ADM Tronics Reports First Quarter of Fiscal Year 2024 Results

Rhea-AI Summary

ADM Tronics Unlimited, Inc. announces results for its first fiscal quarter ended June 30, 2023. Revenues decreased by 17% due to supply chain challenges and timing of orders. Increased SG&A expenses and higher R&D expenses were also reported. The company is working to overcome supply shortages and anticipates increased revenues and higher margins with the launch of their Vet-Sonotron device.

Positive

• Revenues decreased by 17% for the quarter ended June 30, 2023. The company is working to overcome supply shortages and anticipates increased revenues and higher margins with the launch of their Vet-Sonotron device.

Negative

• Increased SG&A expenses and higher R&D expenses were reported for the quarter ended June 30, 2023.

NORTHVALE, NJ / ACCESSWIRE / August 14, 2023 / ADM Tronics Unlimited, Inc. (OTCQB:ADMT), a technology-based developer and manufacturer of innovative technologies and products, announces results for its first fiscal quarter ended June 30, 2023 of Fiscal Year 2024.

Revenues for the quarter ended June 30, 2023 were $762,689 as compared to $921,408 for the same period last year, a 17% decrease primarily due to reduced electronics contract manufacturing offset by increased engineering services revenues. Contract manufacturing was impacted by the non-availability of certain electronic components, primarily microprocessors, due to continuing supply chain challenges, coupled with the timing of orders from certain customers.

During the fiscal quarter ended June 30, 2023 the Company had increased SG&A expense primarily due to non-recurring expenses including non-cash, stock-based compensation from the valuation of warrants issued to consultants at an exercise price of $0.20 per share, as well as one-time inventory and accounts receivable write-offs.

R&D expense was approximately 6% higher for the quarter ended June 30, 2023, as compared to the same period last year due to higher engineering expenses incurred for the Company's Vet-Sonotron^® veterinary therapy device in preparation for the first production run.

"Although the supply shortage for electronic components continues to be challenging, we have worked to overcome this by qualifying available substitute components for our contract manufacturing," stated Andre' DiMino, ADMT President. "This, along with order patterns of certain contract manufacturing customers, resulted in reduced revenues for the quarter. We are working to bring the Vet-Sonotron into production, and launch commercialization, which we anticipate will result in increased revenues and higher margins."

Revenues for the quarter ended June 30, 2023, were $762,689 as compared to $921,408 for the same period last year, a 17% decrease. Loss from operations for June 30, 2023 was $137,796 as compared to $34,625 for the same period last year. Complete financial results are available in the Company's Quarterly Report on Form 10Q for June 30, 2023, available at www.sec.gov.

Financial Highlights

	Three Months Ended			Three Months Ended
	June 30, 2023			June 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)
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 earnings per common share	$	(0.00)		$	(0.00)
Weighted average shares of common stock outstanding - basic and diluted		67,588,492			67,588,492

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, and FDA-Registered medical device 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 services at www.admtronics.com.

To receive ADMT email updates, complete form at https://admtronics.com/investor-relations/

Sonotron^® - a registered trademark of ADM Tronics Unlimited, Inc.

Investor Relations:

Howard Isaacs 562-987-4939 HISAACS@EARTHLINK.NET

Richard Cavalli 303-956-1777 RICHARDACAVALLI@GMAIL.COM

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.

SOURCE: ADM Tronics Unlimited, Inc.

View source version on accesswire.com:
https://www.accesswire.com/774159/ADM-Tronics-Reports-First-Quarter-of-Fiscal-Year-2024-Results

FAQ

What were the revenues for the quarter ended June 30, 2023?

Revenues for the quarter ended June 30, 2023 were $762,689.

What caused the decrease in revenues?

The decrease in revenues was primarily due to reduced electronics contract manufacturing and supply chain challenges.

What is the company working on?

The company is working on launching their Vet-Sonotron device, which they anticipate will result in increased revenues and higher margins.

What were the expenses for the quarter ended June 30, 2023?

SG&A expenses and R&D expenses were reported for the quarter ended June 30, 2023.