ADM Tronics Reports Third Quarter of Fiscal Year 2022 Results

Rhea-AI Summary

ADM Tronics Unlimited, Inc. (OTCQB: ADMT) reported mixed results for its third fiscal quarter ending December 31, 2021. Revenue decreased by $12,990 to $749,654 due to declines in the Chemical and Engineering segments, despite an increase in Electronics. However, year-to-date revenue rose by $64,049. Gross profit improved by $46,657, supported by enhanced performance in Engineering and Chemical sectors. Operational expenses surged, leading to a loss of $416,172 for the quarter. Significant increases in other income resulted from the forgiveness of the PPP Loan totaling $332,542.

Positive

• Gross profit increased by $46,657 for the quarter.
• Year-to-date revenue rose by $64,049.
• Increased other income from PPP Loan forgiveness of $332,542.

Negative

• Quarterly revenues decreased by $12,990, influenced by reduced sales in the Chemical and Engineering segments.
• Operational expenses increased significantly by $386,108, primarily from an allowance for doubtful accounts.
• Loss from operations amounted to $416,172, compared to a loss of $76,721 in the prior quarter.

NORTHVALE, NJ / ACCESSWIRE / February 22, 2022 / ADM Tronics Unlimited, Inc. (OTCQB:ADMT), a technology-based developer and manufacturer of innovative technologies and products, announces results for its third fiscal quarter ended December 31, 2021 of Fiscal Year 2022.

"As previously announced, the pre-production evaluation units of our Vet-Sonotron non-invasive, veterinary electrotherapy units were released during the third fiscal quarter," stated Andre' DiMino, President of ADMT. "We are receiving very positive reports from users of these units which encourages our efforts at bringing this technology to commercialization for both the equine and small animal therapy markets."

He continues, "In our manufacturing and engineering segments, the supply chain challenges we faced in the earlier part of the year intensified during the third quarter. This resulted in an increased backlog of orders as our engineering team actively pursues alternatives to overcome the shortages and significant delays in securing raw materials. Although these are very challenging times, we are dedicated to manufacturing and supplying our customers' orders as expeditiously as the worldwide supply situation allows, as well as bringing our own technologies to commercialization. We continue to invest in our future by increasing R&D of our own proprietary medical technologies, which we believe will provide meaningful future growth for the Company."

Revenues for the three and nine months ended December 31, 2021 decreased by $12,990 and increased $64,049, respectively. The three-month decrease is a result of decreased sales of $20,672 in the Chemical segment and $69,984 in the Engineering segment offset by an increase of $77,666 in the Electronics segment. The nine-month
increase is a result of increased sales $39,376 in the Engineering segment and $68,321 in the Chemicals segment, offset by decreased sales of $43,648 in the Electronics segment.

Research and development for the three and nine months ended December 31, 2021 were $181,224 and $475,365 respectively an increase of $17,115 and $58,846 respectively. The increase was attributable to expanded development activities for the Company's Vet-Sonotron veterinary electrotherapy technology.

Gross profit for the three and nine months ended December 31, 2021 increased by $46,657 and $161,546, respectively. The increase in gross profit resulted primarily from increased Engineering and Chemical sales coupled with a decrease in cost of sales.

Operational expenses for the three and nine months ended December 31, 2021 increased by $386,108 and $918,064, respectively. The increases were primarily due to an increase in allowance for doubtful accounts in the three months, and for the nine months, increases in allowance for doubtful accounts and in non-cash expense from the issuance of a warrant to a consulting group to purchase 3,500,000 shares of ADMT common stock at an exercise price of $0.17 for the first year and $0.20 for the second year of the two year agreement.

Other income increased $328,733 and $669,479 for the three months and nine months ended December 31, 2021, respectively. The increase is from forgiveness of the PPP Loan in the amount of $332,542 and $693,817 for the three and nine months ended December 31, 2021, respectively.

Complete financial results are available in the Company's Quarterly Report on Form 10Q for December 31, 2021, available at www.sec.gov.

Financial Highlights

	Three Months Ended			Nine Months Ended
	December 31,			December 31,
	2021	2020		2021	2020
Net revenues	$749,654	$762,644		$2,322,871	$2,258,822
Cost of sales	$423,541	$483,188		$1,332,112	$1,429,609
Gross Profit	$326,113	$279,456		$990,759	$829,213
Total operating expenses	$742,285	$356,177		$2,002,502	$1,084,438
Loss from operations	($416,172)	($76,721)		($1,011,743)	($255,225)
Total other income	$330,779	$2,046		$688,704	$19,225
(Loss) before (benefit) for income taxes	($85,393)	($74,675)		($323,039)	($236,000)
Total (benefit) for income taxes	($13,000)	($6,800)		($182,818)	($8,300)
Net (loss)	($72,393)	($67,875)		($140,221)	($227,700)
Basic and diluted per common share	($0.00)	($0.00)		($0.00)	($0.00)
Weighted average shares of common stock outstanding - basic and diluted	67,588,504	67,588,504		67,588,504	67,588,504

About ADMT

ADMT is a diversified, technology-based developer and manufacturer of innovative technologies and products. Its core competency is its ability to conceptualize a technology, bring it through development, into manufacturing and commercialization, all in-house. ADMT has three areas of activity: Proprietary Electronic Medical Devices; Design, Engineering, Regulatory and Manufacturing Services; and, Eco-Friendly, Safe, Water-Based Formulations. The Company's headquarters, laboratories, FDA-Registered medical device and manufacturing operations are located in Northvale, NJ. ADMT's multi-disciplinary team of engineers, researchers and technologists utilize advanced technology infrastructure, for the research, development and commercialization of diversified technologies. Additional information is available at admtronics.com

ADMT welcomes inquiries for its electronics and medical device development and manufacturing services at www.admtronics.com.

Sign up for ADMT Investor News Updates emails by filling in the form at the bottom of the page at: https://admtronics.com/investor-relations/

Except for historical information contained herein, the matters set forth in this news release are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995), including statements regarding future revenue growth and performance. Although ADMT believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations. Factors that could contribute to such differences include those described from time to time in ADMT's filings with the SEC, news releases and other communications. The Company assumes no obligation to update the information contained in this news release.

Contact: Andre' DiMino andre@admtronics.com

SOURCE: ADM Tronics Unlimited, Inc.

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FAQ

What were ADM Tronics' revenues for the third quarter of fiscal year 2022?

ADM Tronics reported revenues of $749,654 for the third quarter ended December 31, 2021.

How did the gross profit change for ADM Tronics in the last quarter?

The gross profit increased by $46,657 for the third quarter of fiscal year 2022.

What were the operational expenses for ADM Tronics in the third quarter?

Operational expenses rose by $386,108, totaling $742,285 for the third quarter.

What is the loss from operations reported by ADMT for the third quarter?

The loss from operations for ADM Tronics was $416,172 for the third quarter of fiscal year 2022.