• Filing Date: 2019-02-19
  • Form Type: 10-Q
  • Description: Quarterly report
v3.10.0.1
Document And Entity Information - shares
9 Months Ended
Dec. 31, 2018
Feb. 19, 2019
Document Information [Line Items]    
Entity Registrant Name ADM TRONICS UNLIMITED, INC.  
Entity Central Index Key 0000849401  
Trading Symbol admt  
Current Fiscal Year End Date --03-31  
Entity Filer Category Non-accelerated Filer  
Entity Current Reporting Status Yes  
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Common Stock, Shares Outstanding (in shares)   67,588,492
Document Type 10-Q  
Document Period End Date Dec. 31, 2018  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.10.0.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
Dec. 31, 2018
Mar. 31, 2018
Current assets:    
Cash and cash equivalents $ 1,480,778 $ 1,693,532
Accounts receivable, net of allowance for doubtful accounts of $125,000 1,249,237 1,207,493
Inventories 356,453 201,023
Prepaid expenses and other current assets 30,149 12,156
Total current assets 3,116,617 3,114,204
Property and equipment, net of accumulated depreciation of $98,723 and $70,440, at December 31, 2018 and March 31, 2018, respectively 104,837 133,120
Inventories - long-term portion 111,051 111,051
Intangible assets, net of accumulated amortization of $11,686 and $10,639, at December 31, 2018 and March 31, 2018, respectively 9,248 10,295
Other assets 90,764 91,464
Deferred tax asset 1,189,000 1,092,000
Total other assets 1,504,900 1,437,930
Total assets 4,621,517 4,552,134
Current liabilities:    
Capital lease payable 31,196 31,196
Accounts payable 348,285 286,964
Accrued expenses and other current liabilities 127,028 149,382
Customer deposits 182,307 122,167
Due to stockholder 126,857 130,551
Total current liabilities 815,673 720,260
Long-term liabilities    
Capital lease payable, net of current portion 30,497 54,637
Total liabilities 846,170 774,897
Stockholders' equity:    
Preferred stock, $.01 par value; 5,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0005 par value; 150,000,000 shares authorized, 67,588,492 shares issued and outstanding 33,794 33,794
Additional paid-in capital 33,294,069 33,294,069
Accumulated deficit (29,552,516) (29,550,626)
Total stockholders' equity 3,775,347 3,777,237
Total liabilities and stockholders' equity $ 4,621,517 $ 4,552,134
v3.10.0.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
Dec. 31, 2018
Mar. 31, 2018
Allowance for doubtful accounts $ 125,000 $ 125,000
Property and equipment, accumulated depreciation 98,723 70,440
Intangible assets, accumulated amortization $ 11,686 $ 10,639
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 5,000,000 5,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.0005 $ 0.0005
Common stock, authorized (in shares) 150,000,000 150,000,000
Common stock, issued (in shares) 67,588,492 67,588,492
Common stock, outstanding (in shares) 67,588,492 67,588,492
v3.10.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Net revenues $ 739,538 $ 1,021,042 $ 2,351,201 $ 3,098,536
Cost of sales 506,562 471,062 1,143,600 1,443,751
Gross Profit 232,976 549,980 1,207,601 1,654,785
Operating expenses:        
Research and development 115,202 109,167 331,785 398,351
Selling, general and administrative 337,696 357,038 992,187 1,092,083
Total operating expenses 452,898 466,205 1,323,972 1,490,434
Income (loss) from operations (219,922) 83,775 (116,371) 164,351
Other income (expense):        
Interest income 6,846 5,258 20,292 11,806
Interest and finance expenses (838) (728) (2,811) (2,183)
Total other income (expense) 6,008 4,530 17,481 9,623
Income (loss) before provision for income taxes (213,914) 88,305 (98,890) 173,974
Provision (benefit) for income taxes:        
Current (6,000) 1,000 5,000
Deferred (65,000) 235,000 (97,000) 389,000
Total provision (benefit) for income taxes (71,000) 236,000 (97,000) 394,000
Net (loss) $ (142,914) $ (147,695) $ (1,890) $ (220,026)
Basic and diluted earnings per common share: (in dollars per share) $ 0 $ 0 $ 0 $ 0
Weighted average shares of common stock outstanding - basic and diluted (in shares) 67,588,492 67,588,492 67,588,492 67,588,492
v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities:    
Net (loss) $ (1,890) $ (220,026)
Adjustments to reconcile net (loss) to net cash used in operating activities:    
Depreciation and amortization 29,331 29,455
Deferred taxes (97,000) 389,000
(Increase) decrease in operating assets:    
Accounts receivable (41,744) (630,756)
Inventories (155,430) 99,501
Prepaid expenses and other current assets (17,293) 32,312
Increase (decrease) in operating liabilities:    
Accounts payable 61,321 39,363
Customer deposits 60,140
Accrued expenses and other current liabilities (22,354) (10,949)
Due to shareholder (3,694) (65,011)
Net cash (used in) operating activities (188,613) (337,111)
Cash flows from financing activities:    
Repayments on capital lease payable (24,141) (20,827)
Net cash (used in) financing activities (24,141) (20,827)
Net (decrease) in cash and cash equivalents (212,754) (357,938)
Cash and cash equivalents - beginning of period 1,693,532 1,982,276
Cash and cash equivalents - end of period 1,480,778 1,624,338
Cash paid for:    
Interest $ 2,811 $ 2,183
v3.10.0.1
Note 1 - Nature of Business
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
NOTE 
1
 - NATURE OF BUSINESS
 
ADM Tronics Unlimited, Inc., incorporated under the laws of the state of Delaware on 
November 24, 1969,
and subsidiary (collectively, “we”, “us”, the “Company” or “ADM”), is a technology-based developer and manufacturer of diversified lines of products and derive revenues from the production and sale of electronics for medical devices and other applications; environmentally safe chemical products for industrial, medical and cosmetic uses; and, research, development, regulatory and engineering services.
 
The accompanying unaudited condensed consolidated financial statements have been prepared by ADM pursuant to accounting principles generally accepted in the United States (“US GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) including Form 
10
-Q and Regulation S-
X.
 The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the condensed financial position and operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with US GAAP have been omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and explanatory notes for the year ended 
March 31, 2018 
as disclosed in our annual report on Form 
10
-K for that year. The operating results and cash flows for the
three
and
nine
months ended 
December 31, 2018 (
unaudited) are 
not
 necessarily indicative of the results to be expected for the pending full year ending 
March 31, 2019.  
v3.10.0.1
Note 2 - Significant Accounting Policies
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
NOTE 
2
 - SIGNIFICANT ACCOUNTING POLICIES
 
PRINCIPLES OF CONSOLIDATION
 
The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary, Sonotron Medical Systems, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
 
USE OF ESTIMATES
 
These unaudited condensed consolidated financial statements have been prepared in accordance with US GAAP and, accordingly, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our medical devices, reserves, deferred tax assets, valuation allowance, impairment of long lived assets, fair value of equity instruments issued to consultants for services and fair value of equity instruments issued to others, option and warrant expenses related to compensation to employees and directors, consultants and investment banks, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.  
 
REVENUE RECOGNITION 
 
In
May 2014,
the FASB issued guidance codified in ASC
606
which amends the guidance in former ASC
605,
“Revenue Recognition.” The core principle of the standard is to recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration expected to be received for those goods or services. The standard also requires additional disclosures around the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
 
We typically extend credit terms to our customers based on their credit worthiness and generally do
not
receive advance payments. As such, we record accounts receivable at the time of shipment, when our right to the consideration becomes unconditional. Accounts receivable from our customers are typically due within
30
days of invoicing. An allowance for doubtful accounts is provided based on a periodic analysis of individual account balances, including an evaluation of days outstanding, payment history, recent payment trends, and our assessment of our customers' creditworthiness.
 
CHEMICAL PRODUCTS:
 
Revenues are recognized upon shipment to a customer because that is when the customer obtains control of the promised good.
  
ELECTRONICS: 
 
We recognize revenue from the sale of our electronic products upon shipment to a customer because that is when the customer obtains control of the promised good. We offer a limited 
90
-day warranty on our electronics products. We have 
no
 other post shipment obligations. Based on prior experience, 
no
 amounts have been accrued for potential warranty costs and actual costs were less than 
$2,000,
 for each of the
three
and 
nine
months ended
December 31, 2018
and
2017.
 For contract manufacturing, revenues are recognized after shipment of the completed products. 
 
ENGINEERING SERVICES: 
 
We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services as the services are provided.  
 
EARNINGS PER SHARE
 
Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive.
  
Per share basic and diluted earnings amounted to 
$0.00
 for both the 
three
and
nine
 months ended 
December 31, 2018
and
December 31, 2017, 
respectively.
 
RECENT ACCOUNTING PRONOUNCEMENTS
 
In accordance with the Company's implementation of ASU
2015
-
17
"Income Taxes, Balance Sheet Classification of Deferred Taxes", deferred tax assets and liabilities have been netted and presented as
one
non-current amount. The Company has applied this standard retroactively to all periods presented. The implementation of this standard did
not
have an impact on the Company's financial statements.
 
Effective
April 1, 2018
the Company adopted ASC Topic
606
“Revenue from Contracts with Customers”, using the modified retrospective method. This guidance supersedes nearly all existing revenue recognition guidance under US GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. The Company has drafted its accounting policy for the new standard based on a detailed review of its business and contracts. Based on the new guidance, the Company will continue recognizing revenue at the time its products are shipped, and therefore adoption of the standard did
not
have a material impact on its consolidated financial statements and is
not
expected to have a material impact in the future.
 
In
July 2015,
the FASB issued ASU
2015
-
11,
“ Inventory. Simplifying the Measurement of Inventory.” This amendment requires companies to measure inventory at the lower of cost and net realizable value. The Company adopted this amendment in
April 2017,
and the implementation did
not
have a material impact on the Company's consolidated financial statements.
 
In
February 2016,
the FASB issued ASU
2016
-
02,
“Leases”, which is intended to improve financial reporting for lease transactions. This ASU will require organizations that lease assets, such as real estate and manufacturing equipment, to recognize both assets and liabilities on their balance sheet for the rights to use those assets for the lease term and obligations to make the lease payments created by those leases that have terms of greater than
12
months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as finance or operating lease. This ASU will also require disclosures to help investors and other financial statement users better understand the amount and timing of cash flows arising from leases. These disclosures will include qualitative and quantitative requirements, providing additional information about the amounts recorded in the consolidated financial statements. This ASU will be adopted by the Company in
April 2019.
We do
not
believe that this ASU will have a material impact on our consolidated financial statements.
 
In
June 2016,
the FASB issued ASU-
2016
-
13
“Financial Instruments – Credit Losses”. This guidance affects organizations that hold financial assets and net investments in leases that are
not
accounted for at fair value with changes in fair value reported in net income. The guidance requires organizations to measure all expected credit losses for financial instruments at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. It is effective for fiscal years beginning after
December 15, 2019.
The Company is evaluating the potential impact on the Company’s consolidated financial statements.
 
In
February 2018,
the FASB issued ASU
2018
-
02,
“Income Statement- Reporting Comprehensive Income (Topic
220
): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This guidance gives businesses the option of reclassifying to retained earnings the so-called “stranded tax effects” left in accumulated other comprehensive income due to the reduction in the corporate income tax rate resulting from the
2017
Tax Cuts and Jobs Act. This amendment is effective for all organizations for fiscal years beginning after
December 15, 2018
and interim periods within those fiscal years. Early adoption is allowed. We do
not
believe that this ASU will have a material impact on our consolidated financial statements.
 
In
June 2018,
the FASB issued ASU
2018
-
07,
“Stock Compensation (Topic
718
): Improvements to Nonemployee Share-Based Payment Accounting.” This guidance intends to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. This amendment is effective for public companies with fiscal years beginning after
December 15, 2018,
including interim periods within that fiscal year. Early adoption is permitted. This ASU does
not
apply to the company at this time.
 
Management does
not
believe that any other recently issued, but
not
yet effective accounting pronouncement, if adopted, would have a material effect on the accompanying consolidated financial statements.
v3.10.0.1
Note 3 - Inventories
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Inventory Disclosure [Text Block]
NOTE 
3
 - INVENTORIES
       
 
Inventories at
December 31, 2018
consisted of the following:
 
   
Current
   
Long Term
   
Total
 
Raw materials
  $
313,777
    $
110,433
    $
424,210
 
Finished goods
   
42,676
     
618
     
43,294
 
    $
356,453
    $
111,051
    $
467,504
 
 
Inventories at
March 31, 2018
consisted of the following:
 
   
Current
   
Long Term
   
Total
 
Raw materials
  $
168,640
    $
110,433
    $
279,073
 
Finished goods
   
32,383
     
618
     
33,001
 
    $
201,023
    $
111,051
    $
312,074
 
 
The Company values its inventories at the lower of cost and net realizable value using the 
first
 in, 
first
 out (“FIFO”) method.
v3.10.0.1
Note 4 - Concentrations
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE 
4
 – CONCENTRATIONS
 
During the 
three
 months ended 
December 31, 2018
two
customers accounted for
61%
 of our net revenue. During the 
nine
months ended 
December 
31,
2018
two
customers accounted for
56%
 of our net revenue.
 
As of 
December 31, 2018, 
three
 customers represented 
99%
 of our net accounts receivable.
 
During the
three
months ended 
December 31, 2017
three
customers accounted for
52%
of our net revenue. During the
nine
months ended
December 31, 2017
three
customers accounted for
59%
of our net revenue.
 
As of 
March 31, 2018, 
two
 customers represented 
93%
 of our net accounts receivable.
 
The Company’s customer base is comprised of foreign and domestic entities with diverse demographics. Net revenues from foreign customers for the
three
and
nine
months ended
December 31, 2018
was
$77,275
or
10%
and
$324,814
 or
14%,
respectively.
 
Net revenues from foreign customers for the 
three
 and 
nine
 months ended 
December 31, 2017,
was 
$92,967
 or 
9%
 and 
$251,825
 or 
8%,
 respectively. 
 
As of  
December 31, 2018, 
and 
March 31, 2018, 
accounts receivable included 
$38,999
 and 
$39,995,
 respectively, from foreign customers.
v3.10.0.1
Note 5 - Disaggregated Revenues and Segment Information
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
NOTE 
5
 - DISAGGREGATED REVENUES AND SEGMENT INFORMATION
 
The following tables show the Company's revenues disaggregated by reportable segment and by product and service type:
 
   
Three months Ended December 31,
 
   
2018
   
2017
 
Net Revenue in the US
               
Chemical
  $
204,156
    $
342,976
 
Electronics
   
181,779
     
120,545
 
Engineering
   
276,328
     
464,554
 
     
662,263
     
928,075
 
                 
Net Revenue outside the US
               
Chemical
   
77,275
     
89,827
 
Electronics
   
-
     
3,140
 
Engineering
   
-
     
-
 
     
77,275
     
92,967
 
                 
Total Revenues
  $
739,538
    $
1,021,042
 
 
   
Nine months Ended December 31,
 
   
2018
   
2017
 
Net Revenue in the US
               
Chemical
  $
768,485
    $
815,551
 
Electronics
   
405,486
     
944,981
 
Engineering
   
852,416
     
1,086,179
 
     
2,026,387
     
2,846,711
 
                 
Net Revenue outside the US
               
Chemical
   
299,814
     
236,364
 
Electronics
   
25,000
     
15,461
 
Engineering
   
-
     
-
 
     
324,814
     
251,825
 
                 
Total Revenues
  $
2,351,201
    $
3,098,536
 
 
 
Information about segments is as follows:
 
   
Chemical
   
Electronics
   
Engineering
   
Total
 
Three months ended December 31, 2018
                               
Revenue from external customers
  $
281,431
    $
181,779
    $
276,328
    $
739,538
 
Segment operating income
  $
(70,274
)   $
(166,740
)   $
17,092
    $
(219,922
)
                                 
Nine months ended December 31, 2018
                               
Revenue from external customers
  $
1,068,299
    $
430,486
    $
852,416
    $
2,351,201
 
Segment operating income
  $
89,456
    $
(313,649
)   $
107,822
    $
(116,371
)
                                 
Three months ended December 31, 2017
                               
Revenue from external customers
  $
432,802
    $
123,685
    $
464,555
    $
1,021,042
 
Segment operating income
  $
2,086
    $
(34,788
)   $
11,477
    $
83,775
 
                                 
Nine months ended December 31, 2017
                               
Revenue from external customers
  $
1,051,915
    $
960,442
    $
1,086,179
    $
3,098,536
 
Segment operating income
  $
88,622
    $
(111,864
)   $
187,593
    $
164,351
 
                                 
                                 
Total assets at December 31, 2018
  $
2,099,847
    $
846,163
    $
1,675,507
    $
4,621,517
 
                                 
Total assets at March 31, 2018
  $
1,687,276
    $
1,280,908
    $
1,583,950
    $
4,552,134
 
v3.10.0.1
Note 6 - Options Outstanding
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 
6
 - OPTIONS OUTSTANDING
 
 
On 
September 2, 2015, 
ADM granted 
3,000,000
 stock options to employees at an exercise price of 
$0.20
 per option and with a term of 
three
 years. The options were valued at 
$598,699
 using the Black Scholes option pricing model with the following assumptions: risk free interest rate of 
2.03%,
 volatility of 
353%,
 estimated useful life of 
3
 years and dividend rate of 
0%.
  The options expired on
September 30, 2018.
 
The following table summarizes information on all common share purchase options issued by us for the
nine
-month period ended
December 31, 2018 
and the year ended
March 31, 2018.
 
 
 
  
   
December 31, 2018
   
March 31, 2018
 
   
# of Shares
   
Weighted
Average
Exercise
Price
   
# of Shares
   
Weighted
Average
Exercise
Price
 
                                 
Outstanding, beginning of period/year
   
3,000,000
    $
0.20
     
3,000,000
    $
0.20
 
                                 
Issued
   
-
     
-
     
-
     
-
 
                                 
Exercised
   
-
     
-
     
-
     
-
 
                                 
Expired
   
(3,000,000
)
  $
0.20
     
-
     
-
 
                                 
Outstanding, end of period/year
   
-
     
-
     
3,000,000
    $
0.20
 
                                 
Exercisable, end of period/year
   
-
     
-
     
3,000,000
    $
0.20
 
v3.10.0.1
Note 7 - Commitments and Contingencies
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
 
NOTE 
7
 - COMMITMENTS AND CONTINGENCIES
 
We lease our office and manufacturing facility under a non-cancelable operating lease, which expires on 
June 30, 
2028.
 The Company’s future minimum lease commitment at 
December 31, 2018 
is as follows: 
 
For the twelve-month period ended December 31,
 
Amount
 
2019
  $
101,875
 
2020
   
101,875
 
2021
   
101,875
 
2022
   
101,875
 
2023
   
104,375
 
Thereafter
   
480,937
 
         
    $
992,812
 
 
Rent and real estate tax expense for all facilities for the 
three
and
nine
months ended
December 31, 2018
and
2017
 was approximately 
$19,000
and
$55,000,
and
$75,000
and
$24,000,
respectively. 
 
On 
December 2, 2016, 
the Company entered into a capital lease agreement with a commercial bank in the amount of 
$85,680,
 including 
$6,930
 in deferred interest, for the purchase of certain property and equipment. The lease has a term of 
forty-eight
 (
48
) months and is payable in 
forty-eight
 equal installments of 
$1,785.
 The balance of this obligation as of  
December 31, 2018, 
was 
$37,735.
 
On 
December 2, 2016, 
the Company entered into a capital lease agreement with a commercial bank in the amount of 
$54,710,
 including 
$4,710
 in deferred interest, for the purchase of certain property and equipment. The lease has a term of 
forty-eight
 (
48
) months and is payable in 
forty-eight
 equal installments of 
$1,139.
 The balance of this obligation as of  
December 31, 2018, 
was 
$23,958.
v3.10.0.1
Note 8 - Line of Credit
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Debt Disclosure [Text Block]
NOTE 
8
 – LINE OF CREDIT
 
On
June 15, 2018,
the Company obtained an unsecured revolving line of credit, with a limit of
$400,000.
  The line expires
May 16, 2019
,
renewing automatically every year.  The Company is required to make monthly interest payments, at a rate of
5.37%.
  Any unpaid principal will be due upon maturity.  At
December 31, 2018,
the outstanding balance was $-
0
-.
v3.10.0.1
Note 9 - Income Taxes
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE 
9
 - INCOME TAXES
 
At  
December 31, 2018, 
the Company had federal net operating loss carry-forwards ("NOL")'s of approximately 
$2,317,000.
 
These NOLs 
may 
be used to offset future taxable income and thereby reduce or eliminate our federal income taxes otherwise payable. A valuation allowance is provided when it is more likely than 
not
 that some portion or all of the deferred tax assets will 
not
 be realized. Ultimate utilization of such NOLs and research and development credits is dependent upon the Company's ability to generate taxable income in future periods and 
may 
be significantly curtailed if a significant change in
 
ownership occurs.
  
During the 
nine
months ended 
December 31, 2018, 
the Company did
not
utilize the net operating losses, however, expects to utilize the entire 
$2,317,000
 before expiration.
 
The effective rates were approximately 
98%
 and
184%
 for the 
nine
months ended
December 31, 2018
and
2017,
 respectively. 
v3.10.0.1
Note 10 - Due to Stockholder
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Compensation Related Costs, General [Text Block]
NOTE 
10
 – DUE TO STOCKHOLDER
 
The Company’s President has been deferring his salary and bonuses periodically to assist the Company’s cash flow. There are 
no
 repayment terms or interest accruing on this liability. 
v3.10.0.1
Note 11 - Restatements
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Accounting Changes and Error Corrections [Text Block]
NOTE 
11
 –
RESTATEMENTS
 
During the audit of
March 31, 2018,
it was discovered that there were certain inventory and segment allocation errors during the previous quarters. The
December 2017
condensed consolidated statements of income and cash flows reflects these restatements.
v3.10.0.1
Note 12 - Subsequent Events
9 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Subsequent Events [Text Block]
NOTE 
12
 – SUBSEQUENT EVENTS
 
We evaluated all subsequent events from the date of the condensed consolidated balance sheet through the issuance date and determined that there are 
no
 events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the condensed consolidated financial statements. 
v3.10.0.1
Significant Accounting Policies (Policies)
9 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Consolidation, Policy [Policy Text Block]
RINCIPLES OF CONSOLIDATION
 
The condensed consolidated financial statements include the accounts of ADM Tronics Unlimited, Inc. and its wholly owned subsidiary, Sonotron Medical Systems, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]
USE OF ESTIMATES
 
These unaudited condensed consolidated financial statements have been prepared in accordance with US GAAP and, accordingly, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. Significant estimates made by management include expected economic life and value of our medical devices, reserves, deferred tax assets, valuation allowance, impairment of long lived assets, fair value of equity instruments issued to consultants for services and fair value of equity instruments issued to others, option and warrant expenses related to compensation to employees and directors, consultants and investment banks, allowance for doubtful accounts, and warranty reserves. Actual results could differ from those estimates.
Revenue Recognition, Policy [Policy Text Block]
REVENUE RECOGNITION 
 
In
May 2014,
the FASB issued guidance codified in ASC
606
which amends the guidance in former ASC
605,
“Revenue Recognition.” The core principle of the standard is to recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration expected to be received for those goods or services. The standard also requires additional disclosures around the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
 
We typically extend credit terms to our customers based on their credit worthiness and generally do
not
receive advance payments. As such, we record accounts receivable at the time of shipment, when our right to the consideration becomes unconditional. Accounts receivable from our customers are typically due within
30
days of invoicing. An allowance for doubtful accounts is provided based on a periodic analysis of individual account balances, including an evaluation of days outstanding, payment history, recent payment trends, and our assessment of our customers' creditworthiness.
 
CHEMICAL PRODUCTS:
 
Revenues are recognized upon shipment to a customer because that is when the customer obtains control of the promised good.
  
ELECTRONICS: 
 
We recognize revenue from the sale of our electronic products upon shipment to a customer because that is when the customer obtains control of the promised good. We offer a limited 
90
-day warranty on our electronics products. We have 
no
 other post shipment obligations. Based on prior experience, 
no
 amounts have been accrued for potential warranty costs and actual costs were less than 
$2,000,
 for each of the
three
and 
nine
months ended
December 31, 2018
and
2017.
 For contract manufacturing, revenues are recognized after shipment of the completed products. 
 
ENGINEERING SERVICES: 
 
We provide certain engineering services, including research, development, quality control, and quality assurance services along with regulatory compliance services. We recognize revenue from engineering services as the services are provided.
Earnings Per Share, Policy [Policy Text Block]
EARNINGS PER SHARE
 
Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share is computed similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive.
  
Per share basic and diluted earnings amounted to 
$0.00
 for both the 
three
and
nine
 months ended 
December 31, 2018
and
December 31, 2017, 
respectively.
New Accounting Pronouncements, Policy [Policy Text Block]
RECENT ACCOUNTING PRONOUNCEMENTS
 
In accordance with the Company's implementation of ASU
2015
-
17
"Income Taxes, Balance Sheet Classification of Deferred Taxes", deferred tax assets and liabilities have been netted and presented as
one
non-current amount. The Company has applied this standard retroactively to all periods presented. The implementation of this standard did
not
have an impact on the Company's financial statements.
 
Effective
April 1, 2018
the Company adopted ASC Topic
606
“Revenue from Contracts with Customers”, using the modified retrospective method. This guidance supersedes nearly all existing revenue recognition guidance under US GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. The Company has drafted its accounting policy for the new standard based on a detailed review of its business and contracts. Based on the new guidance, the Company will continue recognizing revenue at the time its products are shipped, and therefore adoption of the standard did
not
have a material impact on its consolidated financial statements and is
not
expected to have a material impact in the future.
 
In
July 2015,
the FASB issued ASU
2015
-
11,
“ Inventory. Simplifying the Measurement of Inventory.” This amendment requires companies to measure inventory at the lower of cost and net realizable value. The Company adopted this amendment in
April 2017,
and the implementation did
not
have a material impact on the Company's consolidated financial statements.
 
In
February 2016,
the FASB issued ASU
2016
-
02,
“Leases”, which is intended to improve financial reporting for lease transactions. This ASU will require organizations that lease assets, such as real estate and manufacturing equipment, to recognize both assets and liabilities on their balance sheet for the rights to use those assets for the lease term and obligations to make the lease payments created by those leases that have terms of greater than
12
months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as finance or operating lease. This ASU will also require disclosures to help investors and other financial statement users better understand the amount and timing of cash flows arising from leases. These disclosures will include qualitative and quantitative requirements, providing additional information about the amounts recorded in the consolidated financial statements. This ASU will be adopted by the Company in
April 2019.
We do
not
believe that this ASU will have a material impact on our consolidated financial statements.
 
In
June 2016,
the FASB issued ASU-
2016
-
13
“Financial Instruments – Credit Losses”. This guidance affects organizations that hold financial assets and net investments in leases that are
not
accounted for at fair value with changes in fair value reported in net income. The guidance requires organizations to measure all expected credit losses for financial instruments at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. It is effective for fiscal years beginning after
December 15, 2019.
The Company is evaluating the potential impact on the Company’s consolidated financial statements.
 
In
February 2018,
the FASB issued ASU
2018
-
02,
“Income Statement- Reporting Comprehensive Income (Topic
220
): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This guidance gives businesses the option of reclassifying to retained earnings the so-called “stranded tax effects” left in accumulated other comprehensive income due to the reduction in the corporate income tax rate resulting from the
2017
Tax Cuts and Jobs Act. This amendment is effective for all organizations for fiscal years beginning after
December 15, 2018
and interim periods within those fiscal years. Early adoption is allowed. We do
not
believe that this ASU will have a material impact on our consolidated financial statements.
 
In
June 2018,
the FASB issued ASU
2018
-
07,
“Stock Compensation (Topic
718
): Improvements to Nonemployee Share-Based Payment Accounting.” This guidance intends to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. This amendment is effective for public companies with fiscal years beginning after
December 15, 2018,
including interim periods within that fiscal year. Early adoption is permitted. This ASU does
not
apply to the company at this time.
 
Management does
not
believe that any other recently issued, but
not
yet effective accounting pronouncement, if adopted, would have a material effect on the accompanying consolidated financial statements.
v3.10.0.1
Note 3 - Inventories (Tables)
9 Months Ended
Dec. 31, 2018
Notes Tables  
Schedule Of Inventory [Table Text Block]
   
Current
   
Long Term
   
Total
 
Raw materials
  $
313,777
    $
110,433
    $
424,210
 
Finished goods
   
42,676
     
618
     
43,294
 
    $
356,453
    $
111,051
    $
467,504
 
   
Current
   
Long Term
   
Total
 
Raw materials
  $
168,640
    $
110,433
    $
279,073
 
Finished goods
   
32,383
     
618
     
33,001
 
    $
201,023
    $
111,051
    $
312,074
 
v3.10.0.1
Note 5 - Disaggregated Revenues and Segment Information (Tables)
9 Months Ended
Dec. 31, 2018
Notes Tables  
Revenue from External Customers by Geographic Areas [Table Text Block]
   
Three months Ended December 31,
 
   
2018
   
2017
 
Net Revenue in the US
               
Chemical
  $
204,156
    $
342,976
 
Electronics
   
181,779
     
120,545
 
Engineering
   
276,328
     
464,554
 
     
662,263
     
928,075
 
                 
Net Revenue outside the US
               
Chemical
   
77,275
     
89,827
 
Electronics
   
-
     
3,140
 
Engineering
   
-
     
-
 
     
77,275
     
92,967
 
                 
Total Revenues
  $
739,538
    $
1,021,042
 
   
Nine months Ended December 31,
 
   
2018
   
2017
 
Net Revenue in the US
               
Chemical
  $
768,485
    $
815,551
 
Electronics
   
405,486
     
944,981
 
Engineering
   
852,416
     
1,086,179
 
     
2,026,387
     
2,846,711
 
                 
Net Revenue outside the US
               
Chemical
   
299,814
     
236,364
 
Electronics
   
25,000
     
15,461
 
Engineering
   
-
     
-
 
     
324,814
     
251,825
 
                 
Total Revenues
  $
2,351,201
    $
3,098,536
 
Schedule of Segment Reporting Information, by Segment [Table Text Block]
   
Chemical
   
Electronics
   
Engineering
   
Total
 
Three months ended December 31, 2018
                               
Revenue from external customers
  $
281,431
    $
181,779
    $
276,328
    $
739,538
 
Segment operating income
  $
(70,274
)   $
(166,740
)   $
17,092
    $
(219,922
)
                                 
Nine months ended December 31, 2018
                               
Revenue from external customers
  $
1,068,299
    $
430,486
    $
852,416
    $
2,351,201
 
Segment operating income
  $
89,456
    $
(313,649
)   $
107,822
    $
(116,371
)
                                 
Three months ended December 31, 2017
                               
Revenue from external customers
  $
432,802
    $
123,685
    $
464,555
    $
1,021,042
 
Segment operating income
  $
2,086
    $
(34,788
)   $
11,477
    $
83,775
 
                                 
Nine months ended December 31, 2017
                               
Revenue from external customers
  $
1,051,915
    $
960,442
    $
1,086,179
    $
3,098,536
 
Segment operating income
  $
88,622
    $
(111,864
)   $
187,593
    $
164,351
 
                                 
                                 
Total assets at December 31, 2018
  $
2,099,847
    $
846,163
    $
1,675,507
    $
4,621,517
 
                                 
Total assets at March 31, 2018
  $
1,687,276
    $
1,280,908
    $
1,583,950
    $
4,552,134
 
v3.10.0.1
Note 6 - Options Outstanding (Tables)
9 Months Ended
Dec. 31, 2018
Notes Tables  
Share-based Compensation, Stock Options, Activity [Table Text Block]
   
December 31, 2018
   
March 31, 2018
 
   
# of Shares
   
Weighted
Average
Exercise
Price
   
# of Shares
   
Weighted
Average
Exercise
Price
 
                                 
Outstanding, beginning of period/year
   
3,000,000
    $
0.20
     
3,000,000
    $
0.20
 
                                 
Issued
   
-
     
-
     
-
     
-
 
                                 
Exercised
   
-
     
-
     
-
     
-
 
                                 
Expired
   
(3,000,000
)
  $
0.20
     
-
     
-
 
                                 
Outstanding, end of period/year
   
-
     
-
     
3,000,000
    $
0.20
 
                                 
Exercisable, end of period/year
   
-
     
-
     
3,000,000
    $
0.20
 
v3.10.0.1
Note 7 - Commitments and Contingencies (Tables)
9 Months Ended
Dec. 31, 2018
Notes Tables  
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
For the twelve-month period ended December 31,
 
Amount
 
2019
  $
101,875
 
2020
   
101,875
 
2021
   
101,875
 
2022
   
101,875
 
2023
   
104,375
 
Thereafter
   
480,937
 
         
    $
992,812
 
v3.10.0.1
Note 2 - Significant Accounting Policies (Details Textual) - USD ($)
3 Months Ended 9 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Earnings Per Share, Basic and Diluted, Total $ 0 $ 0 $ 0 $ 0
Maximum [Member]        
Product Warranty Expense $ 2,000 $ 2,000 $ 2,000 $ 2,000
Electronic Products [Member]        
Warranty Term     90 days  
v3.10.0.1
Note 3 - Inventories - Summary of Inventory (Details) - USD ($)
Dec. 31, 2018
Mar. 31, 2018
Raw materials $ 424,210 $ 279,073
Finished goods 43,294 33,001
467,504 312,074
Current [Member]    
Raw materials 313,777 168,640
Finished goods 42,676 32,383
356,453 201,023
Long Term [Member    
Raw materials 110,433 110,433
Finished goods 618 618
$ 111,051 $ 111,051
v3.10.0.1
Note 4 - Concentrations (Details Textual)
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Mar. 31, 2018
USD ($)
Revenue from Contract with Customer, Including Assessed Tax $ 739,538 $ 1,021,042 $ 2,351,201 $ 3,098,536  
Accounts Receivable, Net, Current, Total 1,249,237   1,249,237   $ 1,207,493
Foreign Customers [Member]          
Accounts Receivable, Net, Current, Total $ 38,999   $ 38,999   $ 39,995
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]          
Concentration Risk, Number of Customers 2 3 2 3  
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Two Customers [Member]          
Concentration Risk, Percentage 61.00%   56.00%    
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Foreign Customers [Member]          
Concentration Risk, Percentage 10.00% 9.00% 14.00% 8.00%  
Revenue from Contract with Customer, Including Assessed Tax $ 77,275 $ 92,967 $ 324,814 $ 251,825  
Customer Concentration Risk [Member] | Accounts Receivable [Member]          
Concentration Risk, Number of Customers         2
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customers [Member]          
Concentration Risk, Percentage         93.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Three Customers [Member]          
Concentration Risk, Number of Customers     3    
Concentration Risk, Percentage   52.00% 99.00% 59.00%  
v3.10.0.1
Note 5 - Disaggregated Revenues and Segment Information - Net Revenue, Classified by Geography (Details) - USD ($)
3 Months Ended 9 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Net revenues $ 739,538 $ 1,021,042 $ 2,351,201 $ 3,098,536
Chemical [Member]        
Net revenues 281,431 432,802 1,068,299 1,051,915
Electronics [Member]        
Net revenues 181,779 123,685 430,486 960,442
Engineering [Member]        
Net revenues 276,328 464,555 852,416 1,086,179
UNITED STATES        
Net revenues 662,263 928,075 2,026,387 2,846,711
UNITED STATES | Chemical [Member]        
Net revenues 204,156 342,976 768,485 815,551
UNITED STATES | Electronics [Member]        
Net revenues 181,779 120,545 405,486 944,981
UNITED STATES | Engineering [Member]        
Net revenues 276,328 464,554 852,416 1,086,179
Non-US [Member]        
Net revenues 77,275 92,967 324,814 251,825
Non-US [Member] | Chemical [Member]        
Net revenues 77,275 89,827 299,814 236,364
Non-US [Member] | Electronics [Member]        
Net revenues 3,140 25,000 15,461
Non-US [Member] | Engineering [Member]        
Net revenues
v3.10.0.1
Note 5 - Disaggregated Revenues and Segment Information - Summary of Segment Information (Details) - USD ($)
3 Months Ended 9 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Mar. 31, 2018
Revenue from external customers $ 739,538 $ 1,021,042 $ 2,351,201 $ 3,098,536  
Segment operating income (219,922) 83,775 (116,371) 164,351  
Total assets 4,621,517   4,621,517   $ 4,552,134
Chemical [Member]          
Revenue from external customers 281,431 432,802 1,068,299 1,051,915  
Segment operating income (70,274) 2,086 89,456 88,622  
Total assets 2,099,847   2,099,847   1,687,276
Electronics [Member]          
Revenue from external customers 181,779 123,685 430,486 960,442  
Segment operating income (166,740) (34,788) (313,649) (111,864)  
Total assets 846,163   846,163   1,280,908
Engineering [Member]          
Revenue from external customers 276,328 464,555 852,416 1,086,179  
Segment operating income 17,092 $ 11,477 107,822 $ 187,593  
Total assets $ 1,675,507   $ 1,675,507   $ 1,583,950
v3.10.0.1
Note 6 - Options Outstanding (Details Textual) - USD ($)
9 Months Ended 12 Months Ended
Sep. 02, 2015
Dec. 31, 2018
Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross 3,000,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price $ 0.20
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period 3 years    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value $ 598,699    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate 2.03%    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate 353.00%    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term 3 years    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate 0.00%    
v3.10.0.1
Note 6 - Options Outstanding - Summary of Stock Option Activity (Details) - $ / shares
9 Months Ended 12 Months Ended
Sep. 02, 2015
Dec. 31, 2018
Mar. 31, 2018
Outstanding, beginning of period/year (in shares)   3,000,000 3,000,000
Outstanding, beginning of period/year (in dollars per share)   $ 0.20 $ 0.20
Issued (in shares) 3,000,000
Issued, weighted average exercise price (in dollars per share) $ 0.20
Exercised (in shares)  
Exercised, weighted average exercise price (in dollars per share)  
Expired (in shares)   (3,000,000)
Expired, weighted average exercise price (in dollars per share)   $ 0.20
Outstanding, end of period/year (in shares)   3,000,000
Outstanding, end of period/year (in dollars per share)   $ 0.20
Exercisable, end of period/year (in shares)   3,000,000
Exercisable, end of period/year (in dollars per share)   $ 0.20
v3.10.0.1
Note 7 - Commitments and Contingencies (Details Textual)
3 Months Ended 9 Months Ended
Dec. 02, 2016
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Operating Leases, Rent Expense, Total   $ 19,000 $ 75,000 $ 55,000 $ 24,000
Capital Lease Agreement One [Member]          
Capital Lease Obligations, Gross $ 85,680        
Capital Lease Obligations, Deferred Interest $ 6,930        
Debt Instrument, Term 4 years        
Capital Lease Obligations, Number of Installments 48        
Debt Instrument, Periodic Payment, Total $ 1,785        
Capital Lease Obligations, Total   37,735   37,735  
Capital Lease Agreement Two [Member]          
Capital Lease Obligations, Gross 54,710        
Capital Lease Obligations, Deferred Interest $ 4,710        
Debt Instrument, Term 4 years        
Capital Lease Obligations, Number of Installments 48        
Debt Instrument, Periodic Payment, Total $ 1,139        
Capital Lease Obligations, Total   $ 23,958   $ 23,958  
v3.10.0.1
Note 7 - Commitments and Contingencies - Future Minimum Lease Payments (Details)
Dec. 31, 2018
USD ($)
2019 $ 101,875
2020 101,875
2021 101,875
2022 101,875
2023 104,375
Thereafter 480,937
$ 992,812
v3.10.0.1
Note 8 - Line of Credit (Details Textual) - Revolving Credit Facility [Member] - USD ($)
Jun. 15, 2018
Dec. 31, 2018
Line of Credit Facility, Maximum Borrowing Capacity $ 400,000  
Debt Instrument, Interest Rate, Stated Percentage 5.37%  
Short-term Debt, Total   $ 0
Line of Credit Facility, Expiration Date May 16, 2019  
v3.10.0.1
Note 9 - Income Taxes (Details Textual) - USD ($)
9 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Operating Loss Carryforwards, Total $ 2,317,000  
Operating Loss Carry-Forward, Expected Utilization Amount $ 2,317,000  
Effective Income Tax Rate Reconciliation, Percent, Total 98.00% 184.00%
v3.10.0.1
Note 10 - Due to Stockholder (Details Textual)
$ in Thousands
Dec. 31, 2018
USD ($)
Deferred Compensation Liability, Interest Accrued $ 0