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Adm Tronics Unlimited (ADMT)

Filed: 13 Aug 08, 8:00pm

Exhibit 99.1
 
 
ADM Tronics Reports First Quarter Financial Results

August 14, 2008, Northvale, NJ – ADM Tronics Unlimited, Inc. (OTCBB: ADMT), a technology-based developer and manufacturer of unique, environmentally-safe, health and life-enhancing technologies, today announced financial results for the three months ended June 30, 2008.

ADMT reported a net loss of $3,221,527, or $.06 net loss per share, for the three months ended June 30, 2008, an increase of $2,648,878 from the net loss of $572,649, or $.01 net loss per share, for the three months ended June 30, 2007.  This increase was primarily the result of a decrease in the fair market value of our investment in Ivivi Technologies Inc. (Ivivi) of $5,297,500, which was offset by the benefit of a deferred tax credit of $2,147,576.  Revenues for the three months ended June 30, 2008 were $600,941 as compared to $293,086 for the three months ended June 30, 2007, an increase of $307,855, or 105%.  The increase mainly resulted from an increase in sales of finished medical devices to Ivivi, along with moderate increased sales to new and existing chemical customers.  To date, we have not received any additional orders from Ivivi.
 
Gross profit was $201,731, or 34%, for the three months ended June 30, 2008, and $123,027, or 42%, for the three months ended June 30, 2007.  Gross margins decreased as a result of margins on approximately $325,000 of sales of medical devices to Ivivi at approximately 17%, as compared to margins achieved from chemical products, which are generally higher.  We also incurred higher raw material costs on our chemical products during the three months ended June 30, 2008.

Andre’ DiMino, President of ADMT stated, “Our results show continued growth for our year-over-year periods. We expect to see continued growth and acceptance of our water-based chemical products through expanded sales and marketing activities, along with efforts to initiate the marketing of our personal-care products.”

ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND 2007
(Unaudited)
 
  2008  2007 
       
Revenues $600,941  $293,086 
         
Costs and expenses:        
Cost of sales  399,210   170,059 
Research and development  --   2,493 
Selling, general and administrative  288,668   248,719 
         
Total operating expenses  687,878   421,271 
         
Operating loss  (86,937)  (128,185)
         
Interest income  15,334   25,143 
Change in fair value of investment        
in Ivivi  (5,297,500)  -- 
         
Equity in net loss of Ivivi  --   (469,607)
         
Net loss before income taxes (credit)  (5,369,103)  (572,649)
         
Income taxes (credit)  (2,147,576)  -- 
         
         
Net loss $(3,221,527) $(572,649)
         
         
Net loss per share, basic and diluted $(0.06) $(0.01)
         
Weighted average shares outstanding,        
basic and diluted  53,939,537   53,882,037 
         
 

 
ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

       
  June 30, 2008  MARCH 31, 2008 
  (Unaudited)    
ASSETS      
       
Current assets:      
Cash and cash equivalents $1,921,752  $2,072,325 
Accounts receivable, net of allowance for doubtful        
accounts of $1,088 and $1,088, respectively  60,936   101,270 
Receivables – Ivivi  10,235   - 
Inventories  414,769   469,403 
Prepaid expenses and other current assets  22,317   83,731 
         
Total current assets  2,430,009   2,726,729 
         
Property and equipment, net of accumulated depreciation        
of $18,681 and $17,873, respectively  54,480   55,288 
         
Inventory - long term portion  84,880   78,416 
Investment in Ivivi  6,077,500   2,154,517 
Advances to related parties  65,504   74,299 
Other assets  27,782   28,486 
         
Total assets $8,740,155  $5,117,735 
         
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Current liabilities:      
Accounts payable $138,539  $237,331 
Accrued expenses and other current liabilities  44,308   87,439 
Customer deposits – Ivivi  154,793   241,828 
         
Total current liabilities  337,640   566,598 
         
         
Deferred tax liability  277,612   -- 
         
         
Stockholders' equity:        
Preferred stock, $.01 par value; 5,000,000 shares authorized,        
no shares issued and outstanding  --   -- 
Common stock, $.0005 par value; 150,000,000 shares        
authorized, 53,939,537 shares issued and outstanding at        
June 30, 2008 and March 31, 2008  26,970   26,970 
Additional paid-in capital  32,153,597   32,153,597 
Accumulated deficit  (24,055,664)  (27,629,430)
         
Total stockholders' equity  8,124,903   4,551,137 
         
Total liabilities and stockholders' equity $8,740,155  $5,117,735 
         
 
About ADMT

ADMT is a technology based developer and manufacturer of unique, environmentally safe, health and life enhancing technologies and products. Its core competency is its ability to conceptualize a technology, bring it through development, into manufacturing and commercialization, all in-house. Its diversified product technology areas are environmentally friendly, water based industrial chemicals; therapeutic, non invasive electronic medical devices; and, innovative personal care and topical dermatological products.

Forward-Looking Statements

This press release contains statements, which may constitute "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect management's current knowledge, assumptions, judgment and expectations regarding future performance or events.  Although management believes that the expectations reflected in such statements are reasonable, they give no assurance that such expectations will prove to be correct and you should be aware that actual results could differ materially from those contained in the forward-looking statements.  Forward-looking statements are subject to a number of risks and uncertainties, including, those risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-KSB for the fiscal year ended March 31, 2007.  The Company assumes no obligation to update the information contained in this press release.

Company Contact:                                           Andre’ DiMino                                           201-767-6040                                  andre@admtronics.com