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ADM Tronics Unlimited, Inc. (ADMT-4.65%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net revenues to $749,510 from $696,496 in the same quarter the previous year. The increase is attributed to higher sales in the Chemical and Engineering segments, despite a decline in Electronics.
Cost of sales for the quarter was $481,331, representing 64% of sales, compared to 54% in the same quarter of the previous year. This increase in cost ratio is due to higher production costs.
The company reported a gross profit of $268,179 for the quarter, compared to $321,421 in the previous year, with the decline attributed to increased costs in the Electronics segment.
Operating expenses decreased to $357,448 from $426,808, primarily due to reduced expenses in the Electronics segment.
Net loss for the quarter was $237,677, compared to a net loss of $105,015 in the previous year. The increased loss is due to other expenses, including a loss from investment.
Cash used in operating activities was $510,933, while cash provided by investing activities was $338,500, and cash provided by financing activities was $66,092.
ADM Tronics had cash and cash equivalents of $430,700 as of December 31, 2024. The company expects to have sufficient liquidity to meet its obligations for the next twelve months.
The filing also details the company's dependence on a small group of customers for a significant portion of its sales, with two customers accounting for 54% of net revenue for the quarter.
The company identified deficiencies in its internal control structure, including inadequate staffing and supervision within accounting operations, which it plans to address as business expands.
ADM Tronics continues to focus on expanding its customer base and increasing revenue through enhanced marketing and production efforts.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ADM Tronics Unlimited, Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.