Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Jul. 14, 2023 | Sep. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-17629 | ||
Entity Registrant Name | ADM TRONICS UNLIMITED, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-1896032 | ||
Entity Address, Address Line One | 224 Pegasus Avenue | ||
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 | ||
Title of 12(g) Security | COMMON STOCK, $.0005 PAR VALUE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,731,195 | ||
Entity Common Stock, Shares Outstanding (in shares) | 67,588,492 | ||
Auditor Firm ID | 89 | ||
Auditor Name | Rosenberg Rich Baker Berman, P.A. | ||
Auditor Location | Somerset, New Jersey | ||
Entity Central Index Key | 0000849401 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,003,730 | $ 1,137,264 |
Inventories | 443,465 | 288,076 |
Prepaid expenses and other current assets | 41,251 | 57,741 |
Total current assets | 1,986,239 | 2,212,802 |
Other Assets: | ||
Operating lease right-of-use asset | 481,535 | 513,138 |
Inventory, Noncurrent | 228,451 | 183,730 |
Loan receivable | 209,809 | 128,322 |
Due from affiliate | 80,090 | 80,090 |
Intangible assets, net of accumulated amortization of $21,911 and $19,751 at December 31, 2022 and March 31, 2022, respectively | 13,163 | 16,043 |
Other assets | 90,538 | 90,538 |
Deferred tax asset | 0 | 125,000 |
Total other assets | 1,103,586 | 1,136,861 |
Total assets | 3,089,825 | 3,349,663 |
Current liabilities: | ||
Accounts payable | 322,639 | 329,554 |
Accrued expenses and other current liabilities | 75,659 | 133,053 |
Bank Overdrafts | 134,837 | 98,766 |
PPP loan | 11,656 | 5,335 |
Line of credit | 112,809 | 334,760 |
Warrant liability | 0 | 182,161 |
Operating lease liability | 82,917 | 75,254 |
Customer deposits | 359,723 | 263,619 |
Due to stockholder | 13,626 | |
Total current liabilities | 1,113,866 | 1,472,735 |
Long-term liabilities | ||
PPP loan less current portion | 0 | 11,700 |
Operating lease liability less current portion | 410,474 | 491,265 |
Total long-term liabilities | 410,474 | 502,965 |
Total liabilities | 1,524,340 | 1,975,700 |
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 | 33,599,516 | 33,311,672 |
Accumulated deficit | (32,067,825) | (31,971,503) |
Total stockholders' equity | 1,565,485 | 1,373,963 |
Total liabilities and stockholders' equity | 3,089,825 | 3,349,663 |
Related Party [Member] | ||
Current assets: | ||
Accounts receivable, net of allowance for doubtful accounts of $675,000 at December 31, 2022 and March 31, 2022, respectively | 497,793 | 729,721 |
Current liabilities: | ||
Due to stockholder | $ 13,626 | $ 50,233 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 694,871 | $ 675,000 |
Intangible assets, accumulated amortization | 22,631 | 19,751 |
Intangible assets, accumulated amortization | $ 22,631 | $ 19,751 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net revenues | $ 3,676,785 | $ 3,206,594 |
Cost of sales | 2,018,883 | 1,957,956 |
Gross Profit | 1,657,902 | 1,248,638 |
Operating expenses: | ||
Research and development | 541,184 | 615,926 |
Selling, general and administrative | 1,086,383 | 1,762,026 |
Total operating expenses | 1,627,567 | 2,377,952 |
Income (loss) from operations | 30,335 | (1,129,314) |
Other income (expense): | ||
Forgiveness of Payroll Protection Program | 0 | 693,817 |
Interest income | 13,091 | 3,013 |
Interest and finance expenses | (18,938) | (15,597) |
Total other income (expense) | (5,847) | 681,233 |
Income (loss) before provision for income taxes | 24,488 | (448,081) |
Provision for (benefit) income taxes: | ||
Current | (4,190) | (19,818) |
Deferred | 125,000 | 956,000 |
Total benefit provision for income taxes | 120,810 | 936,182 |
Net loss | $ (96,322) | $ (1,384,263) |
Basic and diluted per common share: (in dollars per share) | $ 0 | $ (0.02) |
Weighted average shares of common stock outstanding - basic and diluted (in shares) | 67,588,492 | 67,588,492 |
Condensed Consolidated Statem_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, 2021 | 67,588,492 | |||
Balance at Mar. 31, 2021 | $ 33,794 | $ 33,311,672 | $ (30,587,240) | $ 2,758,226 |
Net Income (loss) | (1,384,263) | (1,384,263) | ||
Net Income (loss) | (1,384,263) | (1,384,263) | ||
Balance (in shares) at Mar. 31, 2022 | 67,588,492 | |||
Balance at Mar. 31, 2022 | $ 33,794 | 33,311,672 | (31,971,503) | 1,373,963 |
Net Income (loss) | (96,322) | |||
Stock based compensation | 287,844 | |||
Net Income (loss) | (96,322) | |||
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 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net Income (loss) | $ (96,322) | $ (1,384,263) |
Adjustments to reconcile net loss to net cash in operating activities: | ||
Depreciation and amortization | 2,880 | 107,253 |
Write-off of inventories | 110,504 | 34,406 |
Bad debt | 19,871 | 625,000 |
Deferred taxes | 125,000 | 956,000 |
Non-cash interest expense | 26,307 | 30,194 |
Amortization of right-to-use asset | 34,048 | 0 |
Stock based compensation | 69,498 | 0 |
Forgiveness of Paycheck Protection Program loan | 0 | (693,817) |
Warrant liability | 0 | 182,161 |
Changes in operating assets and liabilities balances: | ||
Accounts receivable | 231,928 | (189,863) |
Inventories | (310,614) | (67,344) |
Prepaid expenses and other current assets | 47,296 | (10,702) |
Loan receivable | (81,487) | 0 |
Accounts payable | (6,915) | (34,751) |
Increase (Decrease) in Bank Overdraft | 36,071 | 98,766 |
Customer deposits | 96,104 | (30,019) |
Accrued expenses and other current liabilities | (77,265) | 2,669 |
Payments of operating lease liability | (101,880) | (101,875) |
Net cash provided by (used in) operating activities | 125,024 | (476,185) |
Cash flows provided (used) in financing activities: | ||
Due to shareholder | (36,607) | (39,158) |
Proceeds from line of credit | 167,894 | 308,000 |
Repayments of line of credit | (389,845) | (199,653) |
Proceeds (payments) from/to PPP loan | 0 | 2,690 |
Proceeds (payments) from/to PPP loan | 0 | (2,690) |
Net cash provided by (used in) financing activities | (258,558) | 66,499 |
Net increase (decrease) in cash and cash equivalents | (133,534) | (409,686) |
Cash and cash equivalents - beginning of period | 1,137,264 | 1,546,950 |
Cash and cash equivalents - end of period | 1,003,730 | 1,137,264 |
Cash paid for: | ||
Interest | 7,884 | 15,597 |
Taxes | 0 | 0 |
Non-cash activities: | ||
Reclass of Warrant Liability to Additional Paid in Capital | (182,161) | 0 |
Initial recognition of prepaid warrant expense | $ (105,683) | $ 0 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 NATURE OF BUSINESS ADM Tronics Unlimited, Inc. ("we", "us", "the Company" or "ADM"), was incorporated under the laws of the state of Delaware on November 24, 1969. We are a manufacturing and engineering concern whose principal lines of business are the design, manufacture and sale of electronics of our own products or on a contract manufacturing basis; the production and sale of chemical and antistatic products; and, research, development and engineering services. Electronic equipment is manufactured in accordance with customer specifications on a contract basis. Our electronic device product line consists principally of proprietary devices used in diagnostics and therapeutics of humans and animals and electronic controllers for spas and hot tubs. These products are sold to customers located principally in the United States. We are registered with the FDA as a contract manufacturing facility and we manufacture medical devices for customers in accordance with their designs and specifications. Our chemical product line is principally comprised of water-based chemical products used in the food packaging and converting industries, and anti-static conductive paints, coatings and other products. These products are sold to customers located in the United States, Australia, Asia and Europe. We also provide research, development, regulatory and engineering services to customers. Our subsidiary, SMI, is involved in medical electronic therapeutic technology. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary Sonotron Medical Systems, Inc. (the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. USE OF ESTIMATES These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and, accordingly, require 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 amounts could differ from those estimates. FAIR VALUE OF FINANCIAL INSTRUMENTS The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities. Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. All these items were determined to be Level 1 fair value measurements. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximated fair value because of the short maturity of these instruments. CASH AND CASH EQUIVALENTS Cash equivalents are comprised of certain 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 per institution. At March 31, 2023, approximately $754,000 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 not 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. Allowance for doubtful accounts as of March 31, 2023 and March 31, 2022 was $694,871 and $675,000, respectively. 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 included in sales of our electronic products have been de minimis. We have no other post shipment obligations. Based on prior experience, no amounts have been accrued for potential warranty costs and actual costs were less than $2,000, for each of the fiscal years ended March 31, 2023 and 2022. For contract manufacturing, revenues are recognized after shipment of the completed products. Amounts received from customers in advance of our satisfaction of applicable performance obligations are recorded as customer deposits. Such amounts are recognized as revenues when the related performance obligations are satisfied. Customer deposits of approximately $179,000 as of March 31, 2022 were recognized as revenues during the year ended March 31, 2023. 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 on a monthly basis over time as the applicable performance obligations are satisfied. All revenue is recognized net of discounts. Twelve Months Ended March 31, 2023 2022 Net Revenue in the US Chemical $ 909,221 $ 1,033,394 Electronics 1,883,251 1,405,594 Engineering 534,644 481,422 3,327,116 2,920,410 Net Revenue outside the US Chemical 349,669 286,184 Electronics - - Engineering - - 349,669 286,184 Total Revenues $ 3,676,785 $ 3,206,594 WARRANTY LIABILITIES The Company’s provision for estimated future warranty costs is based upon historical relationship of warranty claims to sales. Based upon historical experience, the Company has concluded that no warranty liability is required as of the consolidated balance sheet dates. However, the Company periodically reviews the adequacy of its product warranties and will record an accrued warranty reserve if necessary. 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 annually based on prior and expected future usage. 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 seven INTANGIBLE ASSETS Intangible assets are reviewed for impairment annually whenever changes in circumstances indicate that the carrying amount may not be recoverable. In reviewing for impairment, the Company compares the carrying value of the relevant asset to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets’ fair value and its carrying value. During the fiscal years ended March 31, 2023 and 2022, there were no impairments. ADVERTISING COSTS Advertising costs are expensed as incurred and amounted to $28,254 and $27,546 for the fiscal years ended March 31, 2023 and 2022, respectively. SHIPPING AND HANDLING COSTS Shipping and handling costs incurred for the years ended March 31, 2023 and 2022 were $4,631 and $9,371 respectively. Such costs are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations. INCOME TAXES We report the results of our operations as part of a consolidated Federal tax return with our subsidiary. Deferred income taxes result primarily from temporary differences between financial and tax reporting. Deferred tax assets and liabilities are determined based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is recorded to reduce a deferred tax asset to that portion that is expected to more likely than not be realized. The Company has adopted the authoritative accounting guidance with respect to accounting for uncertainty in income taxes, which clarified the accounting and disclosures for uncertain tax positions related to income taxes recognized in the consolidated financial statements and addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company files income tax returns in several jurisdictions. The Company’s tax returns remain subject to examination, by major jurisdiction, for the years ended March 31, as follows: Jurisdiction Fiscal Year Federal 2019 and beyond New Jersey 2018 and beyond There are currently no tax years under examination by any major tax jurisdictions. The Company will recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of March 31, 2023, and 2022, the Company has no accrued interest or penalties related to uncertain tax positions. NET EARNINGS (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. Per share basic and diluted earnings (loss) amounted to ($0.00) and ($ 0.02 LEASE ACCOUNTING In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of April 1, 2019, using the modified retrospective approach which allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term. The Company defines a short-term lease as a lease that, at the commencement date, has a lease term of twelve months or less and does not contain an option to purchase the underlying asset that the lease is reasonably certain to exercise. Related variable lease payments are recognized in the period in which the obligation is incurred. The Company's lease agreement contains related non-lease components (e.g. taxes, etc.). The Company separates lease components and non-lease components for all underlying asset classes. PAYCHECK PROTECTION PROGRAM LOAN As disclosed in Note 8, the Company has chosen to account for the loans under FASB ASC 470, Debt. Repayment amounts due within one year are recorded as current liabilities, and the remaining amounts due in more than one year, if any, as long-term liabilities. In accordance with ASC 835, Interest, no imputed interest is recorded as the below market interest rate applied to this loan is governmentally prescribed. As the Company was successful in receiving forgiveness for those portions of the loan used for qualifying expenses, those amounts were recorded as a gain upon extinguishment as noted in ASC 405, Liabilities. During the fiscal year ended March 31, 2022, the Company reported $693,817 of Forgiveness of Paycheck Protection Program under Other Income on the consolidated statement of operations. RECLASSIFICATION: Certain prior year amounts have been reclassified to conform with current year presentation. NEW ACCOUNTING STANDARDS On December 18, 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”, which modifies ASU 740 to simplify the accounting for income taxes. The amendments in ASU 2019-12 are effective for fiscal years beginning after December 15, 2020. The Company adopted this ASU effective April 1, 2021. In June 2016, the FASB issued ASU2016-13 “Financial Instruments – Credit Losses”. This guidance affects organizations that hold financial assets and net investments in leases that are not accounted for at fair value with changes in fair value reported in net income. The guidance requires organizations to measure all expected credit losses for financial instruments at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. It is effective for fiscal years beginning after December 15, 2022, including interim periods with those fiscal years. The Company is evaluating the potential impact on the Company’s consolidated financial statements. The Company adopted this policy effective April 1, 2023 and it did not have a material impact. |
Note 3 - Inventories
Note 3 - Inventories | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3 INVENTORIES 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 Inventories at March 31, 2022 consisted of the following: Current Long-term Total Raw materials $ 240,163 $ 181,406 $ 421,579 Finished goods 47,913 2,314 50,227 Totals $ 288,076 $ 183,730 $ 471,806 |
Note 4 - Intangible Assets
Note 4 - Intangible Assets | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | NOTE - 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. March 31, 2023 March 31, 2022 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 $ (22,631 ) $ 13,163 $ 35,794 10 - 15 $ (19,751 ) $ 16,043 Amortization expense was $2,880 and $2,880 for the years ended March 31, 2023 and 2022, respectively. Estimated aggregate future amortization expense related to intangible assets is as follows: For the fiscal years ended March 31, 2024 2,883 2025 2,466 2026 1,980 2027 1,725 2028 1,725 Thereafter 2,384 $ 13,163 |
Note 5 - Loan Receivable - Rela
Note 5 - Loan Receivable - Related Party | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 5 LOAN RECEIVABLE - RELATED PARTY The Company has a $75,000 investment for 23.2% of Qol Devices Inc. (Qol), which is carried 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. Qol owes the Company $330,090 as of March 31, 2022. The receivable is shown net of a $250,000 allowance for doubtful accounts on the consolidated balance sheet as of March 31, 2023. |
Note 6 - Line of Credit
Note 6 - Line of Credit | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 6 LINE OF CREDIT On June 15, 2018, the Company obtained an unsecured revolving line of credit, with a limit per annum 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% and 5.37% as of March 31, 2023 and 2022, respectively. Any unpaid principal will be due upon maturity. As of March 31, 2023 and 2022, the outstanding balance was $112,809 and $334,760, respectively. |
Note 7 - Paycheck Protection Pr
Note 7 - Paycheck Protection Program (PPP) Loan | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | NOTE 7 - PAYCHECK PROTECTION PROGRAM LOAN In May 2020, the Company obtained funding through the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) of $381,000. In February 2021, a second PPP loan was obtained in the amount of $332,542, for a total of $713,542. The loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities, with at least 60% being used for payroll. The Company did use the funds for these expenses during the year ended March 31, 2021. The Company applied for loan forgiveness of both PPP loans. On September 7, 2021, the Company received from the SBA for $361,275 of PPP loan forgiveness. On December 21, 2021, The Company received approval from the SBA for $332,542 of PPP loan forgiveness on the second loan. A total of $693,817 was recorded as Forgiveness of Paycheck Protection Program loan in the accompanying consolidated statements of operations for the 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 are required for the loan. As of March 31, 2023 and 2022, the outstanding balance was$11,656 and $17,035, respectively. |
Note 8 - Leases
Note 8 - Leases | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | NOTE 8 LEASES We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on June 30, 2028. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities as of March 31, 2023: For the fiscal year ended: Amount FY 2024 March 31, 2024 105,625 FY 2025 March 31, 2025 106,875 FY 2026 March 31, 2026 106,875 FY 2027 March 31, 2027 106,875 FY 2028 March 31, 2028 106,875 FY 2029 March 31, 2029 ends June 30, 2028 26,719 559,844 Less: Amount attributable to imputed interest (66,453 ) $ 493,391 Weighted average remaining lease term (in years) 3.2 Weighted average discount rate 5 % Rent and real estate tax expense for all facilities for the years ended March 31, 2023 and 2022 was approximately $137,000 for each year, and are reported as a component of cost of sales and selling, general and administrative expenses in the accompanying consolidated statement of operations. The Company paid $101,875 in lease payments during the year. |
Note 9 - Concentrations
Note 9 - Concentrations | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 9 CONCENTRATIONS During the year ended March 31, 2023 and 2022, two two three The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Revenues from foreign customers represented $349,669 of our net revenue or 9.5% and $286,184 of our net revenue or 9% for the year ended March 31, 2022. |
Note 10 - Segment Information
Note 10 - Segment Information | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 10 - SEGMENT INFORMATION Information about segments is as follows: Chemical Electronics Engineering Total Twelve months ended March 31, 2023 Revenue from external customers $ 1,258,890 $ 1,883,251 $ 534,644 $ 3,676,785 Segment operating income (loss) $ (49,966 ) $ (65,271 ) $ 145,572 $ 30,335 Twelve months ended March 31, 2022 Revenue from external customers $ 1,319,578 $ 1,405,594 $ 481,422 $ 3,206,594 Segment operating loss $ (443,587 ) $ (662,808 ) $ (22,919 ) $ (1,129,314 ) Total assets at March 31, 2023 $ 1,050,541 $ 1,575,811 $ 463,473 $ 3,089,825 Total assets at March 31, 2022 $ 1,365,789 $ 1,463,317 $ 520,557 $ 3,349,663 |
Note 11 - Disaggregated Revenue
Note 11 - Disaggregated Revenues and Segment Information | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 11 - DISAGGREGATED NET REVENUES The following tables show the Company's net revenues disaggregated by reportable segment and by product and service type: Twelve Months Ended March 31, 2023 2022 Net Revenue in the US Chemical $ 909,221 $ 1,033,394 Electronics 1,883,251 1,405,594 Engineering 534,644 481,422 3,327,116 2,920,410 Net Revenue outside the US Chemical 349,669 286,184 Electronics - - Engineering - - 349,669 286,184 Total Revenues $ 3,676,785 $ 3,206,594 |
Note 12 - Income Taxes
Note 12 - Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 12 - INCOME TAXES The provision for income taxes consisted of the following: 03/31/2023 3/31/2022 Current: Federal $ - $ - State $ (4,190 ) $ (19,818 ) Total $ (4,190 ) $ (19,818 ) Deferred Federal 93,383 714,194 State 31,617 241,806 Total $ 125,000 $ 956,000 Provision for income taxes $ 120,810 $ 936,182 The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows: 03/31/2023 03/31/2023 3/31/2022 3/31/2022 Book income at federal statutory rate, 21% 10,660 21.00 % (94,100 ) 21.00 % State Capital Taxes 1,580 3.11 % 4,300 -0.96 % State taxes, net of federal benefit 5,115 10.08 % - 0.00 % Permanent Items 4,449 8.76 % 20,482 -4.57 % PPP Loan Forgiveness (195,000 ) 43.52 % Prior Year Tax Receivable True-Up (6,190 ) -12.19 % Prior Year Deferred Tax Asset/(L) True Up 27,987 55.14 % - 0.00 % Valuation Allowance 108,986 214.71 % 1,322,600 -295.17 % Federal research & development credit generated (31,776 ) -62.60 % (122,100 ) 27.25 % 120,810 238.00 % 936,182 -208.93 % Deferred income taxes reflect the net effects of temporary difference between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax assets are as follows: Deferred tax assets/(liabilities) 03/31/2023 3/31/2022 Federal Net operating loss carryovers 443,074 834,000 New Jersey Net operating loss carryovers 105,699 Federal R&D Credit 328,723 311,000 New Jersey R&D Credit 126,091 115,000 Depreciation & Amortization 137,429 (2,000 ) Allowance For Doubtful Accounts 260,018 190,000 Stock Comp Expense 30,516 - Gross deferred tax assets 1,431,550 1,448,000 Valuation allowance (1,431,550 ) (1,323,000 ) Total deferred tax assets - 125,000 |
Note 13 - Warrant Liability
Note 13 - Warrant Liability | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Warrant Liability [Text Block] | NOTE 13 WARRANT LIABILITY On July 2, 2021, ADM entered into a consulting agreement. The agreement granted a consultant a warrant to purchase up to 3,500,000 shares of the Company's par value common stock at an exercise price of $0.17 per share for the first twelve twelve During the preparation of our consolidated financial statements for the three months ended June 30, 2022, we identified an error relating to the accounting treatment of the initial warrant liability in July of 2021 that was originally valued at approximately $288,000 and was subsequently revalued at March 31, 2022 for a value of approximately $182,000. The error caused additional paid in capital to be understated by approximately $288,000, warrant liability to be overstated by approximately $182,000, prepaid expenses to be understated by approximately $181,000, and net loss to be overstated by approximately $75,000 as of and for the year ended March 31, 2022. We concluded the impact on the interim financial statements was immaterial and corrected the balances as of June 30, 2022. |
Note 14 - Due to Stockholder
Note 14 - Due to Stockholder | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Compensation Related Costs, General [Text Block] | NOTE 14 DUE TO STOCKHOLDER The Company’s President has been deferring his salary and bonuses periodically to assist the Company’s cash flow. There are no |
Note 15 - Legal Proceedings
Note 15 - Legal Proceedings | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | NOTE 15 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 16 - Subsequent Events
Note 16 - Subsequent Events | 12 Months Ended |
Mar. 31, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 16 SUBSEQUENT EVENTS We evaluated all subsequent events from the date of the consolidated balance sheet through the issuance date of these consolidated financial statements and determined that there are no events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary Sonotron Medical Systems, Inc. (the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and, accordingly, require 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 amounts could differ from those estimates. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities. Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. All these items were determined to be Level 1 fair value measurements. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximated fair value because of the short maturity of these instruments. |
Cash and Cash Equivalents, Policy [Policy Text Block] | CASH AND CASH EQUIVALENTS Cash equivalents are comprised of certain 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 per institution. At March 31, 2023, approximately $754,000 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 not 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. Allowance for doubtful accounts as of March 31, 2023 and March 31, 2022 was $694,871 and $675,000, respectively. |
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 included in sales of our electronic products have been de minimis. We have no other post shipment obligations. Based on prior experience, no amounts have been accrued for potential warranty costs and actual costs were less than $2,000, for each of the fiscal years ended March 31, 2023 and 2022. For contract manufacturing, revenues are recognized after shipment of the completed products. Amounts received from customers in advance of our satisfaction of applicable performance obligations are recorded as customer deposits. Such amounts are recognized as revenues when the related performance obligations are satisfied. Customer deposits of approximately $179,000 as of March 31, 2022 were recognized as revenues during the year ended March 31, 2023. 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 on a monthly basis over time as the applicable performance obligations are satisfied. All revenue is recognized net of discounts. Twelve Months Ended March 31, 2023 2022 Net Revenue in the US Chemical $ 909,221 $ 1,033,394 Electronics 1,883,251 1,405,594 Engineering 534,644 481,422 3,327,116 2,920,410 Net Revenue outside the US Chemical 349,669 286,184 Electronics - - Engineering - - 349,669 286,184 Total Revenues $ 3,676,785 $ 3,206,594 |
Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | WARRANTY LIABILITIES The Company’s provision for estimated future warranty costs is based upon historical relationship of warranty claims to sales. Based upon historical experience, the Company has concluded that no warranty liability is required as of the consolidated balance sheet dates. However, the Company periodically reviews the adequacy of its product warranties and will record an accrued warranty reserve if necessary. |
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 annually based on prior and expected future usage. |
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 seven |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | INTANGIBLE ASSETS Intangible assets are reviewed for impairment annually whenever changes in circumstances indicate that the carrying amount may not be recoverable. In reviewing for impairment, the Company compares the carrying value of the relevant asset to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets’ fair value and its carrying value. During the fiscal years ended March 31, 2023 and 2022, there were no impairments. |
Advertising Cost [Policy Text Block] | ADVERTISING COSTS Advertising costs are expensed as incurred and amounted to $28,254 and $27,546 for the fiscal years ended March 31, 2023 and 2022, respectively. |
Shipping And Handling Costs [Policy Text Block] | SHIPPING AND HANDLING COSTS Shipping and handling costs incurred for the years ended March 31, 2023 and 2022 were $4,631 and $9,371 respectively. Such costs are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations. |
Income Tax, Policy [Policy Text Block] | INCOME TAXES We report the results of our operations as part of a consolidated Federal tax return with our subsidiary. Deferred income taxes result primarily from temporary differences between financial and tax reporting. Deferred tax assets and liabilities are determined based on the difference between the financial statement basis and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is recorded to reduce a deferred tax asset to that portion that is expected to more likely than not be realized. The Company has adopted the authoritative accounting guidance with respect to accounting for uncertainty in income taxes, which clarified the accounting and disclosures for uncertain tax positions related to income taxes recognized in the consolidated financial statements and addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company files income tax returns in several jurisdictions. The Company’s tax returns remain subject to examination, by major jurisdiction, for the years ended March 31, as follows: Jurisdiction Fiscal Year Federal 2019 and beyond New Jersey 2018 and beyond There are currently no tax years under examination by any major tax jurisdictions. The Company will recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of March 31, 2023, and 2022, the Company has no accrued interest or penalties related to uncertain tax positions. |
Earnings Per Share, Policy [Policy Text Block] | NET EARNINGS (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. Per share basic and diluted earnings (loss) amounted to ($0.00) and ($ 0.02 |
Lessee, Leases [Policy Text Block] | LEASE ACCOUNTING In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which changes financial reporting as it relates to leasing transactions. Under the new guidance, lessees are required to recognize a lease liability, measured on a discounted basis; and a right-of-use asset, for the lease term. The Company adopted this guidance as of April 1, 2019, using the modified retrospective approach which allowed it to initially apply the guidance as of the adoption date. The Company elected the package of practical expedients available under the new standard, which allowed the Company to forgo a reassessment of (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) the initial direct costs for any existing leases. The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term. The Company defines a short-term lease as a lease that, at the commencement date, has a lease term of twelve months or less and does not contain an option to purchase the underlying asset that the lease is reasonably certain to exercise. Related variable lease payments are recognized in the period in which the obligation is incurred. The Company's lease agreement contains related non-lease components (e.g. taxes, etc.). The Company separates lease components and non-lease components for all underlying asset classes. |
Debt, Policy [Policy Text Block] | PAYCHECK PROTECTION PROGRAM LOAN As disclosed in Note 8, the Company has chosen to account for the loans under FASB ASC 470, Debt. Repayment amounts due within one year are recorded as current liabilities, and the remaining amounts due in more than one year, if any, as long-term liabilities. In accordance with ASC 835, Interest, no imputed interest is recorded as the below market interest rate applied to this loan is governmentally prescribed. As the Company was successful in receiving forgiveness for those portions of the loan used for qualifying expenses, those amounts were recorded as a gain upon extinguishment as noted in ASC 405, Liabilities. During the fiscal year ended March 31, 2022, the Company reported $693,817 of Forgiveness of Paycheck Protection Program under Other Income on the consolidated statement of operations. |
Reclassification, Comparability Adjustment [Policy Text Block] | RECLASSIFICATION: Certain prior year amounts have been reclassified to conform with current year presentation. |
New Accounting Pronouncements, Policy [Policy Text Block] | NEW ACCOUNTING STANDARDS On December 18, 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”, which modifies ASU 740 to simplify the accounting for income taxes. The amendments in ASU 2019-12 are effective for fiscal years beginning after December 15, 2020. The Company adopted this ASU effective April 1, 2021. In June 2016, the FASB issued ASU2016-13 “Financial Instruments – Credit Losses”. This guidance affects organizations that hold financial assets and net investments in leases that are not accounted for at fair value with changes in fair value reported in net income. The guidance requires organizations to measure all expected credit losses for financial instruments at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. It is effective for fiscal years beginning after December 15, 2022, including interim periods with those fiscal years. The Company is evaluating the potential impact on the Company’s consolidated financial statements. The Company adopted this policy effective April 1, 2023 and it did not have a material impact. |
Note 2 - Significant Accounti_2
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Twelve Months Ended March 31, 2023 2022 Net Revenue in the US Chemical $ 909,221 $ 1,033,394 Electronics 1,883,251 1,405,594 Engineering 534,644 481,422 3,327,116 2,920,410 Net Revenue outside the US Chemical 349,669 286,184 Electronics - - Engineering - - 349,669 286,184 Total Revenues $ 3,676,785 $ 3,206,594 |
Summary of Income Tax Contingencies [Table Text Block] | Jurisdiction Fiscal Year Federal 2019 and beyond New Jersey 2018 and beyond |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule Of Inventory [Table Text Block] | 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 Inventories at March 31, 2022 consisted of the following: Current Long-term Total Raw materials $ 240,163 $ 181,406 $ 421,579 Finished goods 47,913 2,314 50,227 Totals $ 288,076 $ 183,730 $ 471,806 |
Note 4 - Intangible Assets (Tab
Note 4 - Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31, 2023 March 31, 2022 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 $ (22,631 ) $ 13,163 $ 35,794 10 - 15 $ (19,751 ) $ 16,043 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | For the fiscal years ended March 31, 2024 2,883 2025 2,466 2026 1,980 2027 1,725 2028 1,725 Thereafter 2,384 $ 13,163 |
Note 8 - Leases (Tables)
Note 8 - Leases (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | For the fiscal year ended: Amount FY 2024 March 31, 2024 105,625 FY 2025 March 31, 2025 106,875 FY 2026 March 31, 2026 106,875 FY 2027 March 31, 2027 106,875 FY 2028 March 31, 2028 106,875 FY 2029 March 31, 2029 ends June 30, 2028 26,719 559,844 Less: Amount attributable to imputed interest (66,453 ) $ 493,391 Weighted average remaining lease term (in years) 3.2 Weighted average discount rate 5 % |
Note 10 - Segment Information (
Note 10 - Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Chemical Electronics Engineering Total Twelve months ended March 31, 2023 Revenue from external customers $ 1,258,890 $ 1,883,251 $ 534,644 $ 3,676,785 Segment operating income (loss) $ (49,966 ) $ (65,271 ) $ 145,572 $ 30,335 Twelve months ended March 31, 2022 Revenue from external customers $ 1,319,578 $ 1,405,594 $ 481,422 $ 3,206,594 Segment operating loss $ (443,587 ) $ (662,808 ) $ (22,919 ) $ (1,129,314 ) Total assets at March 31, 2023 $ 1,050,541 $ 1,575,811 $ 463,473 $ 3,089,825 Total assets at March 31, 2022 $ 1,365,789 $ 1,463,317 $ 520,557 $ 3,349,663 |
Note 11 - Disaggregated Reven_2
Note 11 - Disaggregated Revenues and Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Revenue from External Customers by Geographic Areas [Table Text Block] | Twelve Months Ended March 31, 2023 2022 Net Revenue in the US Chemical $ 909,221 $ 1,033,394 Electronics 1,883,251 1,405,594 Engineering 534,644 481,422 3,327,116 2,920,410 Net Revenue outside the US Chemical 349,669 286,184 Electronics - - Engineering - - 349,669 286,184 Total Revenues $ 3,676,785 $ 3,206,594 |
Note 12 - Income Taxes (Tables)
Note 12 - Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 03/31/2023 3/31/2022 Current: Federal $ - $ - State $ (4,190 ) $ (19,818 ) Total $ (4,190 ) $ (19,818 ) Deferred Federal 93,383 714,194 State 31,617 241,806 Total $ 125,000 $ 956,000 Provision for income taxes $ 120,810 $ 936,182 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 03/31/2023 03/31/2023 3/31/2022 3/31/2022 Book income at federal statutory rate, 21% 10,660 21.00 % (94,100 ) 21.00 % State Capital Taxes 1,580 3.11 % 4,300 -0.96 % State taxes, net of federal benefit 5,115 10.08 % - 0.00 % Permanent Items 4,449 8.76 % 20,482 -4.57 % PPP Loan Forgiveness (195,000 ) 43.52 % Prior Year Tax Receivable True-Up (6,190 ) -12.19 % Prior Year Deferred Tax Asset/(L) True Up 27,987 55.14 % - 0.00 % Valuation Allowance 108,986 214.71 % 1,322,600 -295.17 % Federal research & development credit generated (31,776 ) -62.60 % (122,100 ) 27.25 % 120,810 238.00 % 936,182 -208.93 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets/(liabilities) 03/31/2023 3/31/2022 Federal Net operating loss carryovers 443,074 834,000 New Jersey Net operating loss carryovers 105,699 Federal R&D Credit 328,723 311,000 New Jersey R&D Credit 126,091 115,000 Depreciation & Amortization 137,429 (2,000 ) Allowance For Doubtful Accounts 260,018 190,000 Stock Comp Expense 30,516 - Gross deferred tax assets 1,431,550 1,448,000 Valuation allowance (1,431,550 ) (1,323,000 ) Total deferred tax assets - 125,000 |
Note 2 - Significant Accounti_3
Note 2 - Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Cash, Uninsured Amount | $ 754,000 | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 675,000 | 694,871 | $ 675,000 |
Contract with Customer, Liability, Revenue Recognized | $ 179,000 | ||
Advertising Expense | 28,254 | 27,546 | |
Shipping and Handling Costs | $ 4,631 | $ 9,371 | |
Earnings Per Share, Basic (in dollars per share) | $ 0 | $ (0.02) | |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 7 years | ||
Electronic Products [Member] | |||
Warranty Term (Year) | 90 years |
Note 2 - Significant Accounti_4
Note 2 - Significant Accounting Policies -Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | $ 3,676,785 | $ 3,206,594 |
Chemical [Member] | ||
Revenue | 1,258,890 | 1,319,578 |
Electronics [Member] | ||
Revenue | 1,883,251 | 1,405,594 |
Engineering [Member] | ||
Revenue | 534,644 | 481,422 |
UNITED STATES | ||
Revenue | 3,327,116 | 2,920,410 |
UNITED STATES | Chemical [Member] | ||
Revenue | 909,221 | 1,033,394 |
UNITED STATES | Electronics [Member] | ||
Revenue | 1,883,251 | 1,405,594 |
UNITED STATES | Engineering [Member] | ||
Revenue | 534,644 | 481,422 |
Non-US [Member] | ||
Revenue | 349,669 | 286,184 |
Non-US [Member] | Chemical [Member] | ||
Revenue | 349,669 | 286,184 |
Non-US [Member] | Electronics [Member] | ||
Revenue | 0 | 0 |
Non-US [Member] | Engineering [Member] | ||
Revenue | $ 0 | $ 0 |
Note 2 - Significant Accounti_5
Note 2 - Significant Accounting Policies - Tax Returns Subject to Examination (Details) | 12 Months Ended |
Mar. 31, 2023 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |
Open tax year | 2019 2020 2021 2022 2023 |
State and Local Jurisdiction [Member] | New Jersey Division of Taxation [Member] | |
Open tax year | 2018 2019 2020 2021 2022 2023 |
Note 3 - Inventories - Summary
Note 3 - Inventories - Summary of Inventory (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Inventory, Raw Materials, Gross | $ 592,109 | $ 421,579 |
Raw materials | 592,109 | 421,579 |
Inventory, Finished Goods, Gross | 79,807 | 50,227 |
Finished goods | 79,807 | 50,227 |
Inventory, Gross | 671,916 | 471,806 |
Inventory, Gross | 671,916 | 471,806 |
Current [Member] | ||
Inventory, Raw Materials, Gross | 390,792 | 240,163 |
Raw materials | 390,792 | 240,163 |
Inventory, Finished Goods, Gross | 52,673 | 47,913 |
Finished goods | 52,673 | 47,913 |
Inventory, Gross | 443,465 | 288,076 |
Inventory, Gross | 443,465 | 288,076 |
Long Term [Member | ||
Inventory, Raw Materials, Gross | 201,317 | 181,406 |
Raw materials | 201,317 | 181,406 |
Inventory, Finished Goods, Gross | 27,134 | 2,314 |
Finished goods | 27,134 | 2,314 |
Inventory, Gross | 228,451 | 183,730 |
Inventory, Gross | $ 228,451 | $ 183,730 |
Note 4 - Intangible Assets (Det
Note 4 - Intangible Assets (Details Textual) | Mar. 31, 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 |
Note 4 - Intangible Assets - In
Note 4 - Intangible Assets - Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Patents & Trademarks | $ (22,631) | $ (19,751) | |
Intangible assets, net of accumulated amortization of $21,911 and $19,751 at December 31, 2022 and March 31, 2022, respectively | 13,163 | 16,043 | |
Patents & Trademarks | 13,163 | 16,043 | |
Patents And Trademarks [Member] | |||
Patents & Trademarks | 35,794 | 35,794 | |
Patents & Trademarks | $ (22,631) | (19,751) | |
Intangible assets, net of accumulated amortization of $21,911 and $19,751 at December 31, 2022 and March 31, 2022, respectively | 16,043 | $ 13,163 | |
Patents & Trademarks | $ 16,043 | $ 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 | 15 years |
Note 4 - Intangible Assets - Es
Note 4 - Intangible Assets - Estimated Aggregate Future Amortization Expense (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2003 |
2024 | $ 2,883 | ||
2025 | $ 2,466 | ||
2026 | 1,980 | ||
2027 | 1,725 | ||
Thereafter | 2,384 | ||
Finite-Lived Intangible Assets, Net | $ 13,163 | $ 16,043 |
Note 5 - Loan Receivable - Re_2
Note 5 - Loan Receivable - Related Party (Details Textual) | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Qol [Member] | |
Accounts Receivable, Allowance for Credit Loss | $ 250,000 |
Qol [Member] | Related Party [Member] | |
Accounts Receivable, after Allowance for Credit Loss | 330,090 |
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 | 2,320% |
Note 6 - Line of Credit (Detail
Note 6 - Line of Credit (Details Textual) - Revolving Credit Facility [Member] - USD ($) | 9 Months Ended | ||||
Dec. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | 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 | $ 112,809 | $ 334,760 |
Note 7 - Paycheck Protection _2
Note 7 - Paycheck Protection Program (PPP) Loan (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Dec. 21, 2021 | Sep. 07, 2021 | Feb. 28, 2021 | Feb. 28, 2021 | May 30, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | |
Gain (Loss) on Extinguishment of Debt, Total | $ 0 | $ 693,817 | |||||
Gain (Loss) on Extinguishment of Debt | 0 | 693,817 | |||||
Paycheck Protection Program CARES Act [Member] | |||||||
Proceeds from Notes Payable, Total | $ 713,542 | $ 332,542 | $ 381,000 | ||||
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 | $ 11,656 | $ 17,035 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1% | ||||||
Debt Instrument, Maturity Date | May 15, 2025 |
Note 8 - Leases (Details Textua
Note 8 - Leases (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Lease, Expense | $ 137,000 | $ 137,000 |
Operating Lease, Payments | $ 101,875 |
Note 8 - Leases - Future Minimu
Note 8 - Leases - Future Minimum Lease Payments (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
FY 2024 | $ 105,625 | |
FY 2025 | 106,875 | |
FY 2026 | 106,875 | |
FY 2027 | 106,875 | |
FY 2028 | 106,875 | |
FY 2029 | 26,719 | |
Lessee, Operating Lease, Liability, to be Paid | 559,844 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 66,453 | |
Operating Lease, Liability | $ 493,391 | |
Operating Lease, Weighted Average Remaining Lease Term (Year) | 3 years 2 months 12 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 500% |
Note 9 - Concentrations (Detail
Note 9 - Concentrations (Details Textual) | 12 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Revenue | $ 3,676,785 | $ 3,206,594 |
Customer Concentration Risk [Member] | Two Customers [Member] | Revenue Benchmark [Member] | ||
Concentration Risk, Number of Customers | 2 | |
Concentration Risk, Percentage | 75% | 51% |
Customer Concentration Risk [Member] | Three Customers [Member] | Revenue Benchmark [Member] | ||
Concentration Risk, Number of Customers | 3 | |
Concentration Risk, Percentage | 40% | 75% |
Customer Concentration Risk [Member] | Foreign Customers [Member] | Revenue Benchmark [Member] | ||
Concentration Risk, Percentage | 9.50% | 9% |
Revenue | $ 349,669 | $ 286,184 |
Note 10 - Segment Information -
Note 10 - Segment Information - Summary of Segment Information (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | $ 3,676,785 | $ 3,206,594 |
Segment operating (loss) | 30,335 | (1,129,314) |
Total assets | 3,089,825 | 3,349,663 |
Chemical [Member] | ||
Revenue | 1,258,890 | 1,319,578 |
Segment operating (loss) | (49,966) | (443,587) |
Total assets | 1,050,541 | 1,365,789 |
Electronics [Member] | ||
Revenue | 1,883,251 | 1,405,594 |
Segment operating (loss) | (65,271) | (662,808) |
Total assets | 1,575,811 | 1,463,317 |
Engineering [Member] | ||
Revenue | 534,644 | 481,422 |
Segment operating (loss) | 145,572 | (22,919) |
Total assets | $ 463,473 | $ 520,557 |
Note 11 - Disaggregated Reven_3
Note 11 - Disaggregated Revenues and Segment Information - Net Revenue, Classified by Geography (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | $ 3,676,785 | $ 3,206,594 |
Chemical [Member] | ||
Revenue | 1,258,890 | 1,319,578 |
Electronics [Member] | ||
Revenue | 1,883,251 | 1,405,594 |
Engineering [Member] | ||
Revenue | 534,644 | 481,422 |
UNITED STATES | ||
Revenue | 3,327,116 | 2,920,410 |
UNITED STATES | Chemical [Member] | ||
Revenue | 909,221 | 1,033,394 |
UNITED STATES | Electronics [Member] | ||
Revenue | 1,883,251 | 1,405,594 |
UNITED STATES | Engineering [Member] | ||
Revenue | 534,644 | 481,422 |
Non-US [Member] | ||
Revenue | 349,669 | 286,184 |
Non-US [Member] | Chemical [Member] | ||
Revenue | 349,669 | 286,184 |
Non-US [Member] | Electronics [Member] | ||
Revenue | 0 | 0 |
Non-US [Member] | Engineering [Member] | ||
Revenue | $ 0 | $ 0 |
Note 12 - Income Taxes - Signif
Note 12 - Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | (4,190) | (19,818) |
Total | (4,190) | (19,818) |
Deferred | ||
Federal | 93,383 | 714,194 |
State | 31,617 | 241,806 |
Total | 125,000 | 956,000 |
Total benefit provision for income taxes | $ 120,810 | $ 936,182 |
Note 12 - Income Taxes - Provis
Note 12 - Income Taxes - Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Book income at federal statutory rate, 21% | $ 10,660 | $ (94,100) |
Book income at federal statutory rate, 21%, percent | 21% | 21% |
State Capital Taxes | $ 1,580 | $ 4,300 |
State Capital Taxes, percent | 3.11% | (0.96%) |
State taxes, net of federal benefit | $ 5,115 | $ 0 |
State taxes, net of federal benefit, percent | 10.08% | 0% |
Permanent Items | $ 4,449 | $ 20,482 |
Permanent Items, percent | 8.76% | (4.57%) |
Effective Income Tax Rate Reconciliation, Loan Forgiveness, Amount | $ (195,000) | |
Effective Income Tax Rate Reconciliation, Loan Forgiveness | 43.52% | |
Effective Income Tax Rate Reconciliation, Prior Year Tax Receivable, Amount | $ (6,190) | |
Effective Income Tax Rate Reconciliation, Prior Year Tax Receivable, Percent | 12.19% | |
Prior Year Deferred Tax Asset/(L) True Up | $ 27,987 | $ 0 |
Prior Year Deferred Tax Asset/(L) True Up, percent | 55.14% | 0% |
Valuation Allowance | $ 108,986 | $ (1,322,600) |
Valuation Allowance, percent | 214.71% | 295.17% |
Valuation Allowance | $ (108,986) | $ 1,322,600 |
Valuation Allowance, percent | (214.71%) | (295.17%) |
Federal research & development credit generated | $ (31,776) | $ 122,100 |
Federal research & development credit generated, percent | (62.60%) | (27.25%) |
Federal research & development credit generated | $ 31,776 | $ (122,100) |
Federal research & development credit generated, percent | 62.60% | 27.25% |
Total benefit provision for income taxes | $ 120,810 | $ 936,182 |
Effective Income Tax Rate Reconciliation, Percent | 238% | (208.93%) |
Note 12 - Income Taxes - Deferr
Note 12 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Depreciation & Amortization | $ 137,429 | $ (2,000) |
Allowance For Doubtful Accounts | 260,018 | 190,000 |
Stock Comp Expense | 30,516 | 0 |
Gross deferred tax assets | 1,431,550 | 1,448,000 |
Valuation allowance | (1,431,550) | (1,323,000) |
Total deferred tax assets | 0 | 125,000 |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Federal Net operating loss carryovers | 443,074 | 834,000 |
Federal R&D Credit | 328,723 | 311,000 |
State and Local Jurisdiction [Member] | New Jersey Division of Taxation [Member] | ||
Federal Net operating loss carryovers | 105,699 | |
Federal R&D Credit | $ 126,091 | $ 115,000 |
Note 13 - Warrant Liability (De
Note 13 - Warrant Liability (Details Textual) - USD ($) | 12 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Jul. 02, 2022 | Jul. 31, 2021 | Jul. 02, 2021 | |
Warrant Liability, Current | $ 0 | $ 182,161 | |||
Warrant Liability, Current | 0 | (182,161) | |||
Net Income (Loss) Attributable to Parent, Total | $ 96,322 | 1,384,263 | |||
Revision of Prior Period, Error Correction, Adjustment [Member] | |||||
Warrant Liability, Current | (182,000) | ||||
Additional Paid in Capital, Total | 288,000 | ||||
Warrant Liability, Current | 182,000 | ||||
Prepaid Expense, Current, Total | 181,000 | ||||
Net Income (Loss) Attributable to Parent, Total | 75,000 | ||||
Consulting Agreement [Member] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 3,500,000 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.20 | $ 0.17 | |||
Class of Warrant or Right, Exercisable Period (Month) | 12 months | 12 months | |||
Warrant Liability, Current | 182,000 | $ 288,000 | |||
Warrant Liability, Current | $ (182,000) | $ (288,000) |
Note 14 - Due to Stockholder (D
Note 14 - Due to Stockholder (Details Textual) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Deferred Compensation Liability, Interest Accrued | $ 0 | |
Deferred Compensation Liability, Current | $ 13,626 |