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.
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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 [email protected]
SOURCE: ADM Tronics Unlimited, Inc.