NORTHVALE, NJ / ACCESSWIRE / July 15, 2024 / ADM Tronics Unlimited, Inc. (OTCQB:ADMT), a technology-based developer and manufacturer of innovative technologies, products, and proprietary medical devices, announces results for fiscal year ended March 31, 2024.
During the fiscal year ended March 31, 2024, ADMT devoted substantial research and development resources to finalizing its Vet-Sonotron® non-invasive therapy technology for the treatment of musculoskeletal pain conditions for the veterinary market. For the fiscal year ended March 31, 2024 research and development expenses were $576,903 as compared to $541,184 for the previous fiscal year. As previously announced, an initial production run of the Vet-Sonotron® was commenced in the last quarter of the fiscal year ended March 31, 2024.
The Company is in development of a medical version of the Sonotron® for use on humans where the need for effective pain treatment without the use of drugs or opioids is very large and unmet. The company plans on pursuing a 510(k) submission to the FDA when the development of the human medical version is completed. With the dedication of engineering and R&D resources internally to these proprietary technology developments and preparations for production of the Vet-Sonotron, ADMT had reduced revenues from its segments during the fiscal year.
"Although our decision to prioritize our proprietary product development was at the expense of generating revenues from our engineering services segment as well as affecting our other segment revenues, we believe this will result in substantial benefits for the company's future," stated Andre' DiMino, ADMT President.
The Company's contract medical device engineering development services segment derives revenues from customers that in many instances are pre-revenue as well as startups. As is typical with such companies, resources may be limited and dependent on securing capital. Over the last few years, and in particular due to challenges during the pandemic years, the Company has accounts receivable amounts from customers that are past due. For the fiscal year ended March 31, 2024 a reserve for such past due accounts receivables has been recorded as part of the Company's selling, general and administrative expenses, resulting in a higher loss for the fiscal year. Management believes that such past due accounts receivable will be collectable by the Company, once those customers are able to secure funding.
For the fiscal year ended March 31, 2024, revenues were approximately 19% less as compared to the previous fiscal year, due to reduced engineering services segment revenues coupled with a reduction in other revenues. The continued pressure of inflation on the costs of components and other raw materials, coupled with lingering supply problems for electronic components used in the manufacture of ADMT's electronic medical devices contributed to challenges in meeting customer orders and resulted in lower profit margins.
Revenues for the year ended March 31, 2024, were $2,965,406 compared to $3,676,785 for the previous year, a decrease of approximately 19%. Gross profit for the fiscal year was $1,116,422 or approximately 38% as compared to $1,657,902 or approximately 45% for the previous fiscal year. Inflationary pressures on raw materials and other operating expenses contributed to the reduced gross profit percentage. Operating expenses for the fiscal year ended 3/31/24 were $$1,936,318, an increase of approximately 19% from operating expenses of $1,627567 for the previous fiscal year, primarily due to the reserve for past due customer accounts receivable. ADMT had loss from operations of $819,896 for the fiscal year ended March 31, 2024, as compared to income from operations of $30,335 for the previous fiscal year. Net loss for the fiscal year ended March 31, 2024 was $877,222, as compared to net loss of $96,322 for the previous fiscal year.
Complete financial results are available in the Company's Annual Report on Form 10K at www.sec.gov.
Financial Highlights
Fiscal Year Ended
Fiscal Year Ended
March 31, 2024
March 31, 2023
Net revenues
$
2,965,406
$
3,676,785
Cost of sales
$
1,848,984
$
2,018,883
Gross Profit
$
1,116,422
$
1,657,902
Operating expenses
$
1,936,318
$
1,627,567
Income (loss) from operations
$
(819,896
)
$
30,335
Total other income (expense)
$
(57,326
)
$
(5,847
)
Income (loss) before provision for taxes
$
(877,222
)
$
24,488
Total benefit (provision) from income taxes
-
$
120,810
Net loss
$
(877,222
)
$
(96,322
)
Basic and diluted earnings (loss) per common share:
$
(0.01
)
$
(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 Medical Devices; Medical Device Design, Engineering, Regulatory and Manufacturing Services; and Eco-Friendly, Water-Based Formulations. The Company's headquarters, laboratories, FDA-Registered medical device and manufacturing operations are in Northvale, NJ. ADMT's multi-disciplinary team of engineers, researchers and technologists utilize advanced technology infrastructure for research, development and commercialization of diversified technologies.
ADMT welcomes inquiries for its electronics and medical device services at www.admtronics.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 SEC filings, news releases and other communications. The Company assumes no obligation to update information contained in this news release.
