INVENTORIES      

 

Inventories at June 30, 2023 consisted of the following:

                 
   

Current

    Long Term     Total  

Raw materials

  $ 411,068     $ 182,866     $ 593,934  

Finished goods

    98,760       5,997       104,757  

Totals

  $ 509,828     $ 188,863     $ 698,691  

 

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  

 

v3.23.2
Note 4 - Intangible Assets
3 Months Ended
Jun. 30, 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.

 

   

June 30, 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     $ (23,351 )   $ 12,443     $ 35,794       10 - 15     $ (22,631 )   $ 13,163  

 

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

     

 

For the fiscal years ended March 31,

       

2024

    2,163  

2025

    2,466  

2026

    1,980  

2027

    1,725  

2028

    1,725  

Thereafter

    2,384  
      12,443  

 

v3.23.2
Note 5 - Concentrations
3 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]

NOTE 5 CONCENTRATIONS

 

During the three months ended June 30, 2023, two customers accounted for 40% of our net revenue. During the three months ended June 30, 2022, one customer accounted for 44% of net revenue.

 

As of June 30, 2023, two customers represented 79% of our gross accounts receivable. As of March 31, 2023, two customers accounted for 40% of our gross accounts receivable.

 

As of June 30, 2023, three vendors accounted for over 50% of our accounts payable balance.

 

The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the three months ended June 30, 2023 were $119,034 or 16%.

 

Net revenues from foreign customers for the three months ended June 30, 2022 were $125,275 or 14%.

v3.23.2
Note 6 - Disaggregated Revenues and Segment Information
3 Months Ended
Jun. 30, 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 June 30,

 
   

2023

   

2022

 
Net Revenue in the US                

Chemical

  $ 218,971     $ 246,900  

Electronics

    266,163       464,692  

Engineering

    158,521       84,541  
      643,655       796,133  
                 
Net Revenue outside the US                

Chemical

    119,034       125,275  

Electronics

    -       -  

Engineering

    -       -  
      119,034       125,275  
                 

Total Revenues

  $ 762,689     $ 921,408  

 

Information about segments is as follows:

       

 

   

Chemical

   

Electronics

   

Engineering

   

Total

 

Three months ended June 30, 2023

                               

Revenue from external customers

  $ 338,005     $ 266,163     $ 158,521     $ 762,689  

Segment operating income

  $ (79,788 )   $ (73,708 )   $ 15,700     $ (137,796 )
                                 

Three months ended June 30, 2022

                               

Revenue from external customers

  $ 372,175     $ 464,692     $ 84,541     $ 921,408  

Segment operating income

  $ 11,393     $ (66,655 )   $ 20,637     $ (34,625 )
                                 
                                 

Total assets at June 30, 2023

  $ 1,324,733     $ 1,053,765     $ 632,258     $ 3,010,756  
                                 

Total assets at March 31, 2023

  $ 1,050,541     $ 1,575,811     $ 463,473     $ 3,089,825  

 

v3.23.2
Note 7 - Due From Affiliate
3 Months Ended
Jun. 30, 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 $250,000 allowance for doubtful accounts on the consolidated balance sheets as of June 30, 2023 and March 31, 2023.

v3.23.2
Note 8 - Leases
3 Months Ended
Jun. 30, 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

    $ 80,154  

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  
          534,360  
 

Less: Amount attributable to imputed interest

    (60,458 )
        $ 473,902  
             
             
 

Weighted average remaining lease term (in years)

    3.0  
 

Weighted average discount rate

    5 %

 

Rent and real estate tax expense for all facilities for the three months ended June 30, 2023 was approximately $34,000.

 

Rent and real estate tax expense for all facilities for the three months ended June 30, 2022 was approximately $34,000.

 

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

v3.23.2
Note 9 - Paycheck Protection Program (PPP) Loan
3 Months Ended
Jun. 30, 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,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 June 30, 2023, the outstanding balance is $10,311.

v3.23.2
Note 10 - Warrants
3 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Warrant Liability [Text Block]

NOTE 10 – 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

   
               

Weighted-

   

Weighted-

           

Range of

           

average

   

average

           

exercise

   

Number

   

remaining life

   

exercise

   

Number

   

prices

   

outstanding

   

in years

   

price

   

exercisable

   
                                       
$ 0.20       200,000       1.78     $ 0.20       200,000  

See below

                                       
          200,000       1.79     $ 0.20       200,000    

 

   

2023

   

2022

 
   

# of Shares

   

Weighted

   

# of Shares

   

Weighted

 
           

Average

           

Average

 
           

Exercise

           

Exercise

 
           

Price

           

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       -     $ -  

 

v3.23.2
Note 11 - Line of Credit
3 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Debt Disclosure [Text Block]

NOTE 11 – 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 June 30, 2023 and March 31, 2023, the outstanding balance was $215,116 and $112,809, respectively.

v3.23.2
Note 12 - Due to Stockholder
3 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Compensation Related Costs, General [Text Block]

NOTE 12 DUE TO STOCKHOLDER

 

The Company’s President and a stockholder, has been deferring his salary and bonuses periodically to assist the Company’s cash flow. There are no repayment terms or interest accruing on this liability. As of June 30, 2023 and March 31, 2023, the amount due was $6,409 and $13,626, respectively.

v3.23.2
Note 13 - Legal Proceedings
3 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Legal Matters and Contingencies [Text Block]

NOTE 13 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.

v3.23.2
Note 14 - Contractual Obligations and Other Commitments
3 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Commitments Disclosure [Text Block]

NOTE 14 – 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 June 30, 2023 and March 31, 2023, there were no claims against us for product liability.

v3.23.2
Significant Accounting Policies (Policies)
3 Months Ended
Jun. 30, 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, 2023. The consolidated balance sheet as of March 31, 2022 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 the 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 June 30, 2023 and March 31, 2023, approximately $595,000 and $638,000, respectively, exceeded the FDIC limit.

Receivable [Policy Text Block]

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

 

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 $27,000 and $39,000 were recognized as revenues during the three months ended June 30, 2023 and 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 June 30, 2023, all fixed assets were fully depreciated.

Advertising Cost [Policy Text Block]

ADVERTISING COSTS

 

Advertising costs are expensed as incurred and amounted to $6,184 and $8,796 for the three months ended June 30, 2023 and June 30, 2022, respectively.

 

Earnings Per Share, Policy [Policy Text Block]

NET LOSS 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 no anti-dilutive instruments in force during the periods ended June 30, 2023 and 2022, respectively.

 

Per share basic and diluted (loss) amounted to $(0.00) and $(0.00) for the three months ended June 30, 2023 and 2022, respectively.

 

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”) 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.

v3.23.2
Note 3 - Inventories (Tables)
3 Months Ended
Jun. 30, 2023
Notes Tables  
Schedule Of Inventory [Table Text Block]

Inventories at June 30, 2023 consisted of the following:

                 
   

Current

    Long Term     Total  

Raw materials

  $ 411,068     $ 182,866     $ 593,934  

Finished goods

    98,760       5,997       104,757  

Totals

  $ 509,828     $ 188,863     $ 698,691  
   

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  
v3.23.2
Note 4 - Intangible Assets (Tables)
3 Months Ended
Jun. 30, 2023
Notes Tables  
Schedule of Finite-Lived Intangible Assets [Table Text Block]
   

June 30, 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     $ (23,351 )   $ 12,443     $ 35,794       10 - 15     $ (22,631 )   $ 13,163  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

For the fiscal years ended March 31,

       

2024

    2,163  

2025

    2,466  

2026

    1,980  

2027

    1,725  

2028

    1,725  

Thereafter

    2,384  
      12,443  
v3.23.2
Note 6 - Disaggregated Revenues and Segment Information (Tables)
3 Months Ended
Jun. 30, 2023
Notes Tables  
Revenue from External Customers by Geographic Areas [Table Text Block]
   

Three Months Ended June 30,

 
   

2023

   

2022

 
Net Revenue in the US                

Chemical

  $ 218,971     $ 246,900  

Electronics

    266,163       464,692  

Engineering

    158,521       84,541  
      643,655       796,133  
                 
Net Revenue outside the US                

Chemical

    119,034       125,275  

Electronics

    -       -  

Engineering

    -       -  
      119,034       125,275  
                 

Total Revenues

  $ 762,689     $ 921,408  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
   

Chemical

   

Electronics

   

Engineering

   

Total

 

Three months ended June 30, 2023

                               

Revenue from external customers

  $ 338,005     $ 266,163     $ 158,521     $ 762,689  

Segment operating income

  $ (79,788 )   $ (73,708 )   $ 15,700     $ (137,796 )
                                 

Three months ended June 30, 2022

                               

Revenue from external customers

  $ 372,175     $ 464,692     $ 84,541     $ 921,408  

Segment operating income

  $ 11,393     $ (66,655 )   $ 20,637     $ (34,625 )
                                 
                                 

Total assets at June 30, 2023

  $ 1,324,733     $ 1,053,765     $ 632,258     $ 3,010,756  
                                 

Total assets at March 31, 2023

  $ 1,050,541     $ 1,575,811     $ 463,473     $ 3,089,825  
v3.23.2
Note 8 - Leases (Tables)
3 Months Ended
Jun. 30, 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

    $ 80,154  

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  
          534,360  
 

Less: Amount attributable to imputed interest

    (60,458 )
        $ 473,902  
             
             
 

Weighted average remaining lease term (in years)

    3.0  
 

Weighted average discount rate

    5 %
v3.23.2
Note 10 - Warrants (Tables)
3 Months Ended
Jun. 30, 2023
Notes Tables  
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]
       

Outstanding and exercisable

   
               

Weighted-

   

Weighted-

           

Range of

           

average

   

average

           

exercise

   

Number

   

remaining life

   

exercise

   

Number

   

prices

   

outstanding

   

in years

   

price

   

exercisable

   
                                       
$ 0.20       200,000       1.78     $ 0.20       200,000  

See below

                                       
          200,000       1.79     $ 0.20       200,000    
   

2023

   

2022

 
   

# of Shares

   

Weighted

   

# of Shares

   

Weighted

 
           

Average

           

Average

 
           

Exercise

           

Exercise

 
           

Price

           

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       -     $ -  
v3.23.2
Note 2 - Significant Accounting Policies (Details Textual) - USD ($)
shares in Thousands, $ / shares in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Mar. 31, 2023
Cash, Uninsured Amount $ 595,000   $ 638,000
Contract with Customer, Liability, Revenue Recognized 27,000 $ 39,000  
Advertising Expense $ 6,184 $ 8,796  
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 0 0  
Earnings Per Share, Basic $ 0 $ 0  
Minimum [Member]      
Property, Plant and Equipment, Useful Life 5 years    
Maximum [Member]      
Property, Plant and Equipment, Useful Life 7 years    
v3.23.2
Note 3 - Inventories - Summary of Inventory (Details) - USD ($)
Jun. 30, 2023
Mar. 31, 2023
Inventory, Raw Materials, Gross $ 593,934 $ 592,109
Inventory, Finished Goods, Gross 104,757 79,807
Raw materials 593,934 592,109
Inventory, Gross 698,691 671,916
Finished goods 104,757 79,807
Totals 698,691 671,916
Current [Member]    
Inventory, Raw Materials, Gross 411,068 390,792
Inventory, Finished Goods, Gross 98,760 52,673
Raw materials 411,068 390,792
Inventory, Gross 509,828 443,465
Finished goods 98,760 52,673
Totals 509,828 443,465
Long Term [Member    
Inventory, Raw Materials, Gross 182,866 201,317
Inventory, Finished Goods, Gross 5,997 27,134
Raw materials 182,866 201,317
Inventory, Gross 188,863 228,451
Finished goods 5,997 27,134
Totals $ 188,863 $ 228,451
v3.23.2
Note 4 - Intangible Assets (Details Textual)
Jun. 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
v3.23.2
Note 4 - Intangible Assets - Intangible Assets (Details) - USD ($)
3 Months Ended 12 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Patents & Trademarks $ (23,351) $ (22,631)
Intangible assets, net of accumulated amortization of $23,351 and $22,631 at June 30, 2023 and March 31, 2023, respectively 12,443 13,163
Patents And Trademarks [Member]    
Patents & Trademarks 35,794 35,794
Patents & Trademarks (23,351) (22,631)
Intangible assets, net of accumulated amortization of $23,351 and $22,631 at June 30, 2023 and March 31, 2023, respectively $ 12,443 $ 13,163
Patents And Trademarks [Member] | Minimum [Member]    
Patents & Trademarks (Year) 10 years 10 years
Patents And Trademarks [Member] | Maximum [Member]    
Patents & Trademarks (Year) 15 years  
v3.23.2
Note 4 - Intangible Assets - Estimated Aggregate Future Amortization Expense (Details) - USD ($)
Jun. 30, 2023
Mar. 31, 2023
2024 $ 2,163  
2025 2,466  
2026 1,980  
2027 1,725  
Finite-Lived Intangible Asset, Expected Amortization, Year Four 1,725  
Thereafter 2,384  
Finite-Lived Intangible Assets, Net $ 12,443 $ 13,163
v3.23.2
Note 5 - Concentrations (Details Textual)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2023
Mar. 31, 2023
USD ($)
Mar. 31, 2022
USD ($)
Revenue from Contract with Customer, Including Assessed Tax $ 762,689 $ 921,408      
Customer Concentration Risk [Member] | Two Customers [Member] | Revenue Benchmark [Member]          
Concentration Risk, Number of Customers 2        
Concentration Risk, Percentage 79.00%        
Customer Concentration Risk [Member] | Three Customers [Member] | Revenue Benchmark [Member]          
Concentration Risk, Number of Customers         2
Concentration Risk, Percentage 40.00%       40.00%
Customer Concentration Risk [Member] | One Customer [Member] | Revenue Benchmark [Member]          
Concentration Risk, Number of Customers   1      
Concentration Risk, Percentage   44.00%      
Customer Concentration Risk [Member] | Foreign Customers [Member] | Revenue Benchmark [Member]          
Concentration Risk, Percentage       16.00% 14.00%
Revenue from Contract with Customer, Including Assessed Tax       $ 119,034 $ 125,275
Supplier Concentration Risk [Member] | Accounts Payable [Member]          
Concentration Risk, Number of Vendors     3    
Supplier Concentration Risk [Member] | Accounts Payable [Member] | Three Vendors [Member]          
Concentration Risk, Percentage     50.00%    
v3.23.2
Note 6 - Disaggregated Revenues and Segment Information - Net Revenue, Classified by Geography (Details) - USD ($)
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Revenue from Contract with Customer, Including Assessed Tax $ 762,689 $ 921,408
Chemical [Member]    
Revenue from Contract with Customer, Including Assessed Tax 338,005 372,175
Electronics [Member]    
Revenue from Contract with Customer, Including Assessed Tax 266,163 464,692
Engineering [Member]    
Revenue from Contract with Customer, Including Assessed Tax 158,521 84,541
UNITED STATES    
Revenue from Contract with Customer, Including Assessed Tax 643,655 796,133
UNITED STATES | Chemical [Member]    
Revenue from Contract with Customer, Including Assessed Tax 218,971 246,900
UNITED STATES | Electronics [Member]    
Revenue from Contract with Customer, Including Assessed Tax 266,163 464,692
UNITED STATES | Engineering [Member]    
Revenue from Contract with Customer, Including Assessed Tax 158,521 84,541
Non-US [Member]    
Revenue from Contract with Customer, Including Assessed Tax 119,034 125,275
Non-US [Member] | Chemical [Member]    
Revenue from Contract with Customer, Including Assessed Tax 119,034 125,275
Non-US [Member] | Electronics [Member]    
Revenue from Contract with Customer, Including Assessed Tax 0 0
Non-US [Member] | Engineering [Member]    
Revenue from Contract with Customer, Including Assessed Tax $ 0 $ 0
v3.23.2
Note 6 - Disaggregated Revenues and Segment Information - Summary of Segment Information (Details) - USD ($)
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Mar. 31, 2023
Net revenues $ 762,689 $ 921,408  
Segment operating income (137,796) (34,625)  
Total assets at June 30, 2023 3,010,756   $ 3,089,825
Chemical [Member]      
Net revenues 338,005 372,175  
Segment operating income (79,788) 11,393  
Total assets at June 30, 2023 1,324,733   1,050,541
Electronics [Member]      
Net revenues 266,163 464,692  
Segment operating income (73,708) (66,655)  
Total assets at June 30, 2023 1,053,765   1,575,811
Engineering [Member]      
Net revenues 158,521 84,541  
Segment operating income 15,700 $ 20,637  
Total assets at June 30, 2023 $ 632,258   $ 463,473
v3.23.2
Note 7 - Due From Affiliate (Details Textual)
3 Months Ended
Jun. 30, 2023
USD ($)
Qol [Member]  
Accounts Receivable, Allowance for Credit Loss $ 250,000
Engineering Services [Member] | Qol [Member]  
Related Party Transaction, Amounts of Transaction 330,090
Qol [Member]  
Equity Method Investments $ 75,000
Equity Method Investment, Ownership Percentage 23.20%
v3.23.2
Note 8 - Leases (Details Textual) - USD ($)
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Operating Lease, Expense $ 34,000 $ 34,000
v3.23.2
Note 8 - Leases - Future Minimum Lease Payments (Details) - USD ($)
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
FY 2024   $ 80,154  
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   $ 534,360  
Lessee, Operating Lease, Liability, Undiscounted Excess Amount     $ 60,458
Operating Lease, Liability $ 473,902    
Operating Lease, Weighted Average Remaining Lease Term 3 years    
Operating Lease, Weighted Average Discount Rate, Percent 500.00%    
v3.23.2
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
Jun. 30, 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       $ 10,311
Debt Instrument, Interest Rate, Stated Percentage   1.00%        
Debt Instrument, Maturity Date   May 15, 2025        
v3.23.2
Note 10 - Warrants (Details Textual)
Jun. 30, 2023
$ / shares
Apr. 11, 2023
USD ($)
$ / shares
shares
Mar. 31, 2023
$ / shares
Jun. 30, 2022
$ / shares
Mar. 31, 2022
$ / shares
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) $ 0.20   $ 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)   $ 0.20      
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      
v3.23.2
Note 10 - Warrants - Outstanding and Exercisable (Details) - $ / shares
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Range of exercise prices (in dollars per share) $ 0.20 $ 0
Outstanding, beginning of year, shares (in shares) 0 0
Number outstanding (in shares) 200,000 0
Outstanding, beginning of year, weighted average exercise price (in dollars per share) $ 0 $ 0
Average remaining life in years (Year) 1 year 9 months 14 days  
Number exercisable (in shares) 200,000 0
Issued, shares (in shares) 200,000 0
Issued, weighted average exercise price (in dollars per share) $ 0.20 $ 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) $ 0.20 $ 0
Exercisable, end of period, weighted average exercise price (in dollars per share) 0.20 $ 0
Warrant One [Member]    
Range of exercise prices (in dollars per share) $ 0.20  
Number outstanding (in shares) 200,000  
Average remaining life in years (Year) 1 year 9 months 10 days  
Number exercisable (in shares) 200,000  
Outstanding, end of period, shares (in shares) 200,000  
Outstanding, end of period, weighted average exercise price (in dollars per share) $ 0.20  
v3.23.2
Note 11 - Line of Credit (Details Textual) - Revolving Credit Facility [Member] - USD ($)
9 Months Ended
Dec. 31, 2022
Jun. 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   $ 215,116 $ 112,809  
v3.23.2
Note 12 - Due to Stockholder (Details Textual) - USD ($)
Jun. 30, 2023
Mar. 31, 2023
Deferred Compensation Liability, Interest Accrued $ 0  
Deferred Compensation Liability, Current $ 6,409 $ 13,626

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