ADM TRONICS UNLIMITED, INC.

ADM Tronics Unlimited, Inc. is a technology-based developer and manufacturer operating in the electronics for medical devices, environmentally safe chemical products, and engineering services industries. The company manufactures electronic technologies for non-invasive, electrotherapeutic and diagnostic medical devices as well as for veterinary and other applications at its FDA-Registered Medical Device Manufacturing facility in Northvale, New Jersey. Its chemical product line consists of water-based primers, adhesives, coatings, resins, additives, and anti-static conductive paints and coatings sold to industrial users in the food packaging, converting, and printing industries. The company also provides research, development, regulatory and engineering services to unaffiliated customers. The filing does not disclose overall market size or growth rate for these industries.

The company's businesses are highly competitive and substantially all of its competitors possess greater experience, financial resources, operating history and marketing capabilities than ADM Tronics. The filing does not name specific competitors or provide market share data. The company does not believe there are one or more dominant competitors in its industries. Competitive advantages cited include a portfolio of new or re-engineered products, an FDA-Registered Medical Device Manufacturing facility, and proprietary water-based chemical formulations that are non-polluting and pose no known health hazards compared to solvent-based alternatives. The Antistatic Industries division develops proprietary low-VOC conductive and antistatic paint and coating formulations that provide alternatives to traditional solvent-based products.

The company generates revenue from three primary sources: the production and sale of electronics for medical devices and other applications, the production and sale of environmentally safe chemical products for industrial, medical and cosmetic uses, and research, development, regulatory and engineering services. Revenue from electronics and chemical products is recognized upon shipment to the purchaser, while engineering services revenue is recognized monthly over time as performance obligations are satisfied. A majority of product sales are distributed directly from the company's headquarters in Northvale, New Jersey, with a portion accomplished through stocking distributors. Contract manufacturing customers typically provide a deposit with each order. The company does not have any long-term contracts with customers; all purchases are made through purchase orders. Two customers accounted for 46% ¹ of net revenue in fiscal 2026 and 48% ² in fiscal 2025, and as of March 31, 2026 and 2025, two customers accounted for 51% ³ and 55% ⁴ respectively of accounts receivable.

The Electronics segment develops and manufactures electronic technologies for non-invasive, electrotherapeutic and diagnostic medical devices as well as for veterinary and other applications. Products are manufactured at the company's FDA-Registered Medical Device Manufacturing facility in Northvale, New Jersey. The company derives revenues from contract manufacturing of electronic medical and other devices from non-affiliated customers. As of March 31, 2026, the company had approximately $956,000 ⁵ of backlog for electronic product orders. For fiscal 2026, US Electronics revenue was $1,838,152 ⁶ and there was no Electronics revenue outside the US ⁷. The company offers a limited 90-day warranty on electronics products and contract manufacturing and a limited 5-year warranty on electronic controllers for spas and hot tubs. The Chemical segment develops, manufactures, and sells water-based primers, adhesives, coatings, resins, additives, and anti-static conductive paints and coatings to industrial users. For fiscal 2026, US Chemical revenue was $622,378 ⁸ and Chemical revenue outside the US was $537,205 ⁹. The Antistatic Industries division, acquired in 2009, develops and distributes conductive and antistatic products including paints, coatings, hoses, garments, floor mats, rugs, tapes, hook-and-loop fasteners, and adhesive products for electronics, computer, pharmaceutical, and chemical manufacturing industries. The division also develops proprietary low-VOC conductive and antistatic paint and coating formulations. None of the company's chemical products are protected by patents, though some product names are protected by trademarks. The Engineering Services segment provides research, development, regulatory and engineering services to unaffiliated customers for the design, development and manufacturing of medical devices, electronics and other technologies and products. For fiscal 2026, US Engineering revenue was $349,347 ¹⁰ and there was no Engineering revenue outside the US ¹¹. The company also develops medical and cosmetic topical products, including water-based adhesive formulations for maxillofacial prosthetic medical applications and for professional makeup applications primarily for special effects in film, TV and theatrical productions.

During the fiscal year ended March 31, 2026, Sonotron Medical Systems, Inc., a former wholly owned subsidiary that had been inactive for several years, was dissolved. The dissolution had no material impact on the company's operations, financial position, or results of operations. The company maintained an inventory ranging from 15% to 30% of sales of chemical products in the form of either raw materials or finished goods. As of March 31, 2026, the company had approximately $956,000 of backlog for electronic product orders. The company's common stock trades on the OTCQB Marketplace under the symbol 'ADMT.' As of March 31, 2026, there were 67,588,492 ¹² shares of common stock issued and outstanding and 1,321 ¹³ shareholders of record. The aggregate market value of voting stock held by non-affiliates as of September 30, 2025 was $6,758,849 ¹⁴. The company's lease for approximately 16,000 ¹⁵ square feet of combined office, manufacturing and warehouse space at 224 Pegasus Avenue, Northvale, New Jersey expires in June 2028 with a monthly rent of $8,906 ¹⁶ subject to certain increases. The company maintains a general liability insurance policy with aggregate product liability coverage of $3,000,000 ¹⁷ for certain of its products.

For the fiscal year ended March 31, 2026, total revenues were $3,347,082 ¹⁸, an increase of $149,972 ¹⁹ or 5% ²⁰ from the prior year. Net loss was $100,374 ²¹ compared to a net loss of $123,056 ²² in fiscal 2025. Basic and diluted loss per share was ($0.00) ²³ for both fiscal 2026 and 2025. Gross profit was $1,355,424 ²⁴ in fiscal 2026 compared to $1,395,660 ²⁵ in fiscal 2025. Loss from operations was $159,097 ²⁶ in fiscal 2026 versus $94,024 ²⁷ in fiscal 2025. The company had cash and cash equivalents of $255,730 ²⁸ as of March 31, 2026, down from $382,969 ²⁹ at March 31, 2025. Net cash used in operating activities was $124,059 ³⁰ in fiscal 2026 compared to net cash provided by operating activities of $9,978 ³¹ in fiscal 2025. The accumulated deficit as of March 31, 2026 was $33,070,594 ³².

The company expects that growth in profitable revenues and continued focus on new customers will enable it to generate cash flows from operating activities. Management's plans to address the going concern conditions include leveraging existing resources and focusing on revenue growth and orders in the pipeline, which are expected to push the company to profitability within the next fiscal year. The company continues to invest in research and development to enhance existing products and develop new solutions that address evolving customer requirements for static control and manufacturing process efficiency. The Antistatic Industries division continues to invest in research and development to enhance existing products and develop new solutions that address evolving customer requirements for static control and manufacturing process efficiency.The company expects its primary source of cash during fiscal 2027 to be net cash provided by operating activities. Management expects that growth in profitable revenues and continued focus on new customers will enable the company to generate cash flows from operating activities. The company has the ability to reduce certain expenses depending on the level of business operation if it does not generate sufficient cash from operations. As of March 31, 2026, the company had approximately $21,000 ³³ available for use through its line of credit. The company expects to have enough cash to fund operations for the next twelve months. The company's lease for approximately 16,000 square feet of space expires in June 2028 with a monthly rent of $8,906 subject to certain increases.

Research and development expenses for company-sponsored activities were $544,971 ³⁴ in fiscal 2026 and $517,275 ³⁵ in fiscal 2025. The company did not expend any funds on customer-sponsored research and development activities other than contracted research and development from engineering services customers. Capital expenditure plans are not explicitly quantified in the filing. The company has never paid any cash dividends on its common stock and has no intention of paying cash dividends in the foreseeable future. The company has no equity compensation plan. As of March 31, 2026, the company had approximately $21,000 available for use through its line of credit. The company has no off-balance sheet arrangements.

The company faces ongoing worldwide shortages of certain electronic components used in the manufacture of circuit boards and shortages in certain chemical raw materials, which have resulted in delays in the ability to manufacture products and, in some cases, increased raw material costs affecting margins. The company has actively sought other suppliers and alternate raw materials, though in many cases these efforts have had limited results, and such shortages are continuing with no assurance as to when they will be resolved. The company is highly dependent on two customers, who accounted for 46% of net revenue in fiscal 2026 and 48% in fiscal 2025, and as of March 31, 2026, two customers accounted for 51% of accounts receivable. All customer purchases are made through purchase orders with no long-term contracts, and the complete loss of or significant reduction in business from any such customers would cause a material adverse change in revenues and operating results. The company has experienced losses from operations and negative cash flows from operating activities, with an accumulated deficit of $33,070,594 as of March 31, 2026, and there is substantial doubt about the company's ability to continue as a going concern for one year from July 7, 2026 , the date the financial statements were available to be issued.

The company faces substantial doubt about its ability to continue as a going concern, having experienced losses from operations and negative cash flows from operating activities, with an accumulated deficit of $33,070,594 as of March 31, 2026. Customer concentration is a material risk: two customers accounted for 46% of net revenue in fiscal 2026 and 48% in fiscal 2025, and as of March 31, 2026, two customers accounted for 51% of accounts receivable, with no long-term contracts in place. The company is exposed to ongoing worldwide shortages of certain electronic components and chemical raw materials, which have resulted in manufacturing delays and increased costs affecting margins, with no assurance as to when these shortages will be resolved. The company's chemical products are not protected by patents, making it easier for competitors to develop similar technologies. The company maintains product liability coverage of $3,000,000 in aggregate, which may be inadequate to cover potential claims. The company's executive officer and director, together with affiliates, beneficially own approximately 38% ³⁶ of outstanding common stock, providing substantial control over corporate actions.

Management's message emphasizes the company's position as a technology-based developer and manufacturer of diversified lines of products and services. The forward-looking statements in the filing indicate management's belief that growth in profitable revenues and continued focus on new customers will enable the company to generate cash flows from operating activities. Management's plans to address the going concern conditions include leveraging existing resources and focusing on revenue growth and orders in the pipeline, which are expected to push the company to profitability within the next fiscal year. The company expects to have enough cash to fund operations for the next twelve months. Management believes that the company's portfolio of new or re-engineered products is strong and that the company is committed to remaining a competitive producer. The strategic priorities emphasized are revenue growth through orders in the pipeline, continued focus on new customers, and leveraging existing resources to achieve profitability.