EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

Exhibit 99.1

 
ADM Tronics Reports Fiscal Year 2008, Financial Results

June 30, 2008, Northvale, NJ – ADM Tronics Unlimited, Inc. (OTCBB: ADMT), a technology-based developer and manufacturer of unique, environmentally-safe, health and life-enhancing technologies, today announced financial results its fiscal year ended March 31, 2008.

ADMT reported a net loss of $2,894,316, or $.05 net loss per share, for the year ended March 31, 2008, a decrease of $5,271,570 from the net loss of $8,165,886, or $.15 net loss per share, for the year ended March 31, 2007.  This decrease was primarily the result of the exclusion of the Ivivi Technologies Inc.’s (Ivivi) loss due to the deconsolidation of Ivivi’s operating results following its October 2006 IPO, which reduced our ownership to approximately 34% (currently 30% as a result of additional issuances by Ivivi).  Revenues for the year ended March 31, 2008 were $1,896,746 as compared to $1,537,860 for the year ended March 31, 2007, which included $615,307 of Ivivi’s revenues prior to its deconsolidation.

See the accompanying Supplemental Pro Forma Financial Information that shows our results for the year ended March 31, 2007 with Ivivi’s results on one line to make it more comparative to our current period results.  Our revenues for the current year were $1,896,746, which included approximately $903,000 in sales of medical devices to Ivivi, compared to our pro forma revenues for the prior year of $922,553, an increase of $974,193 or 106%.  The increase primarily resulted from increased sales to Ivivi.  Gross profit was $540,884 and $508,648 (excluding Ivivi's operations) for the years ended March 31, 2008 and 2007, respectively.  Gross margins decreased as a result of margins on sales of medical devices of approximately 17% to Ivivi, as compared to margins achieved from our chemical products, which are generally higher. We have also incurred higher raw material costs on our chemical products during the year ended March 31, 2008.

Andre’ DiMino, President of ADMT stated, “Our results show continued growth for both our year-over-year and sequential periods. We expect to see continued growth and acceptance of our water-based chemical products through expanded sales and marketing activities.  We also expect continued increases in revenues from the production of medical electronic products, through our manufacturing agreement with Ivivi, as Ivivi expands distribution of its therapeutic medical electronics, along with efforts to initiate the marketing of our subsidiary’s personal-care products.”

ADM Tronics Unlimited, Inc.
Supplemental Pro-Forma Financial Information
 
We believe the following table, which compares the results of operations for the year ended March 31, 2008, with the pro-forma results of operations for the year ended March 31, 2007, as if Ivivi's operations were reported on one line, gives a more informative disclosure of our ongoing operations.
 
The pro forma financial information set forth below should be read in conjunction with a reading of our historical financial statements. The pro forma information is presented for illustrative purposes only and is not intended to be indicative of our results of operations that may be reported in the future.


         
Year Ended
 
         
March 31, 2007
 
         
Pro Forma
 
   
Year Ended
   
Ivivi Operations
 
   
March 31, 2008
   
Reported on One Line
 
Revenues
  $ 1,896,746     $ 922,553  
Costs and expenses:
               
Cost of sales
    1,355,862       413,905  
Research and development
    3,823       303  
Selling, general and administrative
    1,179,976       1,344,942  
                 
Total operating expenses
    2,539,661       1,759,150  
                 
Operating loss
    (642,915 )     (836,597 )
                 
Interest income
    88,315       27,981  
Equity in net loss of Ivivi
    (2,339,716 )     (1,069,563 )
Loss from Ivivi operations
    --       (6,287,707 )
                 
Net loss
  $ (2,894,316 )   $ (8,165,886 )
                 
Net loss per share, basic and diluted
  $ (0.05 )   $ (0.15 )
                 
Weighted average shares outstanding,
               
basic and diluted
    53,939,537       53,882,037  




ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEARS ENDED MARCH 31, 2008 AND 2007


   
2008
   
2007
 
Revenues
  $ 1,896,746     $ 1,537,860  
                 
Costs and expenses:
               
Cost of sales
    1,355,862       485,365  
Research and development
    3,823       298,521  
Selling, general and administrative
    1,179,976       4,371,611  
                 
Total operating expenses
    2,539,661       5,155,497  
                 
Operating loss
    (642,915 )     (3,617,637 )
                 
Interest and financing costs, net
    88,315       (3,100,653 )
Change in fair value of warrant and
               
registration rights liabilities
    --       (378,033 )
Equity in net loss of Ivivi
    (2,339,716 )     (1,069,563 )
                 
Net loss
  $ (2,894,316 )   $ (8,165,886 )
                 
Net loss per share, basic and diluted
  $ (0.05 )   $ (0.15 )
                 
Weighted average shares outstanding,
               
basic and diluted
    53,939,537       53,882,037  



ADM TRONICS UNLIMITED, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

   
March 31, 2008
   
March 31, 2007
 
             
ASSETS
           
             
Current assets:
           
Cash and cash equivalents
  $ 2,072,325     $ 2,498,276  
Accounts receivable, net of allowance for doubtful
               
accounts of $1,088 and $900, respectively
    101,270       89,598  
Receivables – Affiliate
    -       36,657  
Inventories
    469,403       205,517  
Prepaid expenses and other current assets
    83,731       35,130  
                 
Total current assets
    2,726,729       2,865,178  
                 
Property and equipment, net of accumulated depreciation
               
of $17,873 and $5,467, respectively
    55,288       37,989  
                 
Inventory - long term portion
    78,416       81,573  
Investment in Ivivi
    2,154,517       2,638,562  
Advances to related parties
    74,299       92,933  
Other assets
    28,486       89,772  
                 
Total assets
  $ 5,117,735     $ 5,806,007  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
Current liabilities:
               
Accounts payable
  $ 237,331     $ 180,935  
Accrued expenses and other current liabilities
    87,439       35,290  
Customer deposits – affiliate
    241,828       --  
                 
Total current liabilities
    566,598       216,225  
                 
Stockholders' equity:
               
Preferred stock, $.01 par value; 5,000,000 shares authorized,
               
no shares issued and outstanding
    --       --  
Common stock, $.0005 par value; 150,000,000 shares
               
authorized, 53,939,537 shares issued and outstanding at
               
March 31, 2008 and 53,882,037 at March 31, 2007
    26,970       26,941  
Additional paid-in capital
    32,153,597       30,297,955  
Accumulated deficit
    (27,629,430 )     (24,735,114 )
                 
Total stockholders' equity
    4,551,137       5,589,782  
                 
Total liabilities and stockholders' equity
  $ 5,117,735     $ 5,806,007  



About ADMT

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

Forward-Looking Statements

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

Company Contact:
Andre’ DiMino
201-767-6040