ADM Tronics Reports 8% Revenue Growth to $3.2M, Improves Operational Loss

ADM Tronics Unlimited, Inc. reported a revenue increase of $231,704, or 8%, for the fiscal year ending March 31, 2025, totaling $3,197,110 compared to $2,965,406 in the previous year. The growth was driven primarily by a $232,469 increase in the engineering segment, while the electronic segment contributed an additional $13,544. However, the chemical segment saw a decline of $14,309. Despite the revenue growth, the company recorded a loss from operations of $123,056, a significant improvement from the previous year's loss of $877,222, attributed to increased gross profit and reduced operating expenses.

The company's operating expenses decreased by $446,634 year-over-year, primarily due to a reduction in selling, general, and administrative costs by $391,134 and a decrease in research and development expenses by $59,628. The net loss for the fiscal year was $121,556, or $0.00 per share, compared to a net loss of $877,222, or $0.01 per share, in the prior year. As of March 31, 2025, ADM Tronics had cash and cash equivalents of $382,969, down from $537,041 a year earlier, reflecting cash provided by operations and financing activities offset by cash used in investing activities.

In terms of operational developments, the company maintained 67,588,492 shares of common stock outstanding and had 1,318 shareholders of record as of March 31, 2025. The company has not paid any cash dividends and plans to retain earnings for business operations and expansion. The company’s customer base remains concentrated, with two customers accounting for 44% of revenue during the fiscal year. The company also reported a significant increase in accounts receivable, which rose to $528,383 from $344,526, indicating a growing customer base and sales activity.

Looking ahead, ADM Tronics aims to leverage existing resources and focus on revenue growth to achieve profitability within the next fiscal year. The management has expressed confidence in generating sufficient cash flows from operations, although there remains substantial doubt about the company's ability to continue as a going concern due to ongoing losses and negative cash flows. The company is also evaluating potential capital needs and may need to reduce expenses or seek additional financing to support its operations and growth initiatives.